AVALON CITY COUNCIL MEETING TUESDAY, NOVEMBER 19, 2024 - 5:00 PM 410 AVALON CANYON ROAD  AGENDA  Inc compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office (310) 510-0220. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR: 35. 102- 35.104 ADA Title II). All public records relating to an agenda item on this agenda are available for the public inspection at the time the records are distributed to all, or a majority of all, members oft the City Council. Such For the public's convenience, but not participation, the meeting can be viewed:  records shall be available at City Hall located at 410 Avalon Canyon Rd.  On local cable: Catalina Broadband Solutions channel 3 Streaming on Facebook Live: www.tacebook.com/CIyOTAValonOfficial Streaming on YouTube: nttpswww.youtube.com/CityofAvaloncA  CALL TO ORDER/PLEDGE OF ALLEGIANCE/INVOCATION/ROLL CALL  ANNOUNCEMENTS/WRITTEN COMMUNICATIONS  DEPARTMENT HEAD REPORTS  CITY MANAGER REPORT/CITY ATTORNEY REPORT COUNCILMEMBER REPORTS/REQUESTS/MAYOR REPORT  ORAL COMMUNICATION  Members of the public may address the City Council at this time. No action willl be taken on non- agenda items at this meeting. Speakers should limit comments to two (2) minutes each.  CONSENT CALENDAR 1. City Council Minutes  Although the live recording is the official record of public meetings, minutes are prepared Approve minutes from the November 5, 2024 regular City Council Meetings.  for the Council's approval. Recommended Action  2.  Warrants  Expenditures Submitted for Approval  Warrants from the US General Fund in the amount of $779,442.86.  One payroll totaling $260,467.54.  Two electronic fund transfers totaling $97,249.70.  Recommended Action $1,137,160.10.  Approve total expenditures for October 28, 2024 through November 8, 2024 totaling    CITY COUNCIL AGENDA NOVEMBER 19, 2024 PAGE 2 3.  Declare Mobile Crane as Surplus  Historically, the City Council is presented with a list of items that are surplus, the Council declares it surplus, and then the declared items are either sold via Public Surplus, given to charity, or disposed of properly. The listed surplus equipment below is inoperable, not Adopt a resolution declaring vehicles & equipment listed in resolution as surplus property and authorize the City Manager to dispose ofi it in accordance with City policy. Southern California Association of Governments MOU Approval  able to be economically repaired, and/or are no longer safe to use.  Recommended Action  4.  On June 29, 2023, the California Public Utilities Commission approved SCAG's application for the Local Agency Technical Assistance (LATA) grant funding to conducta a Last Mile Project Assessment for the SCAG Region. The LATA grant will help SCAG assist local jurisdictions (one of them being the City of Avalon) to identify and analyze opportunity areas to develop conceptual engineering designs for last mile services for Adopt a resolution authorizing the City Manager to execute a Memorandum of Understanding with the Southern California Association of Governments to provide Per Capita Program Funding for Local Park Rehabilitation, Creation and Improvements The City of Avalon received an allocation of $177,952.00 from the Per Capita Program Funds, derived from Proposition 68, to enhance local park infrastructure. On October 5, 2021, staff presented City Council with some ideas on how to spend the Per Capita Program Funds for improvements to the parks and/or facilities in Avalon. 1.A Approve the reallocation of Capital Grant Funding to Avalon Kids Park. 2. Approve the  broadband improvement. Recommended Action  Technical Assistance related to the Last Mile Project Assessment.  5.  Recommended Action  purchasing and build of Avalon Kids Park. Island Enterprises, Inc. Lease Transfers  6.  On November 13, 2024, City Staff received a request from Heather Milburn, President of Operations at Catalina Adventure Tours regarding transfer of Island Enterprise, Inc. lease agreements with the City of Avalon as well as a request for a lease amendment for the Authorize the City Manager to amend and transfer the lease agreements with Island Enterprises, Inc., for the city-owned property at 300-C Pebbly Beach Road, 302 C1 Pebbly Beach Road and No. 2 Pleasure Pier. Authorize the City Manager to use his discretionary authority to assess a Transfer Fee as established in the lease agreement.  leased space at No. 2 Green Pleasure Pier.  Recommended Action    CITY COUNCIL AGENDA NOVEMBER 5, 2024 PAGE3 7.  Purchase of Motorola Portable APX8000 Series Radios  In2 2024, the City executed an agreement to be a subscriber to Los Angeles Regional Interoperable Communications System (LA RICS). With the new system the City has designated channels dedicated to the Island; however, to utilize the new system, the Fire Authorize the City Manager or his designee to purchase seven (7) new Portable Motorola APX 8000 Radios for a not-to-exceed sum of $100,000 as budgeted in the City's Fiscal Year 2024-25 Capital Improvement Plan, Project #254501, Account #10245-6547, from  Department had to use compatible radios.  Recommended Action  the lowest responsive bidder.  GENERAL BUSINESS  8.  Geo-Logic Associates Contract Amendment  On June 20, 2023 the City awarded a contract to Geo-Logic Associates to prepare the Conditional Use Permit application, Coastal Development Permit application, conduct special technical studies, prepare CEQA documentation, and work with Los Angeles County Department of Regional Planning for the Pebbly Beach Landfill Expansion Project. During the projected they became aware that an additional SEA Conditional Use Authorize the City Manager to execute a contract amendment to the Pebbly Beach Landfill Expansion Project with Geo-Logic Associates foranot-to-exceed sum of $66,000, and update the scope of work for preparation of a SEA Conditional Use Permit for  Permit was necessary. Recommended Action  submittal to Los Angeles County Department of Regional Planning.  ADJOURN NOTICE OF POSTING posted on Friday, Olitat Devin Elise Hart, Management Analyst  I,D Devin Elise Hart, declare that the City Council Agenda for Tuesday, November 19, 2024 was www.clvolavalon.comlagendacenter. and at City Hall, 410 Avalon Canyon Road.  November 15, 2024 on the City's website,    CITY OF AVALON CITY COUNCIL  MEETING DATE: ORIGINATING DEP: PREPARED BY: SUBJECT:  November 19, 2024 City Clerk  AGENDA ITEM: CITY MANAGER:  1 DA  Gabrielle Morones, City Clerk City Council Minutes  RECOMMENDED ACTION(S): Approve minutes from the November 5, 2024 regular REPORT SUMMARY: Although the live recording is the official record of public  City Council Meeting.  meetings, minutes are prepared for the Council's approval.  FISCAL IMPACTS: N/A. GOAL ALIGNMENT: Not Aligned.  CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A.  FOLLOW UP ACTION: File minutes in the City Clerk's office.  ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on  the posted agenda pursuant to the Brown Act.  ATTACHMENTS:  1. November 5, 2024 regular City Council Meeting Minutes    AVALON CITY COUNCIL MEETING TUESDAY, NOVEMBER 5, 2024 - 5:00 PM 410 AVALON CANYON ROAD  MINUTES  CALL TO ORDER: 5:00 p.m.  ROLL CALL- Present via Teleconference and In-Person: Mayor Anni Marshall, Councimembers Lisa Lavelle, Michael Ponce, Mary Schickling and Yesenia De La Rosa. Also present: City Manager David Maistros, City Attorney Scott Campbell and WRITTEN COMMUNICATIONS- City Staff received 1 written communication regarding Item #6. A Public Hearing Considering a Conditional Use Permit, Variance, Site Plan, and Coastal Development Permit to Allow the Demolition of a Vacant Three-Story Apartment Building and Construction of a New Four-Story Hotel with Employee Housing inthe Special Commercial (SC) Zone. (PC#2842). The written communication was CONSENT CALENDAR-There were 5 Items on the Consent Calendar. Motion to approve Items #1-#5 made by Lisa Lavelle, seconded by Mary Schickling. (AIl Ayes)  City Clerk Gabrielle Morones.  distributed to City Council and is filed in the City Clerk's office.  1. City Council Minutes  Approved minutes from the October 22, 2024 regular City Council Meeting.  2.  Warrants  Approved warrants from the US General Fund in the amount of $1,531,798.63, one payroll totaling $261,493.87, four electronic fund transfers totaling $189,755.50 for a total expenditure of $1,983,048.00 for October 7, 2024 through Authorize the Purchase of a New Isuzu NRR Utility Truck with Switch-N-Go 1. Authorized the City Manager, or their designee, to purchase a 2024 Isuzu NRR with Switch-N-Go flatbed and dump bed system from Freeway Isuzu located in Corona, CA. 2. Amended the budget to increase the Vehicle Replacement Fund (13825-6781) by $15,000 to allocate funds for the procurement of the vehicle in the amount not to exceed $125,000.  October 25, 2024.  3.  Flatbed and Dump Bed System  4.  Purchase of Pump for Pebbly Beach Lift Station  1. Authorized City Manager, or their designee, to purchase Flygt 6" 30HP submersible pump from Xylem Water Solutions, Inc. for the Pebbly Beach sewage lift station for a not-to-exceed sum of $38,500 from Sewer Fund 10850- 6521. 2. Made the affirmative finding that the Xylem Water Solutions, Inc. has satisfied the sole source requirement as specified in the Avalon Municipal Code  Section 3-4.111(b).    CITY COUNCIL MINUTES NOVEMBER 5, 2024 PAGE: 2  5. Wet Spot Lease Amendment  Authorized an amendment to the lease agreement between the City of Avalon and The Wetspot Rentals granting expansion of use for city-owned lease property at 120 Pebbly Beach Road to allow for occasional sub-letting to Catalina  Adventure Tours for ticket sales.  PUBLIC HEARING  6. APublic Hearing Considering a Conditional Use Permit, Variance, Site Plan, and Coastal Development Permit to Allow the Demolition of a Vacant Three-Story Apartment Building and Construction of a New Four-Story Hotel with Employee 1. Mayor Marshall opened the Public Hearing. 2. Public comments were heard. 3. Mayor Marshall closed the Public Hearing. 4. Found the project qualifies for streamlined review under the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15332 (Class 32 In-Fill Development Projects. 5. Adopted the findings to support approval of a Conditional Use Permit. 6. Adopted the findings to support approval of a Variance. 7. Adopted the findings to support approval of a Site Plan. 8. Adopted the findings to support approval of a Coastal Development Permit. 9. Found the project consistent with the 2024 Annual Adopted Resolution No. 24-40 of the City Council of the City of Avalon, California, Approving a Conditional Use Permit, Variance, Site Plan, and Coastal Development Permit for a Four-Story Hotel with Employee Housing in the Special Commercial Zone, Located at 301 Beacon Street, Avalon, California. Motion to approve made by Anni Marshall, seconded by Michael Ponce. (4Ayes-Marshall, De La Rosa, Lavelle and Ponce; 1 No-Schickling)  Housing in the Special Commercial (SC) Zone. (PC#2842)  Growth Policy.  GENERAL BUSINESS  7.  Letter of Understanding with PERC Water Corporation for Operations, Management, Maintenance, and Monitoring of the City of Avalon Wastewater Authorized the City Manager to execute a letter of understanding with PERC Water Corporation to continue the maintenance and operations of the City of Avalon's Wastewater System for a 6-month period at a 3% CPI adjusted rate. Motion to approve made by Michael Ponce, seconded by Yesenia De La Rosa.  System  (AIl Ayes)    CITY COUNCIL MINUTES NOVEMBER 5, 2024 PAGE 3  Mayor Marshall adjourned the meeting at 7:08 p.m.  Gabrielle Morones, City Clerk, do hereby certify that the DVD videotape of the regular City Council Meeting on November 5, 2024, is the official record of the Council Meeting  and is on file and maintained in City Hall.  B.Dalle Movey Gabrielle Morones, City Clerk    CITY OF AVALON CITY COUNCIL  MEETING DATE: ORIGINATING DEP: PREPARED BY: SUBJECT:  November 19, 2024 Finance  AGENDA ITEM: 2 CITY MANAGER: DAM  Matthew Baker, Finance Director  Warrants  RECOMMENDED ACTION(S): Approve total expenditures for October 28, 2024 through REPORT SUMMARY: These disbursements through November 8th are comprised of warrants from the US Bank General Account totaling $779,442.86, one payroll totaling $260,467.54, and  November 8, 2024 totaling $1,137,160.10.  other electronic fund transfers totaling $97,249.70. GF US BANK WARRANTS CK# 38919- 38990  ITEM DESCRIPTION  AMOUNT  DATE  $  779,442.86 11/08/24 260,467.54 10/31/24 94,688.17 11/05/24 2,561.53 11/08/24 1,137,160.10  PAYROLL EFT- CALPERS MEDICAL  EFT-H HARBOR/REC CREDIT CARD AND BANK SERVICE FEES GOAL ALIGNMENT: Ongoing meeting of City obligations.  TOTAL DISBURSEMENTS $  FISCAL IMPACTS: There are sufficient funds available, and the expenditures are included in  the FY24-25 Budget.  CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A  FOLLOW UP ACTION: N/A  ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act. ATTACHMENTS: Audit Certificate, Warrant Lists, US Bank Detail    CITYOFA AVALON November 19, 2024  OCTOBER: 28-N NOVEMBER 8, 2024 DISBURSEMENTS  ITEME DESCRIPTION  AMOUNT $  DATE 779,442.86 11/08/24 260,467.54 10/31/24 94,688.17 11/05/24 2,561.53 11/08/24 1,137,160.10  GF USE BANKI WARRANTS CK# 38919- 38990 PAYROLL EFT- CALPERS MEDICAL EFT- HARBOR/REC CREDIT CARD/ ANDE BANK SERVICE FEES  TOTALI DISBURSEMENTS $  CERTIFICATE INA ACCORDANCE WITHS SECTION3 32702 OFT THE GOVERNMENT CODE,! ICERTIFY THAT THE ABOVEI DEMANDS ARE ACCURATE AND1 THAT FUNDS ARE AVAILABLEI FOR PAYMENT. ICERTIFY UNDERI PENALTY OF PERJURY THAT THEF FOREGOINGI IS TRUE AND CORRECT. EXECUTED1 THIS  APPROVED ANDA AUDITEDT THIS 19th DAY OF NOVEMBER: 2024 AUDIT COMMITTEE MICHAEL PONCE AUDIT COMMITTEE- MARY SCHICKLING  19th DAYOF NOVEMBER: 2024  FINANCE DIRECTOR MATTHEW BAKER    CITYOFA AVALON WARRANT DISBURSEMENTS November 8, 2024 NAME  CHECK DATE NUMBER ISSUED AMOUNT 38919 11/08/2024 38920 11/08/2024 38921 11/08/2024 38922 11/08/2024 38923 11/08/2024 38924 11/08/2024 38925 11/08/2024 38927 11/08/2024 38929 11/08/2024 38930 11/08/2024 38931 11/08/2024 38932 11/08/2024 38933 11/08/2024 38934 11/08/2024 38935 11/08/2024 38936 11/08/2024 70,900.20 38937 11/08/2024 22,341.00 CATALINAI ISLANDO COMPANY 38938 11/08/2024 38939 11/08/2024 38940 11/08/2024 38941 11/08/2024 38942 11/08/2024 38943 11/08/2024 31,468.97 EDISON 38944 11/08/2024 38945 11/08/2024 119,901.34 FREEWAYT TRUCK ANDV VAN, INC 38946 11/08/2024 38947 11/08/2024 38947 11/08/2024 38948 11/08/2024 38949 11/08/2024 15,015.00 GATEWAY CITIESCOUNCIL OF GOVTS 38950 11/08/2024 55,193.78 GEO-LOGICA ASSOCIATES, LLC. 38951 11/08/2024 5,193.20 GRAINGER 38952 11/08/2024 38953 11/08/2024 38954 11/08/2024 38955 11/08/2024 38956 11/08/2024 38957 11/08/2024 38958 11/08/2024 38959 11/08/2024 38960 11/08/2024 38961 11/08/2024 38962 11/08/2024 38963 11/08/2024 38964 11/08/2024 38965 11/08/2024 38966 11/08/2024 38967 11/08/2024 38968 11/08/2024 38969 11/08/2024 38970 11/08/2024 38971 11/08/2024 38972 11/08/2024 38973 11/08/2024 38974 11/08/2024 38976 11/08/2024 38978 11/08/2024 38979 11/08/2024 38980 11/08/2024 38981 11/08/2024 38983 11/08/2024 38984 11/08/2024 38985 11/08/2024 38986 11/08/2024 38987 11/08/2024 38988 11/08/2024 38989 11/08/2024 38990 11/08/2024 36,979.00 XYLEMD  DESCRIPTION FUEL:A ALLO DEPARTMENTS UNIFORMS: FIRE REFUND: VEHICLER PERMIT VOID: MULTISTUBCHECK SUPPLIES: ALL SERVICE: HARBOR SWEEPER: 10/2024 CONTRACTSS SERVICES: 10/2024 FREIGHT: ALLD DEPARTMENTS SERVICE: HARBOR SERVICE: RECREATION CONTACTS SERVICES:IT O/PC COSTS REIMBURSEMENT O/PC COSTS SUPPLIES: GARAGE SUPPLIES: ALLO DEPARTMENTS SERVICE: ALLE DEPARTMENTS SUBSIDY:. 10/2024 RENT: 11/2024 SERVICE: ADMINISTRATION ALLD SERVICE: ADMINISTRATION SERVICE: FIRE FUEL: HARBOR UTILITIES: ALLO DEPARTMENTS REFUND: VEHICLEF PERMIT VEHICLER REPLACEMENT: PUBLICV WORKS SUPPLIES: FIRE SUPPLIES: CITYH HALLF REMODELO CIP180061 SUPPLIES: HARBOR OFFICE CIP: 207014 REIMBURSEMENT O/PO COSTS ANNUALI DUES: ADMIN PBLE CIP: 242503 SUPPLIES: ALLD DEPARTMENTS SUPPLIES: GARAGE SERVICE: FINANCE SUPPLIES: PUBLICV WORKS SERVICE: RECREATION 10/2024 REFUND: MOORINGFEE SUPPLIES: PUBLICV WORKS REIMBURSEMENT O/P COSTS SUPPLIES: WELDING O/PCOSTS SUPPLIES: RETIREEI INSURANCE: 11/2024 SUPPLIES: FIRE SUPPLIES: ADMINISTRATION SUPPLIES: GARAGE FIRE SERVICE: CITYHALL SUPPLIES: FIRE SERVICE: ADMINISTRATION POSTAGE METERLEASE SUPPLIES: ALLI DEPARTMENTS REFUND: AMBULANCE FEES SERVICE: HARBORO CIP2 207014 COPIERLEASE: PLANNING CONTRACTS SERVICES: PLANNING HARBOR: MOUU UNIFORM SUPPLIES: FIRE UNIFORMS: HARBOR 1STH HALF 11/2024 SERVICE: HARBOR SOFTWARE LEASE: FINANCE SERVICES: SERVICE: PUBLICV WORKS SEEA ATTACHEDD DETAIL SUPPLIES: WWTP TALENT: FALLF FEST SERVICE: FINANCE SERVICE: PUBLIC WORKS  1,220.90 AAAOIL,I INC 3,639.49 ALLSTARF FIREE EQUIPMENT, INC 122.25 ALLEDP PAVINGCO. AMAZONO CAPITAL SERVICES, INC. 7,583.30 AMAZONO CAPITAL SERVICES, INC. 605.94 AVALONB BOATS 3,289.96 AVALONF FREIGHTS SERVICES, LLC 330.00 AVALONS SMOKEH HOUSE 4,916.00 BEYONDS SOFTWARE SOLUTIONS 700.41 BUTTE, JAMES 47.00 CARSTARPHEN, ORNE 382.09 CARTMART, INC. 2,673.32 CATALINAB BEVERAGE CO 4,168.34 CATALINAE BROADBANDS SOLUTIONS EXPRESS 400.00 CATALINAI ISLANDI JANITORIAL 588.00 CATALINAI ISLANDER 219.65 CICCS/EAP 1,600.00 COUNTY OFL LOSA ANGELESC/OLAR RICS 857.37 DION&S SONSN MARINEF FUELSINC 560.32 218.15 GALLS, LLC 7,944.83 GANAHLI LUMBERO COMPANY 2,013.80 GANAHL 217.25 GARZA, WADE 1,020.58 HAAKER 327.25 HARRINGTONI INDUSTRIAL PLASTICSLLC SUPPLIES: PUBLICV WORKS 1,510.11 HDL COREN& CONE 4,657.95 HOMED DEPOT CREDITS SERVICES 760.00 LUPO,K KARLA 1,448.82 ALFREV, JANICEL, 176.00 JOKSANH HERNANDEZDIAZ 2,527.82 KONA TEESS SCREENPRINTING &E EMBROID UNIFORMS: FIRE 1,350.23 LAVELLE, LISA 405.15 LINDE GAS&E EQUIPMENTI INC. 589.57 MAISTROS, DAVID 176.71 MARINED DIESELS SERVICES, INC. 627.78 MCDONALD, AUDRA 171.94 MED-1 TECH RESOURCE, INC. 230.14 MRCS SMARTT TECHNOLOGYS SOLUTIONS 992.51 NAPA AUTOF PARTS 269.75 SAND DIEGOC COFFEE, TEA&S SPICE,INC. 1,000.00 NORTHWIND REFRIGERATION 625.00 FIREF 1,000.00 PARTNERA ASSESSMENT CORPORATION 694.30 QUADIENTL LEASING USA, INC. 1,708.34 QUILLO CORP 250.00 KELLY, RACHELE. 297.56 RICOH USA,I INC. 181.00 SALDANA, MARTIN 211.29 SHIFTCALENDARS, INC 442.64 SFCHOLDINGS, LLC 9,357.91 SRASCEAMINGSERVCE 4,105.30 SUPERION, uc 5,000.00 TOWNSENDF PUBLICA INC 39.60 UNDERGROUND: SERVICEA ALERT/SC 4,637.28 PAYMENTS SYSTEMS 6,883.63 WESTRIDGE ENVIRONMENTAL GROUP 49.90 WILDFIREA ARTSCOLLECTIVE LLC 4,260.00 WITTMANE ENTERPRISES, LLC SOLUTIONS, INC 779,442.86  3,003.00 ALPHA ANALYTICALL LABORATORIES, INC. SERVICE: WATERS SAMPLES  38926 11/08/2024 5,934.46 CR&RII INCORPORATED 38926 11/08/2024 181,499.86 CR&RI INCORPORATED 38928 11/08/2024 10,883.25 MOORING8 & DIVING  38975 11/08/2024 80,988.75 RAINY DAYR ROOFING,! INC. 38977 11/08/2024 16,818.62 SAGECRESTP PLANNING8 & 38982 11/08/2024 21,038.00 BEAR&A ASSOCIATES  Page 1of1    CITY OFA AVALON November 19, 2024  USE BANK CREDIT CARD CHARGES PAIDI NOVEMBER8,2 2024  LAST NAME POST DATE AMT USD VENDOR DEVIN HART 9/19/2024 422.40 CITRIX SYSTEMS, INC DEVIN HART 10/2/2024 DEVIN HART 10/2/2024 GONZALES GONZALES GONZALES MAISTROS SCHMIDT SCHMIDT SCHMIDT  DESCRIPTION OPERATION COSTS:IT OPERATION COSTS:IT OPERATION COSTS:T SAMR REGISTRATION:3) YEARS ADMINISTRATION TRAVEL:BOAT TRAVEL:BOAT TRAVEL:HOTEL TRAVEL:HOTEL TRAVEL:HOTEL SUPPLIES: MAINTENANCE HARBOR UNIFORMS: MOU SUPPLIES: MAINTENANCE HARBOR  DEPARTMENT ADMINISTRATION ADMINISTRATION ADMINSTRATON/TRANST ADMINSTRATON/TRANST COUNCIL COUNCIL COUNCIL HARBOR  82.96 CYBERLINKI NETWORK 35.00 SINCHMAILGUN 92.00 CATALINAE EXPRESS 5.00 CATALINAE EXPRESS 110.90 EXPEDIA 19.78 CHET'SH HARDWARE 141.90 VMCCUTCO 57.72 CHET'S HARDWARE 4,637.28 CHECK NUMBER: 38986  9/25/2024 599.00 REGISTRATIONSI PLUS  10/1/2024 10/3/2024 9/25/2024 9/17/2024 9/25/2024 10/11/2024  MAISTROS 10/15/2024 2,047.08 HYATT REGENCYL LONGE BACH MAISTROS 10/15/2024 1,023.54 HYATT REGENCY LONG BACH  Page 1ofi    CITY OF AVALON CITY COUNCIL  MEETING DATE: ORIGINATING DEP: PREPARED BY: SUBJECT:  November 19, 2024 Public Works  AGENDA ITEM: 3 CITY MANAGER: wEL  Jamie Hmielak, Maintenance Superintendent Declare Mobile Crane as Surplus  RECOMMENDED ACTION(S): Adopt a resolution declaring vehicles & equipment listed in resolution as surplus property and authorize the City Manager to dispose ofit iti in accordance with REPORT SUMMARY: Historically, the City Council is presented with a list of items that are surplus, the Council declares it surplus, and then the declared items are either sold via Public Surplus, given to charity, or disposed of properly. The listed surplus equipment below is inoperable, not able to be economically repaired, and/or are no longer safe to use.  City policy.  Year/Make/Model 2006 Lorain LRT275 Crane  Dept. Harbor Maint.  Serial# 7978  FISCAL IMPACTS: Unknown GOAL ALIGNMENT: Surplus Equipment  CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City of Avalon will have in their possession old, unused, and inoperable vehicles & equipment that adds to the  clutter at City facilities.  FOLLOW UP ACTION: Implement City Council direction.  ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted  agenda pursuant to the Brown Act.  ATTACHMENTS: 1. Resolution  6059.0000429237951    RESOLUTION NO.  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVALON DECLARING SPECIFIED EQUIPMENT TO BE SURPLUS AND AUTHORIZING THE SALE OR DISPOSAL THEREOF  WHEREAS, Government Code Section 37350 authorizes the City Council to WHEREAS, the City Council wishes to declare certain equipment to be surplus and has determined that sale or disposal, as indicated below, is appropriate and will benefit the City because it is no longer necessary to the City's services and programs  control and dispose of property for the common benefit; and  and requires storage that can be devoted to better use: DECLARES, FINDS AND RESOLVES AS FOLLOWS:  NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AVALON Section 1. The City Council hereby declares the following equipment to no longer be useful or necessary to the City's services and programs and therefore surplus  property, to be disposed of as indicated below:  Year/Make /Model 2006 Lorain LRT275 Crane  Dept. Harbor Maint.  Seria!# 7978  Section 2. Staff is authorized to dispose of the listed equipment in Section 3. All recitals above are true and correct and incorporated herein. PASSED, APPROVED AND ADOPTED this November 19, 2024.  accordance with the foregoing provisions.  Ayes: Noes: Absent: Abstain:  Ann H. Marshall, Mayor  ATTEST:  Gabrielle Morones, City Clerk  6059.0000429238771    CITY OF AVALON CITY COUNCIL  MEETING DATE: ORIGINATING DEP: PREPARED BY: SUBJECT:  November 19, 2024 Administration  AGENDA ITEM: CITY MANAGER: BNL  4  Jocelyn Francis, Assistant City Manager  Southern California Association of Governments MOU Approval  RECOMMENDED ACTION(S): Adopt a resolution authorizing the City Manager to execute a Memorandum of Understanding with the Southern California Association of Governments to REPORT SUMMARY: On June 29, 2023, the California Public Utilities Commission (CPUC) approved SCAG's application for the Local Agency Technical Assistance (LATA) grant funding too conduct al Last Mile Project Assessment fort the SCAG Region. The LATAgranty will help SCAG assist local jurisdictions (one oft them being the City of Avalon) to identify and analyze opportunity areas to develop conceptual engineering designs for last mile services for broadband To fill in this gap, SCAG hired a consultant to determine and design three (3) shovel ready projects located within the SCAG region. This project will result in conceptual designs and high- level engineering to lay the foundation for projects that meet or exceed 100/100 or 100/20 Mbps Under this MOU, the City of Avalon will receive technical assistance work efforts that will include specifics regarding assessment and route determination reports, financing and implementation strategies, short-term and long-term actions needed to prepare the area for broadband implementation, and include conceptual design and specifications to create a project ready for CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City will not receive FOLLOW UP ACTION: City Manager to execute SCAG MOU and assign staff to project. FISCAL IMPACTS: It is estimated the City will receive over $330,000 in value of grant-funded technical assistance to complete Last Mile Project Assessment services. SCAG has contracted a consultant and will manage the program. No City budgeting action is needed at this time. ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed oni the posted  provide Technical Assistance related to the Last Mile Project Assessment.  improvement.  for unserved andlor underserved communities.  the next stages of project development.  grant funded technical assistance for broadband assessment.  agenda pursuant to the Brown Act.  ATTACHMENTS: 1. Resolution    RESOLUTION NO.  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVALON AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS FOR LAST MILE PROJECT ASSESSMENT TECHNICAL ASSISTANCE  WHEREAS, on August 16, 2022 the City Council of the City of Avalon declared by resolution that closing the digital divide is integral to developing a health, resilient,  and economically competitive community; and  WHEREAS, on June 29, 2023 the California Public Utilities Commission approved the Southern California Association of Governments (SCAG) application on Local Agency Technical Assistance grant funding to conduct a Last Mile Project  Assessment for the SCAG Region;  WHEREAS, the City of Avalon was identified as an underserved area of need WHEREAS, SCAG has identified the City of Avalon as one of three project locations to benefit from the Local Agency Technical Assistance grant funding for Last Mile Project Assessment services to include assessment and route determination reports, financing and implementation strategies, short-term and long-term actions needed to prepare the area for broadband implementation, and conceptual design and specifications to create a project ready for the next stages of project development.  related to Southern California Broadband deployment; and  NOW, THEREFORE the City Council of the City of Avalon does determine, find Section 1. The City Council hereby authorizes the City Manager of the City of Avalon to execute and sign a Memorandum of Understanding with the Southern California Association of Governments to receive grant funded technical assistance for the Last Mile Project Assessment and execute and sign any other related documents  and resolve as follows:  reasonably necessary or incidental to receipt of the grant funds.  Section 2. The City Council hereby authorizes the City Manager to assign City staff to assist SCAG with the Last Mile Project Assessment and represent the City of  Avalon.    PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council  of the City of Avalon this  day of November, 2024, by the following vote:  AYES: NOES: ABSTAIN: ABSENT:  Ann H. Marshall, Mayor City of Avalon  ATTEST:  Gabrielle Morones, City Clerk City of Avalon    CITY OF AVALON CITY COUNCIL  MEETING DATE: ORIGINATING DEP: PREPARED BY: SUBJECT:  November 19, 2024 Community Services  AGENDA ITEM: CITY MANAGER: OuI  5  David Hart, Community Services Manager  Per Capita Program Funding for Local Park Rehabilitation, Creation  and Improvements  RECOMMENDED ACTION(S): 1. Approve the reallocation of Capital Grant Funding to Avalon REPORT SUMMARY: The City of Avalon received an allocation of $177,952.00 from the Per Capita Program Funds, derived from Proposition 68, to enhance local park infrastructure. On October 5, 2021, staff presented City Council with some ideas on how to spend the Per Capita Program Funds for improvements to the parks and/or facilities in Avalon. Nine ideas were presented with the following 4 projects unanimously agreed upon for the Per Capita  Kids Park. 2. Approve the purchasing and build of Avalon Kids Park.  Program Funding:  Joe Machado Field Project  This project included installation of concrete pad for bleachers in upper area at Anticipated grant funding - $40,800; however, only $32,021 in grant funding was  JMF along first base line side.  used. Lover's Cove Project  Project completed in September 2024.  Project propose to create a public seating area to include split rail fencing to Anticipated grant funding - $12,000; however, outside funding was utilized and  semi-enclose the area as well as assorted picnic tables. Project completed in Spring 2021 utilizing outside funds. Installation of6t to 8 shade sails along Front Street. Anticipated grant funding $54,400. Project estimates exceed available funding.  no grant funding was spent.  Front Street Project  Kid's Park  Project included installation of supplemental equipment for the fit park area including an outdoor kick boxing bag as well as a bamboo climbing area adjacent  to the restrooms.  Anticipated grant funding $74,434.    Due to unforeseen economic factors such as inflation and escalating regulatory compliance costs, the initial budget for Front Street Shade Sail Project and the expansion of the fitness equipment at Kid's Park became insufficient to execute the project to the desired standard of To optimize the utilization of grant funds and deliver a park that exceeds community expectations, staff proposes reallocating the Per Capita Program Funds from the Lover's Cove Project ($10,640), Front Street Shade Sail Project ($54,400) and the unused funds from the Joe Machado Field Project ($8,779) to the Kid's Park Project. If approved, the funding for this This reallocation will enable a comprenensive renovation. The proposed scope of work includes the installation of state-of-the-art play equipment, the enhancement of park surfacing, GOAL ALIGNMENT: Provide direction to staff for the use of the Per Capita Program Funds FISCAL IMPACTS: Upon final approval and completion of the project(s), the City of Avalon will be reimbursed in the amount of $177,952.00 for the Per Capita Program portion of the CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: City of Avalon will be at risk of losing Per Capita Funding in the amount of $177,952.00 for enhancements to park FOLLOW UP ACTION: Following the City Council's guidance, staff will procure the necessary ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the  quality.  project would increase to $148,253.00.  and the beautification of the park's landscape. for the enhancement of park facilities.  funding.  facilities.  equipment and initiate the installation process in the spring.  posted agenda pursuant to the Brown Act.  ATTACHMENT: Hard Copy of the park design and associated invoice.    CITY OF AVALON CITY COUNCIL  MEETING DATE: ORIGINATING DEP: PREPARED BY: SUBJECT:  November 19, 2024 Community Services  AGENDA ITEM:  CITY MANAGER:  David Hart, Community Services Manager  Per Capita Program Funding for Local Park Rehabilitation, Creation  and Improvements  RECOMMENDED ACTION(S): 1. Approve the reallocation of Capital Grant Funding to Avalon REPORT SUMMARY: The City of Avalon received an allocation of $177,952.00 from the Per Capita Program Funds, derived from Proposition 68, to enhance local park infrastructure. On October 5, 2021, staff presented City Council with some ideas on how to spend the Per Capita Program Funds for improvements to the parks and/or facilities in Avalon. Nine ideas were presented with the following 4 projects unanimously agreed upon for the Per Capita  Kids Park. 2. Approve the purchasing and build of Avalon Kids Park.  Program Funding:  Joe Machado Field Project  This project included installation of concrete pad for bleachers in upper area at Anticipated grant funding - $40,800; however, only $32,021 in grant funding was  JMF along first base line side.  used. Lover's Cove Project  Project completed in September 2024.  Project propose to create a public seating area to include split rail fencing to Anticipated grant funding - $12,000; however, outside funding was utilized and  semi-enclose the area as well as assorted picnic tables. Project completed in Spring 2021 utilizing outside funds. Installation of 6to 8 shade sails along Front Street. Anticipated grant funding - $54,400. Project estimates exceed available funding.  no grant funding was spent.  Front Street Project  Kid's Park  Project included installation of supplemental equipment for the fit park area including an outdoor kick boxing bag as well as a bamboo climbing area adjacent  tot the restrooms.  Anticipated grant funding $74,434.    Due to unforeseen economic factors such as inflation and escalating regulatory compliance costs, the initial budget for Front Street Shade Sail Project and the expansion of the fitness equipment at Kid's Park became insufficient to execute the project to the desired standard of To optimize the utilization of grant funds and deliver a park that exceeds community expectations, staff proposes reallocating the Per Capita Program Funds from the Lover's Cove Project ($10,640), Front Street Shade Sail Project ($54,400) and the unused funds from the Joe Machado Field Project ($8,779) to the Kid's Park Project. If approved, the funding for this This reallocation will enable a comprenensive renovation. The proposed scope of work includes the installation of state-of-the-art play equipment, the enhancement of park surfacing, GOAL ALIGNMENT: Provide direction to staff for the use of the Per Capita Program Funds FISCAL IMPACTS: Upon final approval and completion of the project(s), the City of Avalon will be reimbursed in the amount of $177,952.00 for the Per Capita Program portion of the CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: City of Avalon will be at risk of losing Per Capita Funding in the amount of $177,952.00 for enhancements to park FOLLOW UP ACTION: Following the City Council's guidance, staff will procure the necessary ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the  quality.  project would increase to $148,253.00.  and the beautification of the park's landscape. for the enhancement of park facilities.  funding.  facilities.  equipment and initiate the installation process in the spring.  posted agenda pursuant to the Brown Act.  ATTACHMENT: Hard Copy of the park design and associated invoice.    Proposal for City of Avalon  Prepared by  GAral wESTK  11-01-2024 Jub # 112132-01  Kids Park Playground Option - 7  B58 3440445 Iwwgwprka    IACETOP IRAVERSC CJNOERS PREVIUS.Y PURCHASED. NOT INCLVOLO IN audIc  TAFETAP TRAMEASE (95445) "REFTCP TRAMERSE (3 ODRS) FRLEIGP (3 MAVESE TRFFTQ? TRAMFRIF CYMERS) HUICP IKAVLISE ERS)  a SIRAOT 003.  WAY Pab *s SoCVo/A5cs 882 B9 de  SNGLE 260  SHITTEN WDI 848  5180  mag.spr  SEMA ur    1I  BONCOS jonvs CUMILR AI24ND)  IKAPLA 68  CORNFCISCAPF ARWFTWE  MLODSUUL SNCSEAL  THANSFR PLA'ICHN 46485 W/,BARerR DOJRLE RAVF os  HIVIR HESAUMBFK  3-12 MLCOVE  AvalenCty Kis Park Playgraund CA Oroal' Westom  EA.ESRP M'EVELAKU    KIds Park Plaground GRANT Credit ORct2B20r-0pIG  Avalon, CA  BRONOL FOUMDATION (ML PLAY FOR OVER S0 YEARS P( (435)2 2465 5055 a F1436 245 5057 Walewpar.con    KIds Park Plaground GRANT Credit oect1121201:0pt 6  Avalon, CA  GHEAT  GRONO FOUMDATION IML PLAY FOR OVER GON YEARS P (495) 246 5059 0 F1438 245-6057 Wateogwpark.con    Kids Park Plaground GRANT Credit - Project 112132-01-Opt6  Avalon, CA  STRONO FOUMDATION IME PLAY FOR OVER 501 YEARS A (435) 246-5055 0 F435245-6057 Watkywpak.com    Kids Park Plaground GRANT Credit - Project 112132-01:Opt6  Avalon, CA  SIRONOL FOUMOATIONI IWE PLAY FOR OVER 50A YEARS P(435) 2465 9055 0 F438 245 5057 Walecgwpark. oom    GameTime CO Great Western Recieation Fort Paye. AL: 35087 Oflice. 435-245-5055 Fax 435-245-5057  11401/2024 Qunte" 112132-01-07  Gamélime PO. Bux 680121  APLAYCORE www.gwpark oum  Kids Park Playground Option 7  CeyafAvalon Altn. Dawid' Hlart 410Avalon Canyun Raad Avalon CAB0704 Uniled Skales Phane. 310510-022D Ekl 231 QI7 PaIIN Descaption 2 6232 GameTime Pad(1 0'1 3 12025 GameTime 31 12" Uprt AsEY Alum 10 1 12028 GameTime 31 12' Uprt AssY Alum 11 2 12027 GameTime 31 1/2" Uprt Assy Alum 12 1 18679 GameTime Bangos 1 18768 GameTime Fun Seat 38 1 19008 GameTime Transfer Syslem WBarier (4) 1 19014 GameTime Transfer Plalfor WIE Bartier (4) 1 18257 GameTime Scramble Up (78'48 1 18287 GameTime River Rock Cimber 2 19289 GameTime Twa Prece Hex Deck 1 18427 GameTime Sngle Spiral 1 18487 GameTime Olpmpus Climber 7Dihug0allac 1 19792 GameTime Double Zipe slide 4-4 1 18808 GameTime Splitler 8 1 19887 GameTime a StraighiSlide 1 19957 GameTime Trells Climber 34:4-8,55-8 1 26058 GameTime 3Way X-Pod Slep 1 26072 GameTime Sacial Discs Atlachment 1 26073 GameTime Single Sky' Wheel 6 26094 GameTime Trianguar Shroud 1 26121 GameTime 90 Deg 3 Way XF Pod! Slep 1 26149 GameTime Worm Hole (Allachmen!) 1 26159 GameTime 4-0 Comneciscape Climber 1 27078 GameTime Trapezoid Ovethead Ladder 601 Deg PT 6 G12069 GameTime 31 12'Uprl AssY Gal 14 1 5179 GameTime Welcome Sign (51 12)  Shipi toi Zip 90731  Lisis Selinus ElSelings $349.00 $21153 $461.00 $29153 $525.00 $31820 $568.00 $34305 $375.00 $227:29 $448.00 $27153 $4,572.00 $2,77109 $4.983.00 $3,02020 $2.868.00 $1,73829 $2,588.00 $1,56737 $3.680.00 $2,23045 $6.201.00 $3.80891 $3.961.00 $2.40076 $3,725.00 $2.257.72 $6,545.00 $3.96892 $4.408.00 $2.67048 $1,127.00 $683.07 32.082.00 $1.281.90 $2.859.00 $1.61162 $3.562.00 $2,15893 $101.39 18145 $2,116.00 $1.28251 $14,482.00 38.77754 $1.887.00 $1.02249 $1.122.00 $88004 $508.00 $355.17 $774.00 $46912  $423.06 $674.59 $316.20 $686.10 $227.20 $271.53 $2,771.09 $3,020.20 $1,738.29 $1,567.37 $4,460.00 $3,806.01 $2,400.76 $2,257.72 $3,966.02 $2,870.48 $683.07 $1,261.90 $1,611.62 $2,156.83 $388.70 $1,282.51 $8,777.54 $1,022.49 $680.04 $2,131.02 3469.12  OMNIA PARTNERS  Paye 1af5    GameTime CO Greal Western Recreation Furt Paye. AL: 35987 Oflice. 435-245-5055 fak 435-245-5057  11401/2024 Gunke# 112132-0107  Gamélime PO. Bax 680121  PLAYÇORE Eompe wwAgapark oam  Kids Park Playground Option 7  GM Parln Desciplion  Liis Sclinus ESelings $27.75 $2775 $61,716.00  2224 PIP GT- mmpux Pauredi in Place Surfacing  2:2241 tolal sl, 6CFH  Qualei includes .3 3.25 curhionl layer and a05 wearl layer Includes a colur mie ui5 50% Back and! 50% Slandard Colar Inckudes (2i color mxes see below for breakdow. 1112s1 with a color mx of Blue 1112sis with a color mx of Gieen Designi includes mulliple wavy bands usng the (2) colore! lisled above Na TTA Ausmnatic Binder Prevaiing' Wges  Cuntract OMNIA #2D17001134  Sub Total $113,624.35 Freight $5,581.66 Tax $5,190.84 Total $124,377.05  Comments  Your Sales Repi is Nate Yaunker, Please reach out tol Nate at 858-344-0445 dy you should have any questians regarding this quote. Duet Ao the volatility of freight casis, the freight pricing is subject to change at the lime of order. Pucing is sulgeci 1o change. Request updaled pricing wheng purchasing from quoles more than 30 days pld. "OPTIONAL-TO include af Payment and Perlammance Bond, please add $1900.  Shpping lo. 385 East Swnford St Sanf Pedro, CA 90731 Sile Address 410 Avalon Cyn Rd Avalon CAB0704 'Depasil may be required Permitling noti ancluded, unless alherwise noled. Cuslomer IsI resporaible for aloading Prevaling Wages for Surfaring Only Equipmen! Inslalation nol Included OMNIA#4001533  'Freight charges are based an Iisted zp code und: are subject loc changei ifshipping formation changes.  OMNIA PARTNERS  Paye 205    CITY OF AVALON CITY COUNCIL  MEETING DATE: ORIGINATING DEP: PREPARED BY: SUBJECT:  November 19, 2024 Administration  ADENDA ITEM: CITY MANAGER: u  A  David Maistros, City Manager Devin Hart, Management Analyst Island Enterprises, Inc. Lease Transfers  RECOMMENDED ACTION(S): Authorize the City Manager to amend and transfer the lease agreements with Island Enterprises, Inc., for the city-owned property at 300-C Pebbly Beach Road, 302 C1 Pebbly Beach Road and No. 2 Pleasure Pier. Authorize the City Manager to use his discretionary authority to assess a Transfer Fee as established in the lease agreement. REPORT SUMMARY: On November 13, 2024, City Staff received a request from Heather Milburn, President of Operations at Catalina Adventure Tours regarding transfer of Island Enterprise, Inc. lease agreements with the City of Avalon as well as a request for a lease  amendment for the leased space at No. 2 Green Pleasure Pier.  Island Enterprises, Inc. currently leases three properties from the City of Avalon: 302 C Pebbly Beach Road - Island Enterprises, Inc. dba Avalon Shoreboats 302 C1 Pebbly Beach Road - Island Enterprises, Inc. dba Catalina Adventure Tours No. 2 Pleasure Pier - Island Enterprises, Inc. dba Catalina Adventure Tours  On August 8, 2024, the shares for Island Enterprises, Inc. transferred from Jeff Stickler to Ocean Explorer, Inc. The new share holder plans to maintain all of the current operations of  the business, including the current lease agreements with the City of Avalon.  Per the current lease agreements:  All three agreements identify an initial term from January 1, 2015 to December 31, 302 C Pebbly Beach Road is comprised of 515 square feet of interior space. 302 C1 Pebbly Beach Road is 98.75 square feet of interior space. No. 2 Pleasure Pier is comprised of 156 square feet of interior space.  2025.  All three properties have permitted uses that include to operations, ticketing, and  information services and limited t-shirt sales. Lease fee is calculated on square footage basis.  The new operator requested the lease at No. 2 Pleasure Pier be amended to allow for installation and use of an ATM. The ATM will not expand the leased space footprint, and will provide a resource to the public that may need cash for other businesses located on the Green  Pleasure Pier.    The process to transfer the lease is outlined (Section 16 (e)):  Lessee may transfer this lease upon the sale or transfer of substantially all oft the assets of the Lessee, provided the Lessee first obtains written consent, which shall not be unreasonably withheld and provided the Lessee pays the Lessor a lease transfer fee equal to (3%) of the sale price with a cap of $30,000 of Lessee's business ("Transfer fee"). The Transfer Fee shall not apply to a transfer of this Lease upon the transfer ofa controlling interest in the Lessee's business to a member of the immediate family of such controlling person, or to a transfer of the controlling interest to an inter vivos trust in which such controlling person is the trustee of the trust. In the event Lessee's business has multiple locations and Lessee assigns, sublets, or transfers the Lease for one location without assigning or transferring the business as a whole, the Transfer Fee shall be a flat $5,000 or a lower amount at the discretion of the City Manager.  City Staff recommend the City Council authorize the City Manager to determine an appropriate Transfer Fee and transfer the leases for Island Enterprises Inc. The transferred leases for the properties at 302 C and 302 C1 Pebbly Beach Road will maintain all elements of the previous leases, including the initial lease term, set to expire on December 31, 2025. The lease for the property at No. 2 Pleasure Pier shall include all of the same previsions of the original lease, but  be amended to allow for use of an ATM. FISCAL IMPACTS: Undetermined.  CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: None.  FOLLOW UP ACTION: Implement City Council direction.  ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.  ATTACHMENT:  Island Enterprises Leases    ORIGINAL 1of2  LEASE AGREEMENT  This Lease Agreement ("Lease"), effective January 1, 2015 ("Effective Date"), is entered into between the CITY OF AVALON, a municipal corporation ("Lessor"), and Island Enterprises Inc., a California corporation dba Avalon Shoreboats ("Lessee"), (each  individually a "Party" and collectively the "Parties").  RECITALS  A. Lessor is the owner of certain real property, including the improvements thereon, located in the City of Avalon referred to as the Cabrillo Mole, 302- C Pebbly Beach Road, and more accurately described in Exhibit 1 (the "Property"). B. Lessee desires to lease from Lessor, and Lessor desires to lease to Lessee, ap portion of the Property as described in more detail in the Lease on the terms and C. This Lease is based on a standard lease form that is used by the Lessor for all leases entered into by the Lessor. To the extent that Lessee believes that certain of the standard provisions of this Lease were not intended to apply to the Property because of the specific nature, intended use, or location of the Property, Lessee should notify the City of Avalon Lease Department. This Recital C in no way relieves Lessee of any ofi its  conditions set forth herein.  obligations under this Lease.  LEASE  NOW THEREFORE, the Parties agree as follows:  1. Property. Lessor leases to Lessee, and Lessee leases from Lessor the Property, consisting of 515 square feet of interior space. Lessor and Lessee agree that if Lessor makes additional space available to Lessee and Lessee accepts such space, that space shall automatically be included in the Property and the terms of this Lease shall  automatically apply thereto, unless otherwise agreed by the Parties.  2. Term.  (a) Term. The term of this Lease shall be from January 1, 2015 to  December 31, 2025 ("Initial Term"). Lessor shall have the option to renew this Lease for one five (5) year period provided Lessor gives Lessee written notice of intent to renew the Lease at least sixty (60) days prior to December 31, 2025, but no more than 180 days prior to December 31, 2025 and the Parties agree to the terms and conditions ("Renewal Term"). The Initial Term and Renewal Term are referred to collectively herein as the  "Term."  (b) Termination. Lessee may terminate the Lease on sixty (60) days'  written notice to the Lessor.  Page 1 of16  65059.000398506837.1    3. Rent.  (a) Calculated on Square Footage erPeresnlags-el-Tolal-Sales-Basis  Lessee shall pay! Lessor rent each month, the higher of either:  i.  in the amount determined by multiplying the square footage of ii. an-amountequal. to agh-percentespolalgrese-sepeat  the Property by four dollars ($4.00) or;  the Property, whichever is higher. Gross receipts shall mean the total amountsTeceived from all revenue sources during the relevant period, except admission taxes, sales taxes, California redemption taxes, City of Avalon Use-Taxes/fees, reasonable commissions which are paid to third parties and-emounts received from activities upon which City Harbor and Use Fees-antrAdmission Taxes are based. For purposes of calculating Gross Receipts.such commissions paid to third parties shall not exceed 20% of the price paid that space shall automatically be included in the Property, as defined in Paragraph 1of this Lease, and the square footage of the Property used in calculating the monthly rent amount shall be increased accordingly. Rent shall be calculated year-round on the total square footage of the Property. There shall be no reductions in square footage for the year on July 1 in an amount equal to any increase in the most recent Consumer Price Index Los Angeles-Long Beach-Anaheim CPI-U released annually by the U.S. Bureau of Labor Statistics. In the event the Consumer Price Index decreases, no change in rent than the thirtieth day after the end of each month during the Term of this Lease to Lessor at the address stated herein. Each monthly payment shall be accompanied by an accounting of total sales for that month. Rent for any period shorter than one month shall be pro-rated on a daily basis. There shall be no off-season period where rent is reduced ornot due; rent shall be due on the thirtieth day of each month regardless of whether the Property was open for business during the month. Lessee is responsible for making the payments required by this section and Lessor will not and is under no obligation to send described in Paragraph 19 of this Lease, if Lessor determines that Lessee has under- reported its income resulting in a rent payment of less than what it should have paid, the greater than 90% of the correct rental amount, Lessee shall immediately pay to Lessor  Finocensamaeausome. S  In the event that Lessor makes additional space available for Lessee's use,  purpose of calculating rent during the off-season.  The amount charged per-square-foot shall be automatically increased each  charged per-square-root shall be made.  (b) Payment Procedures. Lessee shall remit its monthly rent by no later  monthly invoices to Lessee regarding any such payments.  (c) Under-Payment Penalties. In addition to the late payment penalties  following penalties apply;  (i) If the under-reporting of total sales resulted in a rent payment of  the difference, plus a penalty equal to 10% of the difference.  Page 2 of16  6505200038596837.1    (ii) If the under-reporting of total sales resulted in a rent payment of  less than or equal to 90% of the correct rental amount, Lessee shall immediately pay to Lessor the difference, plus a penalty payment equal to the entirety of that month's rent, for month pursuant to this Section 3, Lessee must provide Lessor with detailed information regarding the total gross receipts for each month, regardless of whether Lessee is every calendar year during the Term, based on the information provided by Lessee and any independent audit of Lessor, Lessor shall determine: (1) the amountLessee would have paid for the entire calendar year if Lessee paid the square-footage rent in Section 3(a)(i) each month; and (2) eight percent (8%) of the. Lessee's total gross receipts as defined in Section 3(a)(ii), for the entire calendar-year. Lessee is responsible for paying Lessor the higher of the two amounts ("Higher Amount"). If Lessee's monthly rent payments paid to Lessor for the entireryear are less than the Higher Amount, Lessee shall pay Lessor the difference between what was paid and the Higher Amount within thirty days of receipt of suchifformation from Lessor. IfLessee's monthly rent payments paid tol Lessor for the entire year equal more than the Higher Amount, Lessor shall reimburse Lesseethé difference between what was paid and the Higher Amount within thirty days of  each month the under-reporting occurred.  (d) Disclosure. At the time that Lessee is required to pay rent each  required to pay the square footage price pursuant to Section 3(a)(i).  (e) eeF-OR6-Annual asosaA.wde.ss  sangHedalammatonlalne-Sesense. SWS  4. Use.  (a) Use. Lessee shall occupy and use the Property only for operations,  ticketing and information areas for tram, shoreboat, sightseeing, glassbottom boat, land and sea tours and excursion services; and a hotel and visitor information, reservation, and ticket service area, limited sales of t-shirts and similar items promoting Lessee's business and for no other purpose whatsoever. The Property shall be open for business at least nine (9) months each year for the Term of the Lease and Lessee may determine their own expense, comply with all applicable federal, state and local laws, rules, regulations, and orders, and all covenants and restrictions of record regulating the Property and Lessee's use of the Property. Lessee shall not use nor permit the use of the Property in any manner that will violate the same or disturb other property owners or tenants in the areas agrees to take possession in an "as is" condition. Lessee acknowledges and agrees that Lessor has made no representations, guarantees or warranties regarding the Property, or its fitness for any particular purpose, or regarding any common areas or improvements thereon, nor has Lessor made representations, guarantees or warranties regarding whether the Property and common areas and improvements thereon comply with applicable laws, rules, regulations, orders, or any covenants or restrictions of record in effect at the Effective Date of this Lease. Lessee assumes all responsibility regarding the  hours and days of operation.  (b) Compliance with Law. Lessee shall, at all times and at Lessee's  surrounding the Property or Property.  (c) Condition of Property. Lessee has examined the Property and  Page 3 of 16  65052000085068371    California Occupational Safety Health Act, the legal use and adaptability of the Property and compliance with all applicable laws, rules, regulations, orders and covenants or record in effect during the Term of this Lease relating to the Property except as otherwise 5. Hazardous Waste and Trash Disposal. Lessee shall not use, generate, store or dispose of any Hazardous Materials on the Property or permit the contamination of the Property by Hazardous Materials. For the purpose of this section, Hazardous Materials shall include, without limitation, substances defined as "hazardous substances," "hazardous materials," "toxic substances," hazardous wastes," "extremely hazardous wastes" or "restricted hazardous wastes" or stated to be known to cause cancer or reproductive toxicity, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. sections 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. sections 1801, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. sections 6901, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. sections 1317, et seq.; sections 25115, 25117, 25122.7, 25140, 25249.5, 25249.8, 25281, 25316 or 25501 of the California Health & Safety Code; or any substances sO defined or stated in any of the regulations adopted and publications promulgated pursuant to said laws as they may be amended from time to time. Notwithstanding any other provision oft this Lease, Lessee agrees to comply promptly, and at Lessee's sole cost, with all applicable federal, state and local laws, rules regulations, permits and orders governing the use, management, storage, handling, cleanup, removal, disposal and shipping of Hazardous Materials. Lessee shall dispose of all trash and waste generated at the Property in a trash container at a location designated by Lessor. 6. Special Conditions. Mole Renovation. Lessor will use its best efforts to relocate Lessee's business during renovations of the Mole if such renovations render the Property unfit for the operation of Lessee's business. Lessor makes no guarantees regarding the size, location, fitness, or availability of any temporary alternative premises. Upon completion of the Mole renovations, lessees affected by the renovations will have first right of refusal to reopen their businesses in renovated space on the mole. In the event Lessor is unable to locate suitable alternative temporary space for Lessee's business during the mole renovation, Lessee hereby releases Lessor from all liability 7. Lessee's Repair and Maintenance Obligations. Lessee shall keep in good order, condition and repair, and shall replace, if necessary, the Property and every part thereof, structural and nonstructural occupied or used by Lessee, whether or not the need for such repairs occurs as a result of Lessee's use, any prior use, the elements, or the age of such portion of the Property. This includes, but is not limited to, glazing, plumbing, heating, air conditioning, ventilation, electrical and lighting fixtures and facilities, all equipment within the Property, fixtures, walls (interior and exterior), ceilings, roofing, floors, windows, doors, plate glass, skylights, landscape, tree-trimming, and all fences obligations imposed by this Section 7 involve, in the determination of the Lessor, the leased property of another tenant(s) of Lessor who leases space in the same building, such as a common roof, Lessee's obligations under this Section 7 will be divided  specifically stated in this Lease.  related to the same, as further described in Paragraph 14 of this Lease.  and signs located on the Property.  (a) To the extent that any such repairs, maintenance, or painting  Page 4 of16  65059.000385068371    proportionately between Lessee and the other tenants of Lessor, if any, based on the 8. Surrender. On the last day of the Term of this Lease, or on the date this Lease is earlier terminated, Lessee shall surrender the Property to Lessor in the same condition as when received, ordinary wear and tear and damage by casualty excepted, clean and free of debris. Lessee shall remove all trade fixtures, furnishings and equipment owned by Lessee and shall repair any damage to the Property occasioned by the installation or removal of Lessee's trade fixtures, furnishings and equipment. 9. Lessor's Right to Undertake Lessee's Obligations. If Lessee fails to perform any of Lessee's obligations under any paragraph of this Lease, Lessor may, at its option (but shall not be required to), enter upon the Property after ten (10) days' prior written notice to Lessee (except in the case of an emergency, as determined by Lessor, in its sole discretion, in which case no notice shall be required), and perform such obligations on Lessee's behalf. Any costs incurred by Lessor pursuant to this Paragraph, including interest thereon, shall become due and payable to Lessor together with 10. Damage to Property. In the event that repairs are necessary to alleviate structural hazards because the Property is damaged by circumstances not caused by the negligence or willful misconduct of Lessee, its employees, contractors, agents, invitees or guests, Lessee shall inform Lessor in writing of such necessity. Lessor shall then have the option, in its sole discretion, to either immediately terminate this Lease or to provide for the necessary repairs. In the event Lessor elects to terminate this Lease, no rent shall accrue or be payable to the Lessor after the date Lessor terminates the Lease. If repairs which are made by Lessor prevent the Lessee from occupying a portion of the Property, but Lessee is able to operate on the Property during such repairs, Lessee shall be entitled to a proportionate reduction in the monthly rent, based on the ratio the floor area which Lessee is unable to occupy, from the date such repairs are commenced until the date the entire Property is available for Lessee's occupancy. If the damage prevents Lessee from operating on the Property, then no rent shall be due from the date of damage, as determined by Lessor in its sole discretion, until completion of repairs. Lessee expressly waives the benefit of any statute now or hereinafter in effect which would otherwise afford Lessee the right to make repairs at Lessor's expense or to terminate this Lease because ofLessor's failure to keep the Property in good order, condition and repair. 11. Alterations and Additions. Lessee shall not make any alterations, improvements, additions, Utility Installations exceeding $5,000 (Five Thousand Dollars) in value, hang or paint any signs visible from the exterior of the Property, or make any change to the exterior of the Property, without Lessor's prior written consent. The term "Utility Installation" shall mean installation of carpeting, window coverings, air lines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning, plumbing, and structural changes. If Lessor authorizes any alterations, improvements, additions, or Utility Installations, all such improvements shall be Lessee's sole responsibility and shall be installed and removed at Lessee's sole cost and expense. Upon the removal of any improvement, alteration, addition or Utility Installation, Lessee shall restore the Property to its prior condition. Lessor may require Lessee to provide Lessor, at Lessee's sole cost and expense, a lien and completion bond in an amount  number of square feet leased by each.  Lessee's next rent installment.  Page 5 of1 16  6505900038596837.1    equal to one and one-half times the estimated cost of suchi improvements. Should Lessee make any alternations, improvements, additions or Utility Installations without the prior approval of Lessor, Lessor may require that Lessee immediately remove any or all of the 12. Release of Claim For Relocation Benefits. Lessee hereby acknowledges and agrees that Lessee has no claim or right to relocation benefits or compensation of any kind or nature upon termination of this Lease for any reason, even if such termination was made by the unilateral election of Lessor in its sole discretion. Lessee expressly waives any and all claims or rights to receive relocation benefits or compensation of any kind or nature. Lessee acknowledges that Lessor would not enter into this Lease but for this acknowledgment and waiver by Lessee. During any period of repair or reconstruction by Lessor during the Term of this Lease that requires Lessee to vacate the Property, Lessor shall be under no obligation to provide alternative space to Lessee, but Lessee shall be relieved of the obligation to pay rent during such time that Lessee is unable to utilize the Property. Lessee shall vacate the Property within sixty (60) days' written notice to vacate for such purpose and shall be solely responsible for all costs of vacating from and relocating to reconstructed or newly constructed space, if any is available. upon execution of the Lease and upon renewal of insurance as follows: evidence of workers' compensation coverage as follows:  same.  13. Insurance. The Lessee shall provide the Lessor with a copy of insurance  (a) Workers Compensation Insurance. The Lessee is required to provide  i.  Workers' Compensation insurance with statutory limits as required by the Labor Code of the State of California. ii. Employers Liability with limits of 1,000,000 per Accident; 1,000,000 Disease per employee; 1,000,000 Disease per iii. The policy must include a written waiver of the insurer's right to (b) Liability Insurance. For the Term of the Lease, Lessee shall  policy.  subrogate against the City of Avalon.  maintain and keep in full force Commercial General Liability Insurance no less broad than ISO form CG 00 01 against any liability arising out of the ownership, use occupancy, or maintenance of the Property, and operation of Lessee's business at the Property and all appurtenant thereto when used by Lessee. Such insurance be no less than the following:  i.  Minimum Limits: 1,000,000 per Occurrence; 2,000,000 General Aggregate; the General Aggregate shall apply il. Prior written consent is required if the insurance has a deductible or self-insured retention in excess of $25,000. iii, The City of Avalon must be an additional insured for liability arising out the ownership, maintenance or use of that part of  separately to each location.  Page 6 of16  65052.00008506837.1    the premises leased to the TenantLessee/Concessionaire iv. The insurance provided to the City of Avalon as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program V. The policy must cover inter-insured suits and include a "separation of Insureds" or "severability" clause which treats  (ISO form CG2011ore equivalent).  maintained by the City of Avalon. each insured separately,  (c) Property Insurance.  Prior to Lessee's entry upon the Property and for the Term of the Lease, Lessee shall obtain and keep in full force and effect a policy of insurance covering loss or damage to the Property, in the amount of the full replacement value thereof, against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, commonly known as "broadform coverage." Lessee shall provide Lessor a copy of this insurance policy upon execution of this Lease. li. Lessee shall also insure its fixtures, equipment and tenant improvements on the Property at its sole cost and expense. ii. The limits of said insurance shall not, however, limit the liability iv. Lessee must name the City as Loss Payee on its property  ofLessee hereunder. policy.  (d) Restrictions; Endorsements.  i.  Lessee shall not do or permit to be done anything which shall invalidate the insurance policies during the Term of this Lease. All policies of insurance shall be endorsed to: (1) name Lessor (and at Lessor's option, any additional parties designated by Lessor) as an additional insured; (2) provide that such insurance is primary to any policy of Lessor, which shall not be called upon to contribute in any way; and (3) provide that the policy shall not be cancelled, terminated or modified without first providing thirty (30) days' prior written notice to Lessor. ii. All insurance policies must be issued by an insurer with an A.M. Best rating of at least A:VII. Lessee shall provide immediate written notice if (1) any of the required insurance policies are terminated; (2) the limits of any of the required policies are reduced; or (3) the deductible or self-insured  retention is increased.  Page 7of16  65059200318506837.1    14. Indemnification. and Release.  (a) Indemnification. Lessee shall indemnify, defend and hold harmless  Lessor from and against any and all claims, losses, damages or liabilities of any kind or nature, including claims for damage to property or persons, including wrongful death ("Claim"), arising from or in connection with any act or omission of Lessee, including Lessee's active and passive negligence or Lessee's use of the Property or Property under this Lease, including, without limitation, any activity, work or things done, permitted or suffered by Lessee in or about the Property or elsewhere on the Property and any breach or default by Lessee of this Lease. If any action or proceeding is brought against Lessor by reason of any such Claim, Lessee's obligation to defend the same shall be done with and hereby waives and releases Lessor from, any injury to Lessee's business or any loss ofincome therefrom or for damage to the goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, agents, invitees, guests, or any other person on the Property, nor shall Lessor be liable for injury to the person of Lessee, Lessee's employees, agents, contractors, guests or invitees caused by any reason whatsoever, including without limitation, by fire, steam, electricity, gas, water, rain, the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures on the Property or Property, or from any other cause or condition arising upon the Property or upon other portions of the Property which the Property are a part, or from other sources or places and regardless of whether the cause of such damage or injury or the means of repairing the same is inaccessible to Lessee except to the extent such injury or loss is caused by Lessor's sole gross negligence or willful misconduct. Lessor shall not be liable for any damages arising from any act or 15. Utilities. Lessee shall arrange and timely pay for all gas, heat, light, disposal, power, and any other utilities and services needed or supplied to the Property,  counsel approved in advance by Lessor.  (b) Release. Lessee hereby agrees that Lessor shall not be liable for,  neglect of any other lessees or possessors, if any, of the Property.  together with any taxes thereon.  16. Assignment and Subletting.  (a) Except as otherwise provided below, Lessee shall not convey,  assign, transfer, mortgage, pledge, sublet or encumber any interest in the Property during the Term of this Lease, nor allow any other person (the employees, agents, servants and invitees of Lessee excepted) to occupy or use the Property, or any portion thereof, without Lessor's prior written consent, which may be refused in Lessor's sole discretion. sublet, or encumbrance shall be void where such consent has not been obtained, and the original Lessee shall remain responsible for any unpaid rents, fines, fees, or other its obligations or liabilities under this Lease, and both Lessee and any subsequent  (b) Any attempted conveyance, assignment, transfer, mortgage, pledge,  liabilities arising from or related to the Property.  (c) Any subletting approved by Lessor shall not relieve Lessee of any of  lessor(s) will be deemed to be bound by this Lease.  Page 8 of 16  65052.000.85068371    (d) Any dissolution, merger, consolidation, or other reorganization of  Lessee or sale which results in a change of controlling persons shall be deemed an assignment of this Lease. Any such assignment or subletting without advance written consent of Lessor shall be void, and shall, at the option of the Lessor, constitute a default substantially all of the assets of Lessee, provided Lessee first obtains Lessor's written consent, which shall not be unreasonably withheld and provided Lessee pays to Lessora a lease transfer fee equal to three percent (3%) of the sale price with a cap of $30,000 of Lessee's business ("Transfer Fee"). The Transfer Fee shall not apply to a transfer of this Lease upon the transfer of a controlling interest in Lessee's business to a member of the immediate family of such controlling person, or to a transfer of the controlling interest to an inter vivos trust in which such controlling person is the trustee of the trust. In the event Lessee's business has multiple locations and Lessee assigns, sublets, or transfers the Lease for one location without assigning or transferring the business as a whole, the Transfer Fee shall be a flat $5,000 or a lower amount at the discretion of the City  under the terms of this Lease.  (e) Lessee may transfer this Lease upon the sale or other transfer of  Manager.  17. Defaults and Remedies.  (a) Defaults. In addition to those items already designated to be a  breach or default of this Lease elsewhere in the Lease, the occurrence of any of the following events shall be a material breach of this Lease and shall constitute an event of Lessee without Lessor's prior written consent (failure to occupy and/or operate the Property for ten (10) consecutive days shall be deemed an abandonment and vacation, unless at least ten (10) days before failing to occupy or operate the Property Lessee gives Lessor written notice that Lessee intends to continue using the Property and will continue maintaining the Property while it is vacant, or the dispossession of Lessee from the reimbursement or payment required to be made by Lessee, including applicable Harbor Use Fees, Admission Taxes, or other fees and taxes to the City Associated with the operation of the business or use of the leased facilities hereunder, as and when due, where such failure shall continue for a period of three (3) days after written notice thereof covenants, conditions or provisions of this Lease to be observed or performed by Lessee, ifthe failure has continued for a period of ten (10) days after Lessor demands in writing that Lessee cure the failure, provided however, that if the nature of Lessee's default is such that more than ten (10) days are reasonably required for its cure, in Lessor's sole discretion, Lessee shall not be deemed to be in default if Lessee commenced such cure within said 10-day period and thereafter diligently prosecutes such cure to completion to  default:  Abandonment, vacation, or surrender of the Property by  Property (other than by Lessor by process of law or otherwise).  ii. The failure by Lessee to make any payment of rent or any  from Lessor to Lessee.  ii. The failure by Lessee to observe or perform any of the  the satisfaction of Lessor. 65059.00038506837.1  Page 9 of 16    Iv. The making by Lessee of any general arrangement or  assignment for the benefit of any creditor, Lessee becoming a "debtor" as defined in 11 U.S.C. 101; the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Property or of Lessee's interest in this Lease, where possession is not restored to Lessee within 30 days; or the attachment, execution or other judicial seizure of substantially all of Lessee's assets located at the Property or of Lessee's interest in this Lease, where such seizure is not discharged within thirty (30) Lessee, Lessor may at any time thereafter, with or without notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of Lessee, in which case Lessee shall immediately surrender possession of the Property to Lessor on the termination date specified by Lessor. In such event, Lessor shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessee's default including, but not limited to, the cost of recovering possession of the Property, including all attorneys' fees and court costs incurred, if any; expenses of reletting, including necessary renovation and alteration of the Property, reasonable attorneys' fees, and any real estate commission actually paid in connection with such reletting; the value of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period that Lessor proves could not reasonably be avoided; and that portion of the leasing commission, if any, paid by Lessor shall continue in effect whether or not Lessee shall have abandoned or vacated the Property. In such event, Lessor shall be entitled to enforce all of Lessor's rights and remedies under this Lease, including the right to recover the rent as it becomes due  days.  (b) Remedies. In the event of any such material breach or default by  such default or breach, do any of the following:  Terminate the Lease on sixty (60) days' written notice to  for the unexpired Term of this Lease.  ii. Maintain Lessee's right to possession in which case this Lease  hereunder. equity.  iii. Pursue any other remedy available to Lessor at law or in  18. Possessory Interest Tax. Lessee hereby recognizes that this Lease may create a possessory interest subject to property taxation, and that Lessee may be subject 19. Late Charges. Lessee acknowledges that late payment of rent or any sums due under this Lease will cause Lessor to incur costs not contemplated herein, the exact amount of which will be extremely difficult to ascertain. Accordingly, if any sum due from Lessee is not received by the day it is due, then without requirement for notice to Lessee, Lessee shall pay a late charge of ten percent (10%) per month, plus interest at the rate of %of 1% (.005%) per month or portion thereof, from the date the rent becomes due. The Parties agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of late payment. Acceptance of such late charge shall in no event constitute a waiver of Lessee's default, nor prevent Lessor from exercising any of  to the payment of property taxes levied on such interest.  Page 10of16  65059.00038506837.1    the other rights and remedies granted in this Lease. In the event that a late charge is payable for three (3) consecutive installments of rent, then the minimum monthly rent shall automatically become due and payable quarterly in advance, rather than monthly. The quarterly advance payments of rent will continue until the Lessor notifies Lessee in 20. Severability. Ifany portion of this Lease is ruled by a court of competent jurisdiction to bei invalid, the remaining portions shall remain in full force and effect. 21. Entire Agreement: Amendments. This Lease contains all agreements of the Parties with respect to the Property. No prior agreement or understanding pertaining to any such matter shall be effective, whether oral or in writing. This Lease may only be 22. Notices. Any notice required or permitted to be given under this Lease shall be in writing and given by personal delivery or by first class mail to the address and person below. Either Party may, by notice to the other, specify a different address for notice purposes. Notice given by personal delivery shall be deemed received upon personal delivery. Notice given by mail shall be deemed received three (3) days after  writing.  modified in writing, signed by the Parties.  deposit int the U.S. Mail. Lessor:  City of Avalon P.O. Box 707 Avalon, California 90704 Tele: (310)510-0220 Fax: (310) 510-2478 Attention: Administration-L Leases Island Enterprises, Inc. dba Avalon Shoreboats PO Box 797 Avalon, CA 90704 P.O. Box 92766 Long Beach, CA 90809 Tele: 562-432-8828 [Fax) 562-435-9464 Attention: Jeff Stickler  Lessee:  23. Waivers. The waiver or failure to enforce any provision of this Lease by Lessor shall not be deemed to be a waiver of any future breach of that same provision or ofa any other provision of this Lease. Lessor's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor's consent to or approval of any subsequent act by Lessee. The acceptance of rent by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any provision of this Lease, other than the failure of Lessee to pay the particular rent so accepted, regardless of Lessor's knowledge  of such preceding breach at the time of acceptance of such rent.  Page 11 of16  65059.00008506837.1    24. Holding Over. Lessee has no right to retain possession of the Property or any part thereof beyond the expiration or termination of this Lease. If Lessee, with Lessor's consent, remains in possession of the Property or any part of the Property after the expiration or termination oft the Term of this Lease, such occupancy shall be a tenancy 25. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies available at 26. Binding Effect: Choice of Law. This Lease shall be binding upon and inure to the benefit of the Parties, their personal representatives, heirs, successors and assigns. This Lease shall be governed by and construed in accordance with the laws of 27. Attorneys' Fees and Costs. If either Party brings an action to enforce the Terms of this Lease or declare the rights of the Parties under this Lease, the prevailing Party shall be entitled to recover all costs and expenses incurred in such action, including 28. Right to Enter Property. Lessor and Lessor's agents shall have the right to enter the Property, at reasonable times for the purpose of inspecting the same, showing the same to prospective purchasers, lenders, or lessees, and making such alterations, repairs, improvements or additions to the Property or Property as Lessor may deem necessary or desirable. Lessor may, at any time, place on or about the Property any "For Sale" signs and Lessor may, at any time, during the last 120 days of the Term of this 29. Records; Audit. Lessee shall keep records, reports and books of account substantially in accordance with general accepted accounting principles to reflect accurately the gross receipts, expenditures and net income of Lessee concerned with and related to its operations and activities under this Lease. Lessor shall have the right to inspect and audit Lessee's financial accounts, books and records to ensure Lessee's compliance with this Lease, at any time during the Term of this Lease. Lessor will provide a minimum written notice of the request to audit forty-eight (48) hours in advance of the 30. Nondiscrimination. Lessee covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through it, and this Lease is made and accepted upon and subject to the requirement that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the use, occupancy, tenure, or enjoyment of the Property, nor shall the Lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or 31. Quiet Possession. Upon Lessee's payment of the rent for the Property and observing and performing all of the covenants, conditions and provisions to be observed  from month to month subject to all the provisions of this Lease.  law ori in equity.  the State of California. Venue shall be in Los Angeles County.  reasonable attorneys' fees as fixed by the court or arbitrators.  Lease place on or about the Property any" "For Lease" signs.  audit.  occupancy, of employees, contractors or vendors in the Property.  Page 12of16  65059.0003850683721    and performed under this Lease, Lessee shall be entitled to have quiet possession of the Property for the Term of this Lease subject to all of the provisions of this Lease. 32. Compliance with Lessor's Rules for Use of Property. Lessee agrees that it will abide by, keep and observe all reasonable rules and regulations which Lessor may make from time to time for the management of the Property, including, without limitation, the delivery of supplies, the parking of vehicles and the preservation of the good order. The violations of any such rules and regulations shall be deemed a material breach of this  Lease.  33. Third-Party Beneficiaries. There are no intended or incidental third-party 34. Counterparts. This Lease may be executed in multiple counterparts, each ofwhich shall be deemed an original, but all of which, together, shall constitute one and 35. Compliance with California Civil Code Section 1938. Pursuant to and in compliance with California Civil Code section 1938, Lessee is notified that the Property 36. Authority to Execute. The individuals executing this Lease on behalf of each Party represent and warrant that they are fully authorized and legally capable of executing this Lease on behalf of that respective Party, and binding that Party thereto.  beneficiaries of this Agreement.  the same instrument and ai fully executed Lease.  has not undergone inspection by a Certified Access Specialist.  [Signatures to Lease Agreement on Next Page]  Page 13 of 16  65059.00005.8506837.1    Signature Page to Lease Agreement  The Parties hereto have executed this lease on the date stated below:  Dated: A30,209  Snckez  A  By:, Its: D City of Avalon PPNA, Gob Denise A. Radde, City Manager hlla Mansnahn Gabrielle Morones, Deputy City Clerk  E  afopRhans  DaledpsDg  Attest:  Page 14 of16  65052.000.85068371    EXHIBIT 1 to Lease Agreement  LEGAL DESCRIPTION OF PROPERTY  Page 15of16  65059.00008506837.1    302 PEBBLYBCACHROAD Leasee A. Avalon Blue! Une Baggage &C Delivery A1, Avalon Blue! Linel Lockers A3. Avalon Bluet Line Parking CatallnaATM C. island Enterprises! Inc. CI. Island Enterprises Inc. D. sar Resonts Services, Inc. E.A Avalon Rarbor Dept. E1. AvalonHarbor Dept. F. ElishlandDell Restrooms H. Afishinados Cotalina Vending ScEControl Room Greg Wenger  Updated 3/9/15  door window Drawingsnottosale InsstDawngs  Al  Page 16 of16  65059.00038506837.1    ORIGINAL lof2  LEASE. AGREEMENT  This Lease Agreement ("Lease"), effective January 1, 2015 ("Effective Date"), is entered into between the CITY OF AVALON, a municipal corporation ("Lessor"), and Island Enterprises Inc., a California corporation dba Catalina Adventure Tours ("Lessee"),  (each individually a "Party" and collectively the "Parties").  RECITALS  A. Lessor is the owner of certain real property, including the improvements thereon, located in the City of Avalon referred to as the Cabrillo Mole, 302- C1 Pebbly Beach Road, and more accurately described in Exhibit 1 (the "Property"). B. Lessee desires to lease from Lessor, and Lessor desires to lease to Lessee, ap portion of the Property as described in more detail in the Lease on the terms and C. This Lease is based on a standard lease form that is used by the Lessor for all leases entered into by the Lessor. To the extent that Lessee believes that certain of the standard provisions of this Lease were not intended to apply to the Property because of the specific nature, intended use, or location of the Property, Lessee should notify the City of Avalon Lease Department. This Recital C in no way relieves Lessee of any of its  conditions set forth herein.  obligations under this Lease.  LEASE  NOW THEREFORE, the Parties agree as follows:  1. Property. Lessor leases to Lessee, and Lessee leases from Lessor the Property, consisting of 98.75 square feet of interior space. Lessor and Lessee agree that ifLessor makes additional space available to Lessee and Lessee accepts such space, that space shall automatically be included in the Property and the terms of this Lease shall automatically apply thereto, unless otherwise agreed by the Parties.  2. Term.  (a) Term. The term of this Lease shall be from January 1, 2015 to  December 31, 2025 ("Initial Term"). Lessor shall have the option to renew this Lease for one five (5) year period provided Lessor gives Lessee written notice of intent to renew the Lease at least sixty (60) days prior to December 31, 2025, but no more than 180 days prior to December 31, 2025 and the Parties agree to the terms and conditions ("Renewal Term"). The Initial Term and Renewal Term are referred to collectively herein as the  "Term."  (b) Termination. Lessee may terminate the Lease on sixty (60) days'  written notice to the Lessor.  Page 1 of 16  65059.000085068371    3. Rent.  (a) Calculated on Square Footage EPerPR9g0-eF-IeH8-Seee-Bee".  Lessee shall pay Lessor rent each month, the higher of either:  i.  in the amount determined by multiplying the square footage of ii. anamouniogua-oaganteweaalgesresepis*  the Property by four dollars ($4.00)or;  the Property, whichever is higher. Gross receipts shall mean the total amounts-rectived from all revenue sources during the relevant period, except admiseierrtaxes, sales taxes, California redemption taxes, City of Avalon Use-Texes/lees, reasonable commissions which are paid to third parties and-amounts received from activities upon which City Harbor and Use Fees-and-Admission Taxes are based. For purposes of calculating Gross Receipts,euch? commissions paid to third parties shall not exceed 20% of the price paid that space shall automatically be included in the Property, as defined in Paragraph 1 of this Lease, and the square footage of the Property used in calculating the monthly rent amount shall be increased accordingly. Rent shall be calculated year-round on the total square footage of the Property. There shall be no reductions in square footage for the year on July 1 in an amount equal to any increase in the most recent Consumer Price Index Los Angeles-Long Beach-Anaheim CPI-U released annually by the U.S. Bureau of Labor Statistics. In the event the Consumer Price Index decreases, no change in rent than the thirtieth day after the end of each month during the Term of this Lease to Lessor at the address stated herein. Each monthly payment shall be accompanied by an accounting of total sales for that month. Rent for any period shorter than one month shall be pro-rated on a daily basis. There shall be no off-season period where rent is reduced or not due; rent shall be due on the thirtieth day of each month regardless of whether the Property was open for business during the month. Lessee is responsible for making the payments required by this section and Lessor will not and is under no obligation to send described in Paragraph 19 of this Lease, if Lessor determines that Lessee has under- reported its income resulting in a rent payment of less than what it should have paid, the greater than 90% of the correct rental amount, Lessee shall immediately pay to Lessor  PIMP-ORRUmeMCSeN SW5  In the event that Lessor makes additional space available for Lessee's use,  purpose of calculating rent during the off-season.  The amount charged per-square-foot shail be automatically increased each  charged per-square-foot shall be made.  (b) Payment Procedures. Lessee shall remit its monthly rent by no later  monthly invoices to Lessee regarding any such payments.  (c) Under-Payment Penalties. In addition to the late payment penalties  following penalties apply;  (i) If the under-reporting of total sales resulted in a rent payment of  the difference, plus a penalty equal to 10% of the difference.  Page 2 of16  65059.00038506837.1    (i) Ifthe under-reporting of total sales resulted in a rent payment of  less than or equal to 90% of the correct rental amount, Lessee shall immediately pay to Lessor the difference, plus a penalty payment equal tot the entirety of that month's rent, for month pursuant to this Section 3, Lessee must provide Lessor with detailed information regarding the total gross receipts for each month, regardless of whether Lessee is every calendar year during the Term, based on the information provided by Loesee and any independent audit of Lessor, Lessor shall determine: (1) the amgurtLessee would have paid for the entire calendar year if Lessee paid the square-footage rent in Section 3(a)() each month; and (2) eight percent (8%) of the Lessee's total gross receipts as defined in Section 3(a)(i), for the entire calendaryear. Lessee is responsible for paying Lessor the higher of the two amounts ("Higher Amount"). If Lessee's monthly rent payments paid to Lessor for the entire year are less than the Higher Amount, Lessee shall pay Lessor the differencebetween. what was paid and the Higher Amount within thirty days of receipt of suehrinformation from Lessor. IfLessee's monthly rent payments paid to Lessor forthe entire year equal more than the Higher Amount, Lessor shall reimburse Lesseethe difference between what was paid and the Higher Amount within thirty days of  each month the under-reporting: occurred.  (d) Disclosure. At the time that Lessee is required to pay rent each  required to pay the square footage price pursuant to Section 3(a)(i).  (e) Yoar-and_Annua_Reconc.aton. waps-assA  sumgladaliamihnstonaicninimi-Sectone. SS  4. Use.  (a) Use. Lessee shall occupy and use the Property only for operations,  ticketing and information areas for tram, shoreboat, sightseeing, glassbottom boat, land and sea tours and excursion services; and al hotel and visitor information, reservation, and ticket service area, limited sales of t-shirts and similar items promoting Lessee's business and for no other purpose whatsoever. The Property shall be open for business at least nine (9) months each year for the Term of the Lease and Lessee may determine their own expense, comply with all applicable federal, state and local laws, rules, regulations, and orders, and all covenants and restrictions of record regulating the Property and Lessee's use of the Property. Lessee shall not use nor permit the use of the Property in any manner that will violate the same or disturb other property owners or tenants in the areas agrees to take possession in an "as is" condition. Lessee acknowledges and agrees that Lessor has made no representations, guarantees or warranties regarding the Property, or its fitness for any particular purpose, or regarding any common areas or improvements thereon, nor has Lessor made representations, guarantees or warranties regarding whether the Property and common areas and improvements thereon comply with applicable laws, rules, regulations, orders, or any covenants or restrictions of record in effect at the Effective Date of this Lease. Lessee assumes all responsibility regarding the  hours and days of operation.  (b) Compliance with Law. Lessee shall, at all times and at Lessee's  surrounding the Property or Property.  (c) Condition of Property. Lessee has examined the Property and  Page 3 of16  65059.00038506837.1    California Occupational Safety Health Act, the legal use and adaptability of the Property and compliance with all applicable laws, rules, regulations, orders and covenants or record in effect during the Term of this Lease relating to the Property except as otherwise 5. Hazardous Waste and Trash Disposal. Lessee shall not use, generate, store or dispose of any Hazardous Materials on the Property or permit the contamination of the Property by Hazardous Materials. For the purpose of this section, Hazardous Materials shall include, without limitation, substances defined as "hazardous substances," "hazardous materials," "toxic substances," hazardous wastes," "extremely hazardous wastes" or "restricted hazardous wastes" or stated to be known to cause cancer or reproductive toxicity, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. sections 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. sections 1801, et seg.; the Resource Conservation and Recovery Act, 42 U.S.C. sections 6901, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. sections 1317, et seq.; sections 25115, 25117, 25122.7, 25140, 25249.5, 25249.8, 25281, 25316 or 25501 of the California Health & Safety Code; or any substances sO defined or stated in any of the regulations adopted and publications promulgated pursuant to said laws as they may be amended from time to time. Notwithstanding any other provision of this Lease, Lessee agrees to comply promptly, and at Lessee's sole cost, with all applicable federal, state and local laws, rules regulations, permits and orders governing the use, management, storage, handling, cleanup, removal, disposal and shipping of Hazardous Materials. Lessee shall dispose of all trash and waste generated at the Property in a trash container at al location designated by Lessor. 6. Special Conditions. Mole Renovation. Lessor will use its best efforts to relocate Lessee's business during renovations of the Mole if such renovations render the Property unfit for the operation of Lessee's business. Lessor makes no guarantees regarding the size, location, fitness, or availability of any temporary alternative premises. Upon completion of the Mole renovations, lessees affected by the renovations will have first right of refusal to reopen their businesses in renovated space on the mole. In the event Lessor is unable to locate suitable alternative temporary space for Lessee's business during the mole renovation, Lessee hereby releases Lessor from all liability 7. Lessee's Repair and Maintenance Obligations. Lessee shall keep in good order, condition and repair, and shall replace, if necessary, the Property and every part thereof, structural and nonstructural occupied or used by Lessee, whether or not the need for such repairs occurs as a result of Lessee's use, any prior use, the elements, or the age of such portion of the Property. This includes, but is not limited to, glazing, plumbing, heating, air conditioning, ventilation, electrical and lighting fixtures and facilities, all equipment within the Property, fixtures, walls (interior and exterior), ceilings, floors, windows, doors, plate glass, skylights, landscape, tree-trimming, and all fences and signs obligations imposed by this Section 7 involve, in the determination of the Lessor, the leased property of another tenant(s) of Lessor who leases space in the same building, such as a common roof, Lessee's obligations under this Section 7 will be divided  specifically stated in this Lease.  related to the same, as further described in Paragraph 14 of this Lease.  located on the Property.  (a) To the extent that any such repairs, maintenance, or painting  Page 4 of1 16  65052.00038506837.1    proportionately between Lessee and the other tenants of Lessor, if any, based on the 8. Surrender. On the last day of the Term of this Lease, or on the date this Lease is earlier terminated, Lessee shall surrender the Property to Lessor in the same condition as when received, ordinary wear and tear and damage by casualty excepted, clean and free of debris. Lessee shall remove all trade fixtures, furnishings and equipment owned by Lessee and shall repair any damage to the Property occasioned by the installation or removal ofl Lessee's trade fixtures, furnishings and equipment. 9. Lessor's Right to Undertake Lessee's Obligations. If Lessee fails to perform any of Lessee's obligations under any paragraph of this Lease, Lessor may, at its option (but shall not be required to), enter upon the Property after ten (10) days' prior written notice to Lessee (except in the case of an emergency, as determined by Lessor, in its sole discretion, in which case no notice shall be required), and perform such obligations on Lessee's behalf. Any costs incurred by Lessor pursuant to this Paragraph, including interest thereon, shall become due and payable to Lessor together with 10. Damage to Property. In the event that repairs are necessary to alleviate structural hazards because the Property is damaged by circumstances not caused by the negligence or willful misconduct of Lessee, its employees, contractors, agents, invitees or guests, Lessee shall inform Lessor in writing of such necessity. Lessor shall then have the option, in its sole discretion, to either immediately terminate this Lease or to provide for the necessary repairs. In the event Lessor elects to terminate this Lease, no rent shall accrue or be payable to the Lessor after the date Lessor terminates the Lease. If repairs which are made by Lessor prevent the Lessee from occupying a portion of the Property, but Lessee is able to operate on the Property during such repairs, Lessee shall be entitled to a proportionate reduction in the monthly rent, based on the ratio the floor area which Lessee is unable to occupy, from the date such repairs are commenced until the date the entire Property is available for Lessee's occupancy. If the damage prevents Lessee from operating on the Property, then no rent shall be due from the date of damage, as determined by Lessor in its sole discretion, until completion of repairs. Lessee expressly waives the benefit of any statute now or hereinafter in effect which would otherwise afford Lessee the right to make repairs at Lessor's expense or to terminate this Lease because ofLessor's failure to keep the Property in good order, condition and repair. 11. Alterations and Additions. Lessee shall not make any alterations, improvements, additions, Utility Installations exceeding $5,000 (Five Thousand Dollars) in value, hang or paint any signs visible from the exterior of the Property, or make any change to the exterior of the Property, without Lessor's prior written consent. The term "Utility Installation" shall mean installation of carpeting, window coverings, air lines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning, plumbing, and structural changes. If Lessor authorizes any alterations, improvements, additions, or Utility Installations, all such improvements shall be Lessee's sole responsibility and shall be installed and removed at Lessee's sole cost and expense. Upon the removal of any improvement, alteration, addition or Utility Installation, Lessee shall restore the Property to its prior condition. Lessor may require Lessee to provide Lessor, at Lessee's sole cost and expense, a lien and completion bond in an amount  number of square feet leased by each.  Lessee's next rent installment.  Page 5 of 16  6505200038506837.1    equal to one and one-half times the estimated cost of such improvements. Should Lessee make any alternations, improvements, additions or Utility Installations without the prior approval of Lessor, Lessor may require that Lessee immediately remove any or all of the 12. Release of Claim For Relocation Benefits. Lessee hereby acknowledges and agrees that Lessee has no claim or right to relocation benefits or compensation of any kind or nature upon termination of this Lease for any reason, even if such termination was made by the unilateral election of Lessor in its sole discretion. Lessee expressly waives any and all claims or rights to receive relocation benefits or compensation of any kind or nature. Lessee acknowledges that Lessor would not enter into this Lease but for this acknowledgment and waiver by Lessee. During any period of repair or reconstruction by Lessor during the Term of this Lease that requires Lessee to vacate the Property, Lessor shall be under no obligation to provide alternative space to Lessee, but Lessee shall be relieved of the obligation to pay rent during such time that Lessee is unable to utilize the Property. Lessee shall vacate the Property within sixty (60) days' written notice to vacate for such purpose and shall be solely responsible for all costs of vacating from and relocating to reconstructed or newly constructed space, if anyi is available. upon execution of the Lease and upon renewal of insurance as follows: evidence of workers' compensation coverage as follows:  same.  13. Insurance. The Lessee shall provide the Lessor with a copy of insurance  (a) Workers Compensation Insurance. The Lessee is required to provide  i.  Workers' Compensation insurance with statutory limits as required by the Labor Code of the State of California. ii. Employers Liability with limits of 1,000,000 per Accident; 1,000,000 Disease per employee; 1,000,000 Disease per inl. The pollcy must include a written waiver of the insurer's right to (b) Liability Insurance. For the Term of the Lease, Lessee shall  policy.  subrogate against the City of Avalon.  maintain and keep in full force Commercial General Liability Insurance no less broad than ISO form CG 00 01 against any liability arising out of the ownership, use occupancy, or maintenance of the Property, and operation of Lessee's business at the Property and all appurtenant thereto when used by Lessee. Such insurance be no less than the following:  i.  Minimum Limits: 1,000,000 per Occurrence; 2,000,000 General Aggregate; the General Aggregate shall apply li. Prior written consent is required if the insurance has a deductible or self-insured retention in excess of $25,000. iii. The City of Avalon must be an additional insured for liability arising out the ownership, maintenance or use of that part of  separately to each location.  Page 6 of16  65059.000048506837.1    the premises leased to the TenantLessee/Concessionaire iv. The insurance provided to the City of Avalon as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program V. The policy must cover inter-insured suits and include a "separation of Insureds" or "severability" clause which treats  (ISO form CG201 11 or equivalent).  maintained by the City of Avalon.  each insured separately.  (c) Property Insurance.  i.  Prior to Lessee's entry upon the Property and for the Term of the Lease, Lessee shall obtain and keep in full force and effect a policy of insurance covering loss or damage to the Property, in the amount of the full replacement value thereof, against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, commonly known as "broadform coverage." Lessee shall provide Lessor a copy of this insurance policy upon execution of this Lease. Lessee shall also insure its fixtures, equipment and tenant improvements on the Property at its sole cost and expense. ii. The limits of said insurance shall not, however, limit the liability iv. Lessee must name the City as Loss Payee on its property  ii.  of Lessee hereunder. policy.  (d) Restrictions; Endorsements.  i.  Lessee shall not do or permit to be done anything which shall invalidate the insurance policies during the Term of this Lease. All policies ofi insurance shall be endorsed to: (1) name Lessor (and at Lessor's option, any additional parties designated by Lessor) as an additional insured; (2) provide that such insurance is primary to any policy ofLessor, which shall not be called upon to contribute in any way; and (3) provide that the policy shall not be cancelled, terminated or modified without first providing thirty (30) days' prior written notice to Lessor. ii. All insurance policies must be issued by an insurer with an A.M. Best rating of at least A:VII. Lessee shall provide immediate written notice if (1) any of the required insurance policies are terminated; (2) the limits of any of the required policies are reduced; or (3) the deductible or self-insured  retention is increased.  Page 7 of1 16  65059,000385068371    14. Indemnification and Release.  (a) Indemnification. Lessee shall indemnify, defend and hold harmless  Lessor from and against any and all claims, losses, damages or liabilities of any kind or nature, including claims for damage to property or persons, including wrongful death ("Claim"), arising from or in connection with any act or omission of Lessee, including Lessee's active and passive negligence or Lessee's use ofi the Property or Property under this Lease, including, without limitation, any activity, work or things done, permitted or suffered by Lessee in or about the Property or elsewhere on the Property and any breach or default by Lessee of this Lease. Ifa any action or proceeding is brought against Lessor by reason of any such Claim, Lessee's obligation to defend the same shall be done with and hereby waives and releases Lessor from, any injury to Lessee's business or any loss ofi income therefrom or for damage to the goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, agents, invitees, guests, or any other person on the Property, nor shall Lessor be liable for injury to the person of Lessee, Lessee's employees, agents, contractors, guests or invitees caused by any reason whatsoever, including without limitation, by fire, steam, electricity, gas, water, rain, the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures on the Property or Property, or from any other cause or condition arising upon the Property or upon other portions of the Property which the Property are a part, or from other sources or places and regardless of whether the cause of such damage or injury or the means of repairing the same is inaccessible to Lessee except to the extent such injury or loss is caused by Lessor's sole gross negligence or willful misconduct. Lessor shall not be liable for any damages arising from any act or 15. Utilities. Lessee shall arrange and timely pay for all gas, heat, light, disposal, power, and any other utilities and services needed or supplied to the Property,  counsel approved in advance by Lessor.  (b) Release. Lessee hereby agrees that Lessor shall not be liable for,  neglect of any other lessees or possessors, if any, oft the Property.  together with any taxes thereon.  16. Assignment and Subletting.  (a) Except as otherwise provided below, Lessee shall not convey,  assign, transfer, mortgage, pledge, sublet or encumber any interest ini the Property during the Term of this Lease, nor allow any other person (the employees, agents, servants and invitees ofl Lessee excepted) to occupy or use the Property, or any portion thereof, without Lessor's prior written consent, which may be refused in Lessor's sole discretion. sublet, or encumbrance shall be void where such consent has not been obtained, and the original Lessee shall remain responsible for any unpaid rents, fines, fees, or other its obligations or liabilities under this Lease, and both Lessee and any subsequent  (b) Any attempted conveyance, assignment, transfer, mortgage, pledge,  liabilities arising from or related to the Property.  (c) Any subletting approved by Lessor shall not relieve Lessee of any of  lessor(s) will be deemed to be bound by this Lease.  Page 8 of 16  65059.00008506837.1    (d) Any dissolution, merger, consolidation, or other reorganization of  Lessee or sale which results in a change of controlling persons shall be deemed an assignment of this Lease. Any such assignment or subletting without advance written consent of Lessor shall be void, and shall, at the option of the Lessor, constitute a default substantially all of the assets of Lessee, provided Lessee first obtains Lessor's written consent, which shall not be unreasonably withheld and provided Lessee pays to Lessor a lease transfer fee equal to three percent (3%) of the sale price with a cap of $30,000 of Lessee's business (*Transfer Fee"). The Transfer Fee shall not apply to a transfer of this Lease upon the transfer of a controlling interest in Lessee's business to a member of the immediate family of such controlling person , or to a transfer of the controlling interest to an inter vivos trust in which such controling person is the trustee of the trust. In the event Lessee's business has multiple locations and Lessee assigns, sublets, or transfers the Lease for one location without assigning or transferring the business as a whole, the Transfer Fee shall be a flat $5,000 or a lower amount at the discretion of the City  under the terms of this Lease.  (e) Lessee may transfer this Lease upon the sale or other transfer of  Manager.  17. Defaults and Remedies.  (a) Defaults. In addition to those items already designated to be a  breach or default of this Lease elsewhere in the Lease, the occurrence of any of the following events shall be a material breach of this Lease and shall constitute an event of Lessee without Lessor's prior written consent (failure to occupy and/or operate the Property for ten (10) consecutive days shall be deemed an abandonment and vacation, unless at least ten (10) days before failing to occupy or operate the Property Lessee gives Lessor written notice that Lessee intends to continue using the Property and will continue maintaining the Property while it is vacant, or the dispossession of Lessee from the reimbursement or payment required to be made by Lessee, including applicable Harbor Use Fees, Admission Taxes, or other fees and taxes to the City Associated with the operation of the business or use of the leased facilities hereunder, as and when due, where such failure shall continue for a period of three (3) days after written notice thereof covenants, conditions or provisions of this Lease to be observed or performed by Lessee, ifthe failure has continued for a period of ten (10) days after Lessor demands in writing that Lessee cure the failure, provided however, that if the nature of Lessee's default is such that more than ten (10) days are reasonably required for its cure, in Lessor's sole discretion, Lessee shall not be deemed to be in default if Lessee commenced such cure within said 10-day period and thereafter diligently prosecutes such cure to completion to  default:  Abandonment, vacation, or surrender of the Property by  Property (other than by Lessor by process of law or otherwise).  ii. The failure by Lessee to make any payment of rent or any  from Lessor to Lessee.  iii. The failure by Lessee to observe or perform any of the  the satisfaction of Lessor. 65059.000398506837.1  Page 9 of 16    iv. The making by Lessee of any general arrangement or  assignment for the benefit of any creditor, Lessee becoming a "debtor" as defined in 11 U.S.C. 101; the appointment of at trustee or receiver to take possession of substantially all of Lessee's assets located at.the Property or of Lessee's interest in this Lease, where possession is not restored to Lessee within 30 days; or the attachment, execution or other judicial seizure of substantially all of Lessee's assets located at the Property or of Lessee's interest in this Lease, where such seizure is not discharged within thirty (30) Lessee, Lessor may at any time thereafter, with or without notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of Lessee, in which case Lessee shall immediately surrender possession of the Property to Lessor on the termination date specified by Lessor. In such event, Lessor shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessee's default including, but not limited to, the cost of recovering possession of the Property, including all attorneys' fees and court costs incurred, if any; expenses of reletting, including necessary renovation and alteration of the Property, reasonable attorneys' fees, and any real estate commission actually paid in connection with such reletting; the value of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period that Lessor proves could not reasonably be avoided; and that portion of the leasing commission, if any, paid by Lessor shall continue in effect whether or not Lessee shall have abandoned or vacated the Property. In such event, Lessor shall be entitled to enforce all of Lessor's rights and remedies under this Lease, including the right to recover the rent as it becomes due  days.  (b) Remedies. In the event of any such material breach or default by  such default or breach, do any of the following:  .  Terminate the Lease on sixty (60) days' written notice to  for the unexpired Term of this Lease.  ii.  Maintain Lessee's right to possession in which case this Lease  hereunder. equity.  iil. Pursue any other remedy available to Lessor at law or in  18. Possessory Interest Tax. Lessee hereby recognizes that this Lease may create a possessory interest subject to property taxation, and that Lessee may be subject 19. Late Charges. Lessee acknowledges that late payment of rent or any sums due under this Lease will cause Lessor to incur costs not contemplated herein, the exact amount of which will be extremely difficult to ascertain. Accordingly, if any sum due from Lessee is not received by the day it is due, then without requirement for notice to Lessee, Lessee shall pay a late charge of ten percent (10%) per month, plus interest at the rate of % of 1% (.005%) per month or portion thereof, from the date the rent becomes due. The Parties agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of late payment. Acceptance of such late charge shall in no event constitute a waiver of Lessee's default, nor prevent Lessor from exercising any of  to the payment of property taxes levied on such interest.  Page 10 of16  65052.00038506837.1    the other rights and remedies granted in this Lease. In the event that a late charge is payable for three (3) consecutive installments of rent, then the minimum monthly rent shall automatically become due and payable quarterly in advance, rather than monthly. The quarterly advance payments of rent will continue until the Lessor notifies Lessee in 20. Severability. Ifa any portion of this Lease is ruled by a court of competent jurisdiction to be invalid, the remaining portions shall remain int full force and effect. 21. Entire Agreement: Amendments. This Lease contains all agreements of the Parties with respect to the Property. No prior agreement or understanding pertaining to any such matter shall be effective, whether oral or in writing. This Lease may only be 22. Notices. Any notice required or permitted to be given under this Lease shall be in writing and given by personal delivery or by first class mail to the address and person below. Either Party may, by notice to the other, specify a different address for notice purposes. Notice given by personal delivery shall be deemed received upon personal delivery. Notice given by mail shall be deemed received three (3) days after  writing.  modified in writing, signed by the Parties.  deposit int the U.S. Mail. Lessor:  City of Avalon P.O. Box 707 Avalon, California 90704 Tele: (310)510-0220 Fax: (310)510-2478 Attention: Administration- - Leases Island Enterprises, Inc. dba Catalina Adventure Tours PO Box 797 Avalon, CA 90704 P.O. Box 92766 Long Beach, CA 90809 Tele: 562-432-8828 [Fax) 562-435-9464 Attention: Jeff Stickler  Lessee:  23. Waivers. The waiver or failure to enforce any provision of this Lease by Lessor shall not be deemed to be a waiver of any future breach of that same provision or of any other provision of this Lease. Lessor's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor's consent to or approval of any subsequent act by Lessee. The acceptance of rent by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any provision of this Lease, other than the failure of Lessee to pay the particular rent sO accepted, regardless of Lessor's knowledge  of such preceding breach at the time of acceptance of such rent.  Page 11 of16  65059.000318506837.1    24. Holding Over. Lessee has no right to retain possession of the Property or any part thereof beyond the expiration or termination of this Lease. If Lessee, with Lessor's consent, remains in possession of the Property or any part of the Property after the expiration or termination of the Term of this Lease, such occupancy shall be a tenancy 25. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies available at 26. Binding Effect; Choice ofLaw. This Lease shall be binding upon and inure to 1 the benefit of the Parties, their personal representatives, heirs, successors and assigns. This Lease shall be governed by and construed in accordance with the laws of 27. Attorneys' Fees and Costs. Ife either Party brings an action to enforce the Terms of this Lease or declare the rights of the Parties under this Lease, the prevailing Party shall be entitled to recover all costs and expenses incurred in such action, including 28. Right to Enter Property. Lessor and Lessor's agents shall have the right to enter the Property, at reasonable times for the purpose of inspecting the same, showing the same to prospective purchasers, lenders, or lessees, and making such alterations, repairs, improvements or additions to the Property or Property as Lessor may deem necessary or desirable. Lessor may, at any time, place on or about the Property any "For Sale" signs and Lessor may, at any time, during the last 120 days of the Term of this 29. Records; Audit. Lessee shall keep records, reports and books of account substantially in accordance with general accepted accounting principles to reflect accurately the gross receipts, expenditures and net income of Lessee concerned with and related to its operations and activities under this Lease. Lessor shall have the right to inspect and audit Lessee's financial accounts, books and records to ensure Lessee's compliance with this Lease, at any time during the Term of this Lease. Lessor will provide ar minimum written notice of the request to audit forty-eight (48) hours in advance of the 30. Nondiscrimination. Lessee covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through it, and this Lease is made and accepted upon and subject to the requirement that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the use, occupancy, tenure, or enjoyment of the Property, nor shall the Lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or 31. Quiet Possession. Upon Lessee's payment of the rent for the Property and observing and performing all of the covenants, conditions and provisions to be observed  from month to month subject to all the provisions of this Lease.  law ori in equity.  the State of California. Venue shall be in Los Angeles County.  reasonable attorneys' fees as fixed by the court or arbitrators.  Lease place on or about the Property any "For Lease" signs.  audit.  occupancy, of employees, contractors or vendors in the Property.  Page 12 of16  650.59.000318506837.1    and performed under this Lease, Lessee shall be entitled to have quiet possession of the Property for the Term of this Lease subject to all of the provisions of this Lease.  32. Compliance with Lessor's Rules for Use of Property. Lessee agrees that it will abide by, keep and observe all reasonable rules and regulations which Lessor may make from time to time for the management of the Property, including, without limitation, the delivery of supplies, the parking of vehicles and the preservation of the good order. The violations of any such rules and regulations shall be deemed a material breach of this  Lease.  33. Third-Party Beneficiaries. There are no intended or incidental third-party 34. Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and 35. Compliance with California Civil Code Section 1938. Pursuant to and in compliance with California Civil Code section 1938, Lessee is notified that the Property 36. Authority to Execute. The individuals executing this Lease on behalf of each Party represent and warrant that they are fully authorized and legally capable of executing this Lease on behalf of that respective Party, and binding that Party thereto.  beneficiaries of this Agreement.  the same instrument and a fully executed Lease.  has not undergone inspection by a Certified Access Specialist.  [Signatures to Lease Agreement on Next Pagel  Page 13 of 16  65052000318506837.1    Signature Page to Lease Agreement  The Parties hereto have executed this lease on the date stated below:  Dated: 36,2011  Lesses  ptcklez  PHayEiim, lts: City of Avalon  lat ApeRatns  Dated: 02/03/2019  uwede Denise A. Radde, City Manager Salaalle Mapnep Gabrielle Morones, Deputy City Clerk  Attest:  Page 14 of16  65059.00008506837.1    EXHIBIT1 1 to Lease Agreement  LEGAL DESCRIPTION OF PROPERTY  Page 15of16  65059.000308506837.1    Updated:3/9/15  302 PEBBLYBEACHROAD Leasee A. Avalon! Blue unel Baggage & Delivery Al.Avalon Bluo Line Lockers A3. Avalon! Bluet line Parking 8. CalalinaATM 1 Island Enterprises Inc. Ci. Island Enterprises inc. D. scIr Reson Scrvices, Inc. E. Avalon Harbor Dept. El. Avalon! Harbor Dept. #. Ell'sIsland Deli Restrooms H. Alishinados Catalina Vending SCEC Controil Room <. Grog Wenger  E1  -door window Drawingsnottosae InsetDrawing:  D  CI  A1  Page 16of16  65052000385068371    ORIGINAL lof2  LEASE AGREEMENT  This Lease Agreement ("Lease"), effective January 1, 2015 ("Effective Date"), is entered into between the CITY OF AVALON, a municipal corporation ("Lessor"), and Island Enterprises, Inc. a California corporation dba Catalina Adventure Tours ("Lessee"),  (each individually a "Party" and collectively the "Parties").  RECITALS  A. Lessor is the owner of certain real property, including the improvements thereon, located in the City of Avalon referred to as No. 12 Pleasure Pier, and more B. Lessee desires to lease from Lessor, and Lessor desires to lease to Lessee, ap portion of the Property as described in more detail in the Lease on the terms and C. This Lease is based on a standard lease form that is used by the Lessor for all leases entered into by the Lessor. To the extent that Lessee believes that certain of the standard provisions of this Lease were not intended to apply to the Property because of the specific nature, intended use, or location of the Property, Lessee should notify the City of Avalon Lease Department. This Recital C in no way relieves Lessee of any ofi its  accurately described in Exhibit 1 (the "Property").  conditions set forth herein.  obligations under this Lease.  LEASE  NOW THEREFORE, the Parties agree as follows:  1. Property. Lessor leases to Lessee, and Lessee leases from Lessor the Property, consisting of 156 square feet of interior and/or exterior space. Lessor and Lessee agree that if Lessor makes additional space available to Lessee and Lessee accepts such space, that space shall automatically be included in the Property and the terms of this Lease shall automatically apply thereto, unless otherwise agreed by the  Parties.  2. Term.  (a) Term. The term of this Lease shall be from January 1, 2015 to  December 31, 2025 ("Initial Term"). Lessor shall have the option to renew this Lease for one five (5) year period) provided Lessor gives Lessee written notice of intent to renew the Lease at least sixty (60) days prior to December 31, 2025, but no more than 180 days prior to December 31, 2025 and the Parties agree to the terms and conditions ("Renewal Term"). The Initial Term and Renewal Term are referred to collectively herein as the  "Term."  (b) Termination. Lessee may terminate the Lease on sixty (60) days'  written notice to the Lessor.  Page 10 of 16  65099,00038507314.1    3. Rent.  (a) Calculated on Square Footage OF Pereentage of Total Sales Basis:  Lessee shall pay Lessor rent each month, the higher of either:  I. .  in the amount determined by multiplying the square footage of "ACNA (8%)-ofall gross-receipteah.  the Property by four dollars ($4.00)or;  the Property, whichever is higher. Gross receipts shall mean the total amounte-received from all revenue sources during the relevant period, except admiseiontaxes, sales taxes, California redemption taxes, City of Avalon Use-Texes/lees, reasonable commissions which are paid to third parties andamodhts received from activities upon which City Harbor and Use Feesand-Admission Taxes are based. For purposes of calculating Gross Receipts.sueRrcommissions paid to third parties shall not exceed 20% of the price paid that space shall automatically be included in the Property, as defined in Paragraph 1 of this Lease, and the square footage of the Property used in calculating the monthly rent amount shall be increased accordingly. Rent shall be calculated year-round on the total square footage of the Property. There shall be no reductions in square footage for the year on July 1 in an amount equal to any increase in the most recent Consumer Price Index Los Angeles-Long Beach-Anaheim CPI-U released annually by the U.S. Bureau of Labor Statistics. In the event the Consumer Price Index decreases, no change in rent than the thirtieth day after the end of each month during the Term of this Lease to Lessor at the address stated herein. Each monthly payment shall be accompanied by an accounting of total sales for that month. Rent for any period shorter than one month shall be pro-rated on a daily basis. There shall be no off-season period where rent is reduced or not due; rent shall be due on the thirtieth day of each month regardless of whether the Property was open for business during the month. Lessee is responsible for making the payments required by this section and Lessor will not and is under no obligation to send described in Paragraph 18 of this Lease, if Lessor determines that Lessee has under- reported its income resulting in a rent payment of less than what it should have paid, the greater than 90% of the correct rental amount, Lessee shall immediately pay to Lessor  YR-OREURPONBORA. SwSs  In the event that Lessor makes additional space available for Lessee's use,  purpose of calculating rent during the off-season.  The amount charged per-square-foot shall be automatically increased each  charged per-square-foot shall be made.  (b) Payment Procedures. Lessee shall remit its monthly rent by no later  monthly invoices to Lessee regarding any such payments.  (c) Under-Payment Penalties. In addition to the late payment penalties  following penalties apply;  (i) Ift the under-reporting of total sales resulted in a rent payment of  the difference, plus a penalty equal to 10% of the difference.  Page 2 of16  65059.000385073141    (ii) Ift the under-reporting of total sales resulted in a rent payment of  less than or equal to 90% of the correct rental amount, Lessee shall immediately pay to Lessor the difference, plus a penalty payment equal to the entirety of that month's rent, for month pursuant to this Section 3, Lessee must provide Lessor with detailed information regarding the total gross receipts for each month, regardless of whether Lessee is every calendar year during the Term, based on the information provided by Leseee and any independent audit of Lessor, Lessor shall determine: (1) the amoynt-tessee would have paid for the entire calendar year if Lessee paid the square.feolage rent in Section 3(a)(i) each month; and (2) eight percent (8%) of the Loesee's total gross receipts as defined in Section 3(a)(i), for the entire calendar yeef. Lessee is responsible for paying Lessor the higher of the two amounts ("Higher Amount"). If Lessee's monthly rent payments paid to Lessor for the entire-year are less than the Higher Amount, Lessee shall pay Lessor the difference botween what was paid and the Higher Amount within thirty days of receipt of suchrimnformation from Lessor. IfLessee's monthly rent payments paid toL Lessor fort the entire year equal more than the Higher Amount, Lessor shall reimburse Lessee-the difference between what was paid and the Higher Amount within thirty days of  each month the under-reporting occurred.  (d) Disclosure. At the time that Lessee is required to pay rent each  required to pay the square footage price pursuant to Section 3(a)(i).  (e) Meerone-APRHB-ResereHiatien: WHithin-30 deys-after the end-of  eMngthedolemanaionaticahnine-Secionse. SwS  4. Use.  (a) Use. Lessee shall occupy and use the Property only for operations,  ticketing and information areas for tram, shoreboat, sightseeing, glassbottom boat, land and sea tours and excursion services; and al hotel and visitor information, reservation, and ticket service area, limited sales of t-shirts and similar items promoting Lessee's business and for no other purpose whatsoever. The Property shall be open for business at least nine (9) months each year for the Term of the Lease and Lessee may determine their own expense, comply with all applicable federal, state and local laws, rules, regulations, and orders, and all covenants and restrictions of record regulating the Property and Lessee's use of the Property. Lessee shall not use nor permit the use of the Property in any manner that will violate the same or disturb other property owners or tenants in the areas agrees to take possession in an "as is" condition. Lessee acknowledges and agrees that Lessor has made no representations, guarantees or warranties regarding the Property, or its fitness for any particular purpose, or regarding any common areas or improvements thereon, nor has Lessor made representations, guarantees or warranties regarding whether the Property and common areas and improvements thereon comply with applicable laws, rules, regulations, orders, or any covenants or restrictions of record in effect at the Effective Date of this Lease. Lessee assumes all responsibility regarding the  hours and days of operation.  (b) Compliance with Law. Lessee shall, at all times and at Lessee's  surrounding the Property or Property.  (c) Condition of Property. Lessee has examined the Property and  Page 3 of 16  65052.00018507314.    California Occupational Safety Health Act, the legal use and adaptability of the Property and compliance with all applicable laws, rules, regulations, orders and covenants or record in effect during the Term of this Lease relating to the Property except as otherwise 5. Hazardous Waste and Trash Disposal. Lessee shall not use, generate, store or dispose of any Hazardous Materials on the Property or permit the contamination of the Property by Hazardous Materials. For the purpose of this section, Hazardous Materials shall include, without limitation, substances defined as hazardous substances," "hazardous materials," "toxic substances," hazardous wastes," "extremely hazardous wastes" or "restricted hazardous wastes" or stated to be known to cause cancer or reproductive toxicity, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. sections 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. sections 1801, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. sections 6901, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. sections 1317, et seq.; sections 25115, 25117, 25122.7, 25140, 25249.5, 25249.8, 25281, 25316 or 25501 of the California Health & Safety Code; or any substances sO defined or stated in any of the regulations adopted and publications promulgated pursuant to said laws as they may be amended from time to time. Notwithstanding any other provision of this Lease, Lessee agrees to comply promptly, and at Lessee's sole cost, with all applicable federal, state and local laws, rules regulations, permits and orders governing the use, management, storage, handling, cleanup, removal, disposal and shipping of Hazardous Materials. Lessee shall dispose of all trash and waste generated at the Property in a trash container at a location designated by Lessor.  specifically stated in this Lease.  6. Lessee's Repair and Maintenance Obligations.  (a) Lessee shall keep in good order, condition and repair, and shall  replace, if necessary, the Property and every part thereof, structural and nonstructural occupied or used by Lessee, whether or not the need for such repairs occurs as a result of Lessee's use, any prior use, the elements, or the age of such portion of the Property. This includes, buti is not limited to, glazing, plumbing, heating, air conditioning, ventilation, electrical and lighting fixtures and facilities, all equipment within the Property, fixtures, walls (interior and exterior), ceilings, roofing, floors, windows, doors, plate glass, skylights, landscaping, tree-trimming, and all fences and signs located on the Property. Pleasure Pier Green, which is the color of the Pleasure Pier at the time of the execution of this Agreement. If Lessor changes the color of the Pleasure Pier at any time during the Term, Lessee is required, upon thirty (30) day written notice by the Lessor, to paint the exterior of the Property to be the same color as the new color of the Pleasure Pier obligations imposed by this Section 6 involve, in the determination of the Lessor, the leased property of another tenant(s) of Lessor who leases space in the same building, such as a common roof, Lessee's obligations under this Section 6 will be divided proportionately between Lessee and the other tenants of Lessor, if any, based on the  (b) The paint color of the exterior of the Property shall at all times be  identified in the notice at Lessee's own cost.  (c) To the extent that any such repairs, maintenance, or painting  number of square feet leased by each.  Page 4 of 16  650592000385073141    7. Surrender. On the last day of the Term of this Lease, or on the date this Lease is earlier terminated, Lessee shall surrender the Property to Lessor in the same condition as when received, ordinary wear and tear and damage by casualty excepted, clean and free of debris. Lessee shall remove all trade fixtures, furnishings and equipment owned by Lessee and shall repair any damage to the Property occasioned by the installation or removal of Lessee's trade fixtures, furnishings and equipment. 8. Lessor's Right to Undertake Lessee's Obligations. If Lessee fails to perform any ofl Lessee's obligations under any paragraph of this Lease, Lessor may, at its option (but shall not be required to), enter upon the Property after ten (10) days' prior written notice to Lessee (except in the case of an emergency, as determined by Lessor, in its sole discretion, in which case no notice shall be required), and perform such obligations on Lessee's behalf. Any costs incurred by Lessor pursuant to this Paragraph, including interest thereon, shall become due and payable to Lessor together with 9. Damage to Property. In the event that repairs are necessary to alleviate structural hazards because the Property is damaged by circumstances not caused by the negligence or willful misconduct of Lessee, its employees, contractors, agents, invitees or guests, Lessee shall inform Lessor in writing of such necessity. Lessor shall then have the option, in its sole discretion, to either immediately terminate this Lease or to provide for the necessary repairs. In the event Lessor elects to terminate this Lease, no rent shall accrue or be payable to the Lessor after the date Lessor terminates the Lease. If repairs which are made by Lessor prevent the Lessee from occupying a portion of the Property, but Lessee is able to operate on the Property during such repairs, Lessee shall be entitled toa proportionate reduction in the monthly rent, based on the ratio the floor area which Lessee is unable to occupy, from the date such repairs are commenced until the date the entire Property is available for Lessee's occupancy. If the damage prevents Lessee from operating on the Property, then no rent shall be due from the date of damage, as determined by Lessor in its sole discretion, until completion of repairs. Lessee expressly waives the benefit of any statute now or hereinafter in effect which would otherwise afford Lessee the right to make repairs at Lessor's expense or to terminate this Lease because ofLessor's failure to keep the Property in good order, condition and repair. 10. Alterations and Additions. Lessee shall not make any alterations, improvements, additions, Utility Installations exceeding $5,000 (Five Thousand Dollars)i in value, hang or paint any signs visible from the exterior of the Property, or make any change to the exterior of the Property, without Lessor's prior written consent. The term "Utility Installation" shall mean installation of carpeting, window coverings, air lines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning, plumbing, and structural changes. If Lessor authorizes any alterations, improvements, additions, or Utility Installations, all such improvements shall be Lessee's sole responsibility and shall be installed and removed at Lessee's sole cost and expense. Upon the removal of any improvement, alteration, addition or Utility Installation, Lessee shall restore the Property to its prior condition. Lessor may require Lessee to provide Lessor, at Lessee's sole cost and expense, a lien and completion bond in an amount equal to one and one-half times the estimated cost of such improvements. Should Lessee make any alternations, improvements, additions or Utility Installations without the prior  Lessee's next rent installment.  Page 5 of 16  65059.0000.8507314.1    approval of Lessor, Lessor may require that Lessee immediately remove any or all of the 11. Release of Claim For Relocation Benefits. Lessee hereby acknowledges and agrees that Lessee has no claim or right to relocation benefits or compensation of any kind or nature upon termination of this Lease for any reason, even if such termination was made by the unilateral election of Lessor in its sole discretion. Lessee expressly waives any and all claims or rights to receive relocation benefits or compensation of any kind or nature. Lessee acknowledges that Lessor would not enter into this Lease but for this acknowledgment and waiver by Lessee. During any period of repair or reconstruction by Lessor during the Term of this Lease that requires Lessee to vacate the Property, Lessor shall be under no obligation to provide alternative space to Lessee, but Lessee shall be relieved of the obligation to pay rent during such time that Lessee is unable to utilize the Property. Lessee shall vacate the Property within sixty (60) days' written notice to vacate for such purpose and shall be solely responsible for all costs of vacating from and relocating to reconstructed or newly constructed space, ifa any is available. upon execution oft the Lease and upon renewal of insurance as follows: evidence of workers' compensation coverage as follows:  same.  12. Insurance. The Lessee shall provide the Lessor with a copy of insurance  (a) Workers Compensation Insurance. The Lessee is required to provide  Workers' Compensation insurance with statutory limits as required by the Labor Code of the State of California. ii. Employers Liability with limits of 1,000,000 per Accident; 1,000,000 Disease per employee; 1,000,000 Disease per ii. The policy must include a written waiver of the insurer's right to (b) Liability Insurance. For the Term of the Lease, Lessee shall  policy.  subrogate against the City of Avalon.  maintain and keep in full force Commercial General Liability Insurance no less broad than ISO form CG 00 01 against any liability arising out of the ownership, use occupancy, or maintenance of the Property, and operation of Lessee's business at the Property and all appurtenant thereto when used by Lessee. Such insurance be no less than the following:  i.  Minimum Limits: 1,000,000 per Occurrence; 2,000,000 General Aggregate; the General Aggregate shall apply ii. Prior written consent is required if the insurance has a deductible or self-insured retention in excess of $25,000. ii. The City of Avalon must be an additional insured for liability arising out the ownership, maintenance or use of that part of the premises leased to the TenantLessee/Concessionaire  separately to each location,  (ISO form CG2011 or equivalent).  Page 6 of 16  65059.00005.8507314.1    iv. The insurance provided to the City of Avalon as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program V. The policy must cover inter-insured suits and include a "separation of Insureds" or "severability" clause which treats  maintained by the City of Avalon. each insured separately.  (c) Property Insurance.  Prior to Lessee's entry upon the Property and for the Term of the Lease, Lessee shall obtain and keep in full force and effect a policy of insurance covering loss or damage to the Property, in the amount of the full replacement value thereof, against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, commonly known as "broadform coverage." Lessee shall provide Lessor a copy of this insurance policy upon execution of this Lease. Lessee shall also insure its fixtures, equipment and tenant improvements on the Property at its sole cost and expense. iii. The limits of said insurance shall not, however, limit the liability iv. Lessee must name the City as Loss Payee on its property  ii.  ofL Lessee hereunder. policy.  (d) Restrictions; Endorsements.  Lessee shall not do or permit to be done anything which shall invalidate the insurance policies during the Term of this Lease. All policies ofi insurance shall be endorsed to: (1) name Lessor (and at Lessor's option, any additional parties designated by Lessor) as an additional insured; (2) provide that such insurance is primary to any policy of Lessor, which shall not be called upon to contribute in any way; and (3) provide that the policy shall not be cancelled, terminated or modified without first providing thirty (30) days' prior written notice to Lessor. ii. All insurance policies must be issued by an insurer with an A.M. Best rating of at least A:VII. Lessee shall provide immediate written notice if (1) any of the required insurance policies are terminated; (2) the limits of any of the required policies are reduced; or (3) the deductible or self-insured  retention is increased.  Page 7 of16  65059000385073141    13. Indemnification and Release.  (a) Indemnification. Lessee shall indemnify, defend, reimburse and hold  harmless Lessor from and against any and all demands, claims, losses, damages or liabilities of any kind or nature, including claims for damage to property or persons, including wrongful death ("Claim"), arising from or in connection with any act or omission of Lessee, including Lessee's active and passive negligence or Lessee's use of the Property or Property under this Lease, including, without limitation, any activity, work or things done, permitted or suffered by Lessee in or about the Property or elsewhere on the Property and any breach or default by Lessee of this Lease. If any action or proceeding is brought against Lessor by reason of any such Claim, Lessee's obligation to defend the and hereby waives and releases Lessor from, any injury to Lessee's business or any loss of income therefrom or for damage to the goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, agents, invitees, guests, or any other person on the Property, nor shall Lessor be liable for injury to the person of Lessee, Lessee's employees, agents, contractors, guests or invitees caused by any reason whatsoever, including without limitation, by fire, steam, electricity, gas, water, rain, the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures on the Property or Property, or from any other cause or condition arising upon the Property or upon other portions of the Property which the Property are a part, or from other sources or places and regardless of whether the cause of such damage or injury or the means of repairing the same is inaccessible to Lessee except to the extent such injury or loss is caused by Lessor's sole gross negligence or willful misconduct. Lessor shall not be liable for any damages arising from any act or 14. Utilities. Lessee shall arrange and timely pay for all gas, heat, light, disposal, power, and any other utilities and services needed or supplied to the Property,  same shall be done with counsel approved in advance by Lessor.  (b) Release. Lessee hereby agrees that Lessor shall not be liable for,  neglect of any other lessees or possessors, if any, oft the Property.  together with any taxes thereon.  15. Assignment and Subletting.  (a) Except as otherwise provided below, Lessee shall not convey,  assign, transfer, mortgage, pledge, sublet or encumber any interest in the Property during the Term of this Lease, nor allow any other person (the employees, agents, servants and invitees of Lessee excepted) to occupy or use the Property, or any portion thereof, without Lessor's prior written consent, which may be refused in Lessor's sole discretion. sublet, or encumbrance shall be void where such consent has not been obtained, and the original Lessee shall remain responsible for any unpaid rents, fines, fees, or other its obligations or liabilities under this Lease, and both Lessee and any subsequent  (b) Any attempted conveyance, assignment, transfer, mortgage, pledge,  liabilities arising from or related to the Property.  (c) Any subletting approved by Lessor shall not relieve Lessee of any of  lessor(s) will be deemed tol be bound by this Lease.  Page 8 of 16  65059.00038507314.1    (d) Any dissolution, merger, consolidation, or other reorganization of  Lessee or sale which results in a change of controlling persons shall be deemed an assignment of this Lease. Any such assignment or subletting without advance written consent ofL Lessor shall be void, and shall, at the option of the Lessor, constitute a default substantially all of the assets of Lessee, provided Lessee first obtains Lessor's written consent, which shall not be unreasonably withheld and provided Lessee pays to Lessora a lease transfer fee equal to three percent (3%) of the sale price with a cap of $30,000 of Lessee's business ("Transfer Fee"). The Transfer Fee shall not apply to a transfer of this Lease upon the transfer of a controlling interest in Lessee's business to a member of the immediate family of such controlling person , or to a transfer of the controlling interest to an inter vivos trust in which such controlling person is the trustee of the trust. In the event Lessee's business has multiple locations and Lessee assigns, sublets, or transfers the Lease for one location without assigning or transferring the business as a whole, the Transfer Fee shall be a flat $5,000 or a lower amount at the discretion of the City  under the terms of this Lease.  (e) Lessee may transfer this Lease upon the sale or other transfer of  Manager.  16. Defaults and Remedies.  (a) Defaults. In addition to those items aiready designated to be a  breach or default of this Lease elsewhere in the Lease, the occurrence of any of the following events shall be a material breach of this Lease and shall constitute an event of Lessee without Lessor's prior written consent (failure to occupy and/or operate the Property for ten (10) consecutive days shall be deemed an abandonment and vacation, unless at least ten (10) days before failing to occupy or operate the Property Lessee gives Lessor written notice that Lessee intends to continue using the Property and will continue maintaining the Property while it is vacant, or the dispossession of Lessee from the reimbursement or payment required to be made by Lessee, including applicable Harbor Use Fees, Admission Taxes, or other fees and taxes to the City Associated with the operation of the business or use of the leased facilities hereunder, as and when due, where such failure shall continue for a period of three (3) days after written notice thereof covenants, conditions or provisions of this Lease to be observed or performed by Lessee, Iifthe failure has continued for a period of ten (10) days after Lessor demands in writing that Lessee cure the failure, provided however, that if the nature of Lessee's default is such that more than ten (10) days are reasonably required for its cure, in Lessor's sole discretion, Lessee shall not be deemed to be in default if Lessee commenced such cure within said 10-day period and thereafter diligently prosecutes such cure to completion to  default:  i.  Abandonment, vacation, or surrender of the Property by  Property (other than by Lessor by process of law or otherwise).  ii.  The failure by Lessee to make any payment of rent or any  from Lessor to Lessee.  iii. The failure by Lessee to observe or perform any of the  the satisfaction of Lessor. 65052.0003.85073141  Page 9 of16    iv. The making by Lessee of any general arrangement or  assignment for the benefit of any creditor, Lessee becoming a "debtor" as defined in 11 U.S.C. 101; the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Property or of Lessee's interest in this Lease, where possession is not restored to Lessee within 30 days; or the attachment, execution or other judicial seizure of substantially all of Lessee's assets located at the Property or of Lessee's interest in this Lease, where such seizure is not discharged within thirty (30) Lessee, Lessor may at any time thereafter, with or without notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of Lessee, in which case Lessee shall immediately surrender possession of the Property to Lessor on the termination date specified by Lessor. In such event, Lessor shall be entitled tor recover from Lessee all damages incurred by Lessor by reason of Lessee's default including, but not limited to, the cost of recovering possession of the Property, including all attorneys' fees and court costs incurred, if any; expenses of reletting, including necessary renovation and alteration of the Property, reasonable attorneys' fees, and any real estate commission actually paid in connection with such reletting; the value of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period that Lessor proves could not reasonably be avoided; and that portion of the leasing commission, if any, paid by Lessor shall continue in effect whether or not Lessee shall have abandoned or vacated the Property. In such event, Lessor shall be entitled to enforce all of Lessor's rights and remedies under this Lease, including the right to recover the rent as it becomes due  days.  (b) Remedies. In the event of any such material breach or default by  such default or breach, do any of the following:  Terminate the Lease on sixty (60) days' written notice to  for the unexpired Term of this Lease.  ii.  Maintain Lessee's right to possession in which case this Lease  hereunder. equity.  lii. Pursue any other remedy available to Lessor at law or in  17. Possessory Interest Tax. Lessee hereby recognizes that this Lease may create a possessory interest subject to property taxation, and that Lessee may be subject 18. Late Charges. Lessee acknowledges that late payment of rent or any sums due under this Lease will cause Lessor to incur costs not contemplated herein, the exact amount of which will be extremely difficult to ascertain. Accordingly, if any sum due from Lessee is not received by the day it is due, then without requirement for notice to Lessee, Lessee shall pay a late charge of ten percent (10%) per month, plus interest at the rate of %of 1% (.005%) per month or portion thereof, from the date the rent becomes due. The Parties agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of late payment. Acceptance of such late charge shall in no event constitute a waiver of Lessee's default, nor prevent Lessor from exercising any of  tot the payment of property taxes levied on such interest.  Page 10of1 16  65059.0003850/3141    the other rights and remedies granted in this Lease. In the event that a late charge is payable for three (3) consecutive installments of rent, then the minimum monthly rent shall automatically become due and payable quarterly in advance, rather than monthly. The quarterly advance payments of rent will continue until the Lessor notifies Lessee in 19. Severability. If any portion of this Lease is ruled by a court of competent jurisdiction to be invalid, the remaining portions shall remain ini full force and effect. 20. Entire Agreement: Amendments. This Lease contains all agreements of the Parties with respect to the Property. No prior agreement or understanding pertaining toa any such matter shall be effective, whether oral or in writing. This Lease may only be 21. Notices. Any notice required or permitted to be given under this Lease shall be in writing and given by personal delivery or by first class mail to the address and person below. Either Party may, by notice to the other, specify a different address for notice purposes. Notice given by personal delivery shall be deemed received upon personal delivery. Notice given by mail shall be deemed received three (3) days after  writing.  modified in writing, signed by the Parties.  deposit in the U.S. Mail. Lessor:  City of Avalon P.O. Box 707 Avalon, California 90704 Tele: (310) 510-0220 Fax: (310)510-2478 Attention: Administration - Leases Island Enterprises, Inc. dba Catalina Adventure Tours PO Box 797 Avalon, CAS 90704 P.O. Box 92766 Long Beach, CA90809 Tele: 562-432-8828 [Fax] 562-435-9464 Attention: Jeff Stickler  Lessee:  22. Waivers. The waiver or failure to enforce any provision of this Lease by Lessor shall not be deemed to be a waiver of any future breach of that same provision or of any other provision of this Lease. Lessor's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor's consent to or approval of any subsequent act by Lessee. The acceptance of rent by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any provision of this Lease, other than the failure of Lessee to pay the particular rent sO accepted, regardless ofL Lessor's knowledge  ofsuch preçeding breach at the time of acceptance of such rent.  Page 11 of16  65059,0003850/314.1    23. Holding Over. Lessee has no right to retain possession of the Property or any part thereof beyond the expiration or termination of this Lease. If Lessee, with Lessor's consent, remains in possession of the Property or any part of the Property after the expiration or termination of the Term of this Lease, such occupancy shall be a tenancy 24. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies available at 25. Binding Effect; Choice ofL Law. This Lease shall be binding upon and inure to the benefit of the Parties, their personal representatives, heirs, successors and assigns. This Lease shall be governed by and construed in accordance with the laws of 26. Attorneys' Fees and Costs. Ifeither Party brings an action to enforce the Terms of this Lease or declare the rights of the Parties under this Lease, the prevailing Party shall be entitled to recover all costs and expenses incurred in such action, including 27. Right to Enter Property. Lessor and Lessor's agents shall have the right to enter the Property, at reasonable times for the purpose of inspecting the same, showing the same to prospective purchasers, lenders, or lessees, and making such alterations, repairs, improvements or additions to the Property or Property as Lessor may deem necessary or desirable. Lessor may, at any time, place on or about the Property any "For Sale" signs and Lessor may, at any time, during the last 120 days of the Term of this 28. Records; Audit. Lessee shall keep records, reports and books of account substantially in accordance with general accepted accounting principles to reflect accurately the gross receipts, expenditures and net income ofL Lessee concerned with and related to its operations and activities under this Lease. Lessor shall have the right to inspect and audit Lessee's financial accounts, books and records to ensure Lessee's compliance with this Lease, at any time during the Term of this Lease. Lessor will provide ar minimum written notice of the request to audit forty-eight (48) hours in advance of the 29. Nondiscrimination. Lessee covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through it, and this Lease isn made and accepted upon and subject to the requirement that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the use, occupancy, tenure, or enjoyment of the Property, nor shall the Lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or 30. Quiet Possession. Upon Lessee's payment of the rent for the Property and observing and performing all of the covenants, conditions and provisions to be observed  from month to month subject to all the provisions of this Lease.  law ori in equity.  the State of California. Venue shall be in Los Angeles County.  reasonable attorneys' fees as fixed by the court or arbitrators.  Lease place on or about the Property any" For Lease" signs.  audit.  occupancy, of employees, contractors or vendors in the Property.  Page 12 of1 16  650592.000.8501314.1    and performed under this Lease, Lessee shall be entitled to have quiet possession of the Property for the Term of this Lease subject to all of the provisions of this Lease. 31. Compliance with Lessor's Rules for Use of Property. Lessee agrees that it will abide by, keep and observe all reasonable rules and regulations which Lessor may make from time to time for the management of the Property, including, without limitation, the delivery of supplies, the parking of vehicles and the preservation of the good order. The violations of any such rules and regulations shall be deemed a material breach of this  Lease.  32. Third-Party Beneficiaries. There are no intended or incidental third-party 33. Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and 34. Compliance with California Civil Code Section 1938. Pursuant to and in compliance with California Civil Code section 1938, Lessee is notified that the Property 35. Compliance with California Civil Code Section 1938. Pursuant to and in compliance with California Civil Code section 1938, Lessee is notified that the Property 36. Authority to Execute. The individuals executing this Lease on behalf of each Party represent and warrant that they are fully authorized and legally capable of executing this Lease on behalf of that respective Party, and binding that Party thereto.  beneficiaries oft this Agreement.  the same instrument and at fully executed Lease.  has not undergone inspection by a Certified Access Specialist. has not undergone inspection by a Certified Access Specialist.  [Signatures to Lease Agreement on Next Page]  Page 13 of1 16  65059,000385073141    Signature Page to Lease Agreement  The Parties hereto have executed this lease on the date stated below:  Dated: Jan 30,2.077  Sckz 2 pelatens  5  By: Its: City of Avalon  Dated: 02/052019  usDAnd Denise A. Radde, City Manager alislh Masser Gabrielle Morones, Deputy City Clerk  Attest:  Page 14 of1 16  65099.90038507314.1    EXHIBIT 1 to Lease Agreement  LEGAL DESCRIPTION OF PROPERTY  Page 15 of16  65059.000038507314.1    GREENF PIER W) Updated: 3/9/15  22  188 18  15  Lansee  9. SCIR Resorts Services, Inc. (ticket! booth) 12. Island Navigation Co.lac. 15.C&NLns Inc. (Catalina Oiveres Supphy) 18. AvalonSeafood 18B. Island Water Charters 22. Harbor Patorl & Master'sOfice a Trash Storage U. Outdoor Space V. Avalon Harbor Dapt. w, Greg Wenger  15  Q  12 12  Drawingsn nott toscale  Page 16of1 16  650592000385073141    CITY OF AVALON CITY COUNCIL  MEETING DATE: ORIGINATING DEP: PREPARED BY: SUBJECT:  November 19, 2024 Fire  AGENDA ITEM: 7 CITY MANAGER: DwW  Michael Alegria, Fire Chief  Purchase of Motorola Portable APX8000 Series Radios  RECOMMENDED ACTION(S): Authorize the City Manager or his designee to purchase seven (7) new Portable Motorola APX 8000 Radios for a not-to-exceed sum of $100,000 as budgeted in the City's Fiscal Year 2024-25 Capital Improvement Plan, Project #254501, Account #10245- REPORT SUMMARY: In 2024 the Fire Department sunset use of the City owned and operated low-band system. The system was not reliable and sourcing parts for repairs was increasingly The City executed an agreement to be a subscriber to Los Angeles Regional Interoperable Communications System (LA RICS). With the new system the City has designated channels dedicated to the Island. Overall, the coverage and reliability of the system has improved However, to utilize the new system, the Fire Department had to use compatible radios. LA County Fire donated twenty (20).APX - 7000 radios, additionally West Covina provided another 18. Currently, all Fire Department apparatus are equipped with new radios; but, there is a need to plan for the future. Staff is currently working on grant funding for additional radios; however, the funding only supports new radios for seated positions within the department. City Staff budgeted $100,000 in the Fiscal Year 2024-25 Capital Improvements Budget for Per Avalon Municipal Code Section 3-4.106 (a), City Staff solicited quotes from qualified At the time this report was authored, Staff received quotes from two of the three firms:  6547, from the lowest responsive bidder.  difficult.  drastically.  replacement radios. vendors.  Company Bearcom  Proposal - including tax and shipping  Motorola Solutions - Account Manager $97,318.25  $105,937.11  Motorola Solutions - Public Sector Rep. Not received as of 11/15/24  City Staff request the City Council authorize the City Manager or his designee to purchase seven (7) new Portable Motorola APX 8000 Radios for a not-to-exceed sum of $100,000 as budgeted    in the City's Fiscal Year 2024-25 Capital Improvement Plan, Project #254501, Account #10245- CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: No radios will be on  6547, from the lowest responsive bidder. hand for the Fire Department.  FOLLOW UP ACTION: Implementation of City Council direction. Improvement Plan (CIP Project #254501 Account 10245-6547).  FISCAL IMPACTS: Project is budgeted at $100,000 in the Fiscal Year 2024-25 Capital ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted  agenda pursuant to the Brown Act. ATTACHMENTS: Quotes    MOTOROLA SOLUTIONS  QUOTE-2560543  7APX8000HXE Portable Radios  Billing Address: Avalon FD P.O. BOX 1551 AVALON, CA 90704 US  Quote Date:11/04/2024 Expiration Date:02/02/2025 Quote Created By: JeffAshton jeff.ashton@ motorolasolutions.com End Customer: AVALON FIRE DEPT Michael Alegria matgnaedlyolavaloncom 310.510-0220 Contract: 18105-LACOUNTY, CAI MA- IS-2240228  Line#  ItemNumber APXTM 8000 Series 1 H91TGD9PW9AN 1a Q806CB 1b Q361AN 1c QA02006AD 1d QA00580AA 1e QA03400AA 1f Q53AF 1g Q887AU 1h QA07576AA 1i QA09008AA 1j QA09007AA 1k QA09001AB  Description APX8000HXE APX 8000H ALL BAND PORTABLE MODEL. 3.5 ADD: ASTRO DIGITAL CAI OPERATION ADD: P25 9600 BAUD TRUNKING ENH: APX8000HXE RUGGED RADIO ADD: TDMA OPERATION DEL: FCCI NARROWBANDING 7 MANDATE ADD: FRONT PANEL PROGRAMMING & CLONING ADD: 5Y ESSENTIAL SERVICE ALT:TIA4950 BATTI IMPRES2 7 LIION 4600MAH (PMNN4573A) ADD: GROUP SERVICES ADD: OUT OF1 THE BOX WIFI PROVISIONING ADD: WIFI CAPABILITY  Qty 7 7 7 7 7 7 7  ListPrice $8,638.24 $567.00 $330.00 $880.00 $495.00 $0.00 $165.00 $306.00 $191.10 $165.00 $0.00 $330.00  Sale Price Ext-SalePrice: $6,305.92 $413.91 $240.90 $642.40 $361.35 $0.00 $120.45 $306.00 $139.50 $120.45 $0.00 $240.90  $44,141.44 $2,897.37 $1,686.30 $4,496.80 $2,529.45 $0.00 $843.15 $2,142.00 $976.50 $843.15 $0.00 $1,686.30  7 7 7  Anys sales transactionf following! Motorola's quote isb basedo on ands subject tot thet terms ando conditions oft thev valida ande executedy written contract between Customer andN Motorola (the Motorolaa ando Customer, thenN Motorola's Standard1 Termsc ofu Usea andN Motorola's StandardT Terms and Conditions ofs Sales ands supply: shallg govern thep purchase ofthe Products.  "Underlying Agreement" thata authorizes Customer top purchasee Motorola Solutions, Inc:5 500V WestN Monroe, United States- 60661 #:3 36-1115800  and/ors or licenses Page 1  (collectively" "Products"" ) Ifno Underlying Agreement exists between    MOTOROLA SOLUTIONS  QUOTE2560543  7APX8000HXE Portable Radios  Line# 11 Q498AU 1m QA03399AA 1n H38BS 10 QA09113AB 1p G996AP 1q Q629AH 1r QA01427AG 2 PMNN4573A 3 PMMN4106D  Iteml Number  Description ENH: ASTRO 25 OTAR' w/ MULTIKEY ADD: ENHANCED DATA APX ADD: SMARTZONE OPERATION ADD: BASELINE RELEASE SW 7 ADD: PROGRAMMING OVER P25 (OTAP) ENH:A AES ENCRYPTION AND 7 ADP ALT: APX8000/XE HOUSING GREEN BATTI IMPRES2L LIION TIA4950 7 RIP684600T AUDIO. ACCESOR/REMOTE SPEAKER MICROPHONEXES00 REMOTE SPKR MIC WITH CHANNEL KNOB, HIGHI IMPACT GREEN CHARGER, MULTI-UNIT, IMPRES2,6-DISP, NA/LA- PLUG, ACC USB CHGR TAA CHARGER, SINGLE-UNIT, 1 IMPRES:2,3A, 115VAC, US RADIO MANAGEMENT OFFLINE* ADD: RADIO! MANAGEMENT LICENSES OFFLINE  Qty 7 7 7 7  ListPrice $814.00 $165.00 $1,650.00 $0.00 $110.00 $523.00 $28.00 $252.00 $665.28  Sale Price Ext.Sale Price $594.22 $120.45 $1,204.50 $0.00 $80.30 $381.79 $20.44 $183.96 $485.65  $4,159.54 $843.15 $8,431.50 $0.00 $562.10 $2,672.53 $143.08 $1,287.72 $3,399.55  7  7  4 NNTN8844B 5 NNTN8860ATAA 6 T7913A 6a UA00048AA Subtotal Estimated' Tax Grand Total  1  $1,705.20 $225.70 $0.00 $110.00  $1,244.80 $164.76 $0.00 $110.00  $1,244.80 $164.76 $0.00 $770.00 $85,921.19 $8,377.92  APXIM Radio Management RADIO MANAGEMENT  1 7  594,299.11(USD)  Notes:  Additional information is required for one or more items on the quote for an order. This quote contains items with approved price exceptions applied against them. Motorola and Customer, thenN Motorola's Standard1 Termso of Use andN Motorola's Standard1 Terms and Motorola Solutions, Inc: 500W WestN Monroe, Uniteds States- 60661 -#: 36-1115800  Anys salest transactionf following Motorola's quotei is based on ands subjectt to thet termsa ando conditions ofthev valida ande executedv written contractb between Customera andN Motorola (the InderlyingA Agreement" thata authorizes Customer top purchase equipment and/or serviceso orl licenses software (collectively" "Products" "). Ifno Underlying/ Agreemente exists  of Sales ands Supplys shallg governt thep purchase oft the Products. between  Page2    BEARCMM Proposal Quote Number: Quote Date: Branch: AVALON FIRE POI BOX707 AVALON CA 90704  AlwaysOn  674949 2024-11-06 20390  Printed On: Page:  2024-11-06 14:03:19 1  CitomPeawithumiz 22 2094152  Customer Contact: MICHAEL ALEGRIA  Customer Email: maegla@clydlaaoncom  Phone Number: Quantity  (310)5 510-0220 Part Number H91TGD9PW9AN APX8000H/ ALLE BAND PORTABLEI MODEL3.5 7 Q806CB ADD: ASTRO DIGITAL CAI OPERATION Q361AN ADD: P259 9600 BAUD TRUNKING 7 QA02006AD ENH: APX8000HXE RUGGED RADIO 7 QA00580AA TDMA OPERATION 7 QA03400AA DEL:FCC NARROWBANDING MANDATE 7 Q53AF ADD: FRONT PANEL PROGRAMMING & CLONING 7 Q887AU ADD:5YESSENTIAL: SERVICE 7 QA07576AA ALT:TIA4950 BATTI IMPRES2 LIION4 4600 MAH (PMNN4573A) 7 QA09008AA ADD: GROUP SERVICES 7 QA09007AA ADD: OUT OF THE BOXV WIFI PROVISIONING 7 QA09001AB ADD: WIFICAPABILITY 7 Q498AU ENH: ASTRO25 OTARV WI MULTIKEY 7 QA03399AA ADD: ENHANCEDI DATAAPX 7 H38BS ADD: SMARTZONE OPERATION 7 QA09113AB ADD: BASELINE RELEASE SW 7 G996AP ADD: PROGRAMMING OVER P25(OTAP) 7 Q629AH ENH: AESE ENCRYPTION/ AND ADP 7 QA01427AG ALT:APX8000/XE HOUSING GREEN 14 PMNN4573A BATT IMPRES2 2LIION TIA4950  Delivery Instr:  Unit Price  Extended Price 60,467.68 3,969.00 2,310.00 6,160.00 3,465.00 0.00 1,155.00 2,142.00 1,337.70 1,155.00 0.00 2,310.00 5,698.00 1,155.00 11,550.00 0.00 770.00 3,661.00 196.00 3,528.00 np  8,638.24 567.00 330.00 880.00 495.00 165.00 306.00 191.10 165.00 330.00 814.00 165.00 1,650.00 110.00 523.00 28.00 252.00  Visit our Webs site at: www.bearcom.com  Terms and Conditions: www.bearcom. Com/erms-oi-sale    BEARCM Quantity  AlwaysOn  Part Number RIP68 4600T 10 PMMN4106D AUDIO ACCESSORY-REMOTE SPEAKERMICROPHONE NNTN8844B CHARGER, MULTI-UNIT IMPRES2,6 6-DISP NNTN8860ATAA TAA CHARGER, SINGLE-UNIT IMPRES2,3A,1 115VAC,US T7913A RADIO MANAGEMENT OFFLINE 7 UA00048AA ADD: RADION MANAGEMENT LICENSE OFFLINE DISCOUNT  Unit Price  Extended Price 6,652.80 1,705.20 225.70 0.00 770.00 -24,076.62 96,306.46 TBD Estimate 9,630.65 Tax Estimate 105,937.11  665.28 1,705.20 225.70 110.00 -24,076.62  Quote valid unti!: 2024-12-06 Customer Signature BOB AKINS Senior Account Executive obAans@eearcom.com  Confidential and Proprietary  Subl Total Shipping and Handling Tax Total  REDONDOI BEACH Branch Office: 800-750-7234  FAX: 424-675-7113  D Wo  Visito our Web: site at: www. bearcom.com  Terms and Conditions: iscmomemadsae    CITY OF AVALON CITY COUNCIL  MEETING DATE: ORIGINATING DEP: PREPARED BY: SUBJECT:  November 19, 2024 Administration  AGENDA ITEM: 8 CITY MANAGER: DHN  Jocelyn Francis, Assistant City Manager Geo-Logic Associates Contract Amendment  RECOMMENDED ACTION(S): Authorize the City Manager to execute a contract amendment to the Pebbly Beach Landfill Expansion Project with Geo-Logic Associates for a not-to-exceed sum of $66,000, and update the scope of work for preparation of a SEA Conditional Use Permit REPORT SUMMARY: On June 20, 2023 City Council awarded a contract to Geo-Logic Associates to prepare the Conditional Use Permit (CUP) application, Coastal Development Permit (CDP) application, conduct special technical studies, prepare CEQAC documentation, and work with Los Angeles County Department of Regional Planning (LACDRP) for the Pebbly Inv working with LACDRP Staff, consultants were made aware that a portion of the Pebbly Beach Landfill was identified as a Significant Ecological Area (SEA) and would require the submission ofa a SEA Conditional Use Permit (CUP). SEA CUPS require additional technical reports including a robust Biological Constraints Analysis and Biota Report. This required work is above and beyond what was proposed for a Biological Resources Assessment Survey and Report initially Efforts were made to obtain an exception for this project but were met with negative results. Therefore, City staff recommend amending the contract to complete the additional studies and Ifa approved, the City Manager will execute an amendment with Geo-Logic to increase the not- to-exceed sum to $66,000, update the scope of work for preparation of an SEA CUP, and the Finance Director will include an additional $66,000 into the Mid-Year Budget Amendment FISCAL IMPACTS: Additional $66,000 request for Solid Waste fund 13125-6547-202503.  for submittal to Los Angeles County Department of Regional Planning.  Beach Landfill Expansion Project.  proposed at $15,446.  technical reports to comply with LACDRP direction.  request for Council approval within the Solid Waste special fund.  GOAL ALIGNMENT: Infrastructure improvements  CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Project delays. FOLLOW UP ACTION: City Manager to execute a contract amendment with Geo-Logic Associates to update the not-to-exceed amount to $66,000 and update the scope of work for the  Pebbly Beach Landfill Expansion Project.  6059.00004292.3651    ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted  agenda pursuant to the Brown Act.  ATTACHMENTS:  Geo-LogicA Associates Proposal  6059.0000429.365.1    Rincon Consultants, Inc. 180 North Ashwood Avenue Ventura, California 93003 805-644-4455  rincon  130 YEARS  RINCON CONSULTANTS, INC. SINCE1994 November 6, 2024 David Harich Geo-Logic Associates 2777 E. Guasti Road, Suite 7 Ontario, California 91761 Via email: dharthegep-ogic.com  Subject: Proposed Change Order 1f for Pebbly Beach Landfill Expansion Project  Dear David:  Rincon Consultants, Inc. (Rincon) is pleased to provide this Change Order Request 1 for additional services related to the preparation of a Significant Ecological Area (SEA)Conditional Use Permit (CUP) Rincon scoped for preparation of al Biological Resources Assessment (BRA), with al budget of $15,446. The BRA and associated budget assumed that the project would require a CUP from Los Angeles County but not an SEA CUP, which has significant additional requirements related to biological In addition to preparation of the BRA, Rincon provided support related to biological resources, including research related to SEA requirements, efforts to demonstrate that the site either isn't or shouldn't be considered an SEA, and development of SEA Biological Constraints Maps to accompany an SEA Consultation applicationtothel Los Angeles County Department of Regional Planning (LACDRP). LACDRP has confirmed that are no applicable exceptions tot the requirement to obtain an SEA CUP for the PBL Expansion Project and that the Project requires an SEA CUP. The County's SEA Ordinance Implementation Guide describes the required special biological review for any development proposed within an SEA. Al Biological Constraints Analysis (BCA) Report is required to be submitted with the SEA CUP application and additional coordination and reports are required in conjunction with the SEA Technical Advisory Committee (SEATAC). They various reports and other tasks associated with obtaining Given the additional requirements associated with applying for and obtaining an SEA CUP and coordination with the Los Angeles County SEATAC, Rincon respectfully requests al budget increase of  for the Pebbly Beach Landfill (PBL) Expansion Project.  resources.  an SEA CUP and coordination with the SEATAC are shown ini thet table below.  $65,939. SEATAC Item  Proposed Budget  Work conducted ine excess of BRA task assumptions, includingr research relatedt to SEA $8,426 requirements, efforts to' "prove" sitei isn't/shouldn't be considered an SEA, and development of SEA Biological Constraints Maps toa accompany! SEA Consultation Prepare BCAF Report (report based on prior BRA, but incorporates additional information $11,500  application tol LACDRP. as specified by SEATAC guidelines) Consultation and Site Visit with County Staff Biologist(s) SEATAC Review Meeting Respond to County Comments on BCAI Report  $5,740 $4,152 $7,050  www.rinconconsultants.com    rincon  Pebbly Beach Landfill Expansion Project  Proposed Change Order: 1  SEATAC Item Prepare Biota Report Respond to County Comments on Biota Report Potential Additional SEATAC Meeting Optional/Potential. Additional Surveys Total Additional Budget Requested  Proposed Budget $11,500 $7,050 $4,152 $6,369 $65,939  Given the additional requirements associated with applying for and obtaining an SEA CUP and coordination with the Los Angeles County SEATAC, Rincon respectfully requests al budget increase of Thank you for your consideration and for the continued opportunity to support the PBL Expansion Project. If you have any questions regarding this proposal, please contact me at 310-562-9374 or  $65,939.  peelserinconconsultants.com. Sincerely, Rincon Consultants, Inc. bhch Brenda Grogg Eells Principal  2