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HomeMy WebLinkAbout1992-463 . ...'.. " '. 1 RESOLUTION NO. 92-463 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING 3 THE EXECUTION OF AN AGREEMENT WITH DON NOMURA, RELATING TO THE USE OF FISCALINI FIELD. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE 5 CITY OF SAN BERNARDINO AS FOLLOWS: 6 7 to execute on behalf of said City an Agreement with Don SECTION 1. The Mayor is hereby authorized and directed 8 Nomura, relating to the use of Fiscalini Field, a copy of said 9 agreement is attached hereto, marked Exhibit "A" and 10 11 incorporated herein by reference as fully as though set forth at length. 12 SECTION 2. The authorization to execute the above 13 referenced agreement is rescinded if the parties to the 14 agreement fail to execute it within sixty (60) days of the 15 passage of this resolution. 16 I HEREBY CERTIFY that the foregoing resolution was duly 17 adopted by the Mayor and Common Council of the City of San 18 Bernardino at a 19 day of December 20 / / / 21 / / / 22 / / / 23 / / / 24 / / / reQular meeting thereof, held on the 7th , 1992, by the following vote, to wit: 25 JFK:jj Resolution No. 26 November 9, 1992 27 28 1 " " 1 RESOLUTION RE: AUTHORIZING EXECUTION OF AN AGREEMENT 2 WITH DON NOMURA, RELATING TO THE USE OF FISCALINI FIELD. 3 COUNCIL MEMBERS AYES NAYS ABSTAIN ABSENI' 4 ESTRADA x 5 REILLY "'"""'""-- 6 HERNANDEZ x 7 MAUDSLEY x 8 MINOR x 9 POPE-LUDLAM x 10 MILLER x 11 12 ~"-C.l1 I (!JJ_,_~ 13 RA EL CLARK, CITY CLERK 14 15 16 17 18 The foregoing is hereby approved this d,~~W'\ day of "'-<::,,~~~~" 1992. , MAYOR Bernardino 19 Approved as to form 20 and legal content: 21 James city 22 23 24 25 11/9/92 26 27 2 28 Res ~2-46'i, , '~ A G R E E MEN T 1 2 3 THIS AGREEMENT is executed at San Bernardino, California, 4 this ;:'}.:;:,<;:;,A day of-We~~\"\\\,,~'L , 19q~, by and 5 between the CITY OF SAN BERNARDINO, a Charter City 6 (hereinafter" City"), and Don Nomura (hereinafter "Lessee"). 7 WIT N E SSE T H: 8 WHEREAS, the city Council of the city of San Bernardino 9 has the authority to enter into a Lease Agreement regarding 10 all or any portion of City-owned property devoted to park, 11 amusement or recreation purposes; and, 12 WHEREAS, Lessee has acquired a franchise to operate a 13 professional baseball team as a member of the California 14 League; and, WHEREAS, it is the intention and desire of the parties 15 16 hereto to enter into a Lease Agreement regarding the use of 17 Fiscalini Field, being a portion of the public park and 18 recreation area owned by the city of San Bernardino, for the 19 purpose of conducting and carrying on a professional baseball 20 franchise thereon and the operation of concession stand 21 22 23 24 25 26 27 28 activities; and, WHEREAS, CITY desires to contract with Lessee for Lessee to operate the facility in accordance with the provisions hereinafter contained and, the Lessee desires to contract with the city for the privileges granted under said Lease as hereinafter contained: 1 1 NOW, THEREFORE, IT IS MUTUALLY AGREED as follows: 2 1. Premises. City, for and in consideration of the 3 covenants, conditions, agreements and stipulations herein set 4 forth, does hereby grant Lessee the right to utilize Fiscalini 5 Field, as shown on Exhibit "A" attached hereto and by this 6 reference made a part hereof, hereinafter referred to as 7 "facility". 8 2 . Lease Granted. This Agreement is made for the 9 purpose of granting Lessee the nonexclusive use of the 10 facility. No professional or semiprofessional baseball team 11 shall be permitted to conduct games at facility during the 12 term of this Lease except with the express written consent of 13 Lessee. Lessee is also entitled hereunder to sufficient space 14 for the operation of a business office, said office to be 15 provided by City. 16 3. Term of Lease. The aforementioned lease shall 17 commence on March 1, 1993, and terminate on September 15, 18 1993. 19 4. 20 21 22 23 24 25 26 27 28 '. . , , \ I, Use of Facilitv bv Lessee for Non-Baseball Related Activities. (a) City agrees that the facility shall be made available to Lessee not to exceed 15 days during the term of this agreement for non-baseball related activities. The schedule, events and sale of alcohol at such events shall be subject to the approval of the Director of Parks, Recreation and Community Services Department. Approval shall not be 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . . withheld unreasonably. Request for such an approval shall be made thirty days in advance of any such activity. (b) Notwithstanding any other terms of this agreement, Lessee shall bear all costs of the non-baseball activities in the manner as set forth in section 26 paragraphs a and c and section 28 of agreement. Said costs shall include the cost of utilities for the event. (c) In addition to any other sums set forth herein, Lessee shall pay to the city 5% of the gross receipts received by Lessee for each such non-baseball activity. 5. Payment bv Lessee to city. (a) Guaranteed Minimum Annual Fee. Lessee agrees to pay to the city as fees for the lease herein granted for the use of Fiscalini Field a minimum annual fee of $40,000 for the use of the facility. (1) Payment. All payments required hereunder are due and owing as of April 1, 1993. Said payment shall be made in equal monthly installments for six months beginning on April 1, 1993. Failure by Lessee to make monthly payments in the amount of and at the times hereinabove specified shall constitute a material breach of this agreement. (b) Percentaqe of Gross Receipts. (1) In addition to any other sums set forth herein, Lessee shall pay to city the following: Three percent of any amounts in excess of $400,000 gross 3 r I , " 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 receipts up to $700,000 gross receipts, and five percent of any amounts in excess of $700,000 gross receipts, received by Lessee from any use permitted by this agreement, except for non-baseball related use. (2) For the purpose of this agreement, the term "gross receipts" shall mean all money received by or paid to the Lessee, limited to facility use charges (admission fee, etc.), group user fees, refreshment concession, souvenir concession and advertising revenues. For purposes of this agreement, "gross receipts" does not include other things of value which may be received by Lessee. Reference is hereby specifically made to "trade outs" as being excluded from the definition of "gross receipts". "Trade-outs" is defined as the provision of "in-kind" goods and services. Each transaction on credit or installment shall be treated as a transaction for the full price in the calendar year in which the sale is made, unless the payor has or is under bankruptcy or has disappeareared and there are no means of receiving such payments. The lessee shall record such as loss of income. In the event that any amount settles for less than the actual receivable it shall be accounted for as the actual receipts. Any reference in this paragraph to sublessees, concessionaires, or licensees of Lessee shall not be 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 , , , , , deemed to be an authorization for any subletting or granting of concessions or licenses by Lessee with respect to the premises. (c) PaYment of Percentaqe of Gross ReceiDts. (1) Lessee shall notify city in writing within thirty (30) days of date of the last game of Lessee's season as to the extent of gross receipts from the uses permitted under this agreement. On that date Lessee shall pay to city such sums as have accrued to city from such gross receipts as per this agreement. (d) Charqes on Past-Due PaYments - Liquidated Damaqes. (1) If Lessee fails to make the payments set forth hereinabove by the due dates set out herein, Lessee shall pay a charge on such past-due amounts at a rate of 20% per annum of the amount due. This provision shall not be deemed as a forbearance on the payments of such amounts, and City retains any and all remedies for nonpayment of such amounts. This provision is an estimate of the anticipated damage to be suffered by City for non payment of such amounts and it is not to be construed as a penalty. It is hereby agreed that it would be difficult or impossible to determine the precise amount of such damages to the City in the occurrence of a breach of the covenant to make timely payments. 6. Oualitv of ODerations. The Lessee shall, at all times, operate the facilities in a good businesslike manner and 5 , . " 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 incident thereto render to the public using said facilities, efficient and courteous service. In the event that the Director of Parks, Recreation and Community services (hereinafter "Director") reasonably finds that service rendered by the Lessee is substandard or that any other provisions of the lease herein given are not being adequately performed or complied with, the Lessee upon being advised of the nonperformance or noncompliance shall correct any such violation, deficiency or omission within 5 calendar days of such notice. Where such notice is as to a matter respecting heal th and safety, corrections shall be made within 24 hours. City hereby represents that the facility is in full compliance with all health and safety codes prior and during the term of the lease. 7. Emplovees. Any and all personnel, including employees, agents and representatives of Lessee, in conducting the operations of facility, shall not have been convicted of a crime of moral turpitude. Said personnel shall be neatly attired and shall conduct themselves at all times in a courteous and businesslike manner. All personnel at the facility shall be covered under the Workers' Compensation Act of the State of California. Lessee shall require that any employee, agent or licensee of any independent contractor of Lessee performing work at the facility be covered by the Workers' Compensation Act of the State of California. 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8. Nondiscrimination bv Lessee. Lessee and City shall not in the performance of service under this agreement discriminate against any employee or applicant for employment because of sex, race, color, creed, national origin, or handicap and shall not discriminate in the providing of service hereunder against any person on the basis of sex, race, color, creed, national origin, or handicap. 9. Lessee Riqhts and status. (a). The rights herein given to the Lessee is a lease subject to the terms and conditions set forth herein. (b). In addition, the Lessee, his agents, contractors, and employees shall be at all times independent contractors and shall not be considered agents or employees of the city. 10. Assiqnment Prohibited. The rights and privileges given to the Lessee are not assignable in whole or in part or by operation of law and any such attempted assignment shall be invalid and of no legal force or effect. This provision may be waived only with the express written consent of the Mayor and Common Council of the city of San Bernardino. 11. Subleases. Concessions. Licenses. Contracts. The provisions of section 10 shall not prohibit Lessee from entering into concessions, licenses or contracts for the operation of any portion of the business conducted on the premises. Each concession, license or contract that is entered into by Lessee shall be subject to the provisions of this agreement including payment of the same percentage of 7 , . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 gross receipts to the City as set forth herein for the Lessee. A copy of any concession license or contract shall be placed on file with Director. 12. Advertising. Lessee shall have the right to sell, display and maintain advertising on the inside of the outfield fence of the facilities, a scoreboard, and on signs which may be attached by Lessee to the back of the bleachers on the premises or wherever reasonably acceptable by the City. The message board located on the north side of facility is not part of a subject of this agreement, but the parties may enter into a separate agreement relative to such message board or alternate sign. 13. Access to Premises. (a) Lessee shall have full and unimpaired access to field facilities at all times during the term of this agreement. Additionally, Lessee shall enjoy access to maintain and access an office on the premises effective the date of signing of this agreement and extending to 30 days beyond the termination of this agreement. Use of the office may be extended beyond the 30 days provided City and Lessee are in good faith negotiations for continued use of facility by standard use agreement for an additional 60 days. (b) During the above times, City and its authorized representatives shall have the right to enter the facilities at all reasonable times for any of the 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 following purposes: (1) To determine whether the premises are in good condition and whether Lessee is complying with its obligations under this lease. city shall exercise reasonable discretion as to the time and manner of making said determination. (2) To do any necessary acts, consistent with the provisions of this agreement, including maintenance, and any restoration to the facilities that City has the right or obligation to perform. (3) To authorize, permit or conduct special events including but not limited to Dodger Baseball Clinic, C.T.F. High School Playoffs, California state University "Coyotes" Baseball team, et cetera. 14. Communitv Uses. (a) Lessee shall have the right of approval of all contracts, licenses or permits entered into by the Director for the use of the facilities, between March 1 and September 15, 1993 at reasonable times, by community groups. Lessee shall use its best good-faith efforts to satisfy the needs of the general pUblic for the use of the facility by agreeing to permits for available dates and times for the special events provided in paragraph 13 (b) (3) and other public uses. (b) During the term of agreement Lessee shall have the right of first refusal as to the operation of all 9 '. 1 concessions during any and all events in facility. 2 Director shall notify Lessee of any planned community 3 event at least 60 days prior to date of such event. 4 Lessee shall thereafter have 30 days in which to notify 5 Director in writing, of its intent to refuse the 6 operation of concessions for that event. 7 city shall be entitled to 5% of the gross receipts from 8 all concessions conducted pursuant to this provision. 9 15. Nuisances Prohibited. 10 (a) Lessee shall not use the premises, any part 11 thereof, or permit them to be used for any purposes other 12 than as specified herein. Lessee shall not do or permit any 13 act or thing to be done upon the premises which constitutes 14 a nuisance or which may unreasonably disturb the quiet 15 enjoyment of city or any resident of City on adjacent or 16 neighboring property. 17 (b) Lessee shall at its own expense attach and 18 maintain a governor on the controls of its sound system. 19 Said governor shall be at all times maintained at a level 20 mutually agreed upon by Lessee and city. 21 (c) Lessee further agrees, that within 24 hours of 22 receipt of a written notice from the City that a nuisance 23 exists, to abate or otherwise cause said nuisance to be 24 remedied to the degree of its responsibility for said 25 nuisance. In the event Lessee has not (a) taken corrective 26 action within 24 hours, then city may enter and abate said 27 28 10 ',' ' 1 nuisance at the expense of the Lessee without any liability 2 whatsoever to City for monetary loss or anticipated profits of 3 Lessee or others. An appeal to the Mayor and Common Council 4 must be made in writing and be received by the City Clerk, San 5 Bernardino, California, wi thin 24 hours after Lessee received 6 notice of said nuisance. This section shall not be construed 7 so as to prohibit immediate enforcement by pOlice or other 8 authorized City official, of any municipal code, ordinance or 9 other applicable law. 10 16. Parking Lot Rates. Lessee shall not charge for use 11 of the facility parking lot except by specific resolution of 12 the Mayor and Common Council of the City of San Bernardino. 13 17. Indemnification and Hold Harmless. The Lessee 14 shall and hereby agrees to defend, indemnify, save and hold 15 harmless the City, its agents, officers, employees, 16 contractors and invitees from any and all losses or damage 17 and from any and all liability, suits, actions or claims 18 brought or made by any person or persons, arising or resulting 19 from any and all activities and operations of Lessee, Lessee's 20 agent, employees, contractors or invitees and for injury or 21 damage to persons or property about or wi thin said facilities 22 while Lessee, Lessee's agents, employees, contractors or 23 invitees are occupying said facilities for any reason or in 24 any fashion including when such loss or damage is the proximate 25 result of the negligence of lessor's agents, employees or 26 contractors. City agrees to procure insurance from community 27 28 11 . , ' 1 users of facility that lists Lessee as additionally insured. 2 18. Liabilitv Insurance Coveraqe. 3 (a). The Lessee, at Lessee's own cost and expense, 4 shall maintain throughout the term of this agreement: 5 (1) A policy or policies of Comprehensive Liability 6 Insurance with a minimum limit of liability of ONE MILLION 7 DOLLARS ($1,000,000) Combined Single Limit for bodily injury 8 and property damage with an aggregate minimum limitation 9 liability of FIVE MILLION DOLLARS ($5,000,000) and including 10 the following coverages: (i) Premises Operations Including Alterations (for sports events and stadiums). The only exclusion which the City shall accept to this coverage is that which excludes bodily injury to athletic participants only and which in no way excludes spectators. This coverage shall also provide coverage for the continual use of office space at the premises. Broad Form Contractual Liability. Broad Form Property Damage. Products Liability (for the sale of souvenirs, athletic equipment and for the sale of food and drink) . (v) Personal Injury and Coverages i, ii, and iii listed above. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (H) (Hi) (iv) 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (vi) In the event Lessee engages or subcontracts any advertising or broadcasting, then a policy of advertising and broadcasters liability insurance shall be provided either by lessee or by said subcontractor with minimum limits of $1,000,000. (vii) Open Air Parking (for which a charge is made). (viii) Liquor Legal Liability with a minimum limit of $1,000,000. (ix) Fire Legal Liability with a minimum limit of $1,000,000. (x) Vendors' Coverage (provided on an "if any" basis as commonly used in the insurance industry; that is, if there is any exposure to the risk during the policy period). (2) A policy or policies of Comprehensive Vehicular Liability insurance with a minimum limit of liability of One Million Dollars ($1,000,000) Combined Single Limit for bodily injury and property damage with an aggregate minimum limit of liability of five million dollars ($5,000,000) and which includes coverage for non-owned and hired vehicles and which provides uninsured Motorist coverage according to minimum state requirements. In the event Lessee acquires owned or leased vehicles, then Lessee shall immediately obtain equivalent coverage for 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 such vehicles. (b) Each policy providing coverage as required by subparagraph (a) above, must have endorsements providing: (1) That the city of San Bernardino, its officers, agents, employees, contractors and invitees are additional insureds as respects the use of the facilities. (2) That the insurance provided by the policy shall be primary insurance as respects any other valid and collectible insurance the City of San Bernardino may possess and that any other insurance the City does possess will be considered excess only. (3) That the policy will act to cover each insured and each additional insured as though a separate policy were written for each. (4) That no less than thirty (30) days written notice will be given to the city Administrator or his or her designee, city of San Bernardino, 300 North "0" street, San Bernardino, california 92418, before cancellation or reduction in coverage for any reason. (c) If the Lessee engages another party to provide the operation of refreshment, souvenir and/or other concessions, as permitted hereinabove, the Lessee shall also cause that party or parties so engaged, at said party's or parties' own cost and expense, to obtain and 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 , ' , , to keep in force throughout the term of this agreement, a policy or policies of public liability insurance (including products liability coverage) separately providing limits and coverage as aforesaid arising out of each such concessionaire's operations. Before any person other than Lessee operates any refreshment, souvenir or other concession, Lessee shall notify city of the name and business addresses of such concessionaire, and obtain and file with City such concessionaire's policy and/or certificates as are herein specified. 19. Workers' Compensation Insurance Coveraqe. (a) The Lessee, at Lessee's sole cost and expense, shall provide, pay for and maintain throughout the term of its lease, a policy providing workers compensation insurance coverage with the statutory limits of liability as set forth by the laws of the state of California, and including not less than $500,000, Employer's Liability, applicable to employees, agents and volunteers of Lessee, sub-lessees or assignees. (b) The policy shall be endorsed to waive the right of sUbrogation against the city. The pOlicy also shall be endorsed to provide that not less than thirty (30) days' written notice shall be given to the City Administrator or his or her designee, City of San Bernardino, 300 North "0" Street, San Bernardino, California 92418, before cancellation or reduction in coverage of any nature or 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 for any reason. 20. Evidence of Coveraqe. (a) Except as otherwise provided herein, each policy obtained by the Lessee to comply with the provisions of this agreement must have an effective date no later than the commencing date of this agreement and the named insured on each policy must be identical to the Lessee in this agreement. The Lessee agrees to furnish evidence, acceptable to the city, that the insurance requirements of this agreement have been fulfilled. Such evidence is to be placed on file by the Lessee with the City Administrator or his or her designee, city of San Bernardino, 300 North "0" Street, San Bernardino, California 92418. (b) No occupancy or use of City's property or facilities shall be made by the Lessee, Lessee's agents, contractors employees or invitees, under the provisions of this agreement until evidence acceptable to City Administrator or his or her designee that the aforesaid insurance requirements have been fulfilled has been received by the city Administrator or his or her designee. Each policy, binder or certificate of insurance, is subject to the reasonable approval of city Administrator or his or her designee as to content, form and issuing company. Should any of the insurance requirements set forth in this agreement not be fulfilled 16 .' 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 by the Lessee in a manner reasonably acceptable to City Administrator or his or her designee as provided in this agreement, said City Administrator may purchase any or all of the insurance required to correct such deficiencies and the Lessee and Individuals agree that the premium incurred therefor shall constitute an additiona fee to be paid by the Lessee to the City upon demand. (cl On or before March 15, 1993, a certified, true and correct copy of each policy providing all or part of the liability insurance coverage required by Paragraph 18 above, together with all required endorsements, and a certificate of insurance together with the required endorsement for the workers' compensation coverage required by Paragraph 19 above must be received directly from the issuing company by the cit Administrator or his or her designee. (d) During the first thirty (30) days coverage of an policy obtained by the Lessee to fulfill requirements of thi agreement, evidence may be in the form of an insurance binder provided that any such binder must include language to fulfil the requirements, including endorsement requirements, i addition to the normally accepted items in a binder, such as but not limited to: coverage, limits of liability, coverage was effective, expiration date of binder, insuring company and signature of authorized representative. 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 21. citv Not a Bailee. It is further hereby understood and agreed that the city in no way purports to be a bailee and is in no way responsible for lost, stolen or damaged property of Lessee, its agents, employees, concessionaires or invitees. 22. Possessorv Interest Tax. Lessee hereby acknowledges and understands that this agreement may create a possessory interest subject to property taxation pursuant to California Revenue and Taxation Code section 107, and that Lessee may be subject to payment of property taxes levied on such interest, and that such tax payment shall not reduce any monies due the City hereunder and any such tax shall be the liability of and be paid by the Lessee. 23. Compliance with Orders. Ordinances and Laws. The Lessee shall at all times and continuously operate in full compliance with all Federal, State and local laws, statutes and ordinances; all orders of the Health Officer of the County of San Bernardino; all directives of the Director; and shall grant access for inspection purposes to any authorized representative of the State Board of Health or the County's Health Officer, or any authorized representative of the Director. 24. Liens and Encumbrances. Lessee shall keep the premises and all structures and improvements situated thereon free from any liens or encumbrances arising out of any work performed, material furnished, or obligations incurred by Lessee, or from any other cause. 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 " 25. Scoreboard. City and Lessee agree to work jointly to procure a sponsor for the scoreboard and message center. If no sponsor is found city and Lessee agree to share equally the cost to retain the scoreboard/message center for the duration of this agreement. This cost is estimated at $10,000 ($5,000 to city and $5,000 to lessee). 26. Staffina and Cleanup. (a) Lessee shall provide all event personnel, including, without limitation, ticket sellers, ticket takers, ushers, clubhouse matrons, clubhouse janitors, medical persons, switchboard, sound and scoreboard persons, and other supervisory personnel, and all other personnel reasonably necessary for the operation of the premises for the events held therein. Lessee shall also provide attendant care during the game including but not limited to restroom clean-up, garbage, trash and litter clean-up of facility. Lessee shall be responsible for stadium clean up to include pick-up and removal of all litter and debris from stadium, parking lot and adjoining areas. Clean up shall be provided, at a minimum, after each home game and prior to the commencement of each home game and prior to and after any event otherwise held at the facility pursuant to this agreement. Clean up shall include washing down the bleachers as necessary. City agrees to furnish and maintain equipment listed on Exhibit "B" for the purpose of accomplishing stadium Cleaning. It is understanding that all equipment is and will remain property 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 , , of the city. City agrees to furnish a staff person to train a clean-up crew employed by Lessee for a period of one week. (b) City shall provide, at its expense, ballfield preparation, maintenance of all public restrooms and all restroom supplies and trash bags as is required for daily stadium operations. (c) If City should provide any of the labor or services described in subparagraph (a) above, Lessee shall reimburse City for its labor, materials, supplies and administrative. 27. utilities and Additional Services. (a) City shall make arrangement for and pay for all utilities furnished to or used at facilities, including the business office, for all regular baseball games covered by the agreement including, without limitation, gas, electricity, water and trash collection, and for all connection charges. Except, Lessee shall be responsible for all costs of telephone service, including connection fees, service charges and user taxes for the business office. (b) At Lessee's request, city may provide, at the sole discretion of the Director, or her designee, additional services and supplies in support of the presentation of any of the events herein contemplated. Lessee shall reimburse City for the labor, materials, supplies and administrative overhead costs incurred in providing such services and supplies. 28. Securitv. Lessee shall be responsible for providing all reasonably necessary security at each and every event held 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 by Lessee at the facility under the provisions of this agreement. Lessee shall provide traffic control and security in the stadium and parking lot at its expense. Traffic control and security are to be provided at the discretion of the Lessee except when the Director, or the Chief of POlice, in the exercise of her/his sole discretion, determines that such is necessary as a matter of public safety. 29. Maintenance and Repair. (a) General. Lessee agrees to maintain all equipment at facility. city agrees to maintain all capital improvements at facility. (1) Lessee agrees to accept facility with such capital improvements as is currently existing. City agrees to provide existing improvements and to maintain the facility as specified herein. In the event, and at the time that additional and/or new equipment other than is specified herein is reasonably necessary for the proper operation of facility, Lessee shall, at Lessee's sole cost and expense, purchase such additional and/or new equipment. Unless such equipment is attached as a fixture to facility, equipment shall remain the personal property of Lessee. (b) Routine Maintenance and Repairs. Except as otherwise provided herein, City shall maintain, in good and safe condition, all portions of the facility. City's routine maintenance shall include, without limitation, and shall not 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 be limited to: replacing light bulbs in floodlights, field lights and security lighting; manual broom or vacuum cleaning and stocking the public restroom; repair of asphalt surfaces including parking lot and driveways; landscape maintenance to include fertilization and weed control around the perimeter of the facility and both sides of perimeter fencing, all aspects of playing field maintenance; bleacher repairs; all irrigation system repairs including water fountains; all plumbing repair such as sewage stoppages; all electrical repairs including junction box blowouts, all painting for cosmetic purposes, all repair and maintenance of the backstop, netting and scoreboard, et cetera. (c) Emerqencv Maintenance. Lessee hereby agrees to comply with such written procedures as shall be established by Director for obtaining emergency maintenance or repair of any property or equipment to be maintained by City under this agreement. Lessee shall be liable for all costs incurred in a manner inconsistent with such procedures. 30. Alterations. (a) Except as otherwise specifically provided herein, Lessee shall not make any structural or nonstructural alterations to the facility without the city's consent, which shall not be withheld unreasonably. The Director may act for the City in giving such consent. (b) City may elect, within thirty (30) days before the expiration of the term or at the time of any other surrender 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 " ", of such facility, to require Lessee to remove any alterations that Lessee has made to the facil i ty . If city so elects, Lessee, at its cost, shall restore the facility to the condition it was in at the commencement of the term less normal wear and tear, within sixty (60) days after notice of election is given. 31. Construction Bond Reauirements. In the event that alterations are made by Lessee in accordance with the provisions of this agreement or in the event that individual maintenance and repairs exceeding Five Thousand and NO/lOO /Dollars ($5,000.00) are made by Lessee as a requirement of this agreement, Lessee shall provide such faithful performance bonds, payment bonds and labor and material bonds as City may demand and the terms and provisions of the construction or maintenance contract to accomplish any such alterations, maintenance or repairs to the facility shall be subject to the approval of the Director and the City Attorney. 32. structural Restoration and Repair. City, at its cost, shall repair, replace, and maintain the structural integrity of the following: (a) All structural parts of the building and permanent fixtures and other improvements that are a part of the facility, including, without limitation, the foundations, bearing walls, sUb-flooring, ceiling, roof, window frames (not including screen and panes), gutters and downspouts, light poles, grandstands, and concession stands, et cetera. 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (b) The unexposed electrical, plumbing and sewage systems, including, without limitations, those portions of the systems lying outside the facility. (c) city shall pay for all repair of the facility if it is damaged by (1) causes outside the facility over which Lessee has no control; (2) acts or omissions of City or its authorized representatives; or (3) City's failure to perform its obligations under this agreement. (d) Lessee shall, and hereby agrees, to reimburse city for city's total cost of repairs made necessary by the activities and operations of Lessee, Lessee's agents, employees, contractors or invitees. 33. Destruction. (a) If, during the term of this agreement, the facility is totally or partially destroyed from any cause, rendering the facility totally or partially inaccessible or unusable and if, with reasonable diligence, the restoration can be completed within ninety (90) working days after the date of destruction, and if city determines it is within its financial means to restore the facility, then city shall restore the facility to substantially the same condition as it was in immediately before destruction, and such action shall not terminate this agreement. (b) If such destruction occurs during the playing season of lessee, City shall have 15 calendar days following date of destruction within which to notify lessee of City's 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 " 0, determination of its ability to repair the facility within the time set forth in subparagraph (a). If such destruction occurs at any other time, City shall have 15 calendar days within which to provide such notice. (c) Upon notice that city in the reasonable exercise of its discretion determines that restoration cannot be made in the time stated in subparagraph (a). Lessee may then terminate this agreement immediately by giving written notice to city. If Lessee fails to terminate this agreement, within 30 calendar days of date of such notice, city, at its election, can either terminate this agreement, or restore the facility within a reasonable time. If within 30 calendar days following date of expiration of the period for lessee's notice of its election to terminate, city notifies lessee of its intent to restore, this agreement shall continue in full force and effect. (d) When such destruction occurs within ninety (90) days of the last day of the then current baseball season, Lessee may conduct the remainder of its home games during that season within some other facility without impairment of any of its rights hereunder. (e) The time periods herein set forth shall not include time for evaluation of loss by any insurer. Notice that a claim for loss of facility is under evaluation by an insurer of the facility shall toll the time for notice of intent to restore. City shall not be responsible for any losses 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 '. . incurred by lessee proximately arising from a delay in the restoration of the facility which occurs for reasons beyond the control of the city. 34. Time of Essence/Breach. Where performance of a covenant is specified herein to be on or before a certain date, time shall be of the essence of said covenant. Performance by the Lessee of each and every condition, covenant or provision of this agreement is material, the breach of which shall constitute a material breach of this contract for which City's Director may terminate this agreement; provided, however, that any such termination by said Director shall not be effective until not less than thirty (30) days after notice of termination by said Director to the Lessee and said Director may withdraw and cancel such termination if, in the sole discretion of City: (1) the breach is cured within the thirty-day period; or (2) the nature of the breach is such that it cannot be cured within such thirty-day period but the Lessee promptly commences to correct such breach and proceeds to correct the same as promptly as reasonably practicable. 35. Attornev's Fees/Leaal Costs. If any action at law or in equity shall be brought to enforce or interpret the terms of this agreement, including costs of reduction to cash the proceeds of any security provided hereunder, the prevailing party shall be entitled to recover from the other party as part of the prevailing party's costs reasonable attorney's fees, the amount of which shall be fixed by the court and 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 shall be made a part of any judgement or decree rendered. For any action by the City Attorney to enforce this agreement, reasonable attorneys fees shall be determined at the rate of $150.00 per hour. 36. Waiver of Breach. The waiver of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any subsequent breach of the same or any other term, condition or covenant contained herein. 37. Surrender of Premises. Upon the termination of the term, Lessee shall surrender to City, the facility and all Lessee's improvements and alterations, in good condition (except for ordinary wear and tear) occurring after the last necessary maintenance made by Lessee and destruction of the facility covered by paragraph 33, except for alterations that Lessee has the right to remove, or is obligated to remove, under the provisions of paragraph 30. Lessee shall remove all of its personal property and perform all restoration made necessary by the removal of said personal property and by the removal of any alterations prior to the termination of the term of this agreement. 38. Termination. (a) The City may terminate this agreement for cause including but not limited to, the following occurrences: (1) Any action taken or suffered by the Lessee or shareholders of 40% or more under an insolvency or bankruptcy act, including the appointment of a receiver 27 "', 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 to take possession of all or substantially all of the assets of the Lessee or shareholders of 40% or more. (2) Any general assignment by Lessee or shareholders of 40% or more for the benefit of creditors. (3) Loss of the franchise. (4) Lessee fails to provide the regular playing of baseball games at Class A or above league level at the facility for reasons other than loss or destruction of the field or other impossibility, including but not limited to a players strike. (b) The Mayor and Common Council is empowered to decide, on the part of the city, that this agreement is to be terminated for cause and to furnish 30 days' written notice thereof to the Lessee. Lessee shall have the right to resolve any default within those 30 days. 39. Effect of Termination. (a) Any other provisions of this agreement notwithstanding, upon termination of this agreement City shall be entitled to utilize any security in the manner as set forth in this agreement. (b) Upon termination of this agreement, in addition to any other amounts due to City hereunder, City shall be entitled to receipt of any unpaid rents for the remainder of the term during which such termination occurs. 40. Communitv Service. In addition to all other considerations set forth herein, Lessee agrees to perform the 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 " .' following community services during the term of this agreement: (al Conduct a minimum of two baseball clinics a year without charge for children under the age of 18. Said clinics are to be scheduled at the discretion of Lessee. Director shall receive 60 days' prior written notice of the date of each clinic. (bl Lessee shall provide at least one public service announcement on the reader board during each game. The message shall be published without charge. Said language shall be approved by the Director. 41. Incorporation of Prior Aareements and Amendments. This agreement contains all agreements of the parties with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matter shall be effective except as otherwise incorporated herein. This agreement may be modified in writing only, signed by the parties in interest at the time of the modification. This agreement shall not be construed as requiring the city to make any expenditures, other than as specifically set forth herein. 42. Venue. If either Lessee or City initiate an action to enforce the terms hereof or declare rights hereunder, including actions on any bonds and/or surety agreements, the parties agree that the venue thereof shall be the County of San Bernardino, State of California. 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 II 22 II 23 II 24 II 25 II 26 27 28 " ". 43. Severabilitv. The invalidity of any provision of this agreement, as determined by a Court of competent jurisdiction, shall in no way affect the validity of any other provision hereof. 44. captions. Paragraph headings in this agreement are used solely for convenience, and shall be wholly disregarded in the construction of this agreement. 45. Covenant and Conditions. Each provision of this agreement performable by Lessee shall be deemed both a covenant and a condition. 46. Notice. Except as otherwise provided herein, any notice, statement, demand, request, consent, approval, authorization, offer, agreement or communication, that either party hereto desires, or is required to give to the other party, shall be in writing and shall be sufficiently given and served upon the other party if delivered personally, or if sent by United states postal service, first class postage prepaid, and addressed as specified herein. Either party hereto may change its address for purposes of this agreement by giving the other party appropriate written notice of the 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . change of address. Notice shall be deemed to be communicated within forty-eight (48) hours of the time of mailing, if mailed to the following: AS TO CITY: AS TO LESSEE: Director Parks, Recreation and Community Services 547 North Sierra Way San Bernardino, CA 92401 Don Nomura Wilshire Metropolitan Center 1127 Wilshire Blvd., Suite 916 Los Angeles, CA 90017 47. No Third Party Beneficiaries of Agreement. Any insurance coverage required herein is for the protection of City, its officers, agents, employees, contractors, and invitees. No third party beneficiaries other than as specifically named herein are contemplated under any provision of this agreement, nor is it the intent of this agreement to create any right in same. 48. Vendor Consideration. Lessee hereby agrees to give best effort consideration to vendors with principal offices in the City of San Bernardino in the award of contracts for the provision of goods and services. 49. Accounting. (a) Commencing with the month of May on or before the lOth day of every other month, during the term of this lease, Lessee shall file with the Parks, Recreation and Communi ty Services Director of City, an accounting showing the gross receipts form use of the facility. Said accounting statement shall contain an appropriate certification that all gross receipts of the previous month have been duly and properly reported to City and that the statements filed with the City are in accord 31 1- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 II 26 II 27 28 , , . " '"? with Lessee's reports of profits and losses to its owners and its Federal Income Tax Return. (b) Lessee shall keep true and accurate books and records showing all of his business transactions conducted on or from the premises in accounts separate from any other business which Lessee may have or conduct. A copy of records shall be retained on the premises or at such other place in San Bernardino County as is approved by city, provided that Lessee may temporarily remove the same as may be necessary for legal or accounting purposes. (c) City shall have the right, after reasonable notice and at any reasonable time, from time to time, to examine and audit the books and records of Lessee and his sublessees, concessionaires and licensees, including California Sales Tax Records, and to make copies of same and of any written agreements between and such sublessees, Lessee concessionaires, and licensees of Lessee. Providing further, that city reserves the right to examine all such books and records with reasonable notice during the period following the regular baseball season (September 15th), up to 30 days after the expiration of this agreement. (d) Lessee shall provide the city with all information needed to exercise its rights under this section of agreement, and shall not unreasonably withhold any requested information. 32 " , . , . . 1 50. Successors Bound. This agreement shall be binding 2 upon and inure to the benefit of each of the parties and their 3 respective legal representatives, successors, heirs and 4 assigns. 5 6 DATED: 7 8 Z(~~ 9 City Clerk 10 11 12 13 Approved as to form and legal content: 14 JAMES 15 16 17 f 18 II II 19 II II 20 II II 21 II II 22 II II 23 II II 24 II II 25 II II 26 II 27 33 28 . " ---;' ...- I~ . _. " '" Ii '" ~ ) ~ . 1 \ . ~ ..." ~ ~> ~~ r~ " . :~ > ~ t~ "I r '. .<(:~'_:' :.~:::j ."'!':~<~ :/.;~.~.R .:..:.: ..' .1:1." '."~':'.,:~.:~ '!', 'tlr{':\J .::.:.::.......~ . .,.k'li, \J' ~.>..::!~ t! ".i.I<, I:; ....d.. ---.... : :". :' " --0 > --t. i! '" , lit t: :i 11: ~ ~ ~ l::- " .. l:: _. - :-.....1...._. ~. -,-.j~ -~)-~-- . . ---- ---- . . ,'"'-.---".- . . /' . . ..-! .' I -~..~- . 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',' .li.: ~'. 4'Y~ Ii"" " ....', ',., ,. .' ~ ':!:,.. :::.';~;/:~::~l.\}.~.:<:~; ,: '.;::.,,'., ..:'!. u ',. -" " ., ~. -t.. ~ ~. \f\ ", "- .~ ~ \ , \II rn1/) :>:> ....0 ux J I" ~ ~ ~ " , In ~ " " ~ \I ... t ,. ~ '" ~ ., ~ n ., lit ~ ~ ~ "J '. . .~. ... " . EXHIBIT liB" FIBCALINI FIELD BLEACHER CLEANUP EQUIPMENT 2 - Back Pack Blowers 2- Leaf Rakes 2- Push Brooms 2- pickup sticks 6-25 Ft Lengths Fire Hose 2- Fire Hose Nozzels 2- Gum Scrapers Trash Bags JK:jj . ,