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HomeMy WebLinkAbout2011-02-08; City Council; 20440; MAINTENANCE AGREEMENT OCEAN ST SCULPTURE PARKCITY OF CARLSBAD - AGENDA BILL AB# MTG. 02/08/11 20.440 DEPT. Parks &Rec OPERATIONS AND MAINTENANCE AGREEMENT WITH CALIFORNIA RESOURCES AGENCY FOR THE OCEAN STREET SCULPTURE PARK DEPT. DIRECTOR CITY ATTORNE CITY MANAGER RECOMMENDED ACTION: Adopt Resolution No. 2011-014 authorizing the Mayor to execute an agreement between the City of Carlsbad and the State of California - Resources Agency for the development, operation, control and maintenance of that portion of Carlsbad State Beach known as Ocean Street Sculpture Park. ITEM EXPLANATION: In 1990, the city adopted Resolution No. 90-99 approving a twenty-year Operating and Maintenance Agreement with the California Department of Parks and Recreation for the landscaped area and adjacent parking lot at Carlsbad Boulevard and Pine Avenue, known as Ocean Street Sculpture Park. The initial improvements to the area included a steel art sculpture commissioned by the city. That sculpture was subsequently removed and replaced with grass, at the desire and expense of the city. Under the terms of the Operating and Maintenance agreement, the city performs all routine maintenance services to this grass/planter area, its amenities (e.g., concrete benches, receptacles/stations, drinking fountains, etc.), and the adjacent parking lot at the southern terminus of Ocean Street. According to the provisions, the state authorizes the use of the half acre property by the city on a rent-free basis, on the condition that the city exerts a good faith effort in performing appropriate maintenance activities. The cost of those activities has been borne by the city's Parks Maintenance Operating Budget. In April 2010 [notwithstanding the June 30, 2009 error date in the agreement], the original 20-year agreement expired and staff is recommending the Council approve a successor operating agreement with the state to continue the same development, operation, control and maintenance activities to this area. Staff would continue to provide operation and maintenance in a manner that ensured the property met city park maintenance standards. The current estimated annual cost of those activities is $7,000 per year. The term of the new operating agreement would again be for twenty years, and would expire on March 31, 2030. After March 31, 2030, the agreement would continue month-to-month until terminated. DEPARTMENT CONTACT: Steve Jantz 760-434-2838, steve.iantz@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED XDn D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES Dn D D Page 2 FISCAL IMPACT: No new fiscal impact is associated with this successor agreement. All operations and maintenance costs associated with the Ocean Street Sculpture Park would continue to be borne within the city's existing Parks Maintenance Operating Budget. ENVIRONMENTAL IMPACT The proposed action does not qualify as a "project" under the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15378, as it does not result in a direct or reasonable foreseeable indirect physical change in the environment. EXHIBITS: 1. Resolution No. 2011-014 authorizing the Mayor to execute an agreement between the City of Carlsbad and the State of California - Resources Agency for the development, operation, control and maintenance of that portion of Carlsbad State Beach known as Ocean Street Sculpture Park. 2. Operating Agreement with City of Carlsbad for Carlsbad State Beach 3. 1990 Operating Agreement with City of Carlsbad for Carlsbad State Beach (Expired) 1 RESOLUTION NO. 2011-014 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD AUTHORIZING THE MAYOR TO EXECUTE A 3 RATIFICATION OF THE OPERATING AGREEMENT WITH 4 THE STATE OF CALIFORNIA - RESOURCES AGENCY FOR THE CITY OF CARLSBAD TO CONTINUE 5 PERFORMING MAINTENANCE OPERATIONS OF THE PORTION OF CARLSBAD STATE BEACH KNOWN AS 6 OCEAN STREET SCULPTURE PARK 7 8 WHEREAS, pursuant to City Council Resolution No. 90-99, the City Council of 9 the City of Carlsbad determined it necessary, desirable, and in the public interest to 10 construct public park improvements on property owned by the State of California; and 11 WHEREAS, on April 10, 1990 the City of Carlsbad entered into an Operating and 12 Maintenance Agreement with the California Department of Parks and Recreation for the 13 property at Carlsbad Boulevard and Pine Avenue known as the Ocean Street Sculpture 14 Park; and 15 WHEREAS, the current Operating and Maintenance Agreement has expired and 16 the city and state desire to enter into a successor Operating Agreement for 17 maintenance activities at the Ocean Street Sculpture Park; and 18 WHEREAS, the City Council of the City of Carlsbad hereby finds it desirable and 19 in the public interest to enter into a 20-year Operating Agreement with the State of 20 California - Resources Agency to continue to provide maintenance activities at the 21 Ocean Street Sculpture Park. 22 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 23 Carlsbad, California as follows: 24 1. That the above recitations are true and correct.25 26 27 28 3 1 2. That the Operating Agreement with the State of California - Resources Agency is hereby approved and the Mayor is authorized and directed to 2 execute said agreement. 3 3. That following execution of said agreement, the City Clerk is authorized and 4 directed to forward the six (6) copies of the agreement with original signatures and a copy of this resolution to the State of California, Department of Parks 5 and Recreation, Attention Concessions Specialist Donna Renner, San Diego Coast District Office, 4477 Pacific Highway, San Diego CA 92110. 6 7 8 9 " 10 // 11 // 12 // 13 // 14 // 15 16 17 18 19 " 20 » 21 // 22 // 23 // 24 // 25 // 26 27 28 H 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 8th day of February, 2011, by the following vote to wit: AYES: Council Members Hall, Kulchin, Blackburn, Douglas and Packard NOES: None. ABSENT: None. MATt HALL, Mayor ATTEST: bORRAlNE M. WOOD, City Clerk ,J Operating Agreement with City of Carlsbad for Carlsbad State Beach STATE OF CALIFORNIA - RESOURCES AGENCY DEPARTMENT OF PARKS AND RECREATION CONCESSIONS DIVISION 1416 NINTH STREET, 14™ FLOOR SACRAMENTO, CA 95814 State Park Operating Agreement OPERATING AGREEMENT for Carlsbad State Beach INDEX 1. PREMISES 2 2. TERM 2 3. USE OF PREMISES 2 4. CONSIDERATION 3 5. CONSTRUCTION AND COMPLETION OF IMPROVEMENTS 3 6. MAINTENANCE OBLIGATIONS OF CITY 5 7. CONCESSIONS 6 8. TAXES , 6 9. RECORDS AND ACCOUNTS 7 10. BEACH EROSION CONTROL AND PROTECTION WORK : 7 11. UTILITIES AND SERVICES 8 12. INSURANCE 8 13. HOLD HARMLESS AGREEMENT 14. EMINENT DOMAIN PROCEEDINGS 9 10 15. PROHIBITIONS AGAINST ASSIGNING, SUBLETTING 10 16. NOTICES j 10 17. DEFAULTS AND REMEDIES \ 11 18. TERMINATION \ 11 19. SURRENDER OF THE PREMISES-:HOLDING OVER.... .:..... 12 20. REAL PROPERTY ACQUISITION 12 21. COMPLIANCE WITH LAWS, RULES, REGULATIONS, AND POLICIES 12 22. NONDISCRIMINATION 13 23. DISABILITY ACCESS LAWS 13 24. NATIONAL LABOR RELATIONS BOARD CERTIFICATION 14 25. DRUG-FREE WORKPLACE 14 26. ENVIRONMENTAL AWARENESS AND RESOURCE PROTECTION.... 14 27. HAZARDOUS SUBSTANCES 15 State Park Operating Agreement 28. SIGNS AND ADVERTISING... 16 29. INTELLECTUAL PROPERTY RIGHTS 17 30. PARTICIPATION IN STATE PARK MARKETING PROGRAMS 17 31. CHILD SUPPORT COMPLIANCE ACT 17 32. DISPUTES 18 33. LIMITATION 18 34. SECTION TITLES 18 35. AGREEMENT IN COUNTERPARTS 18 36. INSPECTION 18 37. SUCCESSORS IN INTEREST 18 38. PARTIAL INVALIDITY 19 39. TIME OF ESSENCE 19 40. DURATION OF PUBLIC FACILITIES. 19 41. WAIVER OF RIGHTS, CLAIMS, AND AGREEMENT TERMS 19 42. INTERPRETATION OF AGREEMENT 20 43. INDEPENDENT CONTRACTOR 20 44. MODIFICATIONS AND APPROVAL OF AGREEMENT 20 IJ State Park Operating Agreement OPERATING AGREEMENT with City of Carlsbad for Carlsbad State Beach THIS OPERATING AGREEMENT (Agreement), by and between STATE OF CALIFORNIA, acting through the Department of Parks and Recreation, hereinafter referred to as "State", and City of Carlsbad, hereinafter referred to as "City". WITNESSETH: Whereas, pursuant to the provisions of Section 5080.30, et seq., of the California Public Resources Code, State may enter into an operating agreement with any city, county, district, public agency, or combination thereof of the State of California for the care, maintenance, administration, and control of lands under the jurisdiction of State for the purpose of the state park system; and Whereas, State has acquired for park and recreational purposes certain real properties known as Carlsbad State Beach located within the city of Carlsbad in San Diego county; and Whereas, State and City desire to enter into an Agreement to provide for the development, operation, control, and maintenance of a part of Carlsbad State Beach by the City as identified on Exhibit A; and Whereas, the Agreement meets the criteria for exemption from review by the Legislature as defined in Section 5080.40 (c) of the California Public Resources Code; NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, the parties hereto agree as follows: State Park Operating Agreement 1. PREMISES State authorizes City to develop, operate, control, and maintain a part of Carlsbad State Beach as shown in "Exhibit A", attached and hereby made a part hereof, hereafter "Premises". City agrees to accept Premises, including facilities covered by this Agreement, and take the same in their present condition "AS IS" with all faults, and agrees to maintain the same in a safe and tenable condition, and, at any termination of this Agreement, to promptly turn back the same to State in the same or better condition, reasonable wear and tear excepted. State shall not be obligated to make any alterations, additions, or betterments to the Premises except as otherwise provided for in this Agreement. This Agreement is not intended to and does not create any third party rights and in no event shall be relied on by any party other than City and State. 2. TERM The term of this Agreement shall be for a period of Twenty Years and shall commence on April 1, 2010 and end on March 31, 2030. Should City hold-over after the expiration of the term of this contract with the express or implied consent of the State, such holding-over shall be deemed to be a tenancy from month-to-month at the herein stated prescribed rent as set forth in this contract subject otherwise to all the terms and conditions of this contract. 3. USE OF PREMISES City agrees to develop, operate, control, and maintain the Premises as a public recreational beach/park facility with related concessions and/or other facilities accessible and subject to the use and enjoyment of the general public. Development and operation of the Premises shall be conducted in accordance with all applicable State general planning principles, State Commission policies and all federal, state, and local government statues, laws, and regulations. Upon written permission of State, City may improve the Premises by constructing and operating features consistent with the approved State General Plan for Carlsbad State Beach which is available at www.parks.ca.gov. These State Park Operating Agreement facilities shall not adversely affect the use and enjoyment of the Premises by the public. City may adopt rules and regulations for the use and enjoyment of the Premises by the public. Any such rules and regulations adopted by City shall conform to and be consistent with the rules and regulations adopted by State and generally applicable to the California State Park system. The Premises shall not be used for any purpose other than those permitted by this Agreement. City shall not use or permit the Premises to be used in whole or in part during the term of this Agreement for any purpose other than as herein set forth without the prior written consent of the State. 4. CONSIDERATION In consideration of the services to be performed by City pursuant to this Agreement, State hereby authorizes the use of the Premises by City on a rent- free basis on the condition that City exert a good faith effort in performing the terms and conditions of this Agreement. In the event that City fails to perform in good faith, the Premises shall revert back to the State, at State's option, and State shall have the right to pursue any other remedies available under this Agreement and/or otherwise available by law. Any income to City derived from its control and operation of Premises for services, benefits, or accommodation to the general public, or otherwise, shall be used only for the maintenance, operation, administration, improvement, or development of lands and/or facilities located within Carlsbad State Beach. Any such portion of income as may exceed costs and expenses described in this paragraph shall be remitted to State in accordance with Section 5080.32 (b) (2) of the California Public Resource Code. 5. CONSTRUCTION AND COMPLETION OF IMPROVEMENTS A. At no cost or expense to State, City may undertake new construction, reconstruction, alteration, and maintenance to enhance public recreation facilities subject to prior written approval by State. In the event that State Park Operating Agreement City desires to make modifications, improvements, or additions to the Premises or any part of the Premises, including changes to structural design, landscape design, or interior or exterior fixtures, design, and/or furnishings, (collectively "Alteration(s)"), written approval by State shall be obtained prior to the commencement of any Alterations. State shall dictate the plan approval process. All modifications and additions shall be made in accordance with State's standards for construction and completion of improvements. Further, all Alterations shall be made in accordance with State's general planning principles and with all applicable state and federal laws, rules and regulations. B. Once prior approvals, permits, etc. have been received as required herein above, and the work on any Alteration has begun, City shall prosecute to completion with reasonable diligence all approved Alterations. All work shall be performed in a professional manner, and will comply substantially with plans and specifications submitted to State as required herein and with all applicable governmental permits, laws, ordinances, and regulations. It shall be the responsibility of City, at its own cost and expense, to obtain all licenses, permits, security, and other approvals necessary for the construction of approved Alterations. City shall comply with public bidding requirements as set forth in the California Public Contract Code. C. For all Alterations erected on the Premises by City, upon completion of construction, City shall (1) record a Notice of Completion, with a copy provided to the State; (2) provide State with a complete set of "as-built" plans for all improvements in a format reasonably acceptable to State; (3) submit evidence that all improvements are clear of any mechanic's liens or stop notices; (4) submit a verified accounting of the cost for Alterations, excluding equipment and trade fixtures that are the personal property of City; and (5) submit a verified report demonstrating full compliance with the pertinent state and federal accessibility laws, including but not limited to, the Americans with Disabilities Act of 1990, Titles I, II and III. D. Title to all Alterations existing or hereafter erected on Premises, regardless of who constructs such improvements, shall immediately become State Park Operating Agreement State's property, and, upon termination of this Agreement, all improvements shall become part of the realty and title to the Premises and shall vest in State, without compensation to City. City agrees never to assail, contest, or resist said title. The foregoing notwithstanding, State may elect, by notice to City, that City must remove any Alterations that are peculiar to City's use of the Premises and are not normally required or used by State and/or future occupants of the Premises. In this event, City shall bear the cost of restoring the Premises to their condition prior to the installment of the Alterations. 6. MAINTENANCE OBLIGATIONS OF CITY A. During the term of this Agreement and at City's own cost and expense, City shall maintain and operate the Premises including equipment, personal property, and Alterations or improvements of any kind that may be erected, installed, or placed thereon in a clean, safe, wholesome, and sanitary condition free of trash, garbage, or obstructions of any kind. During the term of this Agreement it shall be the City's responsibility to insure that the Premises are maintained to the satisfaction of State. All construction, operation, and maintenance shall be in accordance with all laws, codes, regulations, ordinances, and generally accepted industry standards pertaining to such work. B. Should City fail, neglect, or refuse to undertake and complete any required maintenance, State shall have the right to perform such maintenance or repairs for the City. In this event, City shall promptly reimburse State for the cost thereof, provided, however, that State shall first give City ten (10) days written notice of its intention to perform such maintenance or repairs. State shall not be obligated to make any repairs to or maintain any improvement on the Premises. City hereby expressly waives the right to make repairs at the expense of the State and the benefit of Sections 1941 and 1942 of the California Civil Code relating thereto, if there be any. State has made no representations respecting the condition of the Premises, except as specifically set forth in this Agreement. C. State reserves the right to enter the Premises for inspection and work related to its care and maintenance during the term hereof, provided that State Park Operating Agreement State shall give City reasonable written notice of its intention to do any of the work herein mentioned before such work is undertaken. 7. CONCESSIONS Subject to prior written approval by State, City may grant concessions in or upon the Premises consistent with the requirements of State under Sections 5080.33 and 5080.34 of the California Public Resources Code. All concession contracts shall be subject to the requirements of the California Public Resources Code Section 5080.20 and shall be assumable and/or subject to termination by State, at State's sole discretion, in the event this Agreement is terminated by its terms. No concessions that exploit public lands for commercial purpose shall be granted by City. Further, all concession agreements shall be made subject to audit by State. State shall have the right, through its representative and at all reasonable times, to examine and copy all working papers supporting Concessionaire's annual financial statement. In addition, the State, acting through its representative, may conduct additional independent reviews of the concession operations upon written notification of such intent to City. 8. TAXES City, by signing this Agreement, acknowledges that occupancy interest and rights to do business on State property may create a possessory interest as that term is defined in Revenue and Taxation Code Section 107.6, which possessory interest may subject a concessionaire to liability for the payment of property taxes levied on such possessory interest. City and/or any concessionaire engaged by City shall pay all lawful taxes, assessments, or charges that may be levied by the State, County, City, or any tax or assessment levying body at any time upon any interest in or created by this Agreement, or any possessory right that City and/or any concessionaire may have in or to the Premises covered hereby or the improvements thereon, by reason of City and/or any concessionaire's use or occupancy thereof or otherwise, as well as all taxes, assessments, and charges on goods, merchandise, fixtures, appliances, 6 State Park Operating Agreement equipment, and property owned by City and/or any concessionaire in or about the Premises. 9. RECORDS AND ACCOUNTS A. At all times during the term of this Agreement, City shall keep separate, true, and complete books, records, and accounts of all income and fees received and all expenditures made by City in relation to concessions, events, special services, and all other matters incident to the development, control, and operation of the Premises. City shall report said income and expenditures to State in accordance with "Exhibit B" Annual Revenue and Expenditure Report, or in a similar format acceptable to State on an annual basis, which annual report shall be submitted for the period commencing July 1st and ending June 30th of each reporting year, and shall be filed with State no later than the following September 30th. In addition, within forty-five (45) days of the expiration or termination of this Agreement, City shall submit to State a statement of income and expenditures for the period of operation not previously reported, prepared as set forth above. B. The books, records, and accounts applying to the operation of the Premises and kept by City shall be open for audit or inspection by State at all reasonable times. All records shall be kept by City for a period of at least four (4) years. City shall be subject to State's audit requirements and remedies as set forth herein. 10. BEACH EROSION CONTROL AND PROTECTION WORK Any development, beach erosion control, or protection work which may be undertaken by State or the United States of America, along or on the premises, in the manner provided by law or under the rules of State, shall not, in any way be construed as constituting a termination of this Agreement or in any way affecting same. State Park Operating Agreement 11. UTILITIES AND SERVICES City shall be responsible for all expenses resulting from utilities supplied to the Premises. City shall be responsible for distribution systems and all related expenses within the Premises. 12. INSURANCE A. Liability Insurance: At its sole expense, City agrees to maintain in force during the term of this Agreement comprehensive general liability insurance, insuring against claims for injuries to persons or property occurring in, upon, or about Premises. The insurance shall have limits of not less ONE MILLION DOLLARS ($1,000,000) for injuries to person or persons; not less than ONE MILLION DOLLARS ($1,000,000) for property damage; and said limits shall be per occurrence and shall be adjusted annually to reflect changes in the prior year's Consumer Price Index (CPI). B. State agrees that City, at City's option, may self-insure the coverage required by this Section. C. Each policy of liability insurance shall contain additional named insured endorsements in the name of the State of California, through its Department of Parks and Recreation, as to all insurable interests of the State including, but not limited to, the Premises and all contents as follows: 1) State of California, its officers, employees, and servants are included as additional insured but only insofar as operations and facilities under this Agreement are concerned; 2) The insurer will not cancel or reduce the insured's coverage without thirty (30) days prior written notice to State. D. No cancellation provision in any insurance policy shall diminish the responsibility of the City to furnish continuous insurance throughout the term of the Agreement. Each policy shall be underwritten to the satisfaction of the State. A signed Certificate of Insurance, with each endorsement required, including but not limited to State's additional insured endorsement, shall be submitted to State at the time this Agreement is executed, showing that the required insurance has 8 State Park Operating Agreement been obtained. Further, at least thirty (30) days prior to the expiration of any such policy, City shall submit to State a signed and completed Certificate of Insurance, with all endorsements required by this Section, showing, to the satisfaction of State, that such insurance coverage has been renewed or extended. Within fifteen (15) days of State's request, City shall furnish State with a signed and complete copy of the required policy and/or evidence of self- insurance. E. City agrees to impose the foregoing insurance requirements on any and all concessionaires and shall require that State be named as an additional insured on all policies. Failure to provide any of the required insurance and/or endorsements shall constitute a material breach of this Agreement. 13. HOLD HARMLESS AGREEMENT City shall indemnify, hold harmless, and defend State, its officers, agents, and employees against any and all claims, demands, damages, costs, expenses, or liability costs, (including but not limited to attorneys fees, experts fees, and costs of suit), arising indirectly or directly out of the development, operation, or maintenance of the Premises by City, or in any way related to the performance of this Agreement by City, by reason of its acts or omissions relating to the Premises and/or its obligation pursuant to this Agreement and/or by reason of injury, death, property damage, or any claim arising from the alleged violations of any state or federal law, statute, or regulations, including but not limited to the Americans with Disabilities Act of 1990 Titles I, II and III ["ADA"], however caused or alleged to have been caused, provided, however, in no event shall City be obligated to defend or indemnify State with respect to the sole negligence or willful misconduct of State, its employees, or agents (excluding City herein, or any of its concessionaires.). In the event State is named as co-defendant in a legal action under the provisions of the Government Code Section 810 et seq., and served with process of such legal action, State shall immediately notify City of such fact and City shall represent State in such legal action as provided herein unless State undertakes State Park Operating Agreement to represent itself as co-defendant in such legal action, in which event State shall bear its own litigation costs, expenses, and attorney's fees. In the event judgment is entered against State and City because of the concurrent negligence of State and City, their officers, agents, or employees, an apportionment of the liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment. 14. EMINENT DOMAIN PROCEEDINGS If the Premises or any portion thereof is taken by proceedings in eminent domain, State shall receive the entire award for such taking. 15. PROHIBITIONS AGAINST ASSIGNING. SUBLETTING This Agreement and/or any interest therein or thereunder shall not be assigned, delegated, mortgaged, hypothecated, or transferred by City without obtaining the prior written consent of State. 16. NOTICES Any notice and/or report required to be given or that may be given by either party to the other shall be deemed to have been fully given when made in writing and deposited in the United States Postal Service, postage prepaid, and addressed as follows: State: Department of Parks and Recreation San Diego Coast District Office 4477 Pacific Highway San Diego, CA92110 (619)688-3260 City: Carlsbad City Manager 1200 Carlsbad Village Drive Carlsbad, CA 92008-1989 (760) 434-2821 Copy to: Department of Parks and Recreation 10 State Park Operating Agreement Concession and Reservations Division P.O. Box 942896 Sacramento, California 94296-0001 17. DEFAULTS AND REMEDIES Any failure by a party to this Agreement to observe or perform a provision of this Agreement, where such failure continues for thirty (30) days after written notice of such failure, shall constitute a default and breach of this Agreement. However, if the nature of the default is such that it cannot be reasonably cured within the thirty (30) day period, the offending party shall not be deemed to be in default if an effective cure is commenced within the thirty (30) day period and thereafter diligently prosecuted to completion. Upon an event of default by State, City shall have the right to terminate this Agreement by providing written notice to State. Upon an event of default by City, State shall have the right to terminate this Agreement and obtain immediate possession of the Premises at any time by written notice to City. In such event, State shall be entitled to all rights and remedies at law and/or in equity, including but not limited to, costs and expenses incurred by State in recovering possession of and/or restoring the Premises, and compensation for all detriment proximately caused by City's failure to perform its obligations under this Agreement. 18. TERMINATION Notwithstanding the provisions of Section 17, DEFAULTS AND REMEDIES, either party may terminate this Agreement for any reason. The party who wishes to terminate the Agreement shall give written notice of its intention no later than three hundred and sixty five (365) days before the scheduled termination date. Such notice shall be given in writing and shall be effective on the date given in the notice as the scheduled date for the termination of the Agreement. 11 State Park Operating Agreement 19. SURRENDER OF THE PREMISES: HOLDING OVER A. Surrender: On expiration or within thirty (30) days after earlier termination of this Agreement, City shall surrender the Premises to State with all fixtures, improvements, and Alterations in good condition, except for fixtures, improvements, and Alterations that City is obligated to remove. City shall remove all of its personal property and shall perform all restoration required by the terms of this Agreement within the above stated time unless otherwise agreed to in writing. If City fails to surrender the Premises to State on the expiration, assignment, or within thirty (30) days after earlier termination of the term as required by this Section, City shall hold State harmless for all damages resulting from City's failure to surrender the Premises. B. Holding Over: After the expiration or earlier termination of the term and if City remains in possession of the Premises with State's express consent, such possession by City shall be deemed to be a temporary tenancy terminable on thirty (30) days written notice given at any time by either party. All provisions of this agreement except those pertaining to the term shall apply to the temporary tenancy. 20. REAL PROPERTY ACQUISITION It is understood and agreed to by the parties that all applications for real property rights, appurtenant to the Premises, shall be made in the name of and on behalf of State, and shall be subject to the prior written approval of State. 21. COMPLIANCE WITH LAWS. RULES. REGULATIONS. AND POLICIES City shall comply with all applicable laws, rules, regulations, and orders existing during the term of this Agreement, including obtaining and maintaining all necessary permits and licenses. City acknowledges and warrants that it is, or will make itself, through its responsible managers, knowledgeable of all pertinent laws, rules, ordinances, regulations, or other requirements having the force of law affecting the operation of the Premises, including but not limited to laws 12 State Park Operating Agreement affecting health and safety, hazardous materials, pest control activities, historical preservation, environmental impacts, and building standards. 22. NONDISCRIMINATION Pursuant to Public Resources Code Section 5080.34, this Agreement and every contract on lands that are subject to this Agreement shall expressly prohibit discrimination against any person because of sex, sexual orientation, race, color, religious creed, marital status, ancestry, national origin, medical condition, age (40 and above), and disability (mental and physical) including HIV and AIDS. City shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, §12900 et seq.) and the applicable regulations promulgated thereunder (Cal. Code Regs, tit. 2, §7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, §12990 (a)-(f), are incorporated into this agreement by reference and made a part hereof as if set forth in full (Cal. Code Regs, tit. 2, §7285.0 et seq.). City shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. City shall include the non-discrimination and compliance provisions of this clause in all contracts to perform work under and/or in connection with this agreement. In the event of violation of this Section, State will have the right to terminate this agreement, and any loss of revenue sustained by the State by reason thereof shall be borne and paid for by City. 23. DISABILITY ACCESS LAWS With regard to all operations and activities that are the responsibility of City under this Agreement, and without limiting City's responsibility under this Agreement for compliance with all laws, City shall be solely responsible for complying with the requirements of the Americans with Disabilities Act of 1990 (ADA) (Public Law 101-336, commencing at Section 12101 of Title 42, United States Code, including Titles I, II, and III of that law), the Rehabilitation Act of 1973, and all related regulations, guidelines, and amendments to both laws. 13 State Park Operating Agreement With regard to facilities for which City is responsible for operation, maintenance, construction, restoration, or renovation under this Agreement, City also shall be responsible for compliance with Government Code Section 4450, et seq., Access to Public Buildings by Physically Handicapped Persons, and Government Code Section 7250, et seq., Facilities for Handicapped Persons, and any other applicable laws, regulations, guidelines and successor statutes. Such compliance shall be at City's sole cost and expense. Written approval from State is required prior to implementation of any plans to comply with accessibility requirements. 24. NATIONAL LABOR RELATIONS BOARD CERTIFICATION By signing this Agreement, City does hereby swear, under penalty of perjury, that no more than one final, unappealable finding of contempt of court by a federal court has been issued against City within the two-year period immediately preceding the date of this Agreement because of City's failure to comply with a federal court order that City shall comply with an order of the National Labor Relations Board. 25. DRUG-FREE WORKPLACE City agrees to comply with Government Code Section 8355 in matters relating to the provision of a drug-free workplace. This compliance is evidenced by the executed Standard Form 21, Drug-Free Workplace Certification, attached hereto as Exhibit "C" and made a part of this Agreement. 26. ENVIRONMENTAL AWARENESS AND RESOURCE PROTECTION City shall comply with State's resource management and preservation mandates in the conduct of all activities that impact cultural, natural, or scenic resources. These mandates include the California Public Resources Code Sections 5024 and 5097 et seq., State's Resource Management Directives and the United States Secretary of the Interior's Guidelines for Historic Preservation. 14 State Park Operating Agreement 27. HAZARDOUS SUBSTANCES A. On the Premises City shall not: 1) keep, store, or sell any goods, merchandise, or materials that are in any way explosive or hazardous; 2) carry on any offensive or dangerous trade, business, or occupation; 3) use or operate any machinery or apparatus that shall injure the Premises or adjacent buildings in any way; or 4) do anything other than is provided for in this Agreement. B. Nothing in this Section shall preclude City from bringing, keeping, or using on or about said Premises such materials, supplies, equipment, and machinery as is appropriate or customary in the care, maintenance, administration, and control of parklands. Gasoline, oils, and all other materials considered under law or otherwise to be hazardous to health and safety shall be stored, handled, and dispensed as required by present or future regulations and laws. C. City shall comply with all laws, federal, state, or local, existing during the term of this Agreement pertaining to the use, storage, transportation, and disposal of any hazardous substance, as that term is defined in such applicable law. In the event the State or any of its affiliates, successors, principals, employees, or agents should incur any liability, cost, or expense, including attorney's fees and costs, as a result of the City's illegal use, storage, transportation, or disposal of any hazardous substance, including any petroleum derivative, City shall protect, indemnify, defend, and hold harmless any of these individuals against such liability. Where City is found to be in breach of this provision due to the issuance of a government order directing City to cease and desist any illegal action in connection with a hazardous substance, or to remediate a contaminated condition directly caused by City or any person acting under City's direct control or authority, City shall be responsible for all costs and expenses of complying with such order including any and all expenses imposed 15 State Park Operating Agreement on or incurred by the State in connection with or in response to such government order. D. Notwithstanding the foregoing, in the event a government order is issued naming City, or City incurs any liability during or after the term of the Agreement in connection with contamination that preexisted the City's obligations and occupancy under this Agreement, or prior agreements or that were not directly caused by City, the State shall be solely responsible as between City and State for all expenses and efforts in connection wherewith, and State shall reimburse City for all reasonable expenses actually incurred by City therewith. E. All pest control activities, chemical and non-chemical, shall be approved by State prior to action by the City. City or the pest control business acting on behalf of City shall submit a DPR 191, Pest Control Recommendation, or equivalent to State for approval. State has fourteen (14) days to approve or deny the request. State review and approval shall be solely for compliance with State's policies and in no way shall relieve City or its contractors, employees, agents, or representatives from compliance with all laws and regulations concerning such activities, nor from carrying out the work in a workmanlike manner. City or the pest control business acting on behalf of City shall submit a report of completed work for each pest management action to the State no later than seven (7) days after performance of the work. The report may be submitted on a DPR 191, Pest Control Recommendation, or equivalent. 28. SIGNS AND ADVERTISING No signs, logos, names, placards, or advertising matter shall be inscribed, painted, or affixed upon Premises, or circulated or published without prior written approval of the State. Approval will be granted only when said signs or advertising is consistent with the purposes of this Agreement. 16 State Park Operating Agreement 29. INTELLECTUAL PROPERTY RIGHTS Any names, logos, trademarks, and/or copyrights developed during and/or pursuant to this Agreement that in any way associate, identify, or implicate an affiliation with California State Parks shall be approved by State for use, shall belong to State upon creation, and shall continue in State's exclusive ownership upon termination of this Agreement. 30. PARTICIPATION IN STATE PARK MARKETING PROGRAMS City acknowledges that State has an established advertising and marketing program designed to promote additional revenue for the State and to deliver a consistent and positive image to the public. City agrees to cooperate in this program in the manner described below without compensation from the State for such cooperation. A. City agrees to honor all statewide graphic standards, licensing, and merchandising agreements entered into with corporate sponsors of the Department of Parks and Recreation. B. City agrees to place on the Premises any advertising that the State approves under this program. Any advertising approved by the State under this program will be placed at State's expense. 31. CHILD SUPPORT COMPLIANCE ACT A. City recognizes the importance of child and family support relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as obligations and shall fully comply with all applicable state and federal laws provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code. B. To the best of its knowledge City is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. 17 State Park Operating Agreement 32. DISPUTES City shall continue with any and all responsibilities under this Agreement during any dispute. 33. LIMITATION This Agreement is subject to all valid and existing contracts, leases, licenses, encumbrances, and claims of title that may affect Premises. 34. SECTION TITLES The paragraph titles in this Agreement are inserted only as a matter of convenience and reference and in no way define, limit, or describe the scope or intent of this Agreement or in any way affect this Agreement. 35. AGREEMENT IN COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an original. 36. INSPECTION State or its authorized representative shall have the right at all reasonable times to inspect the Premises to determine compliance with the provisions of this Agreement. 37. SUCCESSORS IN INTEREST Unless otherwise provided in this Agreement, the terms, covenants, and conditions contained herein shall apply to and bind the heirs, successors, executors, administrators, and assigns of all the parties hereto, all of who shall be jointly and severally liable hereunder. 18 State Park Operating Agreement 38. PARTIAL INVALIDITY If any term, covenant, condition, or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby. 39. TIME OF ESSENCE Time shall be of the essence in the performance of this Agreement. 40. DURATION OF PUBLIC FACILITIES By entering into this Agreement, State makes no stipulation as to the type, size, location, or duration of public facilities to be maintained at this unit, or the continuation of State ownership thereof, nor does the State guarantee the accuracy of any financial or other factual representation that may be made regarding the Premises. 41. WAIVER OF RIGHTS. CLAIMS. AND AGREEMENT TERMS Unless otherwise provided by this Agreement, no waiver by either party at any time of any of the terms, conditions, or covenants of this Agreement shall be deemed as a waiver at any time thereafter of the same or of any other term, condition, or covenant herein contained, nor of the strict and prompt performance thereof. No delay, failure, or omission of the State to re-enter the Premises or to exercise any right, power, or privilege, or option arising from any breach, nor any subsequent acceptance of rent then or thereafter accrued shall impair any such right, power, privilege, or option, or be construed as a waiver of such breach or relinquishment of any right or acquiescence therein. No notice to the City shall be required to restore or revive time as of the essence after the waiver by the State of any breach. No option, right, power, remedy, or privilege of the State shall be construed as being exhausted by the exercise thereof in one or more instances. The rights, powers, options, and remedies given to the State by this Agreement shall be deemed cumulative. 19 State Park Operating Agreement 42. INTERPRETATION OF AGREEMENT This Agreement is made under and is subject to the laws of the State of California in all respects as to interpretation, construction, operation, effect, and performance. 43. INDEPENDENT CONTRACTOR In the performance of this Agreement, City and the agents and employees of City shall act in an independent capacity and not as officers or employees or agents of the State. 44. MODIFICATIONS AND APPROVAL OF AGREEMENT This Agreement contains and embraces the entire Agreement between the parties hereto and neither it nor any part of it may be changed, altered, modified, limited, or extended orally or by any Agreement between the parties unless such Agreement be expressed in writing, signed, and acknowledged by the State and City or their successors in interest. Notwithstanding any of the provisions of this Agreement, the parties may hereafter, by mutual consent expressed in writing, agree to modifications thereof, additions thereto, or terminations thereof, which are not forbidden by law. This Agreement, amendments, modifications, or termination thereof shall not be effective until approved by State's relevant control agencies. 20 State Park Operating Agreement IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. CITY OF CARLSBAD By: STATE OF CALIFORNIA CALIFORNIA PARKS AND RECREATION By: Title: Mayor Title: Director Date:2-8-11 Date: APPROVED: ATTORNEY GENERAL: Approved as to legal sufficiency in accordance with the requirements of Sections 5080.02-5080.21 of the Public Resources Code. APPROVED: DEPARTMENT OF GENERAL SERVICES: KAMALA D. HARRIS, Attorney General of the State of California By: Deputy Attorney General Dated: 21 PROJECT SITE Ocean Street g d> <D COO LESAl DESCMPTiat FOR STKETSCMt SCULPTURE PARK That portion of Tract 200, according to mp thereof"" tw. 1681, filed In the office of the county records of Sen Diego Cointy, DeceAer 9, 1915, lying northvrtnterl/ of th* utterly line of tne Callfornl* State Highway as describedIn the 4e«4 to the State of California, dated September 8, 1924, and recorded In Book 1032. Page 284 of Deeds, 1n the office of the County Recorder of San Olego County, to the top of the bluff. Nofth SCALE: 1V60'PROJECT AREA EXHIBIT APME 2 of 2 State Park Operating Agreement EXHIBIT B Annual Revenue and Expenditure Report Operating Agreements Park Unit Operating Agency State's Fiscal Year Estimated Total Visitors to Visitor Entrance Fees Separate Parking Fees Concession A Concession B Concession C Special Events Miscellaneous Revenue Total Annual Revenue Salaries & Wages Maintenance & Housekeeping Utilities Capital Improvement Projects Miscellaneous Expenses Total Annual Expenditures Grand Totals Revenue Expenditures Balance Preparer Name Phone Number Date 23 STATE OF CALIFOH NIA DRUG-FREE WORKPLACE CERTIFICATION STD. 21 (Rev. 12/93) <CA ST PKS, EXCEL 4/W1999) CERTIFICATION /, the official named below, hereby swear that I am duly authorized to legally to bind the contractor or grant recipient to the certification described below. I am fully aware that this certification, executed on the date below, is made under penalty of perjury under the laws of the State of California. CONTRACTOR/BIDDER FIRM NAME BY (Authorized Signature) ft* PRINTED NAME AMD TITLE OF PERSON SIGNING FEDERAL ID NUMBER DATE EXECUTED TELEPHONE NUMBER (Include Area Code) ( ) TITLE CONTRACTOR/BIDDER FIRM'S MAILING ADDRESS The contractor or grant recipient named above hereby certifies compliance with Government Code Section 8355 in matters relating to providing a drug-free workplace. The above named contractor or grant recipient will: 1. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a). 2. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(b), to inform employees about all of the following: (a) The dangers of drug abuse in the workplace, (b) The person's or organization's policy in maintaining a drug-free workplace, (c) Any available counseling, rehabilitation and employee assistance programs, and (d) Penalties that may be imposed upon employees for drug abuse violations. 3. Provide as required by Government Code Section 8355(c), that everyone who works on the proposed contract or grant: (a) Will receive a copy of the company's drug-free workplace policy statement, and (b) Will agree to abide by the terms of the company's statement as a condition of employment on the contract or grant. 4At the election of the contractor or grantee, from and after the "Date Executed" and until (NOT TO EXCEED 36 MONTHS), the state will regard this certificate as valid for all contracts<orE>grants entered into between the contractor or grantee and this state agency without requiring the contractor or grantee to provide a new and individual certificate for each contract or grant. If the contractor or grantee elects to fill in the blank date, then the terms and conditions of this certificate shall have the same force, meajiing, effect and enforceability as if a certificate were separately, specifically, and individually provided for each contract or grant between the contractor or grantee and this state agency. 2 :, IT i; OPERATING AGREEMENT CARLSBAD STATE BEACH INDEX *l 6 >! 7 j •I 10 \ | 11 ; 12 ' 13 j 15 1 16 ii i? i: 18 19 ] 20 21 : 22 i 23 24 Paragraph Page 25 26 ! i 27 i 1. Premises 2 2. Use 2 3. Term 3 4. Consideration 3 5. Construction 3 6. Ownership of Improvements 4 7. Maintenance of Obligations of City 4 3. Concessions 5 9. Revenues 5 ! 10. Records and Accounts 5 j 11. Beach Erosion Control and Protection Work 6 ' 12. Eminent Domain Proceedings 6 j 13. Utilities 7 i 14. Public Liability Insurance 7 i 15. Hold Harmless Agreement 7 16. Prohibitions Against City Assigning, Subletting 9 i 17. Defaults and Remedies 9 i 18. Notices 9 j 19. Termination 10 j 20. Real Property Acquisition 12 j 21. Nond1scr1m1nation 12 22. Limitation 12 j 23. Paragraph Titles 12 | 24. Agreement 1n Counterparts 13 j 25. Agreement 1n Writing , 13 i 26. Inspection 13 27. Successors in Interest , . 13 28. Partial Invalidity 13 29. Waiver of Rights 14 Signatures 14 Exhibits COURT PAPER STATE Or CALirOHNI* STO 1 '3 I HIV. B-721 85 34769 1 2 3 4 !l 5 i! OPERATING AGREEMENT CARLSBAD STATE BEACH THIS OPERATING AGREEMENT (Agreement), made and entered into this 10 th day of April 1990, by and between STATE OF CALIFORNIA, acting through the Department of Parks and Recreation, hereinafter referred to as "STATE", and the City of Carlsbad hereinafter referred to as "CITY", without regard to number and gender. 10 12 13 15 16 17 18 i 19 ! 20 21 22 23 il ;l 24 : 25 26 ! l I 27 i A. Pursuant to the provisions of Section 5080.30, et seq. , of the ' i Public Resources Code of the State of California, STATE may enter into an ; operating agreement with subdivisions of the State of California for the j t development and operation of lands under the jurisdiction of STATE for the purpose of the State Park System. \ i i B. STATE has acquired for park and recreational purposes certain real property known as "Carlsbad State Beach as identified in Exhibit A j attached. These park properties are located within the City of Carlsbad in j the County of San Diego. j i C. STATE and CITY desire to enter into an Agreement to provide forj the development, operation, control, and maintenance of a part of Carlsbad State Beach by the City of Carlsbad as identified on Exhibit "A". COURT PAPERST»TI or CALifonxiA STO. 1 13 IRIV. 8.72 l 85 34769 1 i NOW, THEREFORE, in consideration of the mutual covenants herein 2 contained, the parties hereto do hereby covenant and agree as follows: 3 jj ' [' 4 jj 1. PREMISES; STATE authorizes CITY to develop, operate, control, 5 I and maintain a portion of Carlsbad State Beach, as shown on Exhibit "A" II 6 .! attached, and hereby made a part hereof. STATE shall not be liable for any j 7 ' costs of development, maintenance, control, or operation of the premises. ;! 8 '! 'i 9 i! 2. USE; CITY agrees to develop, operate, control, and maintain 10 the premises as public recreational beach/park facilities to be accessible and 11 subject to the use and enjoyment of the general public. Such development and 12 j operation of the premises shall be conducted in accordance with the approved 13 ; State General Plan for Carlsbad State Beach adopted November 1983 and all i!14 applicable federal, state, and local government statutes, laws, and i15 'I regulations. Copies of said General Plans are on file at the San Diego Coast L6 ji District Office, 2680 Carlsbad Boulevard, Carlsbad, CA 92008. 17 13 i Should the CITY propose developments or operations not authorized 19 under the current Carlsbad State Beach general plan, CITY may prepare an 20 •] amendment to said plan, pursuant to Public Resources Code Section 5080.31 21 [ which amendment shall be submitted to and approved by the California Stateii 22 I Park and Recreation Commission. 33 i04 : CITY may adopt rules and regulations for the use and enjoyment ofi 25 ' the premises. Any such rules and regulations adopted by CITY shall conform to 26 i and be consistent with the rules and regulations adopted by STATE and 27 i — COURT PAPERSTATI Of CALiroKN IA STO- I 13 <»EV «-7ZI B5 ! : generally applicable to the State Park System, including said property. Said 2 | premises shall not be used for any other purpose than those herein described. 4 5 6 7 I 8 ;! 9 j 10 111 12 !Jn 13 1 14 ,i i1 15! 16 17 s•\ 18 19 20 i 21 ;i 22 j! 23 ;! 24 I 25 26 1 27 ! 3. TERM: The term of this Agreement shall be twenty (20) years and shall commence on April 1, 1990 and end on June 30, 2009. CITY shall have the option to extend the term of this Agreement for an additional twenty (20) year period subject to approval of STATE. Notification of said exercise of option shall be submitted to STATE in writing at least 18 months prior to the termination date of this Agreement. 4. CONSIDERATION: In consideration of the services to be performed by CITY pursuant to this Agreement, i.e., development, care, maintenance, operation, and control of subject premises, STATE hereby authorizes the use of the said premises by CITY on a rent-free basis on the condition that CITY exert a good faith effort in performing the services identified in this paragraph. In the event that CITY fails to perform in good faith, such services for the benefit, use, and enjoyment for the general public, this beach park unit identified in Exhibit "A" shall revert back to the STATE. 5. CONSTRUCTION: CITY, at no cost or expense to STATE, may undertake new development, construction, or improvements to enhance public recreational facilities at this park unit. Such development, construction, or improvements shall be in accordance with the State General Plan for Carlsbad State Beach. All plans and specifications for improvement and development shall be approved by STATE to ensure that such plans comply with STATE'S COURT PAPER STATK or CALIFORNIA STD 113 <RSV B-72> US 94768 4 ' II5 ji ii 6 7 i 8 ; 9 10 11 12 13 14 15 16 17 18 ; 19'! 20 Mpi ii!| 22 ;| ii 23 24 ;| 25 >j •t 26 I I 27 I requirements. No such improvement or development including beach erosion control and protection, shall be commenced by CITY'S own forces or by its contractors without prior written STATE approval of such plans and specifications. STATE agrees to communicate Its approval or disapproval of such plans and specifications, in writing, within forty five (45) days of receipt of same (disapprovals shall be accompanied with written explanation of reasons for such disapproval). STATE, however, agrees not to unreasonably withhold said approval, and if STATE fails to so approve or specify changes, then approval is deemed to be given at the end of the forty five (45) day period. 6. OWNERSHIP OF IMPROVEMENTS; Upon termination of this Agreement pursuant to any provisions under Paragraph 19 (TERMINATION), all improvements constructed shall become part of the realty and title to said improvements shall vest 1n STATE. For all improvements erected on the premises by CITY, a Notice of Completion shall be filed with the STATE. Notwithstanding the above, art park elements consisting of art sculpture shall remain the property of the CITY and at the time of expiration or termination of the operating agreement may be removed or relocated off State propety. 7. MAINTENANCE OBLIGATIONS OF CITY; During the term of this Agreement, CITY at no cost or expense to STATE shall provide for upkeep and maintenance of the premises in a safe, good condition, and in substantial repair, and all Improvements of any kind which may be erected, installed, or placed thereon. During the term of this agreement it shall be CITY'S COURT PAPER STATI OF CALIFORNIASTO i13 i«ev B-TJI 85 34769 3 4 5 6 7 | Si1 !i9i: 10 || 11112 13 I 14 i 15 16 17 i 18 ; 19 :i 2o! 21 !i 22 I 23 24 25 !| 26 'j S7 i COURT PAPKR STATE Of CAUrOHNlA STO 113 (RKV 8.711 85 34769 responsibility to ensure that the premises are maintained In such a level and standard of condition and repair as other city park and beach facilities. 8. CONCESSIONS: Subject to prior approval In writing by STATE, i CITY may grant concessions In or upon the premises consistent with the requirements of the STATE under Section 5080.33 and 5080.34 of the Public ; Resources Code. All concession contracts shall be subject to the requirements i of the Public Resources Code Section 5080.20. No concession shall be granted ! by CITY which will exploit public lands for commercial purposes. i 9* REVENUES; Any Income to CITY derived from its control and operation of premises for services, benefits, or accommodation to the general public shall strictly be used for operation and maintenance expenses of the premises. Any such portion of income as may exceed costs and expenses shall be utilized for the benefit of the premises. 10. RECORDS AND ACCOUNTS; CITY shall, at all times during the term of this Agreement, keep separate, true and complete books, records, and accounts of all Income and fees received and all expenditures made by CITY in relation to concessions, special services, and all other matters incident to the development, control, and operation of the premises. CITY shall report said income and expenditures to STATE on an annual basis, which annual report shall be submitted for the period commencing July 1st and ending June 30th of each reporting year, and shall be filed with STATE not later than the following September 30th. Said report shall include a reasonable weekly estimate of the number of visitors to the area, as well as the number of vehicles. 2 3 4 5 6 7 8 ; 11 9 i10 ii n 12 13 ii 14 ! 15 ! "| 17 !j 18 19 ! 20 •j21 ;'i 22 23 ; 24 25 26 27 The books, records, and accounts kept by CITY applying to the operation of the premises, shall at all reasonable times be open for audit or Inspection by STATE. The annual report required by this clause shall be delivered to STATE at the address set forth 1n Paragraph 18 (NOTICES). 11. BEACH EROSION CONTROL AND PROTECTION WORK; Any development, beach erosion control, or protection work which may be.undertaken by STATE or the United States of America, along or on the premises, 1n the manner provided by law or under the rules of STATE, shall not, 1n any way be construed as constituting a termination of this Agreement or in any way affecting same. STATE shall have the right to enter into agreements for such work during the term hereof and to go upon the premises or to authorize any person, firm, or corporation to go upon the premises for the purposes of such construction, beach erosion control, or protection work, or the doing of other public work for the improvement or development of the premises, provided that STATE except for emergency repair, shall give CITY three (3) months prior written notice of its intention to do any of the work herein mentioned. CITY shall be given the opportunity to review and comment on plans and specifications before such work 1s undertaken. STATE agrees to repair, at its sole cost and expense, any damage to CITY'S Improvements caused by such hereinabove described work. 12. EMINENT DOMAIN PROCEEDINGS: If the premises or any portion thereof 1s taken by proceedings in eminent domain, STATE shall receive the COURT PAPER STAT« or CALirOHNIA STO 1 13 IBtV. 8-7JI 85 34789 1 2 3 4 5 6 7 !i 8 I1 9 ij 10 ! i 11 12 |; i! 13 11 14 i 15 16 !l »! 18 'I 19:! 20 '; 21 :i .i I 22 i'i 23 24 25 26 27 COURT PAPER CTATK OF CAUrOHNIA STD I 13 tMV. 8.7ZI 86 34769 entire award for such taking except that CITY shall receive out of said award the fair market value of any improvements then existing and constructed by CITY, except for: (a) improvements erected with funds realized through income from the premises, and (b) improvements the costs of which CITY has been paid or reimbursed by STATE through grants or other sources. Fair market value shall be determined by said proceedings taking into consideration the terms of this Agreement. 13. UTILITIES; CITY shall be responsible for all utility charges supplied to the premises. 14. PUBLIC LIABILITY INSURANCE; CITY agrees, at its sole expense, to maintain in force during the term of this Agreement comprehensive general liability insurance, insuring against claims for injuries to persons or property occurring in, upon, or about premises. Said insurance shall have limits of not less than $500,000 and $1,000,000 for injuries to person or persons, respectively; not less than $150,000 for property damage; and said limits shall be adjusted annually to reflect changes in the prior year's Consumer Price Index (CPI) for Los Angeles - Anaheim - Riverside (all urban consumers - all items), promulgated by the Bureau of Labor Statistics of the U.S. Department of Labor. STATE agrees that CITY, at CITY'S option, may self-insure the coverages required by this Paragraph 14 (PUBLIC LIABILITY INSURANCE). 15. HOLD HARMLESS AGREEMENT; CITY shall indemnify, hold harmless, and defend STATE, its officers, agents, and employees against any and all claims, demands, damages, costs, expenses, or liability costs arising out of 1 I 2 ;! 3J 4 5 6 8 ', 1 9 10 J I 12 i i; 13 i I1 14 ;: 15 16 | 17 | i; 18 '' 19 i! 20 i 21 .! ;| 22 i| 23 ; 24 25 26 27 the development, operation, or maintenance of the property by CITY described herein which claims, demands, or causes of action arise under Government Code Section 895.2 or otherwise, except for liability arising out of the concurrent or sole negligence, or deliberate act of STATE, its officers, agents, or employees. In the event STATE 1s named as co-defendant 1n a legal action, under the provisions of the Government Code Section 810 et seq., and CITY is served with process of such legal action, then CITY shall immediately notify STATE of such fact and shall represent STATE 1n such legal action as provided herein unless STATE undertakes to represent Itself as co-defendant in such legal action, in which event STATE shall bear Its own litigation costs, expenses, and attorney's fees. In the event CITY Is named as co-defendant in a legal action, under the provisions of the Government Code Section 810 et seq., and STATE is served with process of such legal action, then STATE shall immediately notify CITY of such fact and shall represent CITY in such legal action unless CITY undertakes to represent Itself as co-defendant in such legal action, in which event CITY shall bear its own litigation costs, expenses, and attorney's fees. In the event judgment is entered against STATE and CITY because of the concurrent negligence of STATE and CITY, their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment. COURT PAPBRSTATS of CAuro*HiASTD 1 13 (REV. 8-711 1 2 3 4 5 6 7 3 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 COURT PAPERSTATC or CAU'QRNIA STD I 13 IHIV. B.7ZI 85 34769 16. PROHIBITIONS AGAINST CITY ASSIGNING, SUBLETTING; This Agreement shall not, nor shall any interest therein or thereunder be assigned, delegated, mortgaged, hypothecated, or transferred either by CITY let or sublet, or grant any licenses or permits with respect to the use and occupancy of the premises or any portion thereof, without obtaining the prior written consent of STATE which shall not be unreasonably withheld. This paragraph i! does not apply to the provisions of Paragraph 7 (MAINTENANCE OBLIGATIONS OF '•! CITY) and Paragraph 8 (CONCESSIONS) above. 17. DEFAULTS AND REMEDIES; Either party may terminate this Agreement for breach by the other party upon giving the other party written notice at least sixty (60) days prior to said termination date. In the event of any breach of this Agreement by STATE, CITY shall notify STATE 1n writing of such breach, and STATE shall have thirty (30) days 1n which to Initiate action to cure said breach. •• In the event of any breach of this Agreement by CITY, STATE shall !| notify CITY in writing of said breach, and CITY shall have thirty (30) days inii ! which to initiate action to cure said breach. ^' NOTICES; All written notices pursuant to this Agreement shall be addressed as set forth below or as either party may hereafter designate by written notice and shall be personally delivered or sent through the United States mall: l[j 2 j: 3*!•J II 4 5 6 7 8 9 10 11 i 12 13 14 15 16 17 18 : 19 !! 20 |i 21 ;! 22 23 24 25 26 27 COURT PAPER STATS Of CALIFORNIA STO 1 13 IBtV 8-7JI % 34769 STATE: State of California Department of Parks and Recreation Concession Programs Division P.O. Box 942896 Sacramento, CA 94296-0001 With Copy to: Southern Region Headquarters 1333 Camino Del Rio South, Suite 200 San Diego, CA 92108 CITY: City Manager City of Carlsbad 1200 Elm Avenue Carlsbad, CA 92008-1982 19. TERMINATION; Notwithstanding the provisions of Paragraph 17 (DEFAULTS AND REMEDIES) either party may terminate this Agreement for any reason. The party who wishes to terminate the Agreement shall give written notice of its intention no later than three hundred and sixty five (365) days before the scheduled termination date. Such notice shall be given in writing and shall be effective on the date given 1n the notice as the scheduled date for the termination of the Agreement. In the event that the STATE is the party choosing to terminate the Agreement, the STATE shall pay to CITY on the termination date a sum of money equal to the depreciated cost of the improvements installed or constructed upon the premises by the CITY with the 10 2 3 4 6 7 'i 8 !'; 10 ! 11 12 |i i 13 | 14 15 16 17 18 I 19 i 30 ! I 21 j] 22 |! 23 i 24 25 i 26 27 i COURT PAPER •TAT«OF CAUrOKNIA ! STO I 13 IHIV. ••721 i 85 347S9 I following exceptions, (a) Improvements erected with funds realized through Income from the premises, and (b) Improvements the cost of which CITY has been paid or reimbursed by STATE, through grants or other sources. Depreciated costs shall be computed in the following manner: A. Upon completion of improvements, or within sixty (60) days of opening for public use, whichever is later, CITY will submit verified cost statements accompanied by substantiating Invoices and bills of labor, material, or any other reasonable construction costs, to STATE. These costs, plus such future construction costs when expended shall represent the cost of Improvements. B. The cost of improvements shall be depreciated on a straight line basis over twenty (20) year life. The depreciated cost shall be determined by dividing the cost of improvements by two hundred forty (240) months and multiplying the results by the number of whole months remaining in the term of the Agreement at the scheduled termination date. C. STATE may not commence termination proceedings until such time as the funds required for such termination and reimbursement have been obtained through appropriations by the Legislature and through the normal budgeting process of the STATE. It 1s expressly understood that the above-described reimbursement provisions are not applicable where STATE terminates this Agreement for any breach on the part of CITY. 11 1 • In the event of breach, bankruptcy, insolvency, abandonment, or 2 termination of Agreement upon CITY'S request, the above-described 3 ;i reimbursement provision shall not apply and shall not be considered an 4 j obligation of the STATE. 6 7ii 8 ;i 9! 10 11 12 .;i 13 , 14 i 15 16 j X7 ;1 18 ! 19 ; 20 21 22 i 23 24 25 26 27 COURT PAPER STATt or CALIFORNIA STD. 113 <*M- 9-721 85 3*'09 20. REAL PROPERTY ACQUISITION: It is understood and agreed by the parties hereto, that all applications for real property rights, appurtenant to the real properties herein described, shall be made in the name of and on behalf of STATE, and shall be subject to the prior approval in writing of STATE. 21. NONDISCRIMINATION; Pursuant to Public Resources Code Section 5080.34, this Agreement prohibits, and every contract on lands that are subject to this Agreement shall expressly prohibit, discrimination against any person because of race, color, religion, sex, marital status, national origin, or ancestry of that person. Attached Standard Form 17A is Incorporated herein. 22. LIMITATION; This Agreement is subject to all valid and existing contracts, leases, licenses, encumbrances, and claims of title which may affect premises. 23. PARAGRAPH TITLES; The paragraph titles in this Agreement are Inserted only as a matter of convenience and for reference, and in no way define, limit, or describe the scope or intent of this Agreement or in any way affect this Agreement. 12 1 • 24.. AGREEMENT IN COUNTERPARTS; This Agreement is executed ini 2 i counterparts each of which shall be deemed an original. 4 !! 5I6 i il 7 iir s j;ii 9 8 il 10 11 12 ij 13 i 14 15 16 17 18 19 20 21 22 23 |i *; ii 26 i'! 27 1 COURT PAPERSTATC OF CALIPPMNIA STO. 113 IBIV. 8.7JI 85 34789 25. AGREEMENT IN WRITING: This Agreement contains and embraces the entire Agreement between the parties hereto and neither 1t nor any part of 1t may be changed, altered, modified, limited, or extended orally, or by any Agreement between the parties unless such Agreement be expressed in writing, signed, and acknowledged by the STATE and CITY, or their successors in Interest. 26. INSPECTION; STATE or Its authorized representative shall have the right at all reasonable times to inspect the premises to determine if the provisions of this Agreement are being complied with. 27. SUCCESSORS IN INTEREST; Unless otherwise provided in this Agreement, the terms, covenants, and conditions contained herein shall apply to and bind the heirs, successors, executors, administrators, and assigns of all the parties hereto, all of whom shall be jointly and severally liable hereunder. 28. PARTIAL INVALIDITY; If any term, covenant, condition, or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby. 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 COURT PAPER 6TATC Of CALIFORNIA STO. I 13 IRSV. e-VJl 85 34769 29. WAIVER OF RIGHTS; The failure of STATE or CITY to insist upon strict performance of any of the terms, conditions, and covenants in this Agreement shall not be deemed a waiver of any right or remedy that STATE or CITY may have, and shall not be deemed a waiver of any right or remedy for a subsequent breach or default of the terms, conditions, and covenants herein contained. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. CITY OF CARLSBAD MAYOR STATE OF CALIFORNIA DEPARTMENT OF PARKS AND RECREATION IS, Mayor CITY ATTORNEY By RONALD R. PALL, Assistant City Attorney ief Deputy Director DEPARTMENT OF GENERAL SERVICES By CITY CLERK Attest ORTT I 1 FQPH J_52HSi_l_SiJE?JG._l Deport-mwnf o< O»nw«l Ssrvicot APPROVED City Clerk Karen R. Kundtz, Assistant City Clerk 0-8232X 14 TI2S,R.4a5W.,S.B.B.aM. SAN DIEGO COUNTY L EGEND PACIFIC OCEAN /»>! CIFIC O CEA N EXHIBIT "A" Page 1 of 2 E,E, -..•••••...•••.- mmmmmm CITY 0F CARLSBAD WSIfT^OF-WAY PROJECT SITE LEGAL DESCRIPTION FOR STREETSCAPE SCULPTURE PARK Ocean Street CDZ3CCD CO O That portion of Tract 200, according to map thereof no.1681, filed in the office of the county recorder of San Diego County, December 9, 1915, lying northwesterly of the westerly line of the California State Highway as describ in the deed to the State of California, dated September 8, 1924, and recorded in Book 1032, Page 284 of Deeds, in the office of the County Recorder of San Diego County, to the top of the bluff. North SCALE: 1V60 PROJECT AREA EXHIBIT APAGE 2 of 2 NONDISCRIMINATION CLAUSE (oc? - i) 1. During the performance of this contract; contractor and itssubcontractors shall not unlawfully discriminate against anyemployee or applicant for employment because of race, reli-gion, color, national origin, ancestry, physical handicap,medical condition, marital status, age (over 40) or sex,Contractors and subcontractors shall insure that the evalua-tion and treatment of their employees and applicants foremployment are free of such discrimination, Contractors andsubcontractors shall comply with the provisions of the FairEmployment and Housing Act (Government Code, Section 12900et seq,) and the applicable regulations promulgated thereunder(California Administrative Code, Title 2, Section 7285,0 etseq,), The applicable regulations of the Fair Employment andHousing Commission implementing Government Code, Section 12990,set forth in Chapter 5 of Division A of Title 2 of the Cali-fornia Administrative Code are incorporated into this contractby reference and made a part hereof as if set forth in full,Contractor and its subcontractors shall give written notice oftheir obligations under this clause to labor organizations withwhich they have a collective bargaining or other agreement, 2, This contractor shall include the nondiscrimination and com-pliance provisions of this clause in all subcontracts to performwork under the contract, STD, 17A (NEW