SR 02-13-2024 5D
City Council
Report
City Council Meeting: February 13, 2024
Agenda Item: 5.D
1 of 4
To: Mayor and City Council
From: Jenny Rogers, Recreation and Arts Director, Recreation and Arts Department
Subject: Approval of Modification of Concession Agreement for Back on the Beach
Café
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding that the modification is categorically exempt pursuant to Section
15301 of the California Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute a First Modification of
Concession Agreement #11238 (CCS) to allow for full alcohol service at Back
on the Beach Café subject to Concessionaire’s procurement of local and state
regulatory approvals.
Summary
Back on the Beach Café leases a restaurant space at 445 Pacific Coast Highway
located adjacent to the Annenberg Community Beach House. They now request the
City, as the landlord, modify its Concession Agreement to allow full alcohol (beer,
wine, and distilled spirits) at Back on the Beach Café, subject to local and state
regulatory approvals. Currently, Back on the Beach Café is allowed to sell beer and
wine. The modification to expand to full alcohol will support the economic viability of
the operation and respond to customer expectation for an expanded range of
beverage options with a meal.
Discussion
Since 1989, Back on the Beach Café has provided daily year-round indoor and
outdoor food service. In addition, Back on the Beach Café equips and maintains
beach-related equipment such as rental of chairs, umbrellas, and boogie boards,
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and sale of various sundries that provide for the health, enjoyment, and
convenience of Annenberg Community Beach House (“Beach House”) visitors.
The restaurant is fully licensed and approved by the Los Angeles County Health
Department, City of Santa Monica, and California Alcoholic Beverage Control Board
(“ABC”). Through a permit approved by ABC and the Planning Commission in 2012,
Back on the Beach Café was able to expand to include beer and wine service in its
existing outdoor dining area. Back on the Beach Café’s prior agreement with the City
to operate Beach House concessions expired on December 1, 2018 and was then
under a month-to-month lease with the City pending the completion of the State
Parks-required Request for Proposal (“RFP”) process and delays caused by the
COVID-19 pandemic. The RFP was released in September 2021 and closed in
October 2021. Two proposals were received, with Back on the Beach Café selected
as the winning bidder.
On January 25, 2022, Council authorized the City Manager to negotiate and enter into a
concession agreement with Back on the Beach Café to operate a concession on the
Santa Monica State Beach offering food, retail, and rentals. Council approved the term
of the agreement to be ten (10) years with one (1) five (5)-year extension option at an
annual minimum rent of $200,000 (adjusted annually by CPI) or 8% of gross sales,
whichever is higher. The approved terms also permitted Back on the Beach Café to
serve beer and wine upon receiving regulatory approvals.
Back on the Beach Café received the required licenses and permits from local and
state regulatory and licensing agencies and has been serving beer and wine as part
of their regular restaurant operations. The restaurant has operated in compliance with
all alcohol related conditions and there have been no reportable incidents involving
alcohol service at either location. Servers and managers have completed the
Responsible Beverage Service Training program, which is mandated by the ABC to
provide servers with the knowledge and tools needed to ensure responsible alcohol
service and consumption. Furthermore, conditions outlined within the Concession
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Agreement and the City’s alcohol exemption permit requires that alcohol service be
incidental to the sale and service of food.
The addition of beer and wine beverages has been important in generating new
revenues, but in the face of significantly rising food and labor costs as well as the
continuing challenge of achieving pre-pandemic profitability, the Concessionaire
believes that full alcohol service will further improve revenues. For many restaurants,
alcohol sales emerged as one of the major contributors to remain operational during
the pandemic and many governmental entities, including Santa Monica, permanently
eased certain restrictions on restaurants serving alcohol as part of its economic
recovery strategy. The inclusion of alcoholic beverages as part of its menu offerings
will also respond to customer expectation for a variety of beverage choices with their
meals.
Environmental Review
The allowance for full alcohol at the Back on the Beach Café is categorically exempt
from CEQA pursuant to Section 15301 (Class 1 - Existing Facilities) of the CEQA
Guidelines. Section 15301 provides exemption for the operation, repair, maintenance,
permitting, or minor alteration of existing public or private structures, facilities,
mechanical equipment, or topographical features, involving negligible or no expansion
of use beyond that existing at the time of the lead agency's determination. The
allowance for alcohol would supplement the existing operations at the café and would
not expand or materially change existing facilities or operations. Therefore, the
modification to the agreement to allow alcohol is categorically exempt pursuant to
Section 15301 of the CEQA Guidelines.
Past Council Actions
Meeting Date Description
January 25, 2022
(Attachment A)
Original award of Concession to Back on the Beach Café
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Financial Impacts and Budget Actions
It is anticipated that implementation of the changes in the proposed modification may
result in additional percentage rent revenues, which would be deposited in the Beach
Fund at account 01430001.408780. If required, budget adjustments would be
incorporated in the FY 2023-24 Year-End Budget and the FY 2024-25 Exception-Based
Budget.
Prepared By: Claire Hester, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Staff Report BotB 01.25.2022
B. Oaks Initiative Notice Form_2024
C. Levine Act Disclosure BotB 02.05.2024
D. 02_Concession_Agreement_2022-FINAL w EXHIBITS EXECUTED 040722
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City Council Report
City Council Meeting: January 25, 2022
Agenda Item:
1 of 5
To: Mayor and City Council
From: Andy Agle, Director, Community Services Department, Cultural Affairs
Subject: Award Request for Proposal and enter into Agreement with Back on the
Beach Food Co., Inc. for Concessions at the Annenberg Community Beach
House
Recommended Action
Staff recommends that the City Council:
1. Award RFP# 291 to Back on the Beach Food Co., Inc., a California-based
company, for food and beach equipment rental services at the Annenberg
Community Beach House at Santa Monica State Beach ; and
2. Authorize the City Manager to negotiate and execute an agreement with Back on
the Beach Food Co., Inc. for an initial term of ten (10) years with one (1) option
for renewal of five (5) years. The annual minimum rent is $200,000 or 8 percent
of gross sales, whichever is higher.
Summary
Back on the Beach Food Co., Inc. (Back on the Beach) has operated Back on the
Beach Café since January 1989. In 2008, Back on the Beach was awarded a ten -year
lease through a competitive process. Since that time, Back on the Beach has been
responsible for developing, operating, and providing food and beach equipment rental
services to visitors of the Annenberg Community Beach House. Since 2018, Back on
the Beach has operated under the hold-over terms of the lease agreement until a new
Request for Proposals (RFP) process could be completed. Due to the delay in receiving
State authorization and then by the COVID pandemic, the RFP process was completed
in 2021.
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Staff recommends Back on the Beach as the best qualified firm for beach café and
equipment rental concession beginning in March 2022 through February 2032, with an
option to extend for an additional five years. The minimum total revenue for ten years
with a three percent annual Consumer Price Index (CPI) increase is estimated at
$2,515,579.
Discussion
Since 1989, the existing restaurant at 445 Pacific Coast Highway, known as Back on
the Beach Café, has provided year-round, daily indoor and outdoor food service. In
addition, Back on the Beach equips and maintains beach-related equipment for rent
such as chairs, umbrellas, boogie boards, and various sundries that provide for the
health, enjoyment, and convenience of Annenberg Community Beach House (Beach
House) visitors.
The proposed ten (10) year concession agreement with one (1) option to renew the
agreement for five (5) years would provide for the operation of food and beach-
equipment rental services at the Beach House. The intent of the concession agreement
is to provide the public with high-quality, reasonably priced food service, as well as the
sale or rental of beach-related equipment and items in a manner and atmosphere that
enhances the visitor’s experience at Santa Monica State Beach.
Managed by the original owners, Frederick Deni and James Christel, the restaurant is
fully licensed and approved by the Los Angeles County Health Department, City of
Santa Monica, and California Alcoholic Beverage Control Board (ABC). Through a
permit approved by ABC and the Planning Commission in 2012, Back on the Beach
was able to expand its ability to serve beer and wine in its existing outdoor dining area.
To meet ABC requirements, a custom-designed 42-inch fence was added to delineate
the perimeter of the outdoor dining area.
The City’s current agreement with Back on the Beach to operate Beach House
concessions expired on December 1, 2018. Under the terms of the Operating
Agreement, State Parks must approve the issuance of a Request for Proposal (RFP),
which was initially delayed by the State’s extended process and then b y the pandemic.
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Back on the Beach has been on a month-to-month lease pursuant to the holdover
provision of the agreement, pending the completion of the RFP process. The RFP was
released in September 2021 and closed in October 2021. Two proposals were received.
Vendor Selection
Bidder Recommendation
Best Qualified Person or
Firm
Back on the Beach Food Co., Inc.
Evaluation Criteria
Training, credentials and experience of the person or firm;
demonstrated competence, ability, capacity and skill of the person or
firm to perform the contract or provide the service promptly, within the
time specified, and without delay; capacity of the person or firm to
perform the contract or provide the service promptly, within the time
specified, and without delay; sufficiency of the person’s or firm’s
financial and other resources; character, integrity, reputation and
judgment of the person or firm; price which the person or firm proposes
to charge, including whether the price is fair, reasonable and
competitive.
Municipal Code SMMC 2.24.190
Bid Data
Date Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded Date Publicly Opened
09/20/2021 City's Online
Bidding Site
Santa Monica Daily
Press
18 10/18/2021
Best Qualified Person or Firm Justification
Staff from the Community Services and Community Development Departments reviewed
both proposals and evaluated them based on experience with projects of comparable
complexity, qualifications of key personnel, financial resources and ability to finance tenant
improvements and operations as proposed, project understanding and approach,
compatibility of proposed operations with surrounding uses and local community, rental
bid, and overall quality and thoroughness of proposal. The evaluation committee
unanimously recommended Back on the Beach as the best fit for the Beach House in
Submittals Received
Back on the Beach Food Co., Inc. Made by Meg Catering
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terms of experience, stability and familiarity with the Santa Monica market. The other
proposer, Made by Meg Catering, is an enterprise relatively new as a full-service operator,
with their experience focusing mainly on catering private events.
Back on the Beach demonstrated its continued ability to provide concessionaire services
at the Beach House. Their years of extensive experience in the industry, working
successfully as partners with the City and Beach House staff, are clearly conveyed in the
thoroughness of their proposal and operations plan. Their management is actively
engaged in the Santa Monica community and supports a large number of nonprofits and
community organizations involved in environmental stewardship, youth development, and
human rights. Their proposal included all the RFP required documents and included
positive references from various community members they have worked with over the
years, highlighting their hospitality and service to the visitors of Santa Monica, and their
contributions to the Santa Monica community. They continuously adopted new technology
to improve customer service and rose to the challenges and new protocols brought about
by the pandemic.
Lease Terms
Staff recommends award to Back on the Beach for a ten -year (10) term with one (1)
five-year option. The annual rent requirement is the greater of eight percent of gross
sales or $200,000 base rent, with the base rent subject to an annual Consumer Price
Index (CPI) escalation. The proposed new rent requirement is different from the current
lease terms of ten percent of gross sales with a minimum annual rent of $100,000. In
preparing the RFP, staff sought the services of financial consultants Allan D. Kotin &
Associates (ADK&A) regarding appropriate financial terms, particularly given changes in
the restaurant market, including significant increases in labor costs. On behalf of the
City, ADK&A completed an evaluation of lease terms for beach -adjacent food and
related services in Southern California. ADK&A concluded that reducing the percentage
rent by two percentage points would make the opportunity competitive for pros pective
restaurants, while doubling the guaranteed base rent would ensure that the City is
appropriately compensated.
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If awarded the new ten-year lease, Back on the Beach would invest $300,000 to include
replacement of the roof, exhaust fans and coolers, exterior doors and windows, and
walk-in cooler; addition of a retractable fabric canopy; and renovation of the dining room
floors. The improvements would be scheduled over a three-year period with minimal
impact on café and Beach House operations, and in compliance with applicable permits
and approvals.
Financial Impacts and Budget Actions
Staff seeks authority to award a contract with Back on the Beach Food Co. Inc. for
operation of food and beach equipment rental services at the Annenberg Community
Beach House, with a minimum annual rent of $200,000 or eight percent (8%) of gross
sales, whichever is greater. The FY 2021-23 Budget includes $200,000 each year in
revenue from the lease.
Prepared By: Joyce Perez, Sr. Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Back on the Beach Oaks-111821
5.D.a
Packet Pg. 124 Attachment: Staff Report BotB 01.25.2022 (6200 : Back on the Beach Cafe Concession Agreement Modification)
5.D.b
Packet Pg. 125 Attachment: Oaks Initiative Notice Form_2024 (6200 : Back on the Beach Cafe Concession Agreement Modification)
5.D.c
Packet Pg. 126 Attachment: Levine Act Disclosure BotB 02.05.2024 (6200 : Back on the Beach Cafe Concession Agreement Modification)
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AGREEMENT NO. 11238 (CCS)
CONCESSION AGREEMENT
by and between
CITY OF SANTA MONICA
And
BACK ON THE BEACH FOOD CO., INC.
dba
BACK ON THE BEACH CAFÉ
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AGREEMENT NO. 11238 (CCS)
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS............................................................................................................ 2
Section 1.1 Certain Defined Terms ................................................................................ 2
ARTICLE II PREMISES ................................................................................................................ 4
Section 2.1 Premises ...................................................................................................... 4
Section 2.2 Condition of the Premises ........................................................................... 4
Section 2.3 State Operating Agreement ........................................................................... 5
Section 2.4 Compliance with Proposition S .................................................................. 5
ARTICLE III TERM ....................................................................................................................... 6
Section 3.1 Term ............................................................................................................ 6
Section 3.2 Termination. ................................................................................................ 7
Section 3.3 Holding Over. ............................................................................................. 7
Section 3.4 Surrender. .................................................................................................... 8
Section 3.5 Survival. ...................................................................................................... 8
ARTICLE IV USE .......................................................................................................................... 8
Section 4.1 Permitted Uses ............................................................................................ 8
Section 4.2 Concessionaire’s Trade Name .................................................................. 13
Section 4.3 Hours of Operation ................................................................................... 13
Section 4.4 Use Restrictions ........................................................................................ 14
Section 4.5 Annual Evaluation of the Concessionaire ................................................. 16
ARTICLE V RENTAL ................................................................................................................. 16
Section 5.1 Rental Payable .......................................................................................... 16
Section 5.2 Payments of Percentage Rent .................................................................... 17
Section 5.3 CPI Adjustment ......................................................................................... 18
Section 5.4 Gross Sales ................................................................................................ 19
Section 5.5 Statements of Gross Sales and Expenditures ............................................ 20
Section 5.6 Concessionaire’s Records ......................................................................... 21
Section 5.7 Security Deposit ........................................................................................ 22
Section 5.8 Performance Bond .................................................................................... 22
ARTICLE VI TAXES ................................................................................................................... 23
Section 6.1 Concessionaire’s Obligation to Taxes ....................................................... 23
Section 6.2 Concessionaires Obligation to Pay Personal Property Taxes ................... 23
ARTICLE VII IMPROVEMENTS ............................................................................................... 24
Section 7.1 Concessionaire’s Improvements ............................................................... 24
Section 7.2 Compliance with Law ............................................................................... 24
Section 7.3 Submittal to City: Right of Termination. ................................................. 25
Section 7.4 Amount and Schedule ............................................................................... 25
Section 7.5 Manner of Construction. ........................................................................... 25
Section 7.6 Mechanics’ Liens ...................................................................................... 27
ARTICLE VIII OPERATIONS .................................................................................................... 28
Section 8.1 Operations by Concessionaire ................................................................... 28
Section 8.2 Signs and Advertising. .............................................................................. 30
Section 8.3 Painting and Displays by Concessionaire ................................................. 30
Section 8.4 Trash Removal Service ............................................................................. 31
Section 8.5 Off-Hour Delivery. ................................................................................... 31
Section 8.6 Locks ......................................................................................................... 31
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AGREEMENT NO. 11238 (CCS)
Section 8.7 Compliance with Law ............................................................................... 31
Section 8.8 Conditions of Approval............................................................................. 32
Section 8.9 Intellectual Property of Respective Parties ............................................... 32
Section 8.10 City’s Licensing Program ......................................................................... 33
Section 8.11 Disability Access Law .............................................................................. 33
ARTICLE IX REPAIRS AND ALTERATIONS ......................................................................... 34
Section 9.1 Repairs to Be Made By City. .................................................................... 34
Section 9.2 Repairs to Be Made By Concessionaire .................................................... 34
Section 9.3 Damage to Premises .................................................................................. 35
Section 9.4 Alterations by Concessionaire .................................................................. 35
Section 9.5 Access and Inspections By City. ............................................................... 36
ARTICLE X UTILITIES .............................................................................................................. 37
Section 10.1 Water, Electricity, Gas and Sanitary Sewer. ............................................. 37
Section 10.2 Utilities Costs ............................................................................................ 37
Section 10.3 Heating, Ventilating and Air-Conditioning. ............................................. 38
Section 10.4 Fire Protection Sprinkler System .............................................................. 38
Section 10.5 City’s Right to Alter Utilities .................................................................... 38
Section 10.6 Discontinuances and Interruptions of Utility Services ............................. 38
ARTICLE XI NONLIABILITY AND INDEMNIFICATION OF CITY; INSURANCE ........... 39
Section 11.1 Indemnity by Concessionaire .................................................................... 39
Section 11.2 Waiver of Claims ...................................................................................... 39
Section 11.3 City Not Responsible for Acts of Others .................................................. 39
Section 11.4 Concessionaire’s Insurance ....................................................................... 40
ARTICLE XII DAMAGE AND DESTRUCTION ...................................................................... 40
Section 12.1 Obligation to Repair or Reconstruct the Premises. ................................... 40
Section 12.2 City Not Obligated to Repair or Reconstruct. ........................................... 41
Section 12.3 Termination of the Agreement .................................................................. 41
Section 12.4 Closure. ..................................................................................................... 41
Section 12.5 Insurance Proceeds .................................................................................... 41
Section 12.6 Advance Payments .................................................................................... 42
Section 12.7 Waiver. ...................................................................................................... 42
Section 12.8 Rent Abatement ........................................................................................ 42
ARTICLE XIII CONDEMNATION ............................................................................................ 42
Section 13.1 Effect of Taking. ....................................................................................... 42
Section 13.2 Condemnation Awards.............................................................................. 43
ARTICLE XIV ASSIGNMENTS AND SUBLETTING ............................................................. 43
Section 14.1 No Assignment and Subletting Without Prior Written Consent ............... 43
Section 14.2 Grounds for Denying Consent .................................................................. 44
Section 14.3 Concessionaire’s Application for Consent................................................ 44
Section 14.4 Conditions to Consent ............................................................................... 44
Section 14.5 Transfer of Shares ..................................................................................... 45
Section 14.6 Acceptance of Rental from Transferee ..................................................... 45
ARTICLE XV DEFAULT ............................................................................................................. 46
Section 15.1 “Event of Default” Defined....................................................................... 46
Section 15.2 Remedies ................................................................................................... 47
Section 15.3 Late Charge and Interest ........................................................................... 47
Section 15.4 Waiver of Redemption. ............................................................................. 48
Section 15.5 Assignment in Bankruptcy. ....................................................................... 48
Section 15.6 City’s Event of Default ............................................................................. 48
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AGREEMENT NO. 11238 (CCS)
ARTICLE XVI SUBORDINATION AND ATTORNMENT ...................................................... 49
Section 16.1 Peaceful and Quiet Use and Possession. ................................................... 49
Section 16.2 Subordination. ........................................................................................... 49
Section 16.3 Attornment ................................................................................................ 50
ARTICLE XVII NOTICES .......................................................................................................... 50
Section 17.1 Notices ...................................................................................................... 50
ARTICLE XVIII MISCELLANEOUS ......................................................................................... 51
Section 18.1 Inspection and Access By City ................................................................. 51
Section 18.2 Remedies Cumulative ............................................................................... 51
Section 18.3 Successors and Assigns............................................................................. 51
Section 18.4 Captions and Headings ............................................................................. 52
Section 18.5 Joint and Several Liability. ....................................................................... 52
Section 18.6 Broker’s Commission. .............................................................................. 52
Section 18.7 No Discrimination. .................................................................................... 52
Section 18.8 No Joint Venture ....................................................................................... 52
Section 18.9 Entire Agreement; No Modification. ........................................................ 53
Section 18.10 Severability. .............................................................................................. 53
Section 18.11 Authority. .................................................................................................. 53
Section 18.12 Applicable Law ......................................................................................... 53
Section 18.13 Control of Access ...................................................................................... 53
Section 18.14 Title and Warranties .................................................................................. 54
Section 18.15 Force Majeure ........................................................................................... 54
Section 18.16 Attorneys’ Fees ......................................................................................... 55
Section 18.17 Counterparts .............................................................................................. 55
Section 18.18 Security Measures ..................................................................................... 55
Section 18.19 Easements ................................................................................................. 55
Section 18.20 City Municipal Powers ............................................................................. 55
Section 18.21 Concessionaire’s Compliance with Law ................................................... 56
Section 18.22 Concessionaire’s Lenders and Equipment ................................................ 56
Section 18.23 Venue and Jurisdiction ............................................................................... 56
Section 18.24 Exhibits ..................................................................................................... 56
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AGREEMENT NO. 11238 (CCS)
CONCESSION
AGREEMENT
THIS CONCESSION AGREEMENT (“Agreement”) is entered into on _________
(“Execution Date”) and is made by and between the CITY OF SANTA MONICA, a
California municipal corporation (“City”), and Back on the Beach Food Co., Inc. d.b.a.
Back on the Beach Café, a California corporation (“Concessionaire”), with respect to
the following:
R E C I T A L S:
A. City is a municipal corporation duly organized and validly existing under the
laws of the State of California with the power to carry on its business that is now being
conducted under the statutes of the State of California and the Charter of the City.
B. Pursuant to Section 5080.30 of the California Public Resources Code, the State of
California, acting through its Department of Parks and Recreation (“State”), and City have
entered into an Operating Agreement (“Operating Agreement”) whereby City is authorized to
manage certain public land owned by the State of California, including the public land
underlying the facilities that are the subject of this Agreement.
C. Concessionaire is a corporation in good standing in the State of California and is
qualified to do business in California. Concessionaire is doing business as “Back on the Beach
Café” with its principal place of business located at 445 Pacific Coast Highway, Santa Monica,
California.
D. On or about September 20, 2021, pursuant to Section 5080 et seq of the
California Public Resources Code, City issued a Request for Proposals for Beach Concessions
(“RFP”) and in response Concessionaire submitted its Proposal dated October 15, 2021
(“Proposal”). The Proposal is attached hereto as Exhibit 1; the RFP is attached hereto as
Exhibit 5.
E. The parties seek to enter into this Agreement for the Concessionaire to operate a
beach concession on 445 Pacific Coast Highway, Santa Monica, CA 90402.
F. Pursuant to Section 5080.20(a) of the California Public Resources Code, the
State Parks and Recreation Commission reviewed and approved the proposed concession at its
meeting on February 4, 2021.
G. Pursuant to Section 5080.20(b) of the California Public Resources Code, the
appropriate policy and fiscal committees of the Legislature and Joint Legislative Budget
Committee was notified on February 4, 2021.
H. The parties seek to enter into this Agreement for Concessionaire to operate a
restaurant and beach rental concession under the terms and conditions set forth herein.
NOW, THEREFORE, AND IN CONSIDERATION of the mutual covenants and
agreements herein contained, the parties hereto do hereby covenant and agree as follows:
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4/7/2022
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AGREEMENT NO. 11238 (CCS)
Section 1.1 Certain Defined Terms.
ARTICLE I
DEFINITIONS
1.1.1 “Affiliate” shall mean (1) any individual, partnership, trust, other entity or
association directly or indirectly controlled by or under common control with the
Concessionaire; (2) any person or entity owning or controlling ten percent (10%) or more of the
outstanding voting securities of the Concessionaire; or (3) if that other person or entity is an
officer, director, member or partner of the Concessionaire, any company for which such person
acts in any such capacity. The term “control” as used in the immediately preceding sentence,
shall mean the power to direct the management or the power to control election of the board of
directors. It shall be a presumption that control with respect to a corporation or limited liability
company is the right to exercise or control, directly or indirectly, more than fifty percent (50%)
of the voting rights attributable to the controlled corporation or limited liability company, and,
with respect to any individual, partnership, trust, other entity or association, control is the
possession, indirectly or directly, of the power to direct or cause the direction of the
management or policies of the controlled entity.
1.1.2 The term “Agreement” means this Concession Agreement by and between City
and Concessionaire.
1.1.3 The term “Beach House” means the Annenberg Community Beach House at
Santa Monica State Beach located at 415 Pacific Coast Highway in Santa Monica and under
the management authority of the City of Santa Monica.
1.1.4 The term “City” means the City of Santa Monica, in its proprietary capacity,
and its City Council, boards and commissions, officers, agents, employees, representatives,
and volunteers.
1.1.5 The term “City Manager” means the City Manager or designee.
1.1.6 The term “Commencement Date” means the date this Agreement is fully
executed by the undersigned representatives of City and Concessionaire.
1.1.7 The term “Concessionaire” means Back on the Beach Food Co., Inc., a
California Corporation.
1.1.8 The term “Consumer Price Index” or “CPI” means the percentage increase in the
cost of living index as measured by the Consumer Price Index for All Urban Consumers, All
Items - Los Angeles - Anaheim - Riverside, Orange County, California, published by the Bureau
of Labor Statistics of the United States Department of Labor (1982-1984 = 100). In the event the
CPI shall hereafter be converted to a different standard reference base or otherwise revised, such
conversion factor, formula or table for converting the CPI as may be published by the Bureau of
Labor Statistics shall be used, or if the Bureau of Labor Statistics shall not publish the same, then
such conversion factor, formula or table selected by City may be published by any other
nationally recognized publisher of similar statistical information shall be used. In the event the
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AGREEMENT NO. 11238 (CCS)
CPI shall cease to be published, then there shall be substituted for the CPI such other index of
similar nature as is then generally recognized and accepted for like determinations of purchasing
power, as City shall select.
1.1.9 The term “Day(s),” whether capitalized or not, means calendar days unless
otherwise specifically designated as a work or business day.
1.1.10 The term “Default Rate” shall mean an annual rate of interest equal to the lesser
of (i) the maximum rate of interest Concessionaire may lawfully contract in the State of
California or (ii) twelve percent (12%).
1.1.11 The term “Environmental Law(s)” refers, without limitation, individually or
collectively, to the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended (42 U.S.C. Sections 9601-9675), the Resource Conservation and Recovery
Act, as amended (42 U.S.C. Section s 6901-6992k), the Hazardous Materials Transportation Act,
as amended (49 U.S.C. Section 1801 et seq.), the Federal Water Pollution Control Act, as
amended (33 U.S.C. Sections 1251-1307), the Clean Air Act, as amended, (15 U.S.C. Sections
2601-2692), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X) (15
U.S.C. Sections 2681-2692 and also 42 U.S.C. Sections 48991-4856), the Lead Based Paint
Poisoning Prevention Act (42 U.S.C. Sections 4821-4846), the Indoor Radon Abatement Act (15
U.S.C. Sections 2661-2671), the Safe Drinking Water Act Amendments of 1996, Pub. L. No.
104-182, 110 Stat.1613 (1996), and all similar federal, state or local laws, statutes, regulations
and ordinances.
1.1.12 The term “Event of Default” is defined in Section 15.1.
1.1.13 The term “Fiscal Year(s)” means a twelve consecutive month period commencing
on July 1 and continuing through the next June 30 annually.
1.1.14 The term “FF & E” shall mean all furniture, fixtures, kitchen equipment, dining
tables, and chairs provided by Concessionaire in connection with the operation of the Premises
under this Agreement.
1.1.15 The term “Hazardous Substance(s)” refers, without limitation, individually or
collectively, to the following: any chemical, material or other substance defined as or included
within the definition of “hazardous substances,” “hazardous wastes,” “hazardous material,”
“extremely hazardous substances,” “toxic substances,” “toxic material,” restricted hazardous
waste,” “special waste,” or any words of similar import under any Environmental Law.
1.1.16 The term “Law” shall mean the Operating Agreement, or any federal, state,
county, municipal law, statute, ordinance, rule, regulation, order or judicial law, now or hereafter
in effect, whether or not presently contemplated. This definition of Law shall include the rules,
regulations, programs and guidelines of the City (“City Rules”) and any applicable permits
required by the regulatory agencies, including, but not limited to a Conditional Use Permit or
Coastal Commission Permit.
1.1.17 The term “Loose Equipment” shall refer to pots, pans, utensils, tableware, point
of sale systems, menu boards, office equipment, safes, retail fixtures, and all other equipment
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AGREEMENT NO. 11238 (CCS)
necessary for the operation and maintenance of Concessionaire’s business. Concessionaire shall
be obligated to provide all of the Loose Equipment for the operation of the Premises.
1.1.18 The term “Premises” means the restaurant building and the adjacent, enclosed,
exterior beach and patio located at 445 Pacific Coast Highway in Santa Monica, and the
equipment building and the adjacent exterior beach area within 10 feet of the building but
excluding the northern most room designated as the “sand groomer storage room” located at 415
Pacific Coast Highway in Santa Monica, as more fully described in Exhibit 2 and attached
hereto.
1.1.19 The term “Rental Equipment” shall refer to all of the items set forth in Rental
Equipment and Price List attached hereto as Exhibit 3 for rental by the Concessionaire during
the Term and Extension Term, if any, of this Agreement. The parties may delete, supplement or
otherwise modify such list in writing upon mutual consent of both parties from time to time
during the Term of this Agreement.
1.1.20 The term “Rental Year” means each Fiscal Year after the Commencement Date.
If the Commencement Date occurs on a date other than July 1st, the period from the
Commencement Date to the next June 30th (“Partial Rental Year”) shall be added to the first
Rental Year.
1.1.21 The term “Tax Year” means and refers to each twelve (12) month period (deemed
to have 365 days) established as the real estate tax year by the taxing authorities having lawful
jurisdiction over the Premises.
1.1.22 The term “Term” shall mean the original ten-year term of this Agreement plus
any five-year renewal and month to month extension by virtue of “holding over” as provided in
Section 3.3 or other permissible extension of occupancy.
1.1.23 The term “Termination Date” means at midnight ten (10) years after the
Commencement Date or such other date on which this Agreement is earlier terminated or to
which the term of his Agreement is further extended pursuant to the provisions of this
Agreement.
ARTICLE II
PREMISES
Section 2.1 Premises.
City hereby grants to Concessionaire, and Concessionaire hereby accepts from City the
right, privilege, and duty to improve, equip, operate, and maintain a restaurant concession and
an equipment rental concession at the restaurant building located at 445 Pacific Coast Highway
in Santa Monica and building located at 415 Pacific Coast Highway in Santa Monica
(collectively “Premises”).
Section 2.2 Condition of the Premises.
2.2.1 Concessionaire acknowledges and agrees that Concessionaire has inspected the
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AGREEMENT NO. 11238 (CCS)
Premises and Concessionaire accepts the Premises “AS IS,” subject to the Operating
Agreement, and all applicable zoning, municipal, county and state laws, ordinances and
regulations governing and regulating the use of the Premises, and any covenants or restrictions
of record. Concessionaire acknowledges that neither City nor City’s agents have made any
representation or warranty as to the physical state of the Premises, or any present or future
suitability of the Premises for the conduct of Concessionaire’s business.
2.2.2 Concessionaire understands and agrees that City, as the body having regulatory
authority over the development and use of the Premises, has made no representations regarding
the nature, intensity, height, use or other aspects of development it may approve for the Premises
in the future, or what fees and other exactions may be required at the time any such development
is applied for, and that City retains full authority under all applicable laws regarding any such
approval as they may be in effect from time to time.
2.2.3 Effective on and after the Commencement Date of this Agreement, Concessionaire
waives, releases and discharges the City and its respective members, officers, employees, agents,
volunteers, contractors and consultants, from any and all present and future claims, demands,
suits, legal and administrative proceedings, and from all liability for damages, losses, costs,
liabilities, fees and expenses (including, without limitation, attorneys’ fees) arising out of or in
any way connected with the Concessionaire’s use, development, maintenance, ownership or
operation of the Premises, except as to City’s material breach of this Agreement while acting in
its proprietary capacity. Concessionaire acknowledges that it is aware of and familiar with the
provisions of Section 1542 of the California Civil Code which provides as follows:
A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with the
debtor.
Except as to City’s material breach of this Agreement while acting in its proprietary
capacity, Concessionaire hereby waives and relinquishes all rights and benefits which it may
have under Section 1542 of the California Civil Code.
Section 2.3 State Operating Agreement.
It is expressly understood and agreed to by Concessionaire that the provisions of this
Agreement are subject to the Operating Agreement by and between the City and State, attached
hereto as Exhibit 4, incorporated herein and made a part of this Agreement. In the event that this
Agreement is or becomes inconsistent with the Operating Agreement, the rights and the
obligations of the parties hereto will be governed solely and exclusively by the Operating
Agreement, but in no event will City have any responsibility or incur any liability to
Concessionaire as a result of any such inconsistency.
Section 2.4 Compliance with Proposition S.
The development of the Premises shall comply with all applicable provisions of federal,
state and local law, rules and regulations, including, but not limited to, the City of Santa
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AGREEMENT NO. 11238 (CCS)
Monica’s Comprehensive Planning and Zoning Ordinance as set forth in Article 9 of the Santa
Monica Municipal Code, and the Santa Monica Bay Ordinance of 1973, as these provisions
may be amended from time to time.
ARTICLE III
TERM
Section 3.1 Term.
3.1.1 Term. The term of this Agreement (the “Term”) shall be for a period of ten (10)
years commencing on the Commencement Date and shall end at midnight on the Termination Date
unless earlier terminated as set forth in this Agreement or further extended pursuant to Section
3.1.2. This Agreement shall be a binding contractual obligation effective upon execution hereof by
City and Concessionaire.
3.1.2 Option to Extend. Provided City is satisfied with the performance of the
Concessionaire under this Agreement and Concessionaire is in full compliance with the terms and
conditions of this Agreement, the City may, in its discretion, offer to extend the term of this
Agreement through the exercise of one extension option (the “Extension Option”) for a period of
five (5) additional years after the Termination Date (the “Extension Term”) on the same terms and
conditions set forth in this Agreement (including the Rent and Additional Rent), except as
otherwise specified herein.
3.1.3 Exercise of Options.
3.1.3.1 City shall exercise the Extension Option, if at all, at least three (3) months prior to
the expiration of the Term, by delivery to the Concessionaire in writing of its irrevocable exercise
of such Extension Option. If the Extension Option is not so exercised, such Extension Option shall
automatically expire and shall be of no further force or effect.
3.1.3.2 Within thirty (30) Days after issuance of the City’s exercise of the Extension
Option, Concessionaire shall notify the City if it cannot proceed with the Extension Option.
3.1.3.3 Notwithstanding the foregoing, such Extension Term shall not commence unless all
of the following conditions precedent are met as of the day the Extension Term would otherwise
commence: (a) the City is satisfied with the performance of the Concessionaire; (b) this Concession
Agreement is in full force and effect; and (c) Concessionaire has cured any default under any of the
terms and conditions of this Agreement. The City’s satisfaction with the performance of the
Concessionaire shall be based upon compliance with this Agreement and a minimum of a
satisfactory performance in the performance evaluation in areas including, but not limited to,
completion of Improvements as specified in Exhibit 9, Improvement Plan, attached to this
Agreement, financial compliance, accounting, bonds/insurance, construction, use of premises,
quality assurance, food safety and sanitation, guest/customer satisfaction, facility maintenance. In
the event that any of the conditions precedent are not met as of the day of the Extension Term
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AGREEMENT NO. 11238 (CCS)
would otherwise commence, such Extension Term shall not commence and this Agreement shall
then expire.
Section 3.2 Termination.
Unless sooner terminated in accordance with the provisions hereof and subject to Section
3.3, this Agreement shall terminate at midnight on the Termination Date, without the necessity
of any notice from either City or Concessionaire to terminate the Agreement. After the
Termination Date, Concessionaire hereby waives notice to vacate or quit the Premises and
agrees that City shall be entitled to the benefit of all provisions of law respecting the summary
recovery of possession of the Premises from a tenant holding over to the same extent as if
statutory notice had been given. Concessionaire hereby agrees that if it fails to surrender the
Premises at the end of the Term, or Extension Term, if any, in good condition, reasonable wear
and tear excepted, Concessionaire will be liable to City for any and all reasonable damages
which City shall proximately suffer by reason thereof. Concessionaire may remove any and all
furniture, fixtures and/or equipment not attached to the Premises.
In the event Concessionaire does not timely exercise its right to extend the Term in
accordance with Sections 3.1.2 and 3.1.3, City shall, upon reasonable notice during the 90 days
prior to the Termination Date, have the additional right to show the Premises and all parts
thereof to prospective tenants before and after Concessionaire’s normal business hours. This
right is in addition to the City’s right to show the Premises during regular business hours as
provided in Section 9.5.
Section 3.3 Holding Over.
3.3.1 If Concessionaire shall be in possession of the Premises after the expiration of the
Term, or Extension Term, if any, with or without the express or implied consent of City, then,
in the absence of a written agreement on the subject, the tenancy under this Agreement shall
become a month-to-month tenancy after the expiration of the Term or Extension Term, if any,
(a “Holdover Tenancy”). The Holdover Tenancy may be terminable by either party on thirty
(30) days prior written notice. The monthly rent during any Holdover Tenancy shall be based
upon Rent set forth in Section 5.1 of this Agreement and shall include CPI adjustments every
year as described herein. Concessionaire shall also pay all other charges payable under the
terms of the Agreement, prorated for each month during which Concessionaire remains in
possession. Such Holdover Tenancy shall also be subject to all other conditions, provisions and
obligations of this Agreement (except for those pertaining to the Term or Extension Term, if
any). Neither any provision hereof nor acceptance by City of monthly rent from Concessionaire
after such expiration or earlier termination of the Agreement shall be deemed a consent to a
Holdover Tenancy or result in a renewal of this Agreement or an extension of the Term.
3.3.2 Notwithstanding any provision to the contrary contained herein, City expressly
reserves the rights to require Concessionaire to surrender possession of the Premises upon the
expiration of the Term or Extension Term, if any, or upon the earlier termination hereof, to
reenter the Premises, and to assert any remedy at law or in equity to evict Concessionaire and/or
collect reasonable damages caused by such holding over. Concessionaire shall indemnify, defend
and hold City harmless from and against any and all claims, demands, actions, losses, damages,
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AGREEMENT NO. 11238 (CCS)
expenses, costs and the like, including but not limited to City’s reasonable attorneys’ fees and
costs or the reasonable value of all legal services supplied to City, suffered or incurred by City
by reason of Concessionaire’s failure to timely surrender and vacate the Premises upon the
expiration or earlier termination of this Agreement. Concessionaire shall not interpose any
counterclaims in a summary proceeding or other action based on holdover. In the event City does
not require Concessionaire to surrender possession of the Premises, Concessionaire’s holdover
shall be deemed a month-to-month tenancy.
Section 3.4 Surrender.
Upon the expiration or any earlier termination of this Agreement, Concessionaire shall
perform the following obligations at its sole cost and expense, at the City's sole option and written
direction: (i) undo and remove all FF & E (except for trade fixtures), personal property, Loose
Equipment, installations, Alterations (defined in Section 9.4), signs and improvements made by or
otherwise within the possession of, Concessionaire, or their employees or agents, on or about the
Premises requested to be removed and undone by City except for the Improvements and
subsequent Alterations made with City's consent; (ii) restore the floor, ceiling and walls of the
Premises to their condition as of the date the Improvements were completed, reasonable wear and
tear excepted; and (iii) surrender up and deliver possession of the Premises to City, in a broom
clean condition, and in good operating order and repair. In the event Concessionaire sells any of its
personal property to the successor concessionaire, the Concessionaire shall not be required to
remove the personal property which is the subject of the sale.
Section 3.5 Survival.
The provisions of this Article shall survive the expiration or earlier termination of this
Agreement.
ARTICLE IV
USE
Section 4.1 Permitted Uses.
4.1.1. Permitted Use. Subject to receipt of appropriate regulatory permits,
Concessionaire shall occupy and use the Premises during the Term and Extension Term, if any,
solely for the Permitted Uses set forth herein. Concessionaire’s use of the Premises shall be
consistent with RFP, attached hereto as Exhibit 5 and incorporated herein by reference, and
Concessionaire Proposal, attached hereto as Exhibit 1 and incorporated herein by reference.
Concessionaire shall conduct and operate its business in a high quality and reputable manner,
and shall assure the transaction of a reasonable volume of business on and at the Premises. As
described in Section 4.4, no uses of the Premises other than those permitted by this Section 4.1
shall be permitted.
4.1.1.1 Permitted Use of the Restaurant Building.
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AGREEMENT NO. 11238 (CCS)
A. Provision of Food and Non-Alcoholic Beverages. Concessionaire shall use the
restaurant building solely for the operation and maintenance of a restaurant concession
providing high-quality goods and services usually associated with a restaurant. Food
service shall include indoor and outdoor sit-down food service, “to go” food service, and
may include delivery service to locations within the Beach House site, such as poolside.
B. Alcoholic Beverages. During the Minimum Days and Hours specified in Section
4.3.2, Concessionaire may sell beer and wine in the restaurant building and its outdoor
seating area for on-premises consumption for which Concessionaire procured the
necessary permits, licenses, or approvals from local, state, and federal agencies, or as
part of a catered special event only. No other alcoholic beverages shall be sold without
written approval by City and in compliance with all local, state, and federal conditions
and regulations. A competent adult person twenty-one (21) years of age or over shall be
on Premises at all times to supervise the sale of beer and/or service of alcoholic
beverages. Further, the sale of beer and wine during the Minimum Days and Hours/or
service of alcoholic beverages shall be subject to the conditions listed below.
(i) Concessionaire shall not sell beer and wine unless Concessionaire submits to the
City evidence, and City verifies, that Concessionaire has procured the necessary
local, state, and federal permits, licenses, or approvals.
(ii) Beer and wine may be sold to customers waiting to be seated for meal service with
consumption restricted to the restaurant building and its approved outdoor seating
area. The sale of beer and wine beyond the approved outdoor perimeter of the
restaurant or for off-site consumption is not permitted.
(iii) The sale of beer and wine is subject to all conditions and regulations established by
the Department of Alcoholic Beverage Control or other applicable federal, state, or
local agencies.
C. Catering Services. Concessionaire may provide catering services to persons
authorized by City to hold catered special events at the Beach House. Such services shall
be in accordance with all rules and policies established by City for caterers serving at the
Beach House.
D. Private Events. Concessionaire may rent the Premises for private events outside
of Minimum Days and Hours specified in Section 4.3.2. All private events are subject to
prior written approval from the City. The conditions listed below shall apply to all
private events held at the Premises.
(i) All private events involving the rental of the entire restaurant between Labor Day
through Memorial Day must be coordinated with the Beach House Venue Manager,
or designee, to ensure adequate parking and other resources are available and to
prevent conflicts with other private and public uses of the Beach House. All such
private rentals are subject to prior written approval by the City.
(ii) All such private rentals must be between 8am and 11pm on weekdays and between
8am and midnight on weekends, inclusive of set-up, breakdown and clean-up.
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AGREEMENT NO. 11238 (CCS)
Beach House parking lots will be closed by 11pm on weekdays and midnight on
weekends.
(iii) Alcohol sales shall be restricted to beer and wine with meal service.
(iv) Private events shall include meal service that is available at all hours that alcohol is
served.
(v) A competent adult person twenty-one (21) years of age or over shall be at the
Premises where the private event is held at all times to supervise the sale and/or
service of alcohol.
(vi) Alcohol service shall comply with all local, state, and federal laws and regulations.
(vii) Alcohol service must end 30 minutes prior to end time: no later than 9:30pm on
weekdays and 10:30pm on weekends.
(viii) All events must conclude one hour prior to closing.
(ix) Private events must comply with the Santa Monica Municipal Code (“SMMC”),
including the Noise Ordinance (SMMC Chapter 4.12) and SMMC Section 9.31.290,
as such may be amended from time to time, applicable to restaurants with
entertainment, unless more restrictive conditions apply pursuant to permits,
approvals, or licenses issued to Concessionaire for the sale of alcohol on the
Premises or this Agreement, in which case the more restrictive conditions shall
control.
(x) Concessionaire shall be responsible for all cleanup and disposal of trash left by
patrons within 100-foot radius from Premises.
(xi) Concessionaire shall prohibit loitering and noisy guests leaving Premises.
(xii) Private events that require the closure of the Premises during Minimum Days and
Hours specified in Section 4.3.2 are subject to prior written approval of the Beach
House Venue Manager or designee. Concessionaire must submit such written
requests for approval at least ten (10) days in advance of the private event.
Concessionaire’s request for approval shall, at a minimum, identify where the
private event will be held, the time and date of the private event, and include a
description of the private event.
(xiii) No exterior activities such as deliveries, trash disposal or other maintenance
activities, except in the case of an emergency shall be conducted between 11 p.m.
and 7 a.m. seven days per week.
E. Commercial Filming. Concessionaire may rent the Premises for commercial
filming outside of normal business hours. All commercial filming must be coordinated
with the Beach House Venue Manager or designee, to ensure that adequate parking and
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AGREEMENT NO. 11238 (CCS)
other necessary resources are available. All such commercial filming is subject to prior
written approval by the City.
4.1.1.2 Permitted Use of the Equipment Building.
A. Sale and Rental of Beach-Related Equipment. The sale and rental of Rental
Equipment on the Premises may include, but are not limited to beach chairs, umbrellas,
boogie boards, towels, related sundries such as hats, sunglasses, sunscreen, and limited
snack foods and beverages. Other items may be sold or rented upon written approval by
City. City shall approve in writing all items for rent or sale. Concessionaire shall require
that a liability waiver, equivalent to the waiver attached hereto as Exhibit 6, Waiver of
Liability and Release and incorporated herein by this reference, be executed between
Concessionaire and each concession patron prior to the start of each rental of Rental
Equipment. Such waiver is subject to the City and State’s approval and shall release
City and State, its officers, employees, and agents from any liability resulting from any
claim associated with services, equipment, and activities provided and facilitated on
each rental. The liability waiver text shall be pre-printed or in an electronic form that
complies with federal, state, and local laws and must be signed by every person or
guardian therefor participating in each rental within the Premises as permitted in this
Agreement. Concessionaire shall make signed liability waivers available to State
inspection and shall provide copies upon request. All required waivers shall comply
with any and all conditions precedent to insurance coverage as required herein.
B. Storage. Concessionaire shall use the equipment building located on 415 Pacific
Coast Highway as a storage space for Rental Equipment, rental cart, and other inventory
in support of its restaurant and catering operations.
C. No Alcoholic Beverages. Notwithstanding anything to the contrary, the sale of
liquor, beer, or other alcoholic beverages at the equipment building is expressly
prohibited.
D. Pricing of Approved Items. The pricing of all retail and rental items must be
reasonable, provide excellent price-value, and be set at levels that optimize customer
counts and participation. All prices are subject to approval by City in its proprietary
capacity. Senior pricing and discounts shall be included, if at all practicable.
4.1.1.3 Other Uses.
A. At City’s sole discretion, City, acting through the Director of Community
Services, or other representative as designated by the City Manager from time to time,
may authorize Concessionaire, or Concessionaire’s approved subcontractor, to offer
“mobile” or “temporary” food service or equipment rental service at designated areas
within the Beach House site. City shall dictate the terms of these operations. Rent for
these rights shall be paid in accordance with the rental terms for in Article V herein.
B. At City’s sole discretion, City, acting through the Director of Community
Services, or other representative as designated by the City Manager from time to time,
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AGREEMENT NO. 11238 (CCS)
may authorize Concessionaire to offer additional visitor services and amenities including
but not limited to beach equipment reservation and set-up services, event planning
services, or similar services in keeping with the goals of the site as a community beach
facility. The City shall dictate the terms of these services. Rent for these rights shall be
paid in accordance with the rental terms in Article V herein.
4.1.2. Active Use. The parties acknowledge that the Beach House is a valuable resource
of the City which is intended to be developed, used and preserved as a public resource for
enjoyment by the general public. The parties acknowledge that the use of the Premises is
to be in accordance with this stated intent, and that the ultimate objective of this
Agreement is for the active public use of the Premises as a casual restaurant by and for
the benefit of the general public and in a manner consistent with this Section 4.1.
4.1.3 Operational Standards. Concessionaire acknowledges that it is necessary to
develop and maintain high and uniform standards of operation to increase demand for use
of the Premises. In order to monitor such standards, Concessionaire’s operational
standards shall include the following:
4.1.3.1 Concessionaire shall ensure that a competent person shall be on
the Premises at all times during the operation of the Premises.
4.1.3.2 Concessionaire shall respond to City’s written inquiries regarding
any complaints or issues from sources including postings on social media sites
related to the restaurant’s operation.
4.1.3.3 Concessionaire acknowledges that the health and safety of the
Concession guests is paramount and shall operate in a high quality and reputable
manner. All public health inspection reports shall be forwarded to the City. A
designation from the Los Angeles County Department of Health of less than an
“A” more than three times during the term of the Agreement, except to the extent
that any such rating is restored to an “A” within 30 days of lowering, shall
constitute an event of default and breach of the Agreement.
4.1.3.4 All retail and rental items offered shall be of very high quality,
consistent with the Santa Monica State Beach experience and local area, safe,
well-maintained and fairly priced.
4.1.3.5 The City retains the right to review and approve the price of all
goods and services provided under this Agreement.
4.1.4. Menu. The menu generally shall consist of items reflected in the menu attached as
Exhibit 7 and incorporated herein by reference. Concessionaire may make modifications to the
menu provided that the basic concept remains in place. Significant changes to the basic menu
theme shall require the written consent from City in advance of making any changes, which shall
not be unreasonably withheld. Concessionaire shall conduct quarterly reviews of the menu to
ascertain what adjustments to the menu are needed.
4.1.5. Standards for Use of Premises. Concessionaire shall staff, conduct and operate its
business in a high class and reputable manner, and shall assure the transaction of a reasonable
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volume of business on and at the Premises.
4.1.6 Healthy Foods Initiative. Concessionaire agrees to exercise best efforts to
promote healthful and sustainable food practices on the Premises, including the promotion of
the importance of healthful, locally and sustainably grown, organic foods from California, and
the use of sustainable practices, organic ingredients, and recycled products to the extent feasibly
and commercially practicable. These practices may include the following:
4.1.6.1 Purchasing products from local farmers and ranchers who are dedicated to
sustainable agriculture and can assure a steady supply of pure and fresh ingredients from
California;
4.1.6.2 Offering a selection of food and beverage items that conform to the
definition of “healthy” foods as defined by the U.S. Department of Agriculture and the
Food and Drug Administration in the Code of Federal Regulations, Title 9, Section
317.363 and Title 21, Section 101;
4.1.6.3 Offering a selection of beverages with no sugar added, such as bottled
water, natural fruit juices, and tomato juice; and
4.1.6.4 Providing food products from California that are as pure and natural as
possible.
Section 4.2 Concessionaire’s Trade Name.
Unless otherwise approved by City in writing, Concessionaire shall conduct business in
the Premises only in Concessionaire’s trade name of “Back on the Beach Café”. Concessionaire
may request a change in trade name, which request shall be subject to reasonable prior written
approval by City.
Section 4.3 Hours of Operation.
4.3.1 Permissible Hours. The hours of operation are subject to approval by the City of
Santa Monica in its regulatory capacity. During all permissible hours of operation,
Concessionaire shall operate its business in accordance with the requirements of this Agreement
in the area of the Premises during the entire Term and Extension Term, if any.
4.3.2 Minimum Days and Hours of Operation. Concessionaire shall maintain the
following minimum business hours unless otherwise agreed to in writing by City:
Café:
• Daily: Opening at 9AM on weekdays, and weekends no later than 8 AM
• Closing will change per season, allowing for breakfast and lunch and
generally, dinner Memorial Day through Labor Day
• Concession may close Thanksgiving Day, Christmas Day and possibly on a
weekday if there are heavy rains.
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AGREEMENT NO. 11238 (CCS)
Equipment Rentals:
• April-September: Daily, hours to be mutually agreed upon with Beach House
management relative to Beach House operating schedule
• October-March: Upon demand during business hours
These hours shall be referred to as the “Minimum Days and Hours”. The Minimum Days
and Hours may be changed by written agreement between Concessionaire and City, acting through
the Director of Community Services, from time to time. The Minimum Days and Hours shall not
apply during the following: (i) periodic remodeling and repair of the effected portion of the
Premises for a period not to exceed thirty (30) days during the Term or Extension Term, if any, of
this Agreement; (ii) the occurrence of Force Majeure events as defined in Section 18.15, below;
and (iii) any time when Concessionaire is prevented from operating by adverse weather.
Additionally, the Minimum Days and Hours shall not apply to Thanksgiving Day and Christmas
Day for the Beach Concession Stands. In the event that Concessionaire exercises its right to close
the business for one of the above stated reasons, excepting (iii) Concessionaire shall provide City
with a written Closure Notice which shall specify the reasons for the temporary closure, dates of
closure, telephone number for contact, along with supporting documents.) Concessionaire shall
provide the Closure Notice as soon as practicable but no later than three (3) days after the closure.
Except as excused in this subsection, Concessionaire's failure to operate for all the Minimum Days
and Minimum Hours shall constitute an Event of Default (as defined in and subject to
Concessionaire's right to cure set forth in Section 15.1).
The Minimum Days and Hours may be changed by written agreement between
Concessionaire and City, acting through the Director of Community Services, from time to time.
In the event that Concessionaire desires after the Commencement Date to modify the Minimum
Days and Hours, Concessionaire shall submit to City a written proposal detailing the proposed
new Minimum Days and Hours along with any explanation therefore. City agrees to consider any
such request in good faith and, in the event that City determines not to approve such request, City
agrees to negotiate with Concessionaire in good faith in an attempt to reach a compromise which
is acceptable to both parties. Notwithstanding any language to the contrary in this paragraph,
Concessionaire recognizes and agrees that City is under no obligation to approve any change in
the Minimum Days and Hours. Concessionaire further recognizes and agrees that in reaching its
decision, City may consider any factors which City, in its reasonable discretion, deems relevant,
and City does not have to consider the volume of Concessionaire's business patronage or lack
thereof, as the deciding factor.
4.3.3 Right to Close. In addition to any powers City has or may have in the future,
including but not limited to any powers due to its governmental capacities, City shall have the
right to require the temporary closure of Premises if, in City’s sole judgment and opinion, crowd
control, weather conditions or other conditions so mandate. Nothing in this provision shall be
deemed as limiting in any manner the City’s regulatory authority to close the Premises.
Section 4.4 Use Restrictions.
Except as otherwise specified in Section 4.1, Concessionaire is expressly prohibited from
conducting any other uses, activities or operations in, on or about the Premises. The restrictions
include, but are not limited to the following:
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4.4.1 Concessionaire shall not at any time use or occupy the Premises, or permit any
act or omission in or about the Premises in violation of Law. Concessionaire shall discontinue
immediately any use of the Premises which is declared by any governmental authority to be a
violation of Law. This definition of Law shall include the rules, regulations, programs and
guidelines of the City and its designee (“City Rules”) and any applicable permits required by
the regulatory agencies, including, but not limited to a Conditional Use Permit or Coastal
Commission Permit. Concessionaire shall discontinue immediately any use of the Premises
which is declared by any governmental authority to be a violation of Law. If any Law shall,
by reason of the nature of Concessionaire’s use of occupancy of the Premises, impose any duty
upon Concessionaire or City with respect to modification or other maintenance of the
Premises, or the use, alteration or occupancy thereof, Concessionaire shall comply with such
Law at its sole cost and expense. This Agreement shall be subject to and Concessionaire shall
comply with all legal covenants, conditions and restrictions affecting the Premises.
4.4.2 Concessionaire shall not at any time use or occupy the Premises in violation of
any temporary or permanent certificates of occupancy issued for the Premises. In the event
Concessionaire receives notice that any department of the State of California, County of Los
Angeles, or the City shall at any time contend or declare that the Premises are used or occupied
in violation of any such certificate or certificates of occupancy, Concessionaire shall
immediately discontinue such use of the Premises and otherwise remedy such violation. The
failure by Concessionaire to discontinue such use shall be considered an Event of Default and
City shall have the right to exercise any and all rights and remedies provided herein or by Law.
The provisions in this Agreement setting forth Concessionaire’s permitted uses of the Premises
shall not be deemed or construed to constitute a representation or guaranty by City that such
business will continue to be lawful or permissible under any temporary or permanent
certificate of occupancy issued for the Premises, or otherwise permitted by Law.
4.4.3 The Premises shall not be used for any purpose in any manner inconsistent with
the Operating Agreement between State and City.
4.4.4 Concessionaire shall not place any vending machines including cash machines
such as ATMs on the Premises without written authorization by City in its proprietary capacity.
Any vending machine so approved shall be the sole responsibility of Concessionaire and shall
be kept in a clean and well-maintained condition, free of graffiti and operational. At its sole
discretion, City may require the site improvements to accommodate the machine and may
require removal of said machine(s) at any time.
4.4.5 The number of on-site parking spaces available for use by Concessionaire
employees shall be determined at the sole discretion of the City. Approved allocations by the
City may vary depending upon the time of year and parking demands generated by the public.
Concessionaire shall use best efforts to minimize employee parking demand and agrees to work
with City to develop and utilize shuttles and other alternative modes of transportation to
minimize on-site employee parking demand.
4.4.6 Concessionaire shall not at any time use or occupy the Premises in a manner that
does not comply with the goals of the City for Labor Peace. For purposes of this Agreement, the
term “Labor Peace” means and refers to any unlawful labor or business practice that (i) impedes
the ability of employees to organize or contract with a labor organization for the purpose of
collective bargaining; or (ii) harasses, intimidates or wrongfully terminates employees seeking
to unionize; or (iii) is in violation of applicable labor law. A violation of this subsection shall
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constitute an Event of Default.
4.4.7 Concessionaire shall not at any time use or occupy the Premises in a manner
that is inconsistent with Article 4 of this Agreement.
Section 4.5 Annual Evaluation of the Concessionaire.
4.5.1 City’s Annual Evaluation. At or around the anniversary of the Commencement
Date each year, or at an alternate time agreed to by City and Concessionaire, City shall perform an
annual evaluation of concession operations to evaluate compliance with the terms of this
Agreement including but not limited to completion of Improvements, financial compliance,
accounting, bonds/insurance, construction, use of Premises, quality assurance, food safety and
sanitation, guest/customer satisfaction, and facility maintenance. A sample of an evaluation form
similar to what will be used for evaluation purposes is attached as Exhibit 8 and incorporated
herein by reference. In the event City seeks access to the Premises for inspection, the City shall
notify Concessionaire as provided herein, and shall permit a representative of the Concessionaire to
be present, if possible.
4.5.2 Concessionaire’s Response, If Any. Upon completion of City’s evaluation, City
shall provide the Concessionaire with a copy of the evaluation for comments, and Concessionaire
shall provide a response, if any, within two weeks from receipt of the evaluation. Concessionaire
shall have an opportunity to cure any unsatisfactory categories in a reasonable timeframe to be
determined by the City. Additionally, if requested by Concessionaire, the parties shall meet to
discuss the evaluation in a reasonable timeframe to be determined by City. The format and content
of the evaluation shall be in the sole reasonable discretion of the City. If the Concessionaire cures
any unsatisfactory categories to the satisfaction of City in a timely manner pursuant to this Section,
City shall amend the evaluation to reflect cure in the corrected categories.
ARTICLE V
RENTAL
Section 5.1 Rental Payable.
5.1.1 Rent Payable by Concessionaire: Commencing from the Commencement Date
and continuing through the Term and Extension Term, if any, Concessionaire covenants and
agrees to pay the City as rental (the “Rent”) for each Rental Year (as defined in Section 1.1.20),
the greater of the following:
5.1.1.1 Minimum Annual Rent in the amount of two hundred thousand dollars
($200,000) (“Minimum Annual Rent” or “Base Rent”); or
5.1.1.2 Percentage Rent equal to eight percent (8%) of the amount of Gross Sales
(as such term is defined in Section 5.1.3)(“Percentage Rent”).
Base Rent shall be subject to annual CPI increases as provided in Section 5.3.
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AGREEMENT NO. 11238 (CCS)
5.1.2 Obligation to Pay Additional Rent. “Additional Rental” means and refer to all
additional sums, charges or amounts of whatever nature to be paid by Concessionaire to City in
accordance with the provisions of this Agreement, whether or not such sums, charges, or
amounts are referred to as additional rent.
5.1.3 “Percentage Rent” means and refers to the amount, if any, by which the Gross Sales
in a month, as defined in Section 5.4, multiplied by eight percent (8%).
5.1.4 “Gross Sales” shall have the meaning set forth in Section 5.4 below.
5.1.5 “Monthly Percentage Rent” means and refers to the amount of Percentage Rent
paid on a monthly basis, in accordance with Section 5.5 below.
5.1.6 “Rent” and “Rental” means and refers to payment of Annual Base Rent, Base
Monthly Rent, Percentage Rent, and Additional Rent, plus any CPI adjustments authorized
herein. Rent shall be prorated on a daily basis for any partial month at the commencement or
expiration of the Term, Extension Term, or Holdover Tenancy, if any.
5.1.7 Net Agreement. All Rent shall be paid absolutely net to City, so that this
Agreement shall yield to City the full amount of the installments of all Rent throughout the Term
and Extension Term, if any, and shall be paid without assertion of any counterclaim, setoff,
deduction or defense and, except as otherwise expressly provided herein, without abatement,
suspension, deferment, diminution or reduction. Under no circumstances or conditions, whether
now existing or hereafter arising, or whether beyond the present contemplation of the parties,
shall City be expected or required to make any payment of any kind whatsoever, including
without limitation, any regular or special assessments levied against the Premises, or be under
any obligation or liability hereunder, except as herein expressly set forth. City shall have no
responsibility for any costs of repair, maintenance or replacement of Premises whatsoever.
Except as otherwise expressly provided herein, this Agreement shall continue in full force and
effect, and the obligations of Concessionaire hereunder shall not be released, discharged or
otherwise affected, by reason of: (i) any damage to or destruction of the Premises or
Improvements or any part thereof or any taking of the Premises or the Improvements or any part
thereof; (ii) any restriction or prevention of or interference with any use of the Premises or the
Improvements or any part thereof which materially interferes with Concessionaire’s possession
or use of the Premises; (iii) any bankruptcy, insolvency, reorganization, composition,
adjustment, dissolution, liquidation or other proceeding relating to City, or any action taken with
respect to this Agreement by any trustee or receiver of City with respect to this Agreement by
any trustee or receiver of City, or by any court, in any proceeding; (iv) any claim which
Concessionaire has or might have against City; or (v) any failure on the part of City to perform
or comply with any of the terms hereof or of any other agreement with Concessionaire. Except
as expressly provided in this Agreement, the obligations of Concessionaire shall be separate and
independent covenants and agreements.
Section 5.2 Payments of Percentage Rent.
Payment of Rent. Concessionaire shall pay all Rent when due and payable, without any
set-off, deduction, or prior demand as follows:
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AGREEMENT NO. 11238 (CCS)
5.2.1 Beginning with the fifteenth (15th) day of the month following the
Commencement Date, and on or before the fifteenth (15th) day of each month thereafter,
Concessionaire shall pay to City the appropriate Percentage Rent fee for the preceding calendar
month concurrently with the submission of Concessionaire’s monthly statement of Gross Sales
and Receipts provided for in Section 5.4 below.
5.2.2 If, at the end of the Fiscal Year, the total of Monthly Percentage Rent payments
made (or due) during that Fiscal Year is less than the Minimum Annual Rent required for that
Fiscal Year, the difference shall be remitted to City with the last monthly sales statement for the
subject Fiscal Year. In the event of a partial Rental Year, the amount of Annual Percentage
Rent due, if any, for such year shall be calculated by projecting the appropriate percentage of
Gross Sales over a full twelve-month period.
5.2.3 Each Fiscal Year shall be considered an independent accounting period for
purposes of computing the amount of Minimum Annual Rent. Concessionaire’s Gross Sales for
any Fiscal Year shall not be carried over to any other Fiscal Year for any purpose whatsoever.
5.2.4 Late Charge. If Concessionaire fails to pay any Rent within ten (10) days after
due, the same shall constitute an Event of Default as provided in Section 15.1. Concessionaire
shall be obligated to pay a late payment charge equal to ten percent (10%) of any Rent not paid
when due to reimburse City for its additional administrative costs (“Late Charge”). In addition,
Rent shall bear interest at the Default Rate from the first day due until paid (“Interest on Late
Payments”). Late Charges and Interest on Late Payments shall constitute Additional Rent and
shall be payable with the next monthly Rent payment.
5.2.5 Payments. Rent shall be paid by check made payable to the City of Santa Monica
and delivered to City at the address specified in Section 17.1 of this Agreement during the City
business hours, or at such other place as City may from time to time designate in writing to
Concessionaire. Additionally, the City will accept wire transfer or credit card payment when
such options are available in the future. Any payment by Concessionaire or acceptance by City
of a lesser amount than shall be due from Concessionaire to City shall be treated as a payment
on account. The acceptance by City of a check for a lesser amount with an endorsement or
statement thereon, or upon any letter accompanying such check, that such lesser amount is
payment in full shall be given no effect, and City may accept such check without prejudice to
any other rights or remedies which City may have against Concessionaire.
Section 5.3 CPI Adjustment.
5.3.1 Definitions. For purposes of this section, the following definitions shall apply:
5.3.1.1 The term “Base Year” means the first Rental Year under this Agreement.
5.3.1.2 The term “Base Index” means the CPI that shall be in effect in the Base
Year.
5.3.1.3 The term “Base Rent” means two hundred thousand dollars ($200,000).
5.3.1.4 The term “Year End Index" shall be the CPI for the month preceding the
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AGREEMENT NO. 11238 (CCS)
start of the Fiscal Year requiring CPI adjustment as required above.
5.3.1.5 The term “Percent Change” shall be the percent change between the Base
Index and Year End Index, calculated as follows:
(Year End Index - Base Index)
Base Index
5.3.1.6 The term “CPI Adjustment” shall be the Base Rent multiplied by the
Percent Change.
5.3.1.7 “Adjusted Minimum Annual Rent” shall be the sum of the Base Rent and
the CPI Adjustment
5.3.2 Annual Adjustments. City shall, as promptly as practicable after the beginning of
each Rental Year, give notice to Concessionaire of the annual adjustment (“Adjustment Date”)
in the Minimum Annual Rent payable for such rental year as determined by City. City’s
computation thereof shall be conclusive and binding (except for mathematical error), but shall
not preclude any further adjustment which may be required. Until receipt of City's notice,
Concessionaire shall pay monthly installments of Minimum Annual Rent at the rate applicable
to the immediately preceding Rental Year. If at the time of City's notice the total of the monthly
installments of Minimum Annual Rent actually paid by Concessionaire with respect to the
elapsed portion of the current Rental Year is less than the amount of Minimum Annual Rent
required to be paid for such period as indicated in City's notice, Concessionaire shall
immediately pay to City the amount of the deficiency.
5.3.3 No Waiver. In the event that the CPI is unavailable as of the Adjustment Date,
Concessionaire shall continue to make rent payments until notified by the City of the CPI
increase. Any delay or failure of City in computing or billing Concessionaire for the escalation
of the Minimum Annual Rent shall not constitute a waiver of or in any way impair the
continuing obligation of Concessionaire to pay such CPI increase. Concessionaire shall provide
a retroactive payment to City of the CPI increase from Adjustment Date to the date of
notification of such increase
Section 5.4 Gross Sales.
5.4.1 Definition of Gross Sales and Receipts. “Gross Sales” means the actual sales price
of all goods, wares, and merchandise sold, leased, licensed, or delivered and the actual charges
for all services performed by the Concessionaire, or any subtenant, licensee, or concessionaire of
Concessionaire, in, at, from, or arising out of the use of the Premises, whether for wholesale,
retail, cash, credit, trade-in, or otherwise, without reserve or deduction for inability or failure to
collect. Gross Sales shall include, without limitation, sales and services (i) where the orders
therefore originate in, at, from, or arising out of the use of the Premises, whether delivery or
performance is made from the Premises or from some other place; (ii) made or performed by
mail, telephone, or computer orders; (iii) made or performed by means of mechanical or other
vending devices in the Premises; (iv) which Concessionaire or any subtenant, licensee,
concessionaire, or other person in the normal or customary course of its business would credit or
attribute to its operations in any part of the Premises; and (v) all revenues and receipts,
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AGREEMENT NO. 11238 (CCS)
generated by or arising from the use of the Premises, including, but not limited to for any
television, radio, movie, studio, photograph promoter, or any other such activity, on, at, or near
the Premises. Any deposit not refunded shall be included in Gross Sales. Each installment or
credit sale shall be treated as a sale for the full price in the month during which such sale is
made, regardless of whether or when Concessionaire receives payment therefore.
5.4.2 The following shall not be included in Gross Sales: (i) sums and credits received in
the settlement of claims for loss or damage to goods or merchandise; (ii) cash or credit refunds to
customers in the ordinary course of business (not to exceed the actual sales price of the item
returned), otherwise included in Gross Sales; (iii) amounts collected and paid by Concessionaire
to any government for any sales, use, or excise tax; (iv) sums and credits received in the
settlement of claims for loss or damage to merchandise or equipment or fixtures; (v) any
exchange of merchandise between stores of Concessionaire where such exchange is made solely
for the convenient operation of Concessionaire’s business and not for the purpose of
consummating a sale made in, at, or from the Premises, or for the purpose of depriving City of
the benefit of a sale which would otherwise be made in or at the Premises; (vi) returns to
shippers or manufacturers; (vii) sales of trade fixtures, machinery, and equipment after use
thereof in the conduct of Concessionaire’s business; (viii) customary complimentary or
discounted portion of sales to employees during the course of their employment; (ix) customary
promotional or manager charges; (x) tips or customer gratuities or tips that are received by
Concessionaire's employees from Concessionaire's operations on the Premises.
Section 5.5 Statements of Gross Sales and Expenditures.
Concessionaire shall deliver to the City the following:
5.5.1 Monthly Report of Gross Sales. Within fifteen (15) days after the close of each
calendar month of the Term, or Extension Term, if any, a verified statement of the concession’s
Gross Sales the preceding month. Such statement shall be in a format acceptable to City and
shall specify the current period and cumulative total of Gross Sales for the concession through
the end of the preceding month for the then current Fiscal Year.
5.5.2 Annual Report of Gross Sales and Expenditures. Within ninety (90) days after the
close of each Fiscal Year, or alternative year period as described below, and authorized by City
in its proprietary capacity, a statement of Gross Sales and Expenditures for the preceding Fiscal
Year which shall conform to and be in accordance with generally accepted accounting
principles. The annual statement shall be accompanied by a signed certificate of an independent
Certified Public Accountant (the “CPA”) stating specifically that (i) the CPA has examined the
report of Gross Sales for the preceding Fiscal Year, (ii) the CPA’s examination included such
tests of Concessionaire’s books and records as the CPA considered necessary or appropriate
under the circumstances, (iii) such reports present fairly the Gross Sales of the preceding Fiscal
Year, and (iv) the said Gross Sales conform with and are computed in compliance with the
definition of Gross Sales contained in Section 5.4, above. Alternatively, Concessionaire may
elect to submit an Annual Report of Gross Sales for a calendar year, tax year, or other 365-day
period, upon written authorization of City. The annual report for any such alternative year
period shall contain all required elements as described above.
5.5.3 City’s Remedies. If Concessionaire shall fail to deliver such annual statement and
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certificate to City within such ninety (90) day period, City shall have the right after notice and
expiration of the cure period to employ an independent Certified Public Accountant or other
qualified auditor (“City’s Representative”) to examine such books and records, including,
without limitation, all records required by Section 5.5, as may be necessary to certify the
amount of Concessionaire’s Gross Sales and Expenditures for such Fiscal Year. If such
examination shows an underpayment of more than 5%, Concessionaire shall pay to City the
amount of the underpayment and the reasonable cost of the City’s Representative as Additional
Rent. If such audit discloses that Concessionaire’s records, in the opinion of such City
Representative, are inadequate to disclose such Gross Sales, City shall be entitled to collect as
Additional Rent, an equitable sum determined by such City Representative, but not exceeding
twenty percent (20%) of the aggregate Monthly Percentage Rent during the period in question
(“Deemed Percentage Rent”). In addition, the City shall have the right to retain a qualified
consultant with experience in the food service industry to prepare and to establish a proper
record system from which Concessionaire and City can determine Gross Sales, using books and
records in a form prescribed by such consultant and Concessionaire shall pay to City as
Additional Rent the costs, consultant’s fees and any other reasonable charges relating thereto.
Section 5.6 Concessionaire’s Records.
5.6.1 Required Records. For the purpose of permitting verification by City of any
amounts due as Rent, Concessionaire covenants and agrees that all business conducted or
originated at the Premises shall be operated so that a computerized point of sale record,
duplicate sales slip, invoice or non-resettable cash register receipt, serially numbered, or such
other device for recording sales as City approves, shall be issued with each sale or transaction,
whether for cash, credit or exchange.
5.6.2 Maintenance of Records. Concessionaire will keep and preserve for at least five
(5) years, and during the Term and Extension Term, if any, shall keep at Concessionaire’s
corporate headquarters, a general ledger, required receipts and disbursement journals, and such
sales records and other supporting documentation together with original or duplicate books and
records which shall disclose in detail all information required to permit City to verify
Concessionaire’s Gross Sales and which shall conform to and be in accordance with generally
accepted accounting principles.
5.6.3 Audits. At any time or from time to time during ordinary business hours and after
ten (10) days advance notice to Concessionaire, City or its consultants, representatives, and/or
accountants, shall have the right during normal business hours (typically Monday through
Friday 9 AM to 5 PM) to make any examination or audit of such books and records which City
may desire. If such audit shall disclose that, in any Rental Year, Rent due is greater than Rent
theretofore paid by Concessionaire for such period, Concessionaire shall pay to City within ten
(10) days of notice thereof the amount of such deficiency. In addition, if such audit shall
disclose that Concessionaire has underpaid by five percent (5%) or more any Rent payable by
Concessionaire the amount of which is based on Gross Sales, then upon thirty (30) days written
notice to Concessionaire, Concessionaire shall pay the cost of such audit, all Monthly
Percentage Rent then payable, plus interest at the Default Rate on such Monthly Percentage
Rent, calculated from the date such additional Monthly Percentage Rent was originally due and
payable. The City may declare an Event of Default after issuance of three notices of deficiency
to Concessionaire.
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Section 5.7 Security Deposit.
5.7.1 Amount of Security Deposit. Concurrently with the execution of this Agreement,
Concessionaire shall pay to City the sum of twenty thousand dollars ($20,000) as the security
deposit to be held as security for the full and faithful performance by Concessionaire of all
obligations imposed under this Agreement (“Security Deposit”).
5.7.2 Application of Security Deposit. City shall be required to keep the Security
Deposit separate from its general funds and Concessionaire shall be entitled to interest thereon
at the rate earned by City, less any reasonable administrative handling fees. If Concessionaire
defaults with respect to any provision of this Agreement, including, without limitation, the
provisions relating to the payment of Rent, Additional Rent, or the cleaning of the Premises
upon the termination of this Agreement, City may, but shall not be required to, use, apply, or
retain all or any part of the Security Deposit for the following: (i) payment of any Rent or any
other sum in default; (ii) payment of any other amount which City may spend or become
obligated to spend by reason of Concessionaire’s default hereunder; (iii) to compensate City for
any other loss or damage which City may suffer by reason of Concessionaire’s default
hereunder; and (iv) all costs and reasonable attorneys’ fees incurred by City to recover
possession of the Premises following a default by Concessionaire hereunder. If any portion of
the Security Deposit is so used or applied, Concessionaire shall, upon demand therefore, deposit
cash with City in an amount sufficient to restore the Security Deposit to the appropriate amount,
as determined hereunder. If Concessionaire shall fully perform every provision of this
Concession to be performed by it, the Security Deposit or any balance thereof (including any
unpaid interest earned thereon) shall be returned to Concessionaire (or, at City’s option, to the
last assignee of Concessionaire’s interest hereunder) within 14 days following the surrender of
the Premises; provided, however, that City may retain the Security Deposit until such time as
any amount due from Concessionaire in accordance with this Article V has been determined and
paid to City in full. No right or remedy available to City as provided in this Section shall
preclude or extinguish any other right or remedy to which City may be entitled.
Section 5.8 Performance Bond.
5.8.1 Amount of Performance Bond. Concessionaire, at its own cost and expense, shall
provide to City a valid performance bond in a form satisfactory to City, issued by a corporate
surety licensed to transact surety business in the State of California, valid throughout the Term,
and Extension Term, if any, of this Agreement and in the sum of one year’s Minimum Annual
Rent. This bond shall insure faithful performance by Concessionaire of all obligations under this
Agreement. After Rental Year One and concurrently with the evaluation of Concessionaire, City
shall assess whether the Performance Bond is required and at what value for subsequent years
during the Term and Extension Term, if any.
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ARTICLE VI
TAXES
Section 6.1 Concessionaire’s Obligation to Taxes.
6.1.1. Possessory Interest Taxes. By signing this Agreement, Concessionaire
acknowledges that occupancy interest and rights to do business on public property being
offered Concessionaire by this Agreement may create a possessory interest as that term is defined
in Revenue and Taxation Code Section 107.6, which possessory interest may subject
Concessionaire to liability for the payment of property taxes levied on such possessory interest.
6.1.2 Obligation to Pay Taxes. Concessionaire agrees to pay all lawful taxes,
assessments, or charges that at any time may be levied by the State, County, City, or any tax or
assessment levying body upon any interest in or created by this contract, or any possessory right
that Concessionaire may have in or to the premises covered hereby, or the improvements thereon
by reason of Concessionaire’s use or occupancy thereof or otherwise, as well as all taxes,
assessments, and charges on goods, merchandise, fixtures, appliances, equipment, and property
owned by Concessionaire in or about the Premises. Concessionaire shall pay in each Tax Year
during the Term and Extension Term, if any, either to City (in which case it shall be deemed as
Additional Rent) or directly to the appropriate taxing authorities, all real estate taxes, bonds, levies
or charges, ad valorem taxes and assessments, general and special assessments, taxes on the
Premises, or any other tax imposed upon or levied against real estate or upon owners of real estate,
including taxes upon leasehold improvements payable with respect to or allocable to the Premises,
all land and all buildings and improvement situated thereon, and Concessionaire's proportionate
share of taxes allocable to the Premises, whether assessed to the Premises or to City. Any taxes to
be paid by Concessionaire under this Article VI shall be paid directly to the proper taxing
authorities when due or, at minimum, not less than ten (10) days prior to delinquency or, if paid to
City, paid within twenty (20) days of receipt of a written request from City.
Section 6.2 Concessionaire’s Obligation to Pay Personal Property Taxes.
Concessionaire shall pay to the appropriate agency not less than ten (10) days prior to due
date, any and all sales, excise, possessory interest and other taxes (not including, however, City’s
income taxes) and license fees or other charges levied, imposed or assessed by any taxing or
levying authority including the State of California and County of Los Angeles whether on its
goods sold or on its leasehold improvements, equipment, furniture, or personal property in or
about the Premises (collectively, “Personal Property Taxes”). In the event any or all of
Concessionaire’s Alterations (as hereinafter defined), leasehold improvements, equipment,
furniture, fixtures or personal property shall be assessed with the real property or as Taxes
charged to City, Concessionaire shall pay all such Personal Property Taxes within twenty (20)
days after delivery to Concessionaire by City of a statement in writing setting forth the amount
of such Personal Property Taxes applicable to Concessionaire's property.
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ARTICLE VII
IMPROVEMENTS
Section 7.1 Concessionaire’s Improvements.
Concessionaire acknowledges that the Premises as described herein are integral to and
part of the larger site of the Annenberg Community Beach House located at 415 Pacific Coast
Highway in Santa Monica. Concessionaire further understands and acknowledges that the
operations and capital improvements contemplated hereunder for the concession are subject to
the operations and schedule of the Annenberg Community Beach House. As such,
Concessionaire agrees to execute a good faith effort to coordinate all operations and required
and discretionary improvement work in conjunction with the overall needs of the site.
7.1.1 Concessionaire’s Cost and Expense. Concessionaire agrees, at its sole cost and
expense, to make certain improvements to the Premises (“Improvements”) in accordance with
the Concessionaire’s Proposal attached as Exhibit 1, and Improvement Plan attached as Exhibit
9 and incorporated herein by reference.
7.1.2 Design Development Plans. Concessionaire shall engage the services of an
architect or structural engineer certified and licensed by the State of California for the design and
planning of the Premises, including all Improvements and any other leasehold improvements
thereon. City shall approve or reject Concessionaire’s architect or structural engineer.
Concessionaire shall prepare design development plans (“Design Development Plans”) for the
Improvements which shall include, but not be limited to, a site plan and floor plan showing the
exterior elevations, the layout of all partitions, walls and doors and specifications to City for its
reasonable approval.
7.1.3 Final Drawings and Specifications. Upon approval of the Design Development
Plans by the City in its proprietary capacity, Concessionaire shall prepare complete, final
architectural working drawings, plans and specifications, including, without limitation,
mechanical, electrical and structural engineering drawings (referred to as the “Final Drawings
and Specifications”) showing in detail all Improvements, including, without limitation, all
ducting for heating, ventilation, and air conditioning (HVAC), as well as the final space plan, the
layout of the partitions, doors, light fixtures, electrical and telephone outlets, wall, floor, window
and door finishes, hardware, material and coverings, and all other improvements.
Concessionaire acknowledges and agrees that the Improvements set forth in the Final Drawings
and Specifications shall be compatible with the design and construction of the Beach House,
including any substructure modifications, conform to the approved Concept Drawings, comply
with all applicable Law, and be of sufficient scope and specificity to lead to the set of plans for
final review and approval by the applicable regulatory agencies, including, but not limited to,
the Landmarks Commission, Planning Commission, and the Coastal Commission.
Section 7.2 Compliance with Law.
The Improvements shall all be compatible with the design and construction of the
existing Premises and shall comply with all applicable Law, including the City of Santa
Monica’s Comprehensive Zoning Ordinance as set forth in Article 9 of the Santa Monica
Municipal Code and the Santa Monica Bay Ordinance of 1973. Concessionaire also
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acknowledges that the Improvements must be satisfactory to, approved by, and in compliance
with, all requirements of all various governmental entities which may have jurisdiction over the
Premises and its improvements in addition to the City, which may include, but are not limited to,
the City Landmark’s Commission, the City Architectural Review Board, the City Planning
Commission, the City Council, the County Health Department, and the State Coastal
Commission. In the event such Improvements do not comply with any of the aforementioned
requirements, Concessionaire shall promptly commence to bring such Improvements into
compliance therewith.
Section 7.3 Submittal to City: Right of Termination.
Concessionaire shall submit the Design Development Plans and Final Drawings and
Specifications to the City for the City’s prior approval prior to submission to the applicable
regulatory agencies for regulatory approval. Concessionaire agrees that it will comply with
and incorporate all reasonable recommendations and requirements of the City in its
proprietary capacity. If, however, City and Concessionaire are unable to reasonably agree on
the Improvements, Concessionaire may terminate this Agreement upon thirty (30) days
notice.
Section 7.4 Amount and Schedule.
Concessionaire agrees to complete the Improvements utilizing only quality materials
and equipment. Concessionaire shall bear the sole cost and expense of the design and
construction of the Improvements, as set forth in the Improvement Plan attached as Exhibit
9. Concessionaire agrees to complete the Improvements in accordance with the construction
schedule that is not to unreasonably interfere with the activities of the Beach House.
Section 7.5 Manner of Construction.
7.5.1 Retention of General Contractor. Promptly following City’s approval of the
Improvement Plan, Concessionaire shall commence and thereafter pursue diligently to
completion the Improvements in accordance with the Law. Concessionaire shall retain a general
contractor (the “General Contractor”), acceptable to the City, for the construction of the
Improvements. The General Contractor must have the following qualifications: (i) an applicable
license from the State of California; (ii) at least five years of experience as a general contractor
in good standing with the State of California; (iii) completion of at least one restaurant project
where the construction contract was $500,000 or more; (iv) ability to provide requisite insurance
and bonding requirements. Concessionaire shall be solely responsible for monitoring the
progress of the Improvements and supervision thereof.
7.5.2 Evidence of Construction Financing. Concessionaire shall provide City with a
final Construction Budget detailing 100% of all costs projected for each phase of the
Improvements, and evidence of available funds or financing sufficient to complete each phase
of the Improvements, no less than 30 days prior to commencement of construction of each
phase (‘Final Construction Budget”). The Final Construction Budget shall be subject to the
written approval of the City if it increases or decreases the total amount by more than five
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percent (5%) of the Construction Budget.
7.5.3 Completion Bond During Construction. Prior to, and as a condition to the
commencement of any construction activities hereunder, Concessionaire shall deliver to City (i)
a copy of the construction contract between Concessionaire and General Contractor which
Concessionaire has entered into for the Improvements, and either (ii) a completion bond in the
amount of $250,000 (“Bond”) issued in the name of the City of Santa Monica by a bonding
company with a rating of at least A:6, or (iii) in lieu of submitting to City a completion bond as
referenced in subsection (ii) the Concessionaire may deposit $250,000 with the City for the City
to hold in escrow pending issuance of a certificate of occupancy and the expiration of the lien
period as security for the faithful performance of the Concessionaire’s construction obligations.
The City shall place funds in an interest-bearing, internal account with interest to the credit of the
Concessionaire.
7.5.4 Insurance. Prior to the commencement of any construction of Improvements
Concessionaire shall require and verify that all contractors and subcontractors maintain
commercial general liability insurance and workers’ compensation insurance as stated in this
Agreement.
7.5.5 Concessionaire shall indemnify, protect, defend, and hold harmless
(collectively, the “Indemnity”) the City and its respective boards, commissions, officers,
employees, contractors and agents, with counsel reasonably acceptable to City, from and
against any and all loss, liability, damage, claim, cost, expense, and/or “increased costs”
(including labor costs, penalties, reasonable attorney’s fees, court and litigation costs, and
fees of expert witnesses) which, in connection with the construction of the Improvements or
which results or arises in any way from any of the following: (1) Concessionaire’s failure to
pay prevailing wages; (2) the implementation of Sections 1726 and 1781 of the Labor Code,
as the same may be enacted, adopted or amended from time to time, or any other similar law;
(3) failure by Concessionaire to provide any required disclosure, representation, statement,
rebidding and/or identification which may be required by Labor Code Sections 1726 and
1781, as the same may be enacted, adopted or amended from time to time, or any other
provision of law; (4) failure by Concessionaire to provide and maintain any and all bonds to
secure the payment to contractors (including the payment of wages to workers performing
any public work) which may be required by the Civil Code, Labor Code Section 1781, as the
same may be enacted, adopted or amended from time to time, or any other provision of law;
and/or (5) failure by Concessionaire to obligate any party as may be required by Labor Code
Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time,
or any other provision of law.
7.5.6 In connection with the construction of the Improvements, Concessionaire shall
bear all risks of payment or non-payment of prevailing wages and/or the implementation of
Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from
time to time, and/or any other provision of law. “Increased costs” as used in this Section shall
have the meaning ascribed to it in Labor Code Section 1781, as the same may be enacted,
adopted or amended from time to time.
7.5.7 Time Period for Performance. Concessionaire shall complete the Improvements
in a timely manner in accordance with Exhibit 9. A Project Schedule setting forth the sequence
of construction of the Improvements shall be established by the parties during the review of the
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Final Plans and Specifications. In the event that there are any construction delays which impact
the Project Schedule, including force majeure, Concessionaire shall notify the City of the reason
for the delay and the anticipated revised dates for performance.
7.5.8 Manner of Work. In connection with the Improvements, Concessionaire shall use
commercially reasonable efforts to ensure that: (i) Concessionaire’s activities will be conducted
in such a manner so as not to unreasonably interfere with the activities of the Beach House and
the neighborhood; (ii) Concessionaire has obtained or will obtain all City approvals required
under this Agreement and/or any applicable governmental approvals, consents, and permits; and
(iii) Concessionaire will promptly remove from the Premises in its entirety all trash,
construction debris, and other waste which may accumulate in connection with Concessionaire’s
activities. Concessionaire and City acknowledge that completion of the Improvements is a
material consideration of City’s agreement to the terms and conditions of this Agreement.
Concessionaire shall comply with the following construction procedures, which may be
amended by the City from time to time in its reasonable discretion:
7.5.8.1 Concessionaire shall not use Premises or any part thereof for use of storage of
materials or equipment or other construction activities without the prior written consent
of the City.
7.5.8.2 Any damage, staining, or defacing of the Premises will be repaired by the
Concessionaire, at Concessionaire’s sole cost and expense.
7.5.8.3 Concessionaire shall provide a temporary construction barrier screened of a
standard design and color as specified by City. The barricade shall be maintained in a
clean and neat manner and free from graffiti for the duration of the construction
activities.
7.5.8.4 Concessionaire shall at all times during the construction of the
Improvements, assure that the area in and around the Premises is maintained in a clean,
neat and orderly manner. Any rubbish caused by the construction of the Improvements
shall be managed and/or removed daily. Should Concessionaire fail to conform to the
requirements of this provision within 48 hours upon request by City, City may cause the
cleaning to be done by others and charge the cost of the same to Concessionaire.
7.5.8.5 No signs of any type shall be placed on or about the Premises Area during the
construction of the Improvements without the prior written consent of the City.
7.5.8.6 Any damage to the Premises arising directly or indirectly from
Concessionaire’s activities shall be promptly repaired by Concessionaire, at
Concessionaire’s sole cost and expense.
7.5.8.7 Payment of Prevailing Wages.
Section 7.6 Mechanics’ Liens.
No work performed by Concessionaire pursuant to this Agreement, whether in the nature
of erection, construction, alteration, repair or improvement of any kind, shall be deemed to be
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AGREEMENT NO. 11238 (CCS)
for the immediate use and benefit of City so that no mechanic’s or other lien shall be allowed
against the estate of City by reason of any consent given by City to Concessionaire to improve
the Premises. Concessionaire shall give City adequate prior written notice of its intent to
commence any construction for which a mechanic’s lien could result so that City may timely
post a notice of non-responsibility. Concessionaire shall pay promptly all persons furnishing
labor or materials with respect to any work performed by Concessionaire or its contractors on or
about the Premises. In the event any mechanic’s or other lien shall at any time be filed against
the Premises or City’s property by reason of work, labor, services or materials performed or
furnished, or alleged to have been performed or furnished, to Concessionaire or to anyone
holding the Premises through or under Concessionaire, Concessionaire shall forthwith cause the
same to be discharged of record or bonded to the satisfaction of City. If Concessionaire shall fail
to cause such lien forthwith to be so discharged or bonded after being notified of the filing
thereof, then, in addition to any other right or remedy of City, City may bond or discharge the
same by paying the amount claimed to be due, and the amount so paid by City including the
reasonable value of legal services received by City either defending against such lien or in
procuring the discharge of such lien, together with interest thereon at the Default Rate, shall be
due and payable by Concessionaire to City as Additional Rent.
ARTICLE VIII
OPERATIONS
Section 8.1 Operations by Concessionaire.
8.1.1 Conduct and Maintenance. Concessionaire will at its expense: (i) keep the inside
and outside of all glass in the doors and windows located in the Premises intact and clean; (ii)
keep all exterior surfaces located on the Premises clean and free of graffiti; (iii) replace promptly
any cracked or broken glass located on the Premises with glass of like grade and quality; (iv)
maintain the Premises in a clean, orderly and sanitary condition and free of insects, rodents,
vermin and other pests; (v) keep any overnight garbage, trash, rubbish or other refuse in rat-proof
containers within the interior of the Premises or in City designated trash containers until
removed; (vi) have such garbage, trash, rubbish and refuse removed on a daily basis; (vii) keep
all mechanical apparatus reasonably free of vibration and noise which may be transmitted
beyond the Premises; (viii) comply with all applicable Law; (ix) light the show windows of the
Premises and exterior signs during Concessionaire’s business hours and turn the same off to the
extent reasonably required by City; (x) comply with and observe all rules and regulations
established by City or its designee; (xi) maintain sufficient and seasonal inventory and have
sufficient number of personnel to maximize sales volume in the Premises; and (xii) conduct its
business in all respects in accordance with high standards of restaurant and retail operation as
reasonably determined by City.
8.1.2 Prohibited Conduct. Concessionaire will not cause, permit or suffer any nuisance
or waste to or of the Premises or any disturbance of the quiet enjoyment of any other
Concessionaire, licensee, occupant, visitor and shall not (i) place or maintain any merchandise
(or permit any vendors to display wares in any manner in or about the Premises), trash, refuse or
other articles in any vestibule or entry of the Premises, on the foot walks or corridors adjacent
thereto or elsewhere on the exterior of the Premises, nor obstruct any driveway, corridor, foot
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walk, or any other common area; (ii) use or permit the use of any objectionable advertising
medium, including, without limitation, loudspeakers, phonographs, public address systems,
sound amplifiers, radio or television broadcasts which are in any manner audible or visible
outside of the Premises without the prior written permission of the City, which may be withheld
in its sole and complete discretion; however, the use of loudspeakers and amplified music in
accordance with Concessionaire’s plan for use submitted to the City and approved by the City
shall be except from this prohibition; (iii) permit undue accumulations of, burn or dump garbage,
discharge of any sewage, trash, rubbish or other refuse within, without or under the Premises;
(iv) cause or permit foul and offensive odors to emanate or to be dispelled from the Premises; (v)
solicit business outside of the Premises except in the normal course of advertising and promoting
Concessionaire's business; (vi) distribute handbills or other advertising matter to, in or upon any
automobiles parked in the parking areas; (vii) permit the parking of vehicles so as to interfere
with the use any area outside of the Premises; (viii) receive or ship articles of any kind outside
the designated loading areas for the Premises; (ix) use any portion outside the Premises for the
sale or display of any merchandise or for any other business, occupation or undertaking; (x)
conduct or permit to be conducted any auction, fire, going out of business, bankruptcy, or other
similar type sale in or connected with the Premises (but this provision shall not restrict the
absolute freedom of Concessionaire in determining its own selling prices, nor shall it preclude
the conduct of periodic seasonal, promotional or clearance sales); (xi) use or permit the use of
any portion of the Premises for any unlawful purpose or for any activity not authorized under
this Agreement; (xii) place a load upon any floor which exceeds the floor load which the floor
was designed to carry; (xiii) use or operate all or any portion of the Premises for any purpose
whatsoever which shall interfere with agreements upon which the Premises is now held or may
hereafter be held by City; (xiv) permit animals of any kind to be brought into the interior of the
building of the Premises except for service animals in compliance with the Americans with
Disability Act and any other animals permitted by the Los Angeles County Health Department;
(xv) permit the Premises or any part thereof to be used for lodging or sleeping; or (xvi) cause or
permit any Hazardous Substances (as defined in Section 1.1.15) to be brought upon, kept or used
in or about the Premises by Concessionaire, its agents, employees, contractors or invitees, except
for Hazardous Substances which is necessary to Concessionaire's business and will be used, kept
and stored in a manner that complies with all Environmental Law regulating any such Hazardous
Substances); or (xvii) cause or permit any violation of Environmental Law.
8.1.3 City’s Remedies for Environmental Violations. If Concessionaire breaches the
obligations stated in Section 8.1.2, or if the presence of Hazardous Substances on the Premises
caused or permitted by Concessionaire results in contamination of the Premises, or the Santa
Monica Bay, or if contamination of the Premises, or the Santa Monica Bay by any Hazardous
Substances otherwise occurs for which Concessionaire is responsible, in addition to such act or
omission constituting a breach of this Agreement and a default hereunder, Concessionaire shall
indemnify, defend and hold City harmless from any and all claims, judgments, damages,
penalties, fines, costs, liabilities or losses (including, without limitation, diminution in value,
damages for the loss or restriction on use of rentable or usable space or of any amenity, damages
arising from any adverse impact on marketing of space, and sums paid in settlement of claims,
attorneys' fees, consultant fees and expert fees) which arise during or after the Term and
Extension Term, if any, as a result of such contamination. This indemnification of City by
Concessionaire includes, without limitation, costs incurred in connection with any investigation
of site conditions or any cleanup, remedial, removal or restoration work required by any federal,
state or local governmental agency or political Subdivision. Without limiting the foregoing, if
the presence of any Hazardous Substances caused or permitted by Concessionaire results in any
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contamination of the Premises or the Santa Monica Bay, Concessionaire shall promptly take all
actions at its sole expense as are necessary to return the Premises or the Santa Monica Bay to the
condition existing prior to the introduction of any such Hazardous Substances to the Premises or
the Santa Monica Bay; provided that City's approval of such cleanup actions shall first be
obtained, which approval shall not be unreasonably withheld so long as such actions would not
potentially have any material adverse long-term or short-term effect on the Premises and Santa
Monica Bay, in City's reasonable discretion.
Section 8.2 Signs and Advertising.
8.2.1 Concessionaire will not place or suffer to be placed or maintained on the exterior
of the Premises, or any part of the interior primarily visible from the exterior thereof, any sign,
advertising matter, or any other thing of any kind, and will not place or maintain any decoration,
letter, or advertising matter on the glass of any exterior window or door of the Premises without
first obtaining the City’s prior written approval, which shall not be unreasonably withheld, and
any required governmental permits or licenses. All signage shall be consistent with applicable
Law and shall be approved by any governmental entities having jurisdiction with respect thereto.
Concessionaire will, at its sole cost and expense, maintain such sign, decoration, lettering,
advertising matter, or other thing as may be permitted hereunder in good condition and repair at
all times.
Notwithstanding the above, Concessionaire may submit for City’s review and approval,
locations and design specifications on the exterior or interior intended to be primarily visible
from the exterior, for materials promoting the business of the Concessionaire. Once City
provides written consent to such locations and design specifications, Concessionaire may not
change the materials placed within such locations and meeting approved design specifications
without further approval of the City.
Maintenance of Signs. At its sole cost and expense, Concessionaire shall maintain such
sign, decoration, lettering, advertising, or other matter as may be permitted hereunder in good
condition and repair at all times.
Section 8.3 Painting and Displays by Concessionaire.
Concessionaire will not change, paint or decorate any part of the exterior of the Premises, or
any part of the interior primarily visible from the exterior thereof, without first obtaining City's
written approval. Concessionaire will install and maintain at all times, subject to the other
provisions of this Article, displays of merchandise in the show windows (if any) of the Premises.
All articles, and the arrangement, style, color and general appearance thereof, in the interior of the
Premises, including, without limitation, window displays, advertising matter, signs, merchandise
and store fixtures, shall be in keeping with the character and standards of the area, as reasonably
determined by City in good faith. City reserves the right to require Concessionaire to correct any
non-conformity and Concessionaire shall correct any deficiencies noted by City within three (3)
business days.
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Section 8.4 Trash Removal Service.
Concessionaire shall be responsible for the payment of trash removal services for the
Premises. Such removal shall occur at intervals sufficient to meet the sanitary and odor-free
requirements of this Agreement. For trash removal services provided by City, Concessionaire
shall pay for services at the rates in effect at the time of service. However, the Concessionaire
may elect to have trash removal services provided by an outside vendor provided that the outside
vendor provides service levels set forth in this Agreement and the Concessionaire pays the
vendor directly for the trash removal services. From time to time, Concessionaire may request a
change in these service levels to consider seasonal fluctuations and the City may, in its sole
discretion, approve modifications to the service levels.
Section 8.5 Off-Hour Delivery.
Except if Concessionaire obtains the prior written consent of City, Concessionaire shall
cause all deliveries of any kind whatsoever to take place during those off-hours during which
time activity upon the Beach House is minimal. For purposes of this Section 8.5, “off-hours”
means those hours each day between 8:00 p.m. and 7:00 a.m., or such extra hours as City shall
from time to time prescribe. City shall have the right to alter “off-hours” from time to time.
Section 8.6 Locks.
No additional locks or bolts of any kind shall be placed upon any of the entry doors or
exterior windows located on the Premises by Concessionaire, nor shall any changes be made in
existing locks or the mechanisms thereof unless City is furnished a key therefore (except for
keys to vaults or safes maintained by Concessionaire in the ordinary course of business), access
to which shall be provided by Concessionaire to City upon reasonable prior notice and in the
company of a representative of Concessionaire. Concessionaire must, upon the termination of its
tenancy, give to City all keys pertaining to the Premises, either furnished to, or otherwise
procured by, Concessionaire. City shall be liable for all such use of City’s key to the Premises.
Section 8.7 Compliance with Law.
Concessionaire, at its sole cost and expense, shall comply with and shall cause the
Premises to comply with (a) all Law affecting the Premises or any part thereof, or the use
thereof, including, but not limited to, those which require the making of any structural,
unforeseen or extraordinary changes, whether or not any such Law which may be hereafter
enacted involves a change of policy on the part of the governmental body enacting the same; (b)
all rules, orders and regulations of the National Board of Fire Underwriters or City’s fire
insurance rating organization or any other bodies exercising similar functions in connection with
the prevention of fire or correction of hazardous conditions which apply to the Premises, and (c)
all rules or regulations promulgated by any regulatory or governmental agency having
appropriate jurisdiction. The preceding requirements include the obligation to make any and all
necessary repairs to or replacement of any equipment, structures, or other physical
improvements on the Premises, if required.
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Section 8.8 Conditions of Approval.
It is expressly understood and agreed to by Concessionaire that the provisions for
operations under this Agreement are subject to the Conditions of Approval for the development
of the Annenberg Community Beach House as dictated by the various approving authorities
including but not limited to the California Coastal Commission and the City Council. In the
event that this Concession Agreement is or becomes inconsistent with the Conditions of
Approval, the rights and obligations of the parties hereto are governed solely and exclusively by
the Conditions of Approval and the applicable laws of the State of California, but in no event
shall City have any responsibility or incur any liability to Concessionaire as a result of any such
inconsistency.
Section 8.9 Intellectual Property of Respective Parties
8.9.1 City’s Intellectual Property. Concessionaire acknowledges that the City owns all
copyrights, trademarks and other proprietary rights in and to the name “City of Santa Monica,”
“Annenberg Community Beach House at Santa Monica State Beach,” graphic or other
representations of the sign, any names, logos, trademarks, trade names, service marks, artwork,
photographs, copyrights and other rights and/or material relating to the City of Santa Monica
and/or its sign (collectively the “Marks”). City does not grant to Concessionaire any rights in
and to the Marks hereunder. In the event Concessionaire requests the right to use any of the
Marks, such request shall be submitted in writing to the City and may be denied in the City’s
sole discretion. It is understood that Concessionaire has the right to use the words “City of Santa
Monica” and/or “Annenberg Community Beach House at Santa Monica State Beach” in
connection with the premises hereunder so long as such usage serves to describe the geographic
location of Premises hereunder and does not include any of the Marks other than the words “City
of Santa Monica” And/or “Annenberg Community Beach House at Santa Monica State Beach.”
Concessionaire agrees not to use City’s Marks, in any manner, except as a location
reference, without prior written approval of the City, which can be withheld in its sole discretion.
Subject to the foregoing, Concessionaire may use the name “City of Santa Monica” and/or
“Annenberg Community Beach House at Santa Monica State Beach” on its advertising materials
without the City’s prior written approval.
8.9.2 Concessionaire’s Intellectual Property. Concessionaire has and shall have the
exclusive right to market the name “Back on the Beach Café” and all other trademarks and
service marks approved by the City pursuant to this Agreement.
City shall have no obligation to enforce use of Concessionaire’s trade name, and
Concessionaire’s sole remedy for any violation of this Section shall be a proceeding for
injunctive relief and/or damages directly against the party allegedly violating Concessionaire’s
exclusive use granted hereunder. In no event shall Concessionaire be permitted to terminate this
Agreement or to withhold or offset any Rent or other amounts due City from Concessionaire
hereunder. In the event that City shall become involved in any such dispute either at the request
of Concessionaire or due to actions taken by the other party, Concessionaire shall pay for all
costs, including attorneys’ fees, reasonably incurred by City in connection therewith. City
makes no warranty or representation to Concessionaire, express or implied, concerning the
enforceability of this Section under federal, state or local law. Concessionaire agrees not to
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conduct any activities on the Premises which are not expressly permitted by the use provisions
elsewhere contained in this Agreement.
City agrees that all advertising by City using Concessionaire’s logo and/or
Concessionaire’s name will give notice of the fact that Concessionaire’s logo and/or
Concessionaire’s name are registered trademarks and/or registered tradenames.
City acknowledges and agrees that all signs, and any property bearing any of
Concessionaire’s trade names, trademarks or logos, whether registered or unregistered
(collectively “Concessionaire’s Intellectual Property”), shall not be deemed to become a part of
the Premises however attached to or incorporated into the Premises, and whether, or not they
become a component part of the Premises, the Concessionaire’s Intellectual Property are and
shall remain the property of Concessionaire. To the extent that Concessionaire’s Intellectual
Property is located on the Premises, Concessionaire may remove Concessionaire’s Intellectual
Property from the Premises at any time prior to the termination of this Agreement.
Section 8.10 City’s Licensing Program
Concessionaire acknowledges that City may engage in sponsorship programs which may
be applicable to Concessionaire. Concessionaire agrees that Concessionaire shall participate in
and be subject of such sponsorship program(s) so long as the terms of sponsor products, goods
and/or services are at least as favorable to Concessionaire as the terms of agreements applicable
to the same products, goods and/or services supplied to Concessionaire for use on the Premises
at the time of City’s request for Concessionaire participation; provided that such sponsorship
program does not violate any contractual agreements entered into by Concessionaire.
Section 8.11 Disability Access Law.
8.11.1 Compliance with Disabilities Access Law and Access to Wheelchairs. Without
limiting Concessionaire's responsibility under this Agreement for compliance with Laws, with
regard to all operations and activities that are the responsibility of Concessionaire under this
Agreement, Concessionaire 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 (and including Titles I, II, and III of that law)], the
Rehabilitation Act of 1973, and all related regulations, guidelines, and amendments to both laws.
Concessionaire shall be solely responsible to complete necessary modifications to Premises to meet
ADA requirements prior to the end of first Rental Year. With regard to facilities which
Concessionaire is responsible for operation, maintenance, construction, restoration, or renovation
under this Agreement, Concessionaire 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. Written approval from State is required prior to implementation of any plans to
comply with accessibility requirements. These facilities must be compliant with the 2010 ADA
Standards for Accessible Design, California Building Code, Title 24 Chapter 11B (latest edition),
Accessibility to Public Accommodations, and the Final Accessibility Guidelines for Outdoor
Developed Areas put forth by the United States Access Board.
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8.11.2 CASp Inspection of Premises. In accordance with California Civil Code §
1938, City states as follows: the Premises have not undergone inspection by a Certified Access
Specialist (CASp). Concessionaire acknowledges and agrees that a CASp can inspect the Premises
and determine whether the Premises comply with all of the applicable construction-related
accessibility standards under state law. Although state law does not require a CASp inspection of
the Premises, City may not prohibit Concessionaire from obtaining a CASp inspection of the
Premises for the occupancy or potential occupancy of the Concessionaire, if requested by
the Concessionaire. The parties shall mutually agree on the arrangements for the time and manner
of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making
any repairs necessary to correct violations of construction-related accessibility standards within the
Premises. The agreement that the parties agree upon the cost of making any repairs necessary to
correct violations of construction-related accessibility standards within the Premises shall not
release Concessionaire from Concessionaire’s obligations under Section 8.11.1of this Agreement
or other obligations of this Agreement and shall be consistent with the terms of this Agreement.
ARTICLE IX
REPAIRS AND ALTERATIONS
Section 9.1 Repairs to Be Made By City.
City shall not at any time be required to maintain or to make any improvements or
repairs whatsoever to the Premises or the equipment therein. City may, at its sole discretion, and
solely to the extent that City funds are available or funds are available to the City and
specifically allocated for the improvement and maintenance of the Premises, make, or cause to
be made, structural repairs to the Premises. Notwithstanding the foregoing, if the necessity for
such structural repairs arises from or is caused by the negligence or willful acts or omissions of
Concessionaire, its agents, concessionaires, officers, directors, employees, licensees, invitees or
contractors, City may, whether or not City funds are available, make or cause the same to be
made, but shall not be obligated to do so, and Concessionaire agrees to pay to City within thirty
(30) days following City’s demand therefore, as Additional Rent, the cost of such repairs, if
made, with interest thereon at the Default Rate from such tenth day until paid. In the event City
elects not to make such repairs caused by Concessionaire’s negligence or willful misconduct or
omission, City may require Concessionaire to make such repairs at Concessionaire’s sole cost
and expense, and Concessionaire agrees to make such repairs at Concessionaire’s sole cost and
expense and within the reasonable time periods set forth by City. Failure by Concessionaire to
complete the repairs during the applicable time period set forth in this Agreement shall
constitute an Event of Default.
Section 9.2 Repairs to Be Made By Concessionaire.
9.2.1 Concessionaire shall be responsible for the maintenance and repairs of the
Premises. Concessionaire will keep the Premises and every part thereof, including any ceilings,
all exterior or interior walls, doors, plate glass, utility systems, meters, pipes, conduits, fixtures,
fire sprinkler systems, electrical, plumbing and other mechanical systems, the store fronts and
Concessionaire’s signs, locks and closing devices and window sashes, frames, door and door
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frames, therein, thereunder or outside the Premises in first class, clean, safe and attractive order,
condition and repair, free of graffiti, and will make all replacements from time to time required
thereto at its expense. Concessionaire shall also maintain the air conditioning and heating
equipment in good condition and repair. Concessionaire will not overload the electrical wiring
or plumbing serving the Premises or within the Premises, and will install at its expense, subject
to the provisions of Section 9.4, any additional electrical wiring or plumbing which may be
required in connection with Concessionaire’s apparatus. Any damage or injury sustained by any
person because of mechanical, electrical, plumbing or any other equipment or installations,
whose maintenance and repair shall be the responsibility of Concessionaire, shall be paid for by
Concessionaire, and Concessionaire shall indemnify and hold City harmless from and against
all claims, actions, damages and liability in connection therewith, including, but not limited to
attorneys’ and other professional fees, and any other cost which City might reasonably incur.
Subject to the notice provisions set forth in Section 9.5, below, Concessionaire consents to
inspections by City for maintenance and agrees to promptly correct each and every violation.
9.2.2 City’s Ability to Enter Premises. If Concessionaire fails to correct any unsafe,
unclean, or unsanitary condition within 72 hours after being notified in writing to do so by City,
then City may enter the Premises and remedy the condition or conditions, and charge the cost to
Concessionaire, as Additional Rent, without any liability for any resulting business loss or
damage, except that if a matter reasonably requires more than 72 hours to correct, City’s right
to enter and effect repairs provided in this Section shall arise if Concessionaire fails to begin to
correct the condition within such 72-hour period or fails to diligently pursue such correction
thereafter. In the event of an emergency, City may immediately enter the Premises to remedy
any unsafe, unclean, or unsanitary condition and charge the cost to Concessionaire. City shall
notify Concessionaire of such emergency as soon as reasonably possible. Concessionaire
expressly waives the benefits of any statute now or in the future in effect which would
otherwise afford Concessionaire the right to make repairs at City's expense or to terminate this
Agreement because of City's failure to keep the Premises in good order, condition or repair,
under applicable Law, including without limitation, California Civil Code Sections 1940, 1941
and 1942.
Section 9.3 Damage to Premises.
Concessionaire will repair promptly at its expense any damage to the Premises, and,
upon demand, shall, in accordance with the provisions of Section 9.2, reimburse City as
Additional Rent for the cost of the repair of any damage of the Premises, caused by or arising
from the installation or removal of property in or from the Premises or any other activity in the
Premises, except where such damage is caused by the sole active negligence or the willful
misconduct of the City or its agents. If Concessionaire fails to commence such repairs within 5
days after notice to do so from City, City may make or cause the same to be made and
Concessionaire agrees to pay to City within ten (10) days of City’s demand, as Additional Rent,
the cost thereof with interest thereon at the Default Rate until paid. The City will reasonably
cooperate in any action by Concessionaire against a third party to recover its costs and expenses.
Section 9.4 Alterations by Concessionaire.
Following completion of the Improvements, Concessionaire will not make any
alterations, renovations, improvements, repairs, or otherwise demolish or remove all or any part
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of the Premises or any improvements or any installations in, on, or to the Premises or any part
thereof (including, without limitation, any alterations of the store front or signs, structural
alterations, or any cutting or drilling into any part of the Premises) (collectively “Alterations”)
unless and until Concessionaire shall have (a) obtained the prior written consent of City and (b)
complied with all such requirements concerning such Alterations as may be imposed by City
from time to time. If such approval is granted, Concessionaire shall cause the work described in
any approved plans and specifications to be performed, at its expense, promptly, efficiently,
competently and in a good and workmanlike manner by duly qualified or licensed persons or
entities, using first grade materials, without interference with, or disruption to, the operations of
the Beach House. All such work shall comply with all applicable Laws, ordinances and
regulations.
City shall condition its consent to any Alterations, including Improvements, on
Concessionaire’s retention of an architect or structural engineer reasonably satisfactory to City
who shall supervise the construction thereof in accordance with Final Drawings and
Specifications approved in advanced by City. Upon completion of any work, Concessionaire
shall cause a Notice of Completion to be recorded in the Office of the Los Angeles County
Recorder in accordance with Section 3093 of the California Civil Code.
Upon termination of the Agreement, all Alterations made by Concessionaire to the
Premises, including, but not limited to, Improvements, shall automatically become owned by,
and the property of, City. All personal property, furniture, trade fixtures equipment and signs
installed by Concessionaire or subtenants shall be and remain the property of the person, firm or
corporation installing the same and shall be removable at any time during the term of this
Agreement so long as Concessionaire shall not be in default under the terms hereof and except as
otherwise provided in Section 3.4. The removal of any such fixtures, equipment and signs shall
be completed within 10 business days of the expiration or earlier termination of this Agreement,
at Concessionaire’s expense and Concessionaire shall repair any damage or injury to the
Premises or any building or structure located thereon occasioned by the installation or removal
thereof and shall reimburse City for any damage caused thereby.
Notwithstanding any language to the contrary in this Section, Concessionaire shall not be
required to obtain City’s prior written consent to non-structural Alterations to the extent that the
cost of such Alterations does not exceed $30,000 and as adjusted by the CPI from year to year
pursuant to Section 5.3 in any twelve (12)-month period. Concessionaire shall, however, send
notice to City of any such Alterations in excess of $5,000 that are being done without City’s
prior written consent and shall comply with all other provisions of this Section.
Section 9.5 Access and Inspections By City.
City and City’s agents shall have the right to enter the Premises at all reasonable times
during regular business hours to conduct safety inspections, to examine the Premises, to show
the Premises to prospective purchasers, lenders or Concessionaires of the Premises and to make
such repairs, alterations, improvements as may be required, without the same constituting an
eviction of Concessionaire, in whole or in part, or a trespass. Except in the event of an
emergency, City shall endeavor, if at all possible, to conduct such inspections, showings or
repairs before or after normal business hours and to provide Concessionaire with no less than
forty eight (48) hours notice, which shall be in writing, by email, or, orally or telephonically,
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provided personal contact to Concessionaire’s representative is made. If said repairs, alterations,
improvements or additions cause substantial loss or interruption of Concessionaire’s business
for more than one day and such work is not necessitated by actions or omissions on the part of
Concessionaire, rent shall abate on a pro rata basis during the time Concessionaire’s business is
substantially interrupted. Nothing contained herein shall be deemed or construed to impose upon
City any obligation, responsibility or liability whatsoever for the care, maintenance or repair of
the Premises, or any part thereof, except as otherwise specifically provided in this Agreement.
ARTICLE X
UTILITIES
Section 10.1 Water, Electricity, Gas and Sanitary Sewer.
City will provide at points in or at a boundary of the Premises the facilities necessary to
enable Concessionaire to obtain for the Premises water, electricity, gas, telephone, internet and
sanitary sewer service for the operation of the Concessionaire’s business. Concessionaire shall
not overburden or exceed the capacity of the mains, feeders, ducts, conduits, or other facilities by
which such utilities are supplied to, distributed in or serve the Premises. If Concessionaire
desires to install any equipment which shall require additional utility facilities or utility facilities
of a greater capacity than the facilities provided by City, such installation shall be subject to
City’s prior written approval (which shall not be unreasonably withheld) of Concessionaire’s
plans and specifications therefore. If such installation is approved by City and if City provides
such additional facilities to accommodate Concessionaire’s installation, Concessionaire agrees to
pay City, on demand, the cost for providing such additional utility facilities or utility facilities of
greater capacity.
City, at its sole discretion, shall have the right from time to time, to alter the method and
source of supply of electricity to the Premises as long as such change in service shall be of at
least comparable quality and quantity to the prior service, and Concessionaire agrees to execute
and deliver to City such documentation as may be required to effect such alteration.
Concessionaire shall have no obligation to pay capital costs incurred by City for such alteration.
Concessionaire agrees to pay all charges for electricity supplied by City, public utility or public
authority, or any other person, firm or corporation.
City shall not be responsible for providing any meters or other devices for the
measurement of utilities supplied to the Premises. Concessionaire shall make application and
arrange for the installation of all such meters or other devices, and Concessionaire shall be solely
responsible for and promptly pay, as and when the same become due and payable, all charges for
water, sewer, electricity, gas, telephone and any other utilities used or consumed in the Premises.
Section 10.2 Utilities Costs.
Concessionaire shall pay all charges for all heat, water, gas, electricity, light, power,
telephone and sewer or other services used by it and supplied by City, a public utility or public
authority, or any other person, firm or corporation. If any portion of the Premises is separately
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metered, Concessionaire shall be responsible for all of the charges incurred by such separate meter.
In the event that the meter is shared with other City uses, Concessionaire shall pay for its pro rata
portion of such utility charges.
Section 10.3 Heating, Ventilating and Air-Conditioning.
In the event City elects to provide heating, air-conditioning or ventilation to the Premises,
Concessionaire covenants and agrees to pay to City, as Additional Rent, all charges as the same
may be adjusted from time to time, for heating, ventilation and air conditioning (if any), whether
supplied by City, or through City by a public utility or public authority. Concessionaire shall have
no obligation to pay capital costs incurred by City in connection with these services if such election
is solely made by City.
Section 10.4 Fire Protection System.
Concessionaire shall, at its cost and expense, install and maintain a fire protection system in
the Premises that complies with all federal, state and local ordinances, rules and regulations.
Concessionaire may comply with this Section 10.4 through the maintenance of an Ansel System in
compliance with applicable regulations, including California Fire Code and California Code of
Regulations Title 19, and proof of compliance thereof. Concessionaire shall provide to the City
proof of compliance with the certification requirements issued by a stated licensed contractor every
six months and in the event that Concessionaire is unable to provide proof of compliance with the
certification requirements, then the Concessionaire shall, at its sole cost and expense, upgrade the
Ansel System to a UL300 compliant wet system or other fire protection system approved by the
City.
Section 10.5 City’s Right to Alter Utilities.
City, at its sole discretion, reserves and shall at all times, have the right to alter the
utilities, including. but not limited to, heating, ventilating and air-conditioning systems and
equipment serving the Premises, and Concessionaire agrees to execute and deliver to City
without delay such documentation as may be required to effect such alteration. City will make
best efforts to minimize adverse impacts such changes would have on Concessionaire and to
take into consideration Concessionaire’s needs prior to any alteration.
Section 10.6 Discontinuances and Interruptions of Utility Services.
City shall not be liable to Concessionaire in damages or otherwise (a) if any utility shall
become unavailable from any public utility company, public authority or any other person or entity
(including City) supplying or distributing such utility, or (b) for any interruption in any utility
service (including, without limitation, any electricity, water heating, ventilation or air-conditioning)
caused by Concessionaire's failure to pay such utility services, the making of any necessary repairs
or improvements or by any cause beyond City's reasonable control, and the same shall not
constitute a termination of this Agreement or an eviction of Concessionaire. The City shall have no
liability to the Concessionaire resulting from any interruption of utility services, including, but not
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limited to, business loss resulting from food spoilage.
ARTICLE XI
NONLIABILITY AND INDEMNIFICATION
OF CITY; INSURANCE
Section 11.1 Indemnity By Concessionaire.
Concessionaire shall indemnify, protect, hold harmless, and defend City, including, but not
limited to, the City of Santa Monica, the City Council, boards and commissions of the City of
Santa Monica, its officers, agents, employees, volunteers (collectively “the City Indemnitees”)
from and against any and all demands, claims, actions, suits, judgments, damages, liability, cost
and expense, including, but not limited to attorneys' and other professional fees or the value of any
legal services received, arising directly or indirectly from or in any way related to the following:
(i) the construction, repair, alteration, financing, improvement, possession, occupancy, use, or
enjoyment of the Premises by Concessionaire or any officer, agent, contractor, employee,
customer, guest or invitee thereof, (ii) Concessionaire's business, activities, operations, services or
work conducted in, on or about the Premises; (iii) any breach or default in the performance of any
obligation on Concessionaire's part to be performed under the terms of this Agreement; (iv) any
negligent or wrongful act or omission of Concessionaire, any officer, director, agent, contractor,
employee, customer, guest or invitee of Concessionaire; and (v) furnishing or supplying any work,
services, materials, equipment or supplies by any persons, firms, corporations or other entities in,
on or about the Premises. Concessionaire's obligation to indemnify, defend and hold harmless
shall exist regardless of the active or passive negligence of the City Indemnitees; however,
Concessionaire shall have no obligation to indemnify, protect, defend or hold harmless where the
claim arises from the sole active gross negligence or willful misconduct of the City Indemnitees.
Section 11.2 Waiver of Claims.
Concessionaire, as a material part of the consideration of this Concession, hereby waives
all claims against City and City shall not be liable for damages to Concessionaire’s business or
any loss of income, for damages to the goods, wares, merchandise, buildings, installations or
other improvements in, upon, or about the Premises, or for injuries to Concessionaire, its agents
or employees, or persons in or about the Premises from any cause arising at any time, including,
without limitation, damages, costs, and liability of any kind or nature whatsoever.
Concessionaire will hold City exempt and harmless from any damages or injury to any person, or
to the goods, wares, merchandise, watercraft, facilities, or other property of any person arising
from the use of the Premises by Concessionaire or from the failure of Concessionaire to keep the
Premises in good condition and repair, as herein required.
Section 11.3 City Not Responsible for Acts of Others.
City shall not be responsible or liable to Concessionaire, or to those claiming by, through,
under, or against Concessionaire, and Concessionaire hereby waives all claims against City, for
any personal injury, death, loss or damage to personal property which may be occasioned by or
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through the acts or omissions of persons (a) visiting the Premises, or (b) occupying space
adjoining the Premises, adjacent to or connecting with the Premises , or for any loss or damage
resulting to Concessionaire, or those claiming by, through or under Concessionaire, or its or their
property, from the breaking, bursting, stoppage or leaking of electrical cable and wires, and
water, gas, sewer or steam pipes. To the maximum extent permitted by Law, Concessionaire
agrees to use and occupy the Premises at Concessionaire’s own risk.
Section 11.4 Concessionaire’s Insurance.
Prior to commencing occupancy of the Premises, Concessionaire shall procure, maintain
and pay for insurance against claims for injuries to persons or damage to property that may arise
from or in connection with Concessionaire’s possession, occupancy, operation and use of the
Premises by Concessionaire, its directors, officers, agents, representatives, employees,
contractors, subcontractors, volunteers, guests, customers, and invitees. Concessionaire must
obtain insurance that, at a minimum, meets the requirements for insurance set forth in the
Insurance Requirements attached as Exhibit 10 and incorporated herein by reference.
ARTICLE XII
DAMAGE AND DESTRUCTION
Section 12.1 Obligation to Repair or Reconstruct the Premises.
In the event of damage to the Premises or any improvements thereon by fire, earthquake,
flood, tidal wave, other elements, accident or any other casualty whatsoever (collectively
referred to as a “Casualty”), and the City reasonably determines that the Premises are
structurally sound, Concessionaire may elect, upon written notice thereof (“Structural
Soundness Notice”), at its sole cost and expense, to promptly repair, restore, and rebuild the
Premises to its condition existing immediately prior to such damage or destruction and upon
such election this Agreement will remain in full force and effect.
Concessionaire shall cause such repair, reconstruction or restoration to be commenced
within 30 days from the date of the Structural Soundness Notice subject to City’s approval of
plans and specifications for the repair, reconstruction or restoration and Concessionaire
obtaining all necessary permits and approvals. All repairs, reconstruction or restoration by
Concessionaire must be completed within 60 days from the date of the Structural Soundness
Notice, unless otherwise extended by the City in writing. Concessionaire shall procure, at
Concessionaire’s sole cost and expense, a lien and completion bond to insure against mechanics
or materialmen’s liens arising out of the repair, reconstruction or restoration and to insure
completion of the repair, reconstruction or restoration.
If in City’s determination, the Premises have been rendered wholly or partially unsound
such that, in City’s opinion, the Premises must be repaired before Concessionaire can
commence to repair, rebuild, or restore the Premises, then, subject to the provisions of this
Agreement, City may elect, at its option and in its sole discretion, to cause such damage to the
Premises to be repaired. If, however, damage to the Premises is caused by the gross negligence
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or willful misconduct or omission of Concessionaire, its agents, concessionaires, officers,
employees, contractors, licensees, or invitees, then Concessionaire shall pay in full (whether
covered by insurance or not) for the cost of repairing, rebuilding or restoring the Premises to the
condition it was in prior to such damage or destruction. After repairing, rebuilding, and
restoring the Premises, and giving a Structural Soundness Notice to Concessionaire,
Concessionaire shall then repair, reconstruct, or restore the Premises in accordance with the
foregoing requirements. Notwithstanding the foregoing, in the event of a Casualty occurring in
the final twenty-four (24) months of the Term, or Extension Term, if any, Concessionaire may
elect, by written notice to City, not to rebuild the Premises and to terminate this Agreement
subject to the survival of the insurance obligations.
Section 12.2 City Not Obligated to Repair or Reconstruct.
In the event of any damage that renders the Premises unsound in the City’s opinion, City
shall have no obligation to restore or to reconstruct the Premises. However, City may, in its sole
discretion, elect to do so and, if it does, the provisions of Section 12.1 shall apply to such repairs
and/or reconstruction.
Section 12.3 Termination of the Agreement.
Provided that Concessionaire is not responsible in part or in whole for the damage to the
Premises and if City elects not to restore the Premises within 180 days from the date of Casualty,
and Concessionaire elects not to restore the Premises under the provisions of Article 12.1, then
either City or Concessionaire can terminate this Agreement upon thirty (30) days notice. None
of the City Indemnitees shall be liable for interruption to Concessionaire’s business or for
damage to or replacement or repair of Concessionaire’s personal property (including, without
limitation, inventory, trade fixtures, floor coverings, furniture, equipment, vehicles and other
property removable by Concessionaire under the provisions of this Agreement) or to any
leasehold improvements installed in the Premises.
Section 12.4 Closure.
If the Premises shall be damaged such that it is reasonably necessary, in City’s reasonable
judgment, to close the Premises for safety, reconstruction or other purposes, City may close the
same for such time as it reasonably determines.
Section 12.5 Insurance Proceeds.
Except as otherwise specifically provided herein, all insurance proceeds payable with
respect to the Premises (excluding proceeds payable to Concessionaire for Concessionaire’s
personal property, including Concessionaire’s trade fixtures, furnishings and equipment or
Business Interruption) shall be payable to City, subject to Concessionaire’s right to use any such
insurance proceeds to satisfy its repair and restoration obligations hereunder.
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Section 12.6 Advance Payments.
Upon termination of this Agreement pursuant to Section 12.3, above advance payments
made by Concessionaire shall be reimbursed to Concessionaire within 30 days of Agreement
termination.
Section 12.7 Waiver.
City and Concessionaire waive the provisions of Civil Code sections 1932(2) and
1933(4), and any successor statutes, and agree that such statutes are inapplicable with respect to
any destruction of any part of the Premises; such statutes relate to termination of Agreements
when leased property is destroyed. City and Concessionaire agree that such event shall be
governed by the terms of this Agreement to the extent of any conflict between said statutes and
this Agreement.
Section 12.8 Rent Abatement.
Concessionaire will be entitled to an abatement or reduction of Rent in the event all of
the following occur: (i) a Casualty which prevents the Concessionaire from using the Premises,
or any portion thereof, for thirty (30) cumulative days in any Agreement Year (“Period of
Nonuse”); (ii) the Concessionaire cannot and does not use the Premises for the Period of Nonuse
as a result of such Casualty; (iii) Concessionaire’s business interruption insurance required by
this Agreement does not fully cover such Casualty during the Period of Nonuse; and (iv) such
Casualty did not arise directly or indirectly, in whole or in part, by any act or omission by the
Concessionaire, its officers, directors, agents, employees, representatives, contractors,
subcontractors, volunteers, customers, guests, or invitees. The abatement or reduction of the
Rent pursuant to this Section 12.8 shall be limited to the Rent owed only for the Period of
Nonuse. In the event that the Concessionaire qualifies for abatement or reduction of Rent under
this Section 12.8, then the amount of abatement or reduction shall be in proportion to the amount
of Premises Floor Area that the Concessionaire cannot and does not use as a result of such
Casualty. The Rent Abatement shall only apply to Floor Area of the Premises that is subject to a
Casualty and supported by the Concessionaire by evidence of financial impact and compliance
with this Section 12.8.
ARTICLE XIII
CONDEMNATION
Section 13.1 Effect of Taking.
If the Premises or any portion thereof is taken under the power of eminent domain, this
Agreement shall terminate as to the part so taken on the date Concessionaire is required to yield
possession thereof to the condemning authority. In the event that only a portion of the Premises
is subject to condemnation, City shall make such repairs and alterations as may be necessary in
order to restore the part not taken to useful condition and all Rent (other than any Additional
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Rent due City by reason of Concessionaire’s failure to perform any of its obligations hereunder)
shall be reduced in the same proportion as the number of square feet contained in the Premises
which were so taken bears to the number of square feet in the Premises immediately before such
condemnation. If, in Concessionaire’s commercially reasonable judgment, the remainder of the
Premises becomes unsuitable for the Permitted Use described in Section 4.1 as a result of the
taking, then either party may terminate this Agreement as of the date when Concessionaire is
required to yield possession by giving notice to that effect within thirty (30) days before such
date.
If fifty percent (50%) or more of the Premises is taken by condemnation, then City may
elect to terminate this Agreement as of the date on which possession thereof is required to be
yielded to the condemning authority, by giving notice of such election within ninety (90) days
before such date. If any notice of termination is given pursuant to this Section, this Agreement
and the rights and obligations of the parties hereunder shall cease as of the date of such notice
and Rent (other than any Additional Rent due City by reason of Concessionaire’s failure to
perform any of its obligations hereunder) shall be adjusted as of the date of such termination.
Section 13.2 Condemnation Awards.
All compensation awarded for any taking of the Premises or any interest in either shall
belong to and be the property of City, and Concessionaire hereby assigns to City all rights with
respect thereto; provided, however, nothing contained herein shall prevent Concessionaire from
applying for reimbursement from the condemning authority (if permitted by Law) for moving
expenses, the expense of removal of Concessionaire’s trade fixtures, loss of Concessionaire’s
business goodwill, loss of the Improvements paid for by Concessionaire or any other loss
incurred by Concessionaire, but if and only if such action shall not reduce the amount of the
award or other compensation otherwise recoverable from the condemning authority by City for
improvements paid for by City.
ARTICLE XIV
ASSIGNMENTS AND SUBLETTING
Section 14.1 No Assignment and Subletting Without Prior Written Consent from City.
Except as otherwise permitted herein, Concessionaire shall not assign, hypothecate or
transfer this Agreement or any interest herein or sublet the Premises or any portion thereof by
operation of law or otherwise (generally, a “Transfer”) to any person or entity (“Transferee”)
without the prior written consent of the City, which consent shall not be unreasonably withheld.
Any attempt to assign or sublet without complying with the foregoing shall be null and void, and
any assignee, sublessees, lienholder or transferee shall acquire no right or interest by reason of such
attempted Transfer. Nothing in this Section 14 shall be construed to preclude the right of the
Concessionaire to fully and completely transfer or sell any shares in its corporation to include its
assets and/or sell ownership in any or all equipment or any part of its operation to a new entity
upon termination of this Agreement.
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Section 14.2 Grounds for Denying Consent.
Concessionaire and City acknowledge that City would not enter into this Agreement but for
the business experience, reputation and expertise of the principals of the Concessionaire as of the
Commencement Date. Accordingly, and without waiving City's other rights of approval, any
proposed Transferee shall not be approved unless City has determined, as minimum requirements,
that such proposed Transferee has (a) adequate business experience in operating similar types of
establishments; (b) the proposed Transferee has a credit quality reasonably satisfactory to, and
verified by, City; (c) the personal character, reputation and integrity of the proposed Transferee and
its principals and operational officers and owners are of at least the same caliber of the
Concessionaire upon execution of this Agreement; and (d) quality of the operations and the
standards of the business shall be maintained in a manner consistent with the Concessionaire as set
forth in its proposal. City may establish additional reasonable requirements of the proposed
Transferee, and subsections (a), (b) and (c) of this section are not to the exclusion of any other
reasonable requirements which City may establish.
Section 14.3 Concessionaire’s Application for Consent.
If Concessionaire desires to Transfer its interest, it must submit in writing to City the
name of the proposed Transferee, the proposed Transferee’s business to be conducted in the
Premises, the terms and provisions of the proposed Transfer, information of the proposed
Transferee pertaining to the requirements set forth in this Article, or other information as City
may request.
Section 14.4 Conditions to Consent.
Prior to any request for City’s consent to any Transfer, all of the following conditions
shall be met:
14.4.1 The original named Concessionaire shall not be relieved of its
obligations to pay Rent and to perform all other obligations to be performed by Concessionaire
hereunder for a period of two years from the date of the City’s consent or date of Transfer,
whichever is later.
14.4.2 Concessionaire shall reimburse City for City’s reasonable attorneys’ fees
incurred or the reasonable value of attorneys’ services received in connection with the review,
processing and documentation of such Transfer request.
14.4.3 City shall have the right to request and receive from Concessionaire any
additional information reasonably related to the transaction.
14.4.4 Any Transferee or proposed Transferee shall agree that in the event the
City issues a Notice of Default against the Concessionaire pursuant to this Agreement, all
payments due under the provisions of the sublease or transfer shall be made directly to the City
for so long as such default for which Concessionaire is liable hereunder remains uncured by
Concessionaire, and such payments will be received by City without any liability whether on the
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sublease or otherwise (except to credit such sums against those due under the Agreement).
Concessionaire shall not be permitted to charge any Rent, compensation, sublease amount, or
any other payment to any Transferee or proposed Transferee for an amount higher than that set
forth in Article V of the Agreement for use of the Premises or for any rights under this
Agreement.
14.4.5 Any such consent shall be effected on forms approved by City.
14.4.6 Concessionaire shall not be in default hereunder in any respect, nor shall
any event have then occurred and be continuing which, with the giving of notice or passage of
time or both, would constitute a default under this Agreement.
14.4.7 Any such Transferee must agree to assume, be bound by and perform all
of the terms, covenants and conditions of this Agreement, subject to the condition that City shall
not be bound to any provision of any agreements pertaining to such Transfer to the extent such
agreement grants rights not possessed by Concessionaire against City.
14.4.8 One executed copy of any and all written instruments evidencing or
relating to any such Transfer shall be delivered to City. City agrees not to disclose any
confidential information that may be contained therein, except as otherwise required by
applicable Law.
Section 14.5 Transfer of Shares.
If Concessionaire is a corporation or becomes a corporation (other than a corporation the
outstanding voting stock of which is listed on a “national securities exchange,” as defined in the
Securities Exchange Act of 1934, as amended) and if at any time after execution of this
Agreement any part or all of the corporate shares of such Concessionaire shall be transferred by
sale, assignment, bequest, inheritance, operation of law or other disposition (including, but not
limited to, such a transfer to or by a receiver or trustee in Federal or state bankruptcy,
insolvency, or other proceedings) so as to cause a change in the entities or persons owning a
majority of the corporate shares of Concessionaire as of the last approval of a transfer of shares
or, if City has not approved a transfer of Concessionaire’s shares during the Term or Extension
Term, if any, such event shall constitute a Transfer as specified in Section 14.1 and shall be
subject to all of the provisions of this Article.
Notwithstanding anything to the contrary set forth in this Agreement, an initial public
offering for the shares of the Concessionaire and subsequent sales of such shares, shall not
constitute a Transfer within the definition of Section 14.1.
Section 14.6 Acceptance of Rental from Transferee.
The acceptance by City of the payment of Rent following any Transfer or other
assignment prohibited by this Article shall not be deemed to be a waiver of any right or remedy
of City hereunder.
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ARTICLE XV
DEFAULT
Section 15.1 “Event of Default” Defined.
Any one or more of the following events shall constitute an “Event of Default”:
15.1.1 The failure of Concessionaire to pay the Rent or any Additional Rent or other
sum of money to City as and when due, where such failure continues for a period of ten (10)
days after receipt of written notice thereof from City to Concessionaire pursuant to Section V of
the Agreement. In the event that City serves Concessionaire with a Notice to Pay Rent or Quit
pursuant to applicable Unlawful Detainer statutes, such Notice to Pay Rent or Quit shall also
constitute the notice required by this subsection.
15.1.2 The sale of Concessionaire’s interest in the Premises under attachment, execution
or similar legal process; or if Concessionaire is adjudicated as bankrupt or insolvent under any
state bankruptcy or insolvency law and Concessionaire fails to pay the Rent which is due.
15.1.3 The commencement of a case under any chapter of the Federal Bankruptcy Code
by or against Concessionaire or any guarantor of Concessionaire’s obligations hereunder, or the
filing of a voluntary or involuntary petition proposing the adjudication of Concessionaire or any
guarantor of Concessionaire’s obligations hereunder as bankrupt or insolvent, or the
reorganization of Concessionaire or any such guarantor of Concessionaire’s obligations
hereunder, or an arrangement by Concessionaire or any guarantor of Concessionaire’s
obligations hereunder with its creditors, unless the petition is filed or case commenced by a
party other than Concessionaire or any such guarantor of Concessionaire’s obligations
hereunder and is withdrawn or dismissed within sixty (60) days after the date of its filing.
However, this provision will only be effective if Concessionaire fails to timely pay the Rent.
15.1.4 The appointment of a receiver or trustee for the business or property of
Concessionaire or any guarantor of Concessionaire’s obligations hereunder, unless such
appointment shall be vacated within 180 days of its entry.
15.1.5 If in any other manner Concessionaire’s interest in this Concession shall pass to
another by operation of law.
15.1.6 The abandonment of the Premises at any time during the Term or Extension
Term, if any.
15.1.7 The discovery by City that any financial statement or other material financial
information delivered to City by Concessionaire or any guarantor of Concessionaire’s
obligations hereunder is materially false.
15.1.8 Failure by Concessionaire to provide evidence of construction financing,
commence construction or complete construction in accordance with the Improvement Plan
attached as Exhibit 9.
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15.1.9 The occurrence of any other event described as constituting an “Event of
Default” elsewhere in this Agreement.
Concessionaire shall be in default under this Agreement if Concessionaire fails to perform
of any of its obligations within thirty (30) days after receipt from City of a written request to do
so; provided, however, if the nature of Concessionaire’s obligation is such that more than thirty
(30) days are required to perform, Concessionaire shall not be deemed in default provided
Concessionaire has commenced to cure such nonperformance within such thirty (30) day period
and thereafter continues to diligently pursue such cure to completion.
Section 15.2 Remedies.
Any party to this Agreement who so fails, delays or breaches any term of this Agreement
(constituting an "Event of Default") must immediately commence to cure, correct, or remedy
such failure or delay, and shall complete such cure, correction or remedy with reasonable
diligence and, in any event, for monetary defaults within thirty (30) days of such failure or delay,
and for non-monetary defaults within the time reasonably required for cure with reasonable
diligence, not to exceed 180 days (collectively, "Cure Period").
If an Event of Default occurs under this Agreement, the injured party shall give written
notice (a “Default Notice”) of the Event of Default to the party in default, specifying the
default. Except as required to protect against further damages, the injured party may not
institute proceedings against the party in default until the expiration of the applicable Cure
Period. Failure or delay in giving such notice shall not constitute a waiver of any default, nor
shall it change the time of default.
Upon the occurrence and continuance of an Event of Default, City, in addition to any
and all remedies or means of redress to which it may lawfully or equitably be entitled, may
exercise any one or more of the following remedies:
15.2.1 Terminate this Agreement and any and all rights of Concessionaire hereunder, by
any lawful means. In the event of such termination, Concessionaire shall immediately surrender
possession of the Premises to City. City shall also have the right to recover from Concessionaire
all damages incurred by City by reason of Concessionaire’s default, including, but not limited
to, the amount of unpaid Rent, if any, the cost of recovering possession of the Premises,
reasonable expenses of relating, including reasonable costs and attorneys’ fees.
15.2.2 Maintain Concessionaire’s right to possession, in which case this Agreement
shall continue in full force and effect. In such event, City shall be entitled to enforce all of
City’s rights and remedies tinder this Agreement, including, without limitation, the right to
recover all of the Rent as it becomes due under this Agreement.
15.2.3 Pursue all rights and remedies of City, which shall in any event be cumulative
and not alternative, and shall be in addition to any and all rights provided by law or equity.
Section 15.3 Late Charge and Interest.
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AGREEMENT NO. 11238 (CCS)
Unpaid installments of Rent or other unpaid monetary obligations of Concessionaire
under the terms of this Agreement shall bear interest from the date due at the maximum rate
then allowable by Law. In the event that any installment of Rent or any other sum payable by
Concessionaire hereunder is not received by City within ten (10) days of the date when due, a
Late Charge as set forth in Section 5.2.4 shall be due and payable to City, and the Rent shall
also bear interest at the Default Rate from the first day due until paid.
Section 15.4 Waiver of Redemption.
Concessionaire hereby expressly waives any and all rights of redemption granted by or
under any present or future law to Concessionaire in connection with the eviction or dispossession
of Concessionaire for any cause or on account of an uncured Event of Default.
Section 15.5 Assignment in Bankruptcy.
In the event of any assignment by operation of law under the Federal Bankruptcy Code,
or any state bankruptcy or insolvency law, if City elects not to terminate this Agreement, the
assignee shall provide City with adequate assurance of future performance of all of the terms,
conditions and covenants of the Agreement, which shall include, but shall not be limited to,
assumption of all the terms, covenants and conditions of the Agreement by the assignee and the
making by the assignee of the following express covenants to City:
15.5.1 That assignee has sufficient capital to pay the Rent and other charges due under
the Agreement for the entire Term and Extension Term, if any; and
15.5.2 That assumption of the Agreement by the assignee will not cause City to be in
violation or breach of any provision in any other lease, financing agreement, agreement with
respect to the Premises; and
15.5.3 That such assignment and assumption by the assignee will not, in the judgment of
City, disrupt or impair any existing locale.
Section 15.6 City’s Event of Default.
City shall be in default under this Agreement if City fails to perform any of its
obligations hereunder within thirty (30) days after receipt from Concessionaire of a written
request to do so; provided, however, if the nature of City’s obligation is such that more than
thirty (30) days are required to perform, City shall not be deemed in default provided City has
commenced to cure such nonperformance within such thirty (30) day period and thereafter
continues to diligently pursue such cure to completion. Concessionaire’s only remedies for
default by City under this Concession shall be the right to direct damages and/or injunctive
relief, and in no event shall Concessionaire have the right to terminate this Agreement or
unilaterally offset rent payments then due or which shall become due in the future, as the result
of City’s default.
CONCESSIONAIRE UNDERSTANDS ACKNOWLEDGES AND AGREES THAT
NEITHER CONSEQUENTIAL NOR “BENEFIT OF THE BARGAIN” DAMAGES SHALL
BE RECOVERABLE AGAINST CITY FOR ANY BREACH OR DEFAULT UNDER THIS
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AGREEMENT.
ARTICLE XVI
SUBORDINATION AND ATTORNMENT
Section 16.1 Peaceful and Quite Use and Possession.
Provided that no Event of Default has occurred and is continuing under the provisions of
this Agreement beyond the expiration of any applicable notice and cure period, Concessionaire
shall have peaceful and quiet use and possession of the Premises without hindrance on the part of
City, and City shall warrant and defend Concessionaire in such peaceful and quiet use and
possession against the claims of all persons claiming by, through, or under City.
Section 16.2 Subordination.
Concessionaire, for itself and its subtenants, agrees, without the necessity of any further
consideration or action, to subordinate all of its right, title and interest in and to this Agreement
to the lien of any deed of trust now or hereafter encumbering the Premises or any portion
thereof, and to all advances made or hereafter to be made upon the security thereof, provided,
however, (a) that such beneficiary or beneficiaries agree a in writing, in form and substance
acceptable to Concessionaire, in its commercially reasonable discretion, delivered to
Concessionaire to recognize all of Concessionaire’s right, title and interest in, to and under this
Agreement and not to disturb Concessionaire’s possession of the Premises, so long as
Concessionaire performs and complies with each and all of the covenants, agreements, terms and
conditions under this Agreement; (b) that all terms of such indebtedness, including, without
limitation, the precise amount thereof and the interest rate with respect thereto, shall be as
determined solely by City and such beneficiary or beneficiaries, and (c) that Concessionaire, for
itself and its subtenants, shall within 10 days after City or such beneficiary or beneficiaries
provides Concessionaire with written notice to do so, execute and deliver to City such
documents and take such further action as City or such beneficiary or beneficiaries may deem
necessary or advisable to effect or maintain such subordination and non-disturbance.
Concessionaire also agrees that any mortgagee or beneficiary may elect to have this Agreement
constitute a lien prior to its mortgage or deed of Trust, and in the event of such election and upon
notification by such mortgagee or beneficiary to Concessionaire to that effect, this Agreement
shall be deemed a prior lien to such mortgage or deed of trust, whether this Agreement is dated
prior to or subsequent to the date of said mortgage or deed of trust.
Concessionaire, for itself and its subtenants, agrees that upon delivery to City of the written
election of the beneficiary or beneficiaries of any encumbrance affecting the Premises which is
superior to this Agreement, that such encumbrance shall be deemed subordinate to this
Agreement, and, upon such event, (i) this Agreement shall, without the necessity of any further
consideration or action whatsoever, be deemed superior to such encumbrance, whether this
Agreement was executed before or after the execution of such encumbrance, and (ii) the
beneficiary or beneficiaries of such encumbrance shall have the same rights with respect to this
Agreement as if this Agreement had been executed and delivered prior to execution and delivery
of such encumbrance and had thereafter been assigned to such beneficiary or beneficiaries.
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Section 16.3 Attornment.
If, by reason of City’s default under any encumbrance now or hereinafter affecting the
Premises in any way, any or all of City’s interest in and to the Premises is terminated,
Concessionaire (a) shall waive all rights at law or in equity now or hereafter in effect to
terminate this Agreement and surrender possession of the Premises, (b) shall attorn to the
transferee, whether by foreclosure, judicial or trustees’ sale, deed in lieu of foreclosure or
otherwise, of any or all of City’s interest in or to the Premises, (c) shall recognize such
transferee as the City under this Agreement, and (d) shall execute and deliver to City and to
such transferee, within 10 days after City or such transferee provides Concessionaire with
written notice to do so, such documents and take Such further action as City or Such transferee
may deem necessary or advisable to effect or maintain such attornment.
ARTICLE XVII
NOTICES
Section 17.1 Notices.
Any notice, request, demand, approval or consent given or required to be given under
this Agreement (“Notices”) shall be in writing and shall be served as follows: (1) by personal
delivery; or by deposit thereof in any mail facility maintained by the United States, postage
prepaid, certified or registered mail, return receipt required; or (iii) by overnight delivery
service, postage prepaid. All Notices shall be addressed as follows:
To the City at: Director of Community Services Department
City of Santa Monica
1685 Main Street
Santa Monica, CA 90401
with a copy to: Santa Monica City Attorney’s Office
1685 Main Street, Third Floor
Santa Monica, CA 90401
Attention: City Attorney
To the Concessionaire at: Back on the Beach Café
445 Pacific Coast Highway
Santa Monica, CA 90402
Attn: Fred Deni or James Christel
With a copy to the Premises at: Beach House Venue Manager
Annenberg Community Beach House
415 Pacific Coast Highway
Santa Monica, CA 90402
All Notices shall be deemed effectively served when hand delivered or on the third
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business day after such notice is deposited with an overnight delivery service or the tenth
calendar day after deposit in the United States mail, postage prepaid certified mail, return receipt
requested. Either party may, at any time, change its address for receipt of Notice by sending a
notice to the other party in accordance with this Article stating the change and setting forth the
new address.
ARTICLE XVIII
MISCELLANEOUS
Section 18.1 Inspections and Access By City.
Concessionaire will permit City, its agents, employees and contractors to enter all parts
of the Premises during Concessionaire’s daytime business hours to inspect the same and to
enforce or carry out any provision of this Agreement, including, without limitation, any access
necessary for the making of any repairs which are City’s obligation or right hereunder so long as
City provides Concessionaire with no less than twenty-four hours prior written notice (except in
the case of an emergency in which case no notice shall be required); provided, however, that, in
an emergency situation, such access shall be permitted at any time upon City’s oral request. In
the event City desires to make any repairs to the Premises, City agrees to use best efforts to
minimize any interruption to Concessionaire’s normal business operations therein, and City shall
use best efforts to arrange any such repairs during Concessionaire’s “off-peak” business hour.
Section 18.2 Remedies Cumulative.
No reference to any specific right or remedy shall preclude City from exercising any
other right or from having any other remedy or from maintaining any action to which it may
otherwise be entitled at law or in equity. No failure by City to insist upon the strict performance
of any agreement, term, covenant or condition hereof, or to exercise any right or remedy
consequent upon a breach thereof, and no acceptance of full or partial Rent during the
continuance of any such breach, shall constitute a waiver of any such breach, agreement, term,
covenant or condition. No waiver by City of any breach by Concessionaire under this Agreement
shall affect or alter this Agreement in any way whatsoever.
Section 18.3 Successors and Assigns.
This Agreement and the covenants and conditions herein contained shall inure to the
benefit of and be binding upon City, its successors and assigns, and shall be binding upon
Concessionaire, its successors and assigns and shall inure to the benefit of Concessionaire and
only such assigns of Concessionaire to whom the assignment of this Concession by
Concessionaire has been consented to by City as provided in Article XIV. Upon any sale or
other transfer by City of its interest in the Premises, City shall be relieved of any obligations
under this Agreement occurring thereafter provided that the transferee assumes in writing the
obligations under this Agreement occurring thereafter.
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AGREEMENT NO. 11238 (CCS)
Section 18.4 Captions and Headings.
The Article and Section captions and headings are for convenience of reference only and
in no way shall be used to construe or modify the provisions set forth in this Agreement.
Section 18.5 Joint and Several Liability.
If two or more individuals, corporations, partnerships or other business associations (or
any combination of two or more thereof) shall sign this Agreement as Concessionaire, the
liability of each such individual, corporation, partnership or other business association to pay
Rent and perform all other obligations hereunder shall be deemed to be joint and several, and all
notices, payments and agreements given or made by, with or to any one of such individuals,
corporations, partnerships or other business associations shall be deemed to have been given or
made by, with, or to all of them. In like manner, if Concessionaire shall be a partnership or other
business association, the members of which are, by virtue of statute or federal law, subject to
personal liability, then the liability of each such member shall be joint and several.
Section 18.6 Broker’s Commission.
Concessionaire shall be responsible for the payment of brokers’ fees, if any, claimed by
or through contacts with Concessionaire, because of or arising from this Agreement and agrees
to indemnify the City against, and hold it harmless from, all liability arising from any claim for
brokers’ fees, including, without limitation, the cost of reasonable attorneys’ fees in connection
therewith.
Section 18.7 No Discrimination.
It is intended that the Premises shall be developed so that all prospective concessionaires
thereof, and all customers, employees, licensees and invitees of all concessionaires shall have the
opportunity to obtain all the goods, services, accommodations, advantages, facilities and
privileges of the Premises without discrimination because of race, creed, color, sex, age, national
origin, sexual orientation, Acquired Immune Deficiency Syndrome, disability or ancestry. To
that end, Concessionaire shall not discriminate in the conduct and operation of its business in the
Premises against any person or group of persons because of the race, creed, color, sex, age,
national origin, sexual orientation, Acquired Immune Deficiency Syndrome, disability or
ancestry of such person or group of persons or in any manner in violation of Law.
Section 18.8 No Joint Venture.
Any intention to create a joint venture or partnership relation between the parties hereto is
hereby expressly disclaimed. The provisions of this Agreement in regard to the payment by
Concessionaire and the acceptance by City of a percentage of the Gross Sales of’ Concessionaire
is a reservation for the purposes of rent for the use of the Premises.
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Section 18.9 Entire Agreement; No Modification.
This writing is intended by the parties as a final expression of their agreement and as a
complete and exclusive statement of the terms thereof, all prior negotiations, considerations and
representations between the parties are hereby superseded by this Agreement. No course of prior
dealings between the parties or their officers, employees, agents or affiliates shall be relevant or
admissible to supplement, explain or vary any of the terms of this Agreement. Acceptance of, or
acquiescence in, a course of performance rendered under this or any prior agreement between the
parties or their affiliates shall not be relevant or admissible to determine the meaning of any of
the terms of this Agreement. No representations, understandings or agreements have been made
or relied upon in the making of this Agreement other than those specifically set forth herein. This
Agreement can be modified only by a writing signed by both parties.
Section 18.10 Severability.
If any term or provision, or any portion thereof, of this Agreement, or the application
thereof to any, person or circumstances shall, to any extent, be invalid or unenforceable, the
remainder of this Agreement, or the application of such term or provision to persons or
circumstances, other than those as to which it is held invalid or unenforceable, shall not be
affected thereby, and each term and provision of this Agreement shall be valid and be enforced
to the fullest extent permitted by law.
Section 18.11 Authority.
In the event Concessionaire is a corporation, the persons executing this Agreement on
behalf of Concessionaire hereby covenant and warrant that: Concessionaire is a duly constituted
California corporation qualified to do business in the State of California and is in good standing;
all future forms, reports, fees and other documents necessary for Concessionaire to comply with
applicable Law will be filed by Concessionaire when due; and such persons are duly authorized
by the board of directors of such corporation to execute and deliver this Agreement on behalf of
the corporation. In the event Concessionaire is a partnership, the persons executing this
Agreement on behalf of Concessionaire hereby covenant and warrant that such persons are duly
authorized by the partnership to execute and deliver this Agreement on behalf of the partnership.
City shall have the right to request and receive from Concessionaire information and
documentation Supporting such covenants and warranties to City’s reasonable satisfaction.
Section 18.12 Applicable Law.
This Agreement and the rights and obligations of the parties hereunder shall be
construed in accordance with the laws of the State of California without regard to any choice
of law provisions thereof.
Section 18.13 Control of Access.
Subject to the provisions hereunder, City, at its option and in its sole discretion, may at
any time control and limit access to, in or about, the Premises and surrounding area for the public
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AGREEMENT NO. 11238 (CCS)
health, safety, welfare, or any public purpose. City shall not be liable or responsible for any
damages arising therefrom to the buildings, structures, installations or improvements thereon, or
any business or operation of Concessionaire
Section 18.14 Title and Warranties.
Concessionaire acknowledges that the Premises are subject to the Operating Agreement,
covenants, conditions, easements and restrictions of record. City warrants that it has the authority
to lease the Premises to Concessionaire for uses not inconsistent with the trust under which the
Premises are held by City pursuant to the Operating Agreement. City and Concessionaire agree
and acknowledge that no warranties, covenants, promises or representations as to the title,
possession or use of the Premises are made by City in this Agreement or in any other form or
manner. It is expressly agreed and understood that notwithstanding any provisions of this
Agreement to the contrary, in the event that the tenancy created hereunder is or becomes
inconsistent with the Operating Agreement, the rights and obligations of the parties will be
governed solely and exclusively by the applicable laws of the State of California.
Section 18.15 Force Majeure.
18.15.1 In the event that either party is delayed or hindered from the performance of any
act required hereunder by reason of a Force Majeure Occurrence, then performance of such acts
shall be excused for the period of the delay, and the period for the performance of any such act
shall be extended for a period equivalent to the period of such delay (though in no event shall the
excusal or extension granted hereunder exceed in the aggregate the period of twelve months). A
Force Majeure Occurrence means and should be strictly limited to the unforeseeable refusal to
the grant or the denial, revocation or moratorium of or by applicable governmental authorities of
approvals (through no fault in part or in whole by Concessionaire or any of its consultants) and
permits or by strike, unusually inclement weather (but not rain or wind), fire, riot, insurrection,
pandemic, or war. Either party shall have the right to terminate this Agreement in the event of
Force Majeure Occurrence for a consecutive twelve-month period.
18.15.2 COVID-19. The spread of COVID-19 is and will be well known to the parties at
the time that parties execute this Agreement. Concessionaire understands and agrees that a
“Force Majeure Occurrence” is not an event or condition arising out of or resulting from
exposure, infection, or spread of COVID-19 where such event or condition does not involve an
action or order of federal, state, or local authorities mandating the closure of the Premises, or
portion of the Premises, or prohibit Concessionaire the use of the Premises. Nor does Section
18.15.1 excuse Concessionaire from prompt payment of Rent, Additional Rent, or other fees
required under the terms of this Agreement where an action or order of federal, state, or local
authorities reduces the number of persons that can visit the Premises, imposes restrictions related
to operation of the Concessionaire’s business on the Premises, or imposes restrictions on the
activities that can be conducted on the Premises to mitigate the spread of COVID-19.
Notwithstanding any provision to the contrary in this Agreement, the provisions of Section 18.15
shall not operate to excuse Concessionaire from prompt payment of Rent required under the
terms of this Agreement except as set forth in Section 12.8, above.
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Section 18.16 Attorneys’ Fees.
If any legal action is necessary to enforce any provision hereof or to recover damages by
reason of an alleged breach of any provisions of this Agreement, the prevailing party shall be
entitled to receive from the losing party all costs and expenses and such amount as the court may
adjudge to be reasonable attorneys’ fees for the costs incurred or the reasonable value of legal
services received by the prevailing party in such action or proceeding.
Section 18.17 Counterparts.
This Agreement may be executed in several counterparts, each of which is an original,
and all of which together constitute but one and the same document.
Section 18.18 Security Measures.
(a) City shall have no obligation whatsoever to provide guard service or other
security measures. Concessionaire assumes all responsibility for the protection of City, its
employees and agents, invitees, customers, other concessionaires and licensees and property
from acts of third parties within the Premises.
(b) Concessionaire, at its sole cost and expense, shall provide for any and all
security, including but not limited, to security personnel and security systems, needed for the
Premises both during construction of the Improvements and during the operation of the
Premises thereafter. Such security measures shall be subject to the review and approval of
City. City may reasonably require that Concessionaire alter its security measures and/or add
additional security personnel and security systems in order to provide for adequate crowd
control and protection of the general public at all times within the Premises. City may further
require Concessionaire to coordinate its security measures with those of City, any agencies of
the City (including the City’s police department and related divisions), any other
governmental entities and their respective law enforcement agencies, and any other
concessionaire.
Section 18.19 Easements.
City reserves to itself the right, from time to time, to grant such easements, rights and
dedications that City deems necessary or desirable, and to cause the recordation of parcel maps
and restrictions so long as such easements, rights, dedications, parcel maps and restrictions do
not unreasonably interfere with the use of the Premises by Concessionaire. Concessionaire shall
sign any of the aforementioned documents upon request of City and failure to do so within
thirty (30) days after written request therefore shall constitute a breach of this Agreement.
Section 18.20 City Municipal Powers.
The City is entering into this Agreement is its proprietary capacity, and not in its
regulatory or governmental capacity. Nothing in this Agreement shall be construed as
restraining, impairing or restricting the City in its regulatory capacity, or granting any rights
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AGREEMENT NO. 11238 (CCS)
upon the Concessionaire with respect to the use, occupancy or operation of the Premises in a
manner inconsistent with Law. This Agreement does not grant any development rights upon the
Concessionaire with respect to the Premises and any such development shall be subject to all
applicable provisions of the Santa Monica Municipal Code, including, but not limited to the
Technical Code and the Zoning Ordinance.
Section 18.21 Concessionaire’s Compliance with Law.
Concessionaire covenants and agrees to comply with all applicable Law in connection
with the use, occupancy and operation of the Premises. Concessionaire shall discontinue
immediately any use of the Premises which is declared by any governmental authority to be a
violation of Law.
Section 18.22 Concessionaire’s Lenders and Equipment.
In the event that Concessionaire seeks to obtain a loan from a lender (“Lender”) and to
secure said loan by Concessionaire’s leasehold interest, furniture, fixtures or equipment
(“FF&E”), copies of all notices given in connection with said loan shall require that the Lender
provide the City with all notices given in connection with said loan. Provided that the City
receives a written request from the Concessionaire pursuant to this Section, the City agrees to
provide such Lender with copies of all notices given hereunder to Concessionaire when and in
the same manner given to Concessionaire at such address as Lender furnishes to City. Without
waiving any of the obligations of the Concessionaire pursuant to this Agreement, City agrees to
accept payment of Rent from Lender by and on behalf of Concessionaire.
Section 18.23 Venue and Jurisdiction.
City and Concessionaire acknowledge that the leased Premises, are located in the City of
Santa Monica and Los Angeles County. Any litigation arising out of this Agreement may only
be brought in either the United States District Court, Central District of California, or the
Superior Court of California, County of Los Angeles, West District, as appropriate. The Parties
agree that venue exists in either court, and each party expressly waives any right to transfer to
another venue. The Parties further agree that either court will have personal jurisdiction over the
Parties to this Agreement.
Section 18.24 Exhibits.
The following exhibits are attached to this Agreement and incorporated herein by reference:
Exhibit 1: Concessionaire Proposal
Exhibit 2: Premises
Exhibit 3: Rental Equipment and Price List
Exhibit 4: State Operating Agreement
Exhibit 5: Request for Proposals
Exhibit 6: Waiver of Liability and Release
Exhibit 7: Menu
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AGREEMENT NO. 11238 (CCS)
Exhibit 8: Annual Evaluation
Exhibit 9: Improvement Plan
Exhibit 10: Insurance Requirements
IN WITNESS WHEREOF, the parties have executed this Concession on the date
set forth above.
CITY OF SANTA MONICA,
ATTEST: a municipal corporation
By:
APPROVED AS TO FORM:
CONCESSIONAIRE
By:
By:
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4/5/2022
Interim City Attorney
Joseph Lawrence
4/5/2022
x
x
Fred Deni
4/5/2022
James Christel Vice President
Back on the Beach Food Co In
4/7/2022
City Manager
David White
4/11/2022
City Clerk
Denise Anderson-Warren
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AGREEMENT NO. 11238 (CCS)
Exhibit 1.
Concessionaire Proposal
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James Christel, Co-Owner
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Experience and Qualifications (3.1.2)
Back on the Beach is a Santa Monica institution, serving local residents and visitors since 1989.
Santa Monica residents and restaurant owners Fred Deni and Jim Christel opened Back on the
Beach at 455 Palisades Beach Road in January 1989. The couple also owned and operated Back
on Broadway, another local institution, from 1983 until 2019 at 2020 Broadway in Santa
Monica. Their successful catering business provides event planning, preparation and serving,
featuring custom menus with high-quality service for special events of all sizes. Back on the
Beach is a valued partner for events held at the City’s Annenberg Beach House as well as at
locations, businesses, and homes throughout the Los Angeles area. The company has catered
events for royalty, presidential candidates, family parties, business events, and community
gatherings, including Queen Noor, King Hussein, Senator John Kerry, the Disney Corporation,
Universal Studios, Volvo USA, ACLU, St. Joseph Center, St. John’s Medical Center, and celebrities
Shirley MacLaine, Diane Keaton, Stephen Stills, Norman Lear, and Jackson Browne.
Back on the Beach was selected as the operator for the beachfront property by the City of
Santa Monica, which had acquired what was previously the private Sand and Sea Club in 1988
with the generous support of The Annenberg Foundation. Since that time, Back on the Beach
has been in continuous operation year-round with the exception of City-managed construction
periods. The company was awarded a new lease through a competitive process in 2008, when it
expanded to add a takeaway window and beach concessions and made over $300,000 in capital
investments to repair and renovation the restaurant including installation of new electrical
panels, gas lines, and HVAC; purchase and installation of new kitchen equipment; and new
furniture for guest seating. Please attached schedule of 2008 capital improvements. Back on
the Beach has continuously adopted new technology to improve customer service including a
POS system and online ordering for pickup.
The restaurant originally had a beer and wine license for the inside tables only. In 2013, Back on
the Beach obtained a permit from the California Alcoholic Beverage Control Board to serve beer
and wine at its outdoor tables, and added a custom-designed fence at that time to meet ABC
requirements. The restaurant is fully licensed and approved by the Los Angeles County Health
Department, the City of Santa Monica, and the California Alcoholic Beverage Control Board.
The restaurant has table service indoors and on the sand totaling 175 seats.
Millions of people have enjoyed breakfast, lunch, or dinner at the café, which is also available
for special events such as weddings, bar mitzvahs, and fundraising events. The takeaway
window offers sandwiches, drinks, children’s meals, and snacks to people enjoying the
Annenberg pool and the beach. In 2020, Back on the Beach was named the Most Loved
Outdoor Dining Spot by westside residents.
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The restaurant continues to operate throughout the COVID pandemic, adopting strict safety
guidelines and serving guests at its outdoor tables where they can enjoy the ocean while
maintaining physical distance. Limited indoor dining was re-established in the summer of 2021
with excellent ventilation provided by the restaurant’s large windows. Unlike many other
restaurants, Back on the Beach has continued to pay full rent to the City of Santa Monica during
the past 20 months. The business is certified by the Santa Monica Shines program.
Back on the Beach is a leader in the creation and adoption of practices that improve the
environmental sustainability of the restaurant business. A Santa Monica-certified Green
Business, Back on the Beach has adopted comprehensive energy conservation, water
conservation, waste reduction, and pollution prevention measures. Among those are the use of
natural cooling during the summer and heat retention through double-paned windows in the
winter; installation of water-efficient plumbing fixtures; use of recycled and plant-based
containers, utensils, and napkins; use of non-toxic, no-rinse, and biodegradable cleaning
products; and stainless steel straws with served meals. The restaurant has also featured
healthy, organic, and locally grown food on its menu from the beginning, including additional
options (vegan, gluten-free, non-GMO) as they have become available. From a discerning
Westside gourmet to a hard-to-please child, guests at Back on the Beach can have a pleasurable
healthy meal throughout the day. Back on the Beach won the Grand Prize at the Sustainable
Quality Awards in 2019, and the Excellence in Stewardship of the Environment Award in 2017.
Hundreds of local youth have had their first job experience as part of the seasonal staff at Back
on the Beach. During a typical summer, the company hires 50 to 60 youth to work as servers,
bussers, hosts, cooks, and to sell concession items. Many young people come back each
summer during high school and college and are able to show multi-year experience on their
resume. The current general manager and co-executive chef began their work at Back on the
Beach as summer staff. Summer employment at Back on the Beach teaches life-long
employment soft skills including teamwork, time management, and customer service.
Back on the Beach is known as an excellent employer in the food service industry, and many
year-round employees have been with the company for 20 years or longer earning $45,000 to
$80,000 annually with tips. The company pays half of health insurance premiums for year-
round employees, who may also participate in the CalSavers Retirement Program for
employees of small businesses.
If awarded this lease, Back on the Beach Food Co., Inc. is prepared to make capital
improvements totaling approximately $300,000 including replacement of the roof, exhaust fans
and cooler; repair of exterior foundation cracks; renovation of restrooms; addition of a
retractable fabric canopy; renovation of dining room floors; replacement of exterior doors and
windows; and replacement of the walk-in cooler. Please see attached Renovation Plan. Funds
are on hand and available for capital improvements.
A beloved member of the Santa Monica community, Mr. Deni has received many awards and
recognition for his generosity and community spirit. Most recently, Mr. Deni was awarded a
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lifetime achievement award from the Santa Monica Chamber of Commerce to add to his many
honors and accolades.
Mr. Deni grew up in the restaurant business in New Jersey, where his mother owned a café. In
the 1970s Mr. Deni worked at three of the original health food restaurants in Los Angeles: the
Aware Inn, the Source, and the Old World. His commitment to health food and sustainable
practices is reflected today in the restaurant’s focus on seasonal produce and seafood, free-
range poultry, fresh-squeezed orange juice, and inhouse-baked muffins and scones.
Mr. Christel co-owns Back on the Beach Food Co. with his husband Fred Deni. The two have
worked together for 32 years in Santa Monica, and were wed at Back on the Beach in 2008. Mr.
Christel began working in the food service industry at the age of 15. After graduating from the
University of California at San Diego with a degree in communications, he managed a five-
person sales team at Nicholas Gold Food Distributors. He has also worked as a UCLA-certified
paralegal in the field of civil litigation, and as an English teacher for business clients at Inlingua
language institute in Spain. He is certified in Licensee Education on Alcohol and Drugs (LEAD) by
the California ABC. A passionate environmentalist, Mr. Christel is active in the Sierra Club, Tree
People, and the California Native Plant Society. In addition to English, he speaks Spanish and
German which he uses frequently in conversing with visitors to Santa Monica.
The couple have lived in Sunset Park for 42 years.
General Manager Azain “Zee” Bustamante started working as a dishwasher at Back on the
Beach in 2010 and continued as a summer worker while earning a degree in Business
Management at California State University Northridge. Z Bustamante is responsible for hiring
and firing of staff, scheduling, ordering, and operations development for Back on the Beach.
Jonathan Anguiano and Riley Bustamante are co-Executive Chefs for Back on the Beach Food
Co. Both chefs began working at Back on the Beach in 2010 as high school students during
summers, developing cooking and leadership skills under the mentorship of Fred Deni and Jim
Christel. Jonathan left to work as a private chef and as a cook at several high-end kitchens
before returning to Back on the Beach in 2019. Riley has worked continuously at Back on the
Beach and Back on Broadway since 2010.
The Assistant Manager is Derek Williams, who was hired by Back on the Beach through the
Santa Monica College Career Center. He started as a host in 2018, and advanced to
busser/runner before becoming assistant manager in 2020.
Louise Ardigo is the Catering Director of Back on the Beach. She has been working in the food
industry since 1980 and joined the Back on the Beach company in 1991 as a restaurant
manager. With a background as an event coordinator, she has led Back on the Beach’s catering
operation since 1997, planning and producing on-site and off-site events for clients throughout
the westside of Los Angeles.
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Back on the Beach Food Co. has consistently been profitable and has paid its rent to the City of
Santa Monica in full and in a timely manner. Please see attached Ten Year Business
Assessment for annual gross receipts, rent paid to City of Santa Monica, and property tax paid
annually since 2010.
No subcontractors are proposed.
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Minimum Mandatory Qualifications (2.10)
Back on the Beach meets and exceeds the mandatory minimum qualifications established by
the City of Santa Monica for proposals to be considered.
Ten or more years of continuous experience in the operation and management of a high-quality
retail or food service operation.
Back on the Beach has 41 years of experience operating high-quality food service restaurants in
Santa Monica. Back on the Beach has been operating at its current site for 31 years, and its
sister restaurant, Back on Broadway, operated continuously from 1981 to 2019. Throughout
this time, Fred Deni and Jim Christel have owned and managed the restaurants and their
parallel high-quality catering business.
Demonstrated managerial and staffing resources to maintain a high quality, successful
operation.
Biographies of key personnel are included in this proposal. Several staff members have served
Back on the Beach Food Co. Inc. for 20 years or more, and a new generation of managers has
been developed from among the many young people who have found multi-year seasonal
employment at Back on the Beach. General Manager Azain “Zee” Bustamante began as a
summer employee, gaining experience under the mentorship of Fred Deni and Jim Christel
while earning a degree in business management.
Demonstrated financial capacity to finance proposed improvements and operating costs.
Comprehensive financial information is included in the proposal. Back on the Beach Food Co.
Inc. has cash deposits of over $900,000 and lines of credit in excess of $300,000. Improvements
estimated at $300,000 are proposed.
A valid Small Business Qualification.
Back on the Beach Food Co. is certified by California’s Small Business Certification Program.
Proof of certification is attached.
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Back on the Beach Food Company Inc.
Annual Payments to City of Santa Monica 2010-2020 in dollars
2010 2011 2012 2013 2014 2015
Rent
paid 163,496.86 177,655.12 209,099.00 221,390.99 255,241.46 290,425.20
Total
gross 1,634,969.60 1,776,551.20 2,090,990.00 2,213,909.90 2,552,414.60 2,904,252.00
Property
tax 11,356.69 7,065.86 6,594.52 7,079.31 8,203.10 8,207.96
2016 2017 2018 2019 2020
Rent
paid 313,286.25 323,403.21 347,718.00 322,140.17 228,423.13
Total
gross 3,132,862.50 3,234,032.10 3,477,180.00 3,221,401.70 2,284,231.30
Property
tax 8,230.61 7,877.28 5,662.54 26,299.37 28,422.41
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Key Personnel (3.1.3)
Back on the Beach operates under the leadership of co-owners Fred Deni and Jim Christel.
The General Manager is Azain “Zee” Bustamante.
The co-Executive Chefs are Jonathan Anguiano and Riley Bustamante.
The Assistant Manager is Derek Williams.
The Catering Director is Louise Ardigo.
Please see attached resumes.
An Organizational Chart is attached in the Operations Plan.
Narrative descriptions of each member of the leadership team are available in the Experience
and Qualifications section. Each member is deeply committed to Back on the Beach and will be
available throughout the length of the lease. Younger team members began as summer
workers and structured their educations and experiences in order to build the skills to become
managers under the mentorship of Fred Deni and Jim Christel.
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Frederick Deni, Co-Owner of Back on the Beach, is a long-time resident of Santa Monica’s Sunset
Park neighborhood. Mr. Deni has worked in the restaurant business since the age of 15. After arriving
in Los Angeles in 1972 he worked in local health food restaurants: Aware Inn and Old Worlds.
His commitment to healthy food and sustainable practices are reflected today in the use of seasonal
produce and seafood, free range poultry, fresh squeezed orange juice and house made scones. The
City of Santa Monica has recognized Back on the Beach for its sustainable stewardship and sustainable
best practices.
In 1989 Mr. Deni opened Back on the Beach at 445 Palisades Beach Road (Pacific Coast Highway).
Back on the Beach has been in continuous operation with the exception of closings due to
City of Santa Monica construction. Over one million guests have enjoyed breakfast, lunch, or dinner at
the cafe. Under the guidance of Mr. Deni and with indoor and outdoor seating for 175 guests,
Back on the Beach has hosted hundreds of large group events including weddings, bar/bat mitzvahs,
and fundraisers. For 38 years until its closing in 2019, Mr. Deni was also the owner of Santa Monica’s
Back on Broadway.
Back on the Beach has been the location for many events including the culmination of John Kerry's
2004 presidential campaign and fundraisers for the Santa Monica Police Athletic League (PAL),
International Medical Corp, Westside Interfaith Council, the Santa Monica Chamber of Commerce, the
Santa Monica Charter of the Red Cross, the Santa Monica Boys & Girls Club, St. Joseph Center and
the Ocean Park Community Center.
Mr. Deni co-owns Back on the Beach with his life partner and spouse of over 40 years, Jim Christel.
Over the many years of ownership they have made constant improvements to the property to meet the
highest standards of the food service industry and the Los Angeles County Health Department. The
mission of Back on the Beach is to provide a pleasant beach experience with a focus on a friendly and
comfortable environment. Mr. Deni is a hands-on operator who spends much of his time overseeing
daily restaurant activities.
“Back on the Beach is a way of life and not a job. This site has been part of my life since I first came to
work here as a Catering Director for Sand & Sea club in 1979. I had just moved to Santa Monica and it
introduced me to a wonderful community, where I knew I had found a permanent home.” – Fred Deni
A well-loved member of the Santa Monica community, Mr. Deni has received awards and recognition
for his generosity and community spirit, including in 1997 the first Humanitarian Award of the
Santa Monica Red Cross, where he was honored for his efforts to feed and supply local disaster victims
and first responders, and for his international relief work in Bosnia. He is known as a person that is
comfortable organizing events with nonprofit organizations, families and community groups, and can
be counted on to contribute food and gift cards to Santa Monica schools and health care organizations.
He was honored by the Santa Monica Chamber of Commerce with a Lifetime achievement award and
the Santa Monica Art Foundation named him Art Patron of the Year. Appointed by the city of
Santa Monica, he served on the Civic Center Working Group.
In addition to his restaurant duties, he is also a popular event planner and caterer specializing in
customized menus, event planning, and preparation and serving. Mr. Deni has managed and catered
events for presidential candidates, Queen Noor, Liberty Hill Foundation and the ACLU.
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JIM
CHRISTEL
2901 16th Street • Santa Monica • CA • 90405
Work Experience
2009-present Co-Owner, Back On The Beach Café
1996-2009 General Manager, Back On The Beach Café
Education
University of California at San Diego
B.A., Communications
Certifications
ServSafe Food Protection Manager certification, expires 3/14/2026
Wilderness First Aid course, Sierra Club, 2020
First Aid / CPR certificate, 2020
Sierra Club Navigation (topo map & compass) certification, 2020
Sierra Club 3-month Wilderness Training Course, 2019
California ABC Licensee Alcohol and Drugs (LEAD) program, 2016
UCLA Civil Litigation Paralegal Program, 1994
Affiliations & Memberships
Sustainable Works Sustainable Quality Awards steering committee member, 2021
Sierra Club
Tree People
Planned Parenthood
KCSN Public Radio
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Azain Bustamante
Profile
In 2010, when I was twenty years old, I began my restaurant career at Back on the Beach as a dishwasher.
I was recommended to Back on the Beach by a childhood friend Jonathan Anguiano who was already
working there. Back on the Beach provides employees with opportunities to grow within the business and
has a culture of supporting their employees to start or own a business. I was always encouraged to be
working towards managing and running businesses and since 2018 I have been Back on the Beach’s
General Manager.
Experience
BACK ON THE BEACH – SANTA MONICA, CA
DISHWASHER | 2010
PANTRY, PREP, LINE COOK | 2010 – 2012
FRONT HOUSE DUTIES | 2012 – 2016
Host, runner, busser, barista, opening/closing, training employees, banquet event coordination.
ASSISTANT MANAGER | 2016 – 2018 | GENERAL MANAGER | 2018 – PRESENT
Potential employee outreach, staff hiring and training, daily and quarterly reports, facility maintenance,
scheduling, vendor relations and negotiations, strategic planning.
Education
Honor Roll Student | 2008 | Belmont High School
B.A. Business Management | 2014 | California State University Northridge
Santa Monica Leadership Program | 2014 | Santa Monica Chamber Of Commerce
Certifications
Manager Food & Health Handler Certificate
Awards
Certificates Of Recognition | 2021
•United States Congress
•State Of California
•County Of Los Angeles Board Of Supervisors
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JONATHAN ANGUIANO
I began my culinary career at Back on the Beach when I was sixteen years old where I developed many
culinary skills and a great interest in becoming a chef. I went on to Bel Air Bay Club where I worked
with award winning chefs in a high end culinary kitchen. In 2019 I returned to Back on the Beach
where I bring a fresh perspective to our menu offerings.
EXPERIENCE
2010 - 2011
DISHWASHER, BACK ON THE BEACH
2011 - 2012
SERVER, BACK ON THE BEACH
2012 - 2013
PREP COOK & CATERING SUPPORT, BACK ON THE BEACH
2014 - 2019
LINE COOK, BEL AIR BAY CLUB
2019 - PRESENT
SOUS CHEF, BACK ON THE BEACH
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RILEY BUSTAMANTE
EXPERIENCE
BACK ON THE BEACH
2010 – 2011 Dishwasher
2011 – 2013 Various kitchen duties
2013 – 2015 Front house duties: host, busser, runner, barista
2014 – 2021 Worked with catering chefs to assist with cooking and presentation of
multiple course meals
2019 – present Co-Chef responsible for menu development, prep list for cooks, managing food
inventory, maintaining standards for food storage and compliance with
applicable health codes and regulations , mentor and lead seasonal and new
hires
BACK ON BROADWAY
2013 – 2015 Front house duties: host, busser, runner, barista
2016 – 2018 Line cook and menu execution
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Letters of Support for Back on the Beach Food Company, Inc.’s proposal to
the City of Santa Monica
Sustainable Works
Barbara Stinchfield
Misti Kerns, Santa Monica Travel and Tourism
Santa Monica Chamber of Commerce
The Rosenthal Family, neighbors
Grace Cheng Braun, Wise and Healthy Aging
Terry Peters, customer living with disabilities
Hope Warschaw, neighbor
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1744 Pearl Street Santa Monica, CA 90405 Phone 310 458 8716 www.sustainableworks.org
Sustainable Works is a project of Community Partners
October 1, 2021
To Whom It May Concern:
We are writing this letter in support of Back on the Beach Café owners, Jim Christel and Fred Deni, on behalf of
Sustainable Works. Sustainable Works has been working in collaboration with the City of Santa Monica since 1998,
administering Community Sustainability Engagement Programs with the aim of helping Santa Monica reach their
Climate Action and Sustainable City Plan goals.
When we are asked to name a local business that makes a positive impact in their community, Back on the Beach
Café is always one of the first that comes to mind. Back on the Beach Café has been an above-and-beyond
supporter and leader for community sustainability for more than a decade maintaining a Santa Monica Green
Business Certification since 2011 and winning several Sustainable Quality Awards (SQA) including the Grand Prize
in 2019 for excelling in the areas of stewardship of the environment, local economic development, and social
responsibility.
Back on the Beach Café leads the green business community by offering local and seasonal cuisine while
prioritizing sustainable procurement. They source seasonal, organic produce from the Santa Monica Farmers'
Market and sustainable meats from local California farmers. And organic lettuce, tomatoes and berries are
procured during the peak harvest seasons. Prior to the Santa Monica's revised Disposable Food Service Ware
ordinance they were striving to eliminate all plastic to-go-ware products and they have successfully reached this
goal. For to-go, they procure hot beverage lids made from a marine-degradable plant fiber, in addition to made-
in-the-USA containers which are made of 100% post-consumer content recycled materials. In addition to serving
food and beverages in reusable dishware for indoor dining, they went the extra mile to replace disposable paper
straws with reusable stainless-steel straws – they are the only Santa Monica restaurant out of the 100+ we have
recently worked with to do this!
On numerous occasions, Jim and Fred have attended and donated their personal time and resources to our
Community Sustainability Engagement events. They donated over 100 free lunch meals to this year’s SQA 2021
event (of which most were delivered to a local charity) and delicious small bites to our People, Planet, Plate event.
To bolster ticket sales for our annual 2021 Eco-Star Awards fundraiser, they donated 60 bottles of fine organic
wine. They also sponsored and hosted the 2019 Green Business @ Sunset Mixer in partnership with the City and
Santa Monica Chamber of Commerce at the café. Even more, they have collaborated with us on various
community outreach efforts. Jim recently shot this video to provide the City with an example of a successful
plastic-free to-go ware restaurant that runs a successful Organics Recycling program, which helps Santa Monica
reach its Zero Waste goals.
Back on the Beach Café is a favorite and long-standing pillar of the Santa Monica community, having maintained
a café literally ‘on the sand’ for over 30 years!
If we can provide any additional information, please do not hesitate to contact us.
Sincerely,
Gina Garcia
Co-ED & Director | Community Sustainability Programs
Susy Borlido
Co-ED & Director | Green Business Programs
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Board Executives
Chair
Michael Ricks
Providence Saint John’s
Health Center
Chair-elect
Greg Morena
The Albright
Past Chair
Becky Warren
Elevate Public Affairs
Treasurer
Len Lanzi
Stubbs, Alderton &
Markiles LLP
Vice Chair
Kathy Irby
Commercial Bank of
California
Vice Chair
Iao Katagiri
Iao Katagiri Consulting
Vice Chair
Julia Ladd
Santa Monica
Place/Macerich
Vice Chair
Paula Larmore
Harding Larmore Kutcher
& Kozal LLP
Vice Chair
Ellis O’Connor
MSD Hospitality/Fairmont
Miramar Hotel
Board Members
Younes Atallah
Loews Santa Monica Beach
Hotel
Dom Bei
Santa Monica Firefighters
Local 1109
Jasson Crockett
Snapchat
Kevin Delijani
Delphi Real Estate Group
Dr. Ben Drati
SMMUSD
Celia Fisher
Beach Moms Daycare
Rudy Flores
Santa Monica Police
Officers Association
Jeffrey Fritz
Fritz Buffone Group |
Compass Realty
Board Members, Cont.
Lisa Glasser
Oracle
Paul Graves
Morley Builders
Tim Harter
Bird Rides
Ann Hsing
Pasjoli
Jeff Jarow
PAR Commercial
Dr. Kathryn Jeffery
Santa Monica College
Kim Koury
Spin PR
Julien Laracine
Proper Hospitality
Hayden Lee
Hayden Lee Coaching Intl.
Jonathan McCowan
310 Tutors
Susan Neisloss
Big Bite Productions
Pam O’Connor
Terry O’Day
In Charge Energy
Ryan Ole Hass
Align RE | a global real estate
collaboration
Janet Rimicci
UCLA Health
Laura Rosenbaum
CIT One West
Beth Schroeder
Raines Feldman
Kathy Shepard
KS Consulting
Jon Shoemaker
Gumbiner Savett, Inc.
Nat Trives
Coalition for Engaged
Education
Jerry L. Yu
Kaiser Permanente
September 24, 2021
Joyce Perez
Annenberg Community Beach House
415 Pacific Coast Highway
Santa Monica, CA 90402
Re: Back on the Beach RFP - SUPPORT
Dear Ms. Perez:
We write on behalf of the Santa Monica Chamber of Commerce to support the
lease renewal of Back on the Beach Cafe for the Annenberg Center property.
Back on the Beach is a key business in the fabric of Santa Monica. Their prime
location is a community favorite, and their excellent food and hospitality make
it a place to meet for breakfast and lunch. Back on the Beach o ffers outstanding
catering services for events throughout the Santa Monica community as well as
for events at the Annenberg Center.
Fred Deni and Jim Christel are respected business and community leaders.
They were among the first businesses to make a commitment to
environmentally sustainable business practices, and share their strategies with
other businesses. They also lead with generosity to our nonprofit community,
making donations of food and gift cards and providing a Thanksgiving dinner
to hundreds of seniors each year. Hundreds of local youth have found their first
job at Back on the Beach, where they learn the hospitality business and gain
years of experience and a lifelong work reference while working summers as
servers, food runners, and hosts.
In 2019, the Chamber honored Fred Deni with the Roy Naylor Lifetime
Achievement Award for his community service and generosity. The business
and its owners have also been recognized by the American Red Cross, Santa
Monica Police Athletic League, Heal the Bay, Step Up on Second, the
California Parks and Recreation Society, and many other organizations and
entities.
Back on the Beach embodies the best of Santa Monica for both residents and
visitors. We fully support their proposal and urge you to offer a new lease to
Back on the Beach.
Sincerely,
Laurel Rosen Michael Ricks, 2021-22 Board Chair
President/CEO CEO, Providence St. John’s Health
Center
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October 12, 2021
Joyce Perez
Senior Administrative Analyst
City of Santa Monica
415 Pacific Coast Highway
Santa Monica, CA 90402
RE: Back on the Beach Lease
Dear Joyce Perez,
I am writing to support the extension of the lease agreement for the Back on the Beach Cafe
adjacent to the Annenberg Community Beach House.
I have a health condition that leaves me highly susceptible to infection, especially the COVID-19
virus. Since the beginning of the Pandemic last year, I have avoided dining in restaurants. I have
only gone to a few outdoor dining establishments. Back on the Beach Café is the only place I’ve
felt safe, so I dined there several times. Back on the Beach has a substantial amount of outdoor
dining options with delicious food. The servers are pleasant, careful and attentive. The fact that
the outdoor tables can be reserved, and they are accessible to persons with disabilities, is a
significant benefit to the community. It is the only location where I’ve felt safe and normal.
Normal for me is rare.
Back on the Beach Café also serves families, many of which are visiting the Annenberg
Community Beach House. This is a unique resource, which is open to the public. Allowing the
Back on the Beach Café to extend its lease will support public access and makes sense.
Please extend the lease agreement for Back on the Beach.
Thank you.
Sincerely,
Terry Peters
Terry Peters
1935 Livonia Avenue
Los Angeles, CA 90034
(310) 838-3207
tppeters@aol.com
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Date:September 24, 2021 at 11:29 AM
To whom it may concern
Back on the Beach restaurant has been a great asset for the community and has become a landmark in Santa Monica.
Several generations now mark special events and just ordinary Sunday brunches with a trip to the beach and the
restaurant.
All of us would be dismayed to see the neighborhood change if some large chain took its place.
I must also mention that back on the beach was a refuge and still is during COVID . It was one of the few safe places that
people could safely eat and maintain some semblance of normal life.
Fred Deni is also a wonderful neighbor to us and a great asset to the beach.
We strongly encourage you to renew his lease.
Sincerely
Hope Warschaw
Resident 514 Palisades Beach Road
Sent from my iPad
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Back on the Beach Business & Financial references
Premiere Meats
Steve Marks
customer code # 600095
4030 Gifford Ave PO box 58183
Vernon CA 90058
323.277.5888
Santa Monica Seafood
Corporate office
customer # 4570
18531 S. Broadwick St.
Rancho Dominguez, CA 90220
310.886.7900 800.wow.tuna
Yee Yuen Linen Service
Debbie
acct # 627
2575 S. Normandie
Los Angeles, CA 90007
323.734.7205
First Republic Bank
Linnea McArt 917.826.8591
431 Wilshire Blvd
Santa Monica, CA 90401
Wells Fargo
Irene Gaye 310.395.9729
310.393.0443
1300 4th Street
Santa Monica , CA 90401
References (3.1.4)
Current contract, City of Santa Monica
Nan Friedman, Manager, Annenberg Beach House
(310) 458-4914 nan.friedman@santamonica.gov
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Confidential
Ability to Finance (3.1.5)
Evidence of the financial capability of Back on the Beach is presented herein.
1.Letter from Irene Gaye, Wells Fargo Bank2.Letter from Linnea McArt, First Republic Bank
3.Current financial statement
4.Balance sheet
5.Three year pro forma
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Confidential
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1888 CENTURY PARK EAST, LOS ANGELES, CALIFORNIA 90067 • TEL (310) 712-1888 OR (877) 743-7777 • FAX (310) 407-7088 • FIRSTREPUBLIC.COM
San Francisco • Palo Alto • Los Angeles • Santa Barbara • Newport Beach • San Diego • Portland • Palm Beach • Boston • Greenwich • New York
September 22, 2021
To Whom It May Concern:
This letter is to confirm that Mr. Fred Deni, owner of Back On The Beach, is a current and high value
client of First Republic Bank. Mr. Deni has several deposit accounts with First Republic Bank, with a
total average balance in the low seven figures range. He also has a line of credit with the Bank which he
may access in the low to mid six figures range.
Should you have any questions, please do not hesitate to contact me at (310) 407-7185.
It’s a privilege to serve you.
Respectfully,
Linnea McArt
Relationship Manager
Managing Director
First Republic Bank, Century City Office
Email: lmcart@firstrepublic.com
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Confidential
BACK ON THE BEACH FOOD COMPANY INC.
Profit and Loss
January - September, 2021
Accrual Basis Wednesday, October 13, 2021 11:51 AM GMT-07:00 1/3
JAN - MAR, 2021 APR - JUN, 2021 JUL - SEP, 2021 TOTAL
Income
4300 Beer & Wine Sales 37,379.21 109,127.00 145,948.15 $292,454.36
4400 Food Sales 274,780.75 760,858.76 1,117,791.05 $2,153,430.56
4500 Bev Sales 44,569.75 107,524.70 118,671.57 $270,766.02
4600 Retail Sales 1,104.50 4,256.62 18,435.47 $23,796.59
4650 Cart Sales -1,816.61 -7,749.41 -13,882.05 $ -23,448.07
4800 Room Fee 9.92 2,000.00 6,500.00 $8,509.92
4900 Labor Fee 7,552.95 24,676.89 $32,229.84
Discounts given -79.00 $ -79.00
Uncategorized Income 153.68 465.50 1,003.79 $1,622.97
Total Income $356,181.20 $983,957.12 $1,419,144.87 $2,759,283.19
Cost of Goods Sold
5300 Beer & Wine 10,777.40 15,914.34 24,858.37 $51,550.11
5400 Food $0.00
Bakery 4,785.39 9,851.30 13,500.44 $28,137.13
Dairy 5,679.83 11,484.70 13,940.47 $31,105.00
Grocery 12,532.59 24,934.70 34,949.83 $72,417.12
Meat 23,657.29 53,881.76 74,903.28 $152,442.33
Produce 4,663.44 10,489.86 26,147.02 $41,300.32
Seafood 12,943.22 29,983.10 47,549.87 $90,476.19
Total 5400 Food 64,261.76 140,625.42 210,990.91 $415,878.09
5500 Beverage 6,669.76 14,914.17 17,074.66 $38,658.59
xCOGS Misc 25,853.37 65,975.16 94,368.17 $186,196.70
Total Cost of Goods Sold $107,562.29 $237,429.09 $347,292.11 $692,283.49
Gross Profit $248,618.91 $746,528.03 $1,071,852.76 $2,066,999.70
Expenses
5550 COGS Ex $0.00
5600 Cater Labor 5,016.67 $5,016.67
5750 To Go Supply 6,490.83 9,565.05 10,871.53 $26,927.41
5800 Sales Adj 58.53 173.68 75.00 $307.21
Total 5550 COGS Ex 6,549.36 9,738.73 15,963.20 $32,251.29
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Confidential
BACK ON THE BEACH FOOD COMPANY INC.
Profit and Loss
January - September, 2021
Accrual Basis Wednesday, October 13, 2021 11:51 AM GMT-07:00 2/3
JAN - MAR, 2021 APR - JUN, 2021 JUL - SEP, 2021 TOTAL
6000 LABOR $0.00
6025 Wages $0.00
6100 Floor 49,398.84 143,133.21 195,633.19 $388,165.24
6150 Floor OT 619.00 5,159.40 13,556.07 $19,334.47
6200 Kitchen 37,979.81 90,138.47 114,805.44 $242,923.72
6250 Kitchen OT 808.49 5,007.50 17,917.09 $23,733.08
6400 Mgmt 1,476.96 2,749.58 $4,226.54
6500 Salary 50,930.26 46,639.99 33,205.49 $130,775.74
6550 Salary Officers 38,241.72 39,999.97 35,604.35 $113,846.04
6600 Cater 2,600.00 $2,600.00
6675 Cater Tips 285.00 $285.00
6700 Xtra $0.00
6725 Sick Pay 500.00 739.40 853.85 $2,093.25
6750 wPenalty 349.50 817.75 1,208.50 $2,375.75
6760 xBonus 1,821.43 5,678.57 $7,500.00
Total 6700 Xtra 849.50 3,378.58 7,740.92 $11,969.00
Total 6025 Wages 178,827.62 337,534.08 421,497.13 $937,858.83
6800 Other $0.00
6825 Health Insurance 9,827.53 9,885.56 17,114.12 $36,827.21
6850 Payroll Processing 396.00 548.00 1,036.00 $1,980.00
6875 Payroll Taxes 25,687.17 46,311.59 55,236.93 $127,235.69
6900 Uniforms 3,226.09 2,296.03 $5,522.12
6950 Worker's Comp.3,548.00 3,095.00 1,681.00 $8,324.00
Total 6800 Other 39,458.70 63,066.24 77,364.08 $179,889.02
Total 6000 LABOR 218,286.32 400,600.32 498,861.21 $1,117,747.85
7000 OCC $0.00
7100 Rent Expense 24,036.33 76,899.91 140,677.70 $241,613.94
7200 Utilities 12,188.05 12,011.40 22,476.49 $46,675.94
7250 Property Tax 1,494.72 $1,494.72
Total 7000 OCC 36,224.38 88,911.31 164,648.91 $289,784.60
7300 OPS $0.00
7325 Cater Supply 297.75 -378.75 $ -81.00
7350 CC & QB Fees 6,522.15 22,143.50 43,242.65 $71,908.30
7375 Computer & SAAS 2,460.01 2,319.71 3,222.18 $8,001.90
7400 Decor 176.85 80.85 $257.70
7450 Equipment 9,622.00 $9,622.00
7500 Kit Supply 672.86 1,511.03 212.00 $2,395.89
7550 Linen 630.50 1,568.10 3,792.39 $5,990.99
7600 Outside Services 147.00 127.50 $274.50
7650 Repair & Maint 8,032.31 15,405.48 14,143.73 $37,581.52
7700 Rest Supply 598.88 2,971.49 4,634.54 $8,204.91
7750 Security 223.32 $223.32
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BACK ON THE BEACH FOOD COMPANY INC.
Profit and Loss
January - September, 2021
Accrual Basis Wednesday, October 13, 2021 11:51 AM GMT-07:00 3/3
JAN - MAR, 2021 APR - JUN, 2021 JUL - SEP, 2021 TOTAL
7800 Telephone 2,973.57 2,475.75 968.94 $6,418.26
Total 7300 OPS 21,890.28 49,016.66 79,891.35 $150,798.29
8000 ADMIN $0.00
8100 Ad & Promo 918.34 112.50 $1,030.84
8150 Automobile 501.86 1,329.19 647.47 $2,478.52
8200 Bank Fees 155.00 114.98 $269.98
8250 Insurance 7,884.81 6,551.73 6,551.73 $20,988.27
8300 License & Permit 1,375.00 $1,375.00
8350 Meals & Research 986.55 461.66 $1,448.21
8400 Office Supply 424.83 848.23 334.20 $1,607.26
8450 Professionals 3,859.00 4,350.00 8,700.00 $16,909.00
8500 Taxes 297.70 800.00 $1,097.70
8550 Travel 1,081.80 159.07 31.58 $1,272.45
Total 8000 ADMIN 15,191.55 14,956.56 18,329.12 $48,477.23
9999 Suspense 0.00 -23.05 $ -23.05
Total Expenses $298,141.89 $563,223.58 $777,670.74 $1,639,036.21
Net Operating Income $ -49,522.98 $183,304.45 $294,182.02 $427,963.49
Other Expenses
Interest 19.58 2.77 -7.92 $14.43
Total Other Expenses $19.58 $2.77 $ -7.92 $14.43
Net Other Income $ -19.58 $ -2.77 $7.92 $ -14.43
Net Income $ -49,542.56 $183,301.68 $294,189.94 $427,949.06
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Confidential
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ConfidentialBACK ON THE BEACH FOOD COMPANY INC.3 Year Amortized Pro FormaYear 1 Year 2 Year 3INCOMEAnticipated Gross Sales3,200,000$ 3,500,000$ 3,900,000$ EXPENSES % salessesAdvertising0.5%16,000 17,500 19,500 Cost of Goods Sold27.5%880,000 962,500 1,072,500 Cost of Labor45.0% 1,440,000 1,575,000 1,755,000 Insurance1.0%32,572 35,626 39,697 License & Permits0.4%11,215 12,266 13,668 Misc. Admin Costs1.0%31,418 34,363 38,290 Operating Costs3.5%112,000 122,500 136,500 Rents10.4%332,252 363,400 404,932 Repairs & Maintenance 2.0%64,000 70,000 78,000 TaxesProperty30,000 30,000 30,000 Business3,000 3,000 3,000 Utilities2.0%64,000 70,000 78,000 Total Anticipated Expenses3,016,456 3,296,156 3,669,088 Net Profit183,544 203,844 230,912 page 23DocuSign Envelope ID: 82485F9D-778F-4B63-8A9F-F111E5219D7B5.D.dPacket Pg. 223Attachment: 02_Concession_Agreement_2022-FINAL w EXHIBITS EXECUTED 040722 (6200 : Back on the
Confidential
INCOME
Gross Sales 2,195,155$
EXPENSES % sales
Advertising 4,656 0.2%
Cost of Goods Sold 625,041 28.5%
Cost of Labor 1,143,130 52.1%
Insurance 22,393 1.0%
License & Permits 7,710 0.4%
Misc. Admin Costs 21,600 1.0%
Operating Costs 82,598 3.8%
Rents 228,423 10.4%
Repairs & Maintenance 41,135 1.9%
Taxes
Property 28,422 1.3%
Business 2,902 0.1%
Utilities 63,240 2.9%
Total Expenses 2,271,250
TOTAL PROFIT (76,094)$
Gross Sales 2021 to AUG 2,737,946$
BACK ON THE BEACH FOOD COMPANY INC.
Profit and Loss
2020
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Confidential201720182019INCOMEAnticipated Gross Sales3,322,948$ 3,660,558$ 3,407,669$ EXPENSES% sales2020 ‐ %Advertising0.5%8,282 0.2%3,045 0.1%29,288 0.9%Cost of Goods Sold27.5%985,632 29.7% 896,582 24.5% 884,602 26.0%Cost of Labor45.0%1,563,117 47.0% 1,487,254 40.6% 1,532,520 45.0%Insurance1.0%15,809 0.5%17,539 0.5%19,104 0.6%License & Permits0.4%6,152 0.2%5,775 0.2%8,645 0.3%Misc. Admin Costs1.0%41,169 1.2%33,195 0.9%45,658 1.3%Operating Costs3.5%169,280 5.1% 179,392 4.9% 159,990 4.7%Rents10.4%323,403 9.7% 347,718 9.5% 322,140 9.5%Repairs & Maintenance2.0%65,459 2.0%73,199 2.0%61,500 1.8%TaxesProperty7,877 0.2%5,663 0.2%26,299 0.8%Business1,138 0.0%800 0.0%1,659 0.0%Utilities2.0%70,040 2.1%75,564 2.1%77,102 2.3% Total Anticipated Expenses3,257,357 98.0%3,125,725 85.4%3,168,509 93.0%Net Profit65,591 534,833 239,160 BACK ON THE BEACH FOOD COMPANY INC.3 Year Look Backpage 25DocuSign Envelope ID: 82485F9D-778F-4B63-8A9F-F111E5219D7B5.D.dPacket Pg. 225Attachment: 02_Concession_Agreement_2022-FINAL w EXHIBITS EXECUTED 040722 (6200 : Back on the
Operations Plan (3.1.6)
Back on the Beach will continue to provide a memorable customer experience for local
residents and visitors from around the world in its iconic location on the beach in Santa Monica.
The restaurant and beach concession will continue to exemplify the spirit of Santa Monica
through excellent food, environmental stewardship, and interpretation of the historic roots of
the Annenberg Beach House site.
Mission and Vision
In operating a successful business, the mission of Back on the Beach is to provide hospitality
and service to enhance the experience of visitors to Santa Monica Beach, and to increase access
to and appreciation of our marine environment.
Our vision is to be a community partner that exemplifies the Santa Monica way of life: friendly,
democratic, environmentally conscious, healthy, and On the Beach.
Our mission and vision guide our work daily as we serve our regular customers, visitors to Santa
Monica, and guests of the Annenberg Beach House.
Products, merchandise, and services
Back on the Beach will continue to offer six options for food and beverage purchase at the
Annenberg Beach House, adapting and enhancing menus seasonally and in response to
customer preferences.
•Back on the Beach Café will continue to offer healthy casual sit-down table service for
both indoor and on-the-sand seating. We are fully licensed to sell beer and wine both
indoors and outdoors for a complete dining experience.
•Takeaway service will continue to be available through our takeaway window adjacent
to the Annenberg Beach House pool, children’s playground, and beach.
•Coffee, pastries, and grab-and-go sandwiches are available at the counter inside the
restaurant.
•Takeout orders can be placed online for pickup.
•Catering services are offered for special events and meetings held on site at the
Annenberg Beach House and other venues.
•The beach rental cart stocks snacks in addition to beach rentals and sundries.
Menus with prices are attached.
The Café serves a diverse menu of exceptional southern California cuisine with seasonal
specials to take advantage of local produce and fresh-caught fish. The menu has breakfast,
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lunch, and dinner fare with options for various food preferences and allergies. The legacy of
Marion Davies is memorialized in the name of a popular salad. The menu features a children’s
section, appetizers to share, delicious desserts, and a variety of vegan, vegetarian, and gluten-
free options. For example, we offer both a house-made vegetable burger and the Impossible
Burger in addition to meat. Our much-loved scones are baked in-house daily. Dine-in customers
are served with reusable ware, including metal straws for drinks.
The takeaway window serves made-to-order burgers and sandwiches, bowls, and drinks. While
the menu is different from the sit-down café, there are delicious options for all ages and tastes.
While their order is prepared, guests may return to the pool or the playground until called.
The inside counter of the restaurant is the place to order an espresso drink and pastry or
premade item to go. This is a popular option for beachgoers and bicyclists who want to grab
something to eat or drink on their way. During summer months the counter has a dedicated
server who makes espresso drinks for diners while serving walk-in customers and managing
takeout.
Online takeout ordering is available for people who wish to place an order and take their food
to the pool, the beach, their home, or another place. The full menu is available. Orders are
placed online for pickup at a selected time, as soon as 15 minutes. Containers and utensils are
environmentally friendly and compostable.
Catering is a specialty of Back on the Beach for events held both on-site at the Annenberg
Beach House and off-site throughout Los Angeles. We hold a current beer and wine permit for
our catering services, and furnish everything from planning through equipment rentals, food
preparation, serving, and cleanup. Customized menus, party platters, and box meals are also
available.
The rental cart sells items frequently needed by beachgoers, swimmers, bicyclists, and other
visitors including sunscreen, lip balm, beach towels, sand toys, goggles, swim diapers,
magazines, sunglasses, hats, and packaged snacks at prices similar to those at local stores (i.e.
CVS, Target). Boogie boards, beach chairs, and beach chairs may be rented for $8 (plus tax) for
the first two hours and $15 (plus tax) for more than two hours. This is not a profit center for the
business but a convenience for visitors to the Annenberg Beach House and Santa Monica
Beach.
Customer service plan
Back on the Beach serves hundreds of customers daily, as the chart below shows. The volume
of meals and the ongoing number of customers throughout the day requires staff members
who are thoroughly trained on their role in a well-defined customer service plan that is codified
and reviewed regularly.
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Daily Covers by Season, Back on the Beach
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Off-Season 300-525 300-525 300-525 300-525 500-750 900-1200 900-1200
Summer 900-1200 900-1200 900-1200 900-1200 1200-1800 1800-2400 1800-2400
In order to provide a high level of service to our customers we have policies and procedures in
place, reinforced through initial and ongoing staff training and evaluation. Clear lines of
authority support staff interactions with customers for the best experience for all. The staff
culture is supportive and teamwork is valued. Owners and managers pitch in as needed.
Maintaining excellent customer service, especially in the summer and on weekends and
holidays year-round, requires trust and respect among staff members. Back on the Beach
operates as a family business, with all staff members treated as close friends and family. Staff
members feel valued as Back on the Beach employees and reflect their enthusiasm to our
guests. We have staff members who have been with the restaurant for as long as 34 years, and
many summer workers remain connected to Back on the Beach long after they have gone on to
other careers.
Front of the house service
Daily service begins by setting up the only full-service restaurant in Santa Monica on the beach.
Tables in the sand give guest a unique dining experience. Bussers and runners ensure that
restaurant is set with proper tables, chairs, and umbrellas. Opening servers set up tables and
the service counter, check daily soups, specials and menu modifications.
First impressions are important and set the tone for guest experience. Hosts are trained to give
the best welcoming experience to new and regular customers. Hosts start by asking the number
of guests in the party. When a table is ready, guests are led to their designated table according
to party size, and seating preference. The host ensures that any accommodations regarding
dining comfort are met.
Servers are trained to provide exceptional service. They learn to time their orders so that
appetizers are on the table before entrees, take drink orders at the beginning of contact, recite
menu specials and modifications, and take into account any food allergies or dietary needs.
Back on the Beach has recently implemented a new Point of Sale (POS) system using handheld
devices. This system allows servers to take orders at the table and input any guest
specifications. Orders are then sent to the kitchen without the server stepping away from the
table. This helps expedite orders and reduces congestion at stationary terminals. Servers can
receive and process credit cards at the table so the guest’s card does not need to leave the
table, an added level of security for our guests.
Orders are received in the kitchen and cooked to menu descriptions or guest specifications.
Runners are responsible for ensuring that the kitchen has properly prepared each order as
indicated on the guest receipt. This may include response to allergies, checking on any
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modifications, and proper sides, sauces, toppings, and utensils for each order. The runner takes
the food to the table where the runner recites menu items ordered and makes sure the
elements of the order go to the corresponding guest. Before runners leave each table they
ensure that guests have all the utensils and condiments needed. Servers, assisted by bussers,
make multiple check backs to the table to ensure the guests’ satisfaction and make any
corrections needed.
Servers, runners, and bussers are trained to provide excellent service through an
orchestration process:
• match pace to fit guests’ needs
• never leave or enter your station of tables empty-handed
• visit as many tables as you can in one trip
• tidy up service beverage refills
• coffee, dessert, anything else
§ always offer coffee, cappuccino, tea, or a dessert
• checks are dropped when customers are ready
§ always double check for accuracy before presenting it
• bussers clear tables, sanitize, and set for next party to be seated.
Every team member thanks customers as they leave.
Complaints
The owners of Back on the Beach take personal responsibility for the guest experience of every
customer. In a busy restaurant there will be times when customers are not satisfied with their
meal or service. The General Manager or one of the owners will respond to customer
complaints at the time, and employees are trained to engage an owner or manager to listen
and respond to customer complaints at the time they occur. Co-owner Fred Deni monitors
reviews on Google Business and TripAdvisor and responds personally to all guest reviews.
Back of the house service
The kitchen employees work closely with each other to produce quality menu items in timely
manner. Employees are assigned to specific kitchen stations to fulfill daily operations but have
cross-training to cover and assist each other when needed. The kitchen has a strong bond that
helps team members thrive under pressure and maintain effective performance through high
volume periods, which are frequent during summer months and on weekends and holidays
year-round.
Many of the kitchen employees have worked together as a team for years which is reflected in
the quality of food and service experienced by Back on the Beach guests. Current team leaders
Riley Bustamante and Jonathan Anguiano have grown with the business over the past 11 years,
creating a work environment that is efficient and professional. These two executive chefs bring
new ideas to the kitchen; menus, systems, and relationships are all enhanced by their
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partnership. Riley Bustamante is a team leader who is an effective communicator, expert in
delegating, a mediator, has a positive outlook, great integrity and creativity. Jonathan Anguiano
is his life-long friend who began his culinary journey at Back on the Beach and departed for
several years to work under world class chefs at country clubs. These two leaders bring skills
and experiences to run a fast-pace traditional California café on Santa Monica Beach. They are
responsible for the quality of food along with health and safety in the kitchen.
Daily kitchen service
Opening kitchen personnel set up kitchen. Fresh scones are prepared and baked daily, as they
have been for 42 years. Based on supplies, the chefs create daily specials and soups. Stations
are set up according to the menu. As daily food deliveries arrive they are unloaded and stored
appropriately.
Back on the beach has six designated stations based on the menu. Cooks assigned to each
station communicate consistently to complete guest orders.
- Sauté/egg station
- Grill station
- Fryer station
- Sandwich station
- Salad station
- Preparation station
Cleaning and sanitizing
Back on the Beach holds a high standard for maintaining cleanliness and sanitation of the
restaurant and facilities. All employees are responsible for keeping all equipment, workstations,
fixtures, walls, floors and restrooms clean on a daily basis. Each employee has an end-of-shift
cleaning duty, known as side-work, which performed to keep the facility safe, presentable and
functional. As a beachfront business, working in the sand is a never-ending job to keep
windows, floors, paths, seating and eating areas clean. Throughout the restaurant there are
multiple sanitation buckets that are utilized to wipe down all tables, chairs and counter tops.
All employees have a training period during which they learn to properly use the chemical
station. The chemical station has various types of environmentally-friendly cleaning solutions
that are designated for cleaning, disinfecting, mopping and polishing.
The managers of the café are responsible for ensuring that restrooms, fixtures, counter tops,
windows, doors, floors, trash areas and cooking equipment are clean throughout business
hours and after hours. Back on the Beach has multiple clipboards with checklists of cleaning
procedures for employees to follow when assigned a cleaning task. The manager is responsible
to assign tasks and verify that cleaning jobs are properly completed to restaurant and health
standards.
Back on the Beach also hires two full-time employees who are responsible for daily
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housekeeping and maintenance (cleaning crew). These two employees are scheduled to work
after business hours to “deep clean” all kitchen equipment, floors, walls, ceilings, furniture and
all counter tops. As all employees have a responsibility of keeping all stations clean, the
cleaning crew goes above and beyond to maintain cleanliness of the facility. During the summer
season we hire an additional full-time employee to keep up with high volumes of facility usage.
More staff, more guests and beach-goers require more cleaning. In addition to the daily
cleaning of the interior, he exterior of the cafe is washed twice weekly to address any buildup
of food debris, thrash, grease and sand.
While every cafe employee is responsible for cleaning and sanitizing, we hire multiple cleaning
services to maintain heavy equipment properly working. Exhaust hoods are thoroughly cleaned
every four months by Flu Steam. Floor drains are cleaned three times each year to ensure
proper drainage. Grease barrels are picked up when filled to capacity by JR Grease Service,
which empties the grease trap empty every three months or when filled. Back on the Beach
also has a contract with Nadine Refrigeration to maintain all refrigerators. This ensures all
equipment is cooling to proper temperatures, adhering to Health Department standards.
Maintenance schedule and provider, Back on the Beach
FACILITY MAINTENANCE COMPANY SERVICE COST /YR SERVICE CALL /PER MONTH
GREASE BARRELS JR GREASE SERVICE $2,400 4
GREASE TRAP JR GREASE SERVICE $800 ONCE EVERY 3 MONTHS
EXHAUST HOODS FLUE STEAM $3,000 ONCE EVERY 4 MONTHS
REFRIGERATION NADIEN REFRIGERATION $6,000 ONCE EVERY 2 MONTHS
DOORS VORTEX DOORS $4,500 ONCE EVERY 3 MONTHS
FLOOR DRAINS $1,500 EVERY 6 MONTHS
EXTERIOR BUILDING BOTB CLEANING CREW $18,000 3x TIMES A WEEK
HOUSE KEEPING BOTB CLEANING CREW $65,000 6x-7x TIMES A WEEK
PEST CONTROL ORKIN PEST CONTROL $5,500 1
Food preparation methods
Back on the Beach is dedicated to providing healthy, delicious, and sustainable food to our
guests. This begins by buying local fresh products and seasonal ingredients, choosing organic
when it is available, choosing sustainable packaging, and utilizing all parts of raw ingredients in
order to reduce food waste.
We use healthy cooking methods including canola oil for frying, olive oil, and roasting or
steaming vegetables.
Back on the Beach is committed to serving the best all-natural ingredients available. As a
restaurant we strive to emphasize local and seasonal ingredients with a sustainability mindset.
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Our preparation starts in locating vendors, farmers, and markets that have the availability to
offer organic, local and sustainable products.
Our produce is purchased through multiple distributors to find the best price and quality in the
market so that our prices are reasonable. We make multiple trips to the Los Angeles Produce
Mart, where we find fresh products that make their way from local farms and domestic
vendors. Here we can physically look and feel the product before it is loaded into a truck and
into our kitchen. We also purchase products from the Santa Monica Farmers Market so we can
support local farms and find seasonal fruits and vegetables to incorporate into weekly/weekend
specials, seasonal fruits plates, and seasonal salads. We work with Sunrise Produce Company in
the summer season when we need high volumes of ingredients.
We have long-term relationships with Santa Monica Seafood, Premier Meat Company, and
Sysco, who are national distributors. These companies help us fulfill our mission of sourcing the
best quality of fish, poultry, and packaged products.
Food safety and quality are high priorities. Inventory is checked before each shift to ensure
freshness of ingredients, and temperatures of refrigerators, poultry, meat, and dairy products
are checked at least daily. We have designated cutting boards for specific ingredients (dairy,
fish, meat, poultry, raw vegetables) and designated shelves for all dry, frozen, dairy, poultry,
meat, and vegetables. All employees are California-certified food handlers. Managers check
food quality daily. Leftover foods from the restaurant or catering become family meals for
employees to enjoy, reducing food waste. Food scraps are composted.
All stations are cleaned daily, and all equipment is sanitized daily. The dishwasher temperature
is checked regularly and maintained at temperatures between 165 and 180 degrees. All large
dishware is washed, sanitized, and dried.
Organizational structure of staffing and management
Back on the Beach has a simple staffing structure illustrated on the attached organizational
chart. The co-owners hire, supervise, and delegate responsibility to the general manager, who
hires and supervises the front-of-the-house staff with the support of the assistant manager. The
general manager also hires and supervises the executive chefs, who hire and supervise the
back-of-the-house staff. The general manager is also responsible for the cleaning crew.
Back on the Beach staffing levels vary by the season, with a staff of 40 during the off-season,
and up to 100 during the summer. Catering is staffed by Back on the Beach employees and
temporary staff members who work as-needed. All employees are paid at least the Santa
Monica Living Wage of $15/hour plus tips. The table below lists the wages for each position.
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Wage Schedule, Back on the Beach
Position Wage Off-Season Summer Gross income
Server $15/hr plus tips 8 16 $25k-80K
Barrista $15/hr plus tips 2 3 $18k-$38k
Busser/Runner 15/hr plus tips 10 20 $5k-$45k*
Host 15/hr plus tips 4 12 $5k-$18k
Line Cook $19-$22/ hr 3 8 $35k-$50k
Fryer $18-$19.5 / hr 2 5 $20k-$40k
Pantry $16-$18.5 /hr 3 6 $18k-$40k
Prep Cook $17-$19 /hr 2 4 $18k-$40k
Dishwasher $15-$18 /hr 3 8 $32k-$35k
Sous Chef $50k-$60k 2 2 $50k-60K
Take-Out Cook $15-$17 /hr 0 6 $3k-$10k
Cashier $15 /hr 0 3 $3k-$8k
Managers $17-$20 /hr 1 2 $18k-$45k
*Hourly wage is minimum $15. Gross income includes part-time, seasonal workers.
Please see attached organizational chart and job descriptions.
Use of subcontractors
No portion of this operation will be subcontracted.
Employee training policies
All employees receive orientation from the owners, general manager, and chefs upon hire. New
employees are assigned to shadow or assist a permanent employee for a one- or two-week
period to ensure they are thoroughly trained and able to practice all Back on the Beach policies
and procedures, and that they know how to respond to the many unanticipated challenges that
occur during a shift, especially during the busy summer season.
Initial and ongoing training focuses on Back on the Beach’s orchestration process described
above, which includes matching the pace to fits the needs of guests, never leaving or entering
your station of tables empty-handed, visiting as many tables as you can in one trip; keeping
tables bussed and tidy; offering additional food, coffee, dessert, or anything else; handling
payment efficiently and politely; preparing tables for the next party; maintaining cleanliness
and sanitation; and consistently offering excellent customer service.
In-service training is scheduled weekly or when needed to review policies and procedures,
practice use of new equipment, or address other issues when they emerge.
Please see attached employee training protocols and employee manual.
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Employment opportunities for youth
Back on the Beach employs 50 to 60 youth each summer as it staffs up to meet the seasonal
demand for beach concessions. Hundreds of Santa Monica youth have gotten their first job at
Back on the Beach as a host, dishwasher, busser, runner, barista, or cook, and advanced to
server or cashier when they come back for a second or third summer. For many of these
individuals, Back on the Beach stays on their resume for years, and they know they can count
on Fred, Jim, or Zee to respond to calls for references as they transition into full-time,
permanent employment when they complete their education. Many full-time permanent
employees of Back on the Beach, including the current management team, got their first jobs as
teenagers at Back on the Beach and then stayed on or returned after getting additional
education and experience.
Back on the Beach is a high-pressure, fast-paced business during the summer and serves as a
foundation for lifelong employment skills. The structure and family culture provides a model of
employment in which everyone works very hard and employees and manager support each
other. Family dinners and staff volleyball games build camaraderie. Employees leave every
evening with a printout of their hours and earnings, along with tips in their pockets. Back on the
Beach models employer fairness and transparency.
The owners, managers, chefs, and permanent employees provide mentoring to the youth
employees who learn “soft skills”– time management, customer service, teamwork, respect,
communication, flexibility, problem solving, and work ethic – in a location that is without equal
and with co-workers and managers who authentically care about each other.
Youth workers are recruited from Santa Monica High School, Santa Monica College, Virginia
Avenue Park, PAL, and by networking with previous youth workers and among all area schools
and programs.
Marketing and advertising plan
Back on the Beach markets to two audiences: local residents and visitors to Santa Monica.
Marketing to local residents consists primarily of community involvement and social media,
along with peer-to-peer marketing. Back on the Beach is a reliable contributor to prizes and
silent auctions for schools and charities, and many regular customers first came to Back on the
Beach with a gift certificate that they won through a school or charity. The restaurant is widely
popular among local residents who come in frequently and always bring their out-of-town
guests to this uniquely beachy dining experience. Those who have had special events, including
weddings, engagements, graduation celebrations, and birthday parties at Back on the Beach
return often, as do those who are first introduced to the restaurant on one of these occasions.
The catering business brings awareness of the restaurant to new audiences, as does the
company’s profile with the Santa Monica Chamber of Commerce.
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Back on the Beach regularly receives high accolades on online reviewing sites and is featured in
personal posts on Instagram and Facebook due to the beauty of the setting and the high quality
of the food and experience. This social media exposure generates new customers and reminds
returning customers that the cost and quality of the Back on the Beach experience merits a
return visit.
Back on the Beach is featured as “Best Outdoor Dining” and “Best Beach Restaurant” in a
variety of publications and websites. Management encourages returning customers to share
their positive experience through social media posts and online voting.
Visitors to Santa Monica see Back on the Beach listed in many guides to best beach experiences
both in books and online, and the restaurant and Annenberg Beach House are often
recommended by staff members at the many large hotels serving guests from all over the
world. Back on the Beach has staff members who speak Spanish, German, Portuguese, and
other languages, so guests feel especially welcome when they can ask questions and
communicate in their native language. Any bike ride north of Santa Monica Pier will include a
stop at Back on the Beach for a meal or a snack. The business receives coverage in travel
publications year after year.
Community involvement activities
A beloved member of the Santa Monica community, Mr. Deni has received many awards and
recognition for his generosity and community spirit. Most recently, Mr. Deni was awarded a
lifetime achievement award from the Santa Monica Chamber of Commerce to add to his many
honors and accolades.
For over 30 years, Back on Broadway and then Back on the Beach has hosted a large
Thanksgiving dinner for Santa Monica seniors who have no families in collaboration with Wise
& Healthy Aging, a large senior services organization. In 2020 when the pandemic interfered
with the in-person gathering, Back on the Beach donated drive-through and delivery of
Thanksgiving meals to seniors.
Back on the Beach donates food and gift certificates to schools and community organizations
whenever they are asked, typically over 100 donations in a non-pandemic year. We donate
catering to many fundraising events of groups such as PAL and Heal the Bay. We are active
supporters of Santa Monica Conservancy, Sustainable Works, the Ruskin Theater, Step Up on
Second, The People Concern, and many other organizations.
Both owners are actively involved in environmental, youth development, and human rights
organizations. We are active supporters of AIDS Project Los Angeles, the Los Angeles LGBT+
Center, the Human Rights Campaign, Public Radio, Planned Parenthood, and the Sierra Club.
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Environmental and sustainable practices
Back on the Beach is a leader in the creation and adoption of practices that improve the
environmental sustainability of the restaurant business. Back on the Beach won the Grand Prize
at the Sustainable Quality Awards in 2019, and the Excellence in Stewardship of the
Environment Award in 2017. A Santa Monica-certified Green Business, Back on the Beach has
adopted comprehensive energy conservation, water conservation, waste reduction, and
pollution prevention measures.
Conservation. Back on the Beach has comprehensive policies and practices developed and
implemented over the years as we strive to continuously improve our environmental
stewardship. We maintain and refurbish our equipment and furniture and only replace items
when they cannot be fixed. If we must purchase new appliances, we make sure to purchase
Energy Star ones. We use thermal coffee pots, which retain their heat, instead of bottom-
heated ones. Our walk- in refrigerator has inner door 'cool curtain' clear strips to help retain
cold when the outer door is open. We prefer naturally cooling our restaurant, as we utilize
ceiling fans, and our dining rooms are lined with screened windows we often keep open.
We have never used our air conditioning unit that was installed 10 years ago. Our windows
have a solar-tinted film for heat rejection in the summer and are double-paned to aid heat
retention in the winter. On those offseason chillier days, we have the heating system set to the
low 70s and we make sure to turn it off before we close.
We do not have outdoor heaters. In the summer of 2015, we replaced the majority of our
already energy efficient, mercury- conscious, green- tipped fluorescent kitchen light tubes with
LED fixtures. Our exterior lighting and restrooms are a mix of compact fluorescents and LEDs.
We replaced our aged restroom doors, which are accessed from the outside, to include several
inches of air gap at the tops and bases of the doors in order to improve ventilation and allow in
natural exterior light. The few hot water pipes that briefly run exterior of the building are
covered with pipe wrap insulation. Our utility bills are regularly tracked with the help of
Portfolio Manager at www.engergystar.gov. Our dishwasher is state-of-the-art and low-
temperature. We installed an office vented- skylight which brings in natural light and keeps the
office vented and cool.
Back at the Beach has put into place various water saving measures. Our restrooms are a great
example of this: not only do we have stickers in our restrooms reminding people to use water
wisely, we also have water efficient appliances in the restrooms. Our restroom sinks and staff
hand- washing sinks have 0.5 GPM faucet aerators and we have a waterless urinal in the men's
restroom. Similarly, our outside faucet can only be turned on with the use of a metal hand key
because we found that many beach- goers were using it too liberally. In compliance with city
ordinances, we only serve water to customers upon request. Our outdoor decks, walkways and
cement areas are regularly swept clean instead of hose- cleaned. Biodegradable Simple Green
degreaser is used in spot cleaning with a lot of elbow grease and a good brush broom. Pots and
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pans are pre- soaked which decreases the need for several runs through the dishwasher. Our
dishwasher is only run when its racks are full, after hand scraping. We switched from a water-
cooled ice machine to an air-cooled model several years ago.
Back on the Beach Cafe has streamlined much of our purchasing to include more
environmentally friendly products. Perhaps most noticeable is our use of steel straws for drinks.
Our paper and office supplies meet the requirements of a City of Santa Monica Green- Certified
business. Our takeaway paper bags and multifold paper towels have a minimum of 40% post-
consumer recycled content and are unbleached. Our paper dinner napkins have a minimum
30% Post-Consumer Recycled Content (PCRC) and are unbleached. The toilet paper has 20%
PCRC. We use Neenah brand office white envelopes, which are 30% PCRC, as well as Neenah’s
multipurpose paper, which is 30% PCRC. Our menus are printed on Neenah’s “ENVIRONMENT®
Paper,” premium post -consumer fiber papers manufactured under sustainable practices.
We purchase all supplies possible (e.g., food stuffs, office supplies, janitorial) in bulk. Single use
disposable containers are only used for takeaway orders, and containers, cups, lids, straws, and
bags are paper-based and are "Marine Degradable", (dissolves in water within 30 days) which is
the current city standard for single-use disposables. We offer a 25- cent discount to those
ordering coffee to go if they bring their own reusable thermal coffee cup or sippy- type cup for
soft drinks. If a customer or general beach- goer wants a glass of water to go, we let them know
that it is free if they drink it from a non- disposable glass at the restaurant. However, if they
want a disposable cup to go, we charge a 25- cent fee. Our servers use handheld ordering
devices from our Clover POS system. This has helped to minimize our paper waste, as, prior to
investing in our Clover POS system, our servers used to write down orders on (scrap) paper and
then reenter them on the inside station terminals. Additionally, to conserve/minimize waste,
we have our office printer set to print doublesided, and all scrap paper is collected and reused
in the form of note paper. Back on the Beach’s owners propagate orchids behind the restaurant
in the back garden and reuse them as decoration both in the restaurant and for catering.
Food sourcing. We consistently procure high- quality sustainable foods for our business. Back
on the Beach’s offerings include Mary's Free- Range Chicken, local cage- free eggs and grass-
fed beef. We procure organic coffee from Intelligentsia, which is the first business to adopt
Direct Trade practices in the industry. Similarly, we purchase organic teas from Shangri La Tea
Company which “grows and harvests [its] teas in accordance with the strictest internationally
recognized environmental standards.” Teas from Shangri La Tea Company are certified by The
Rainforest Alliance™ and USDA’s National Organic Program (NOP), among other reputable
organizations. We purchase sustainable fish guided by Monterey Bay Aquarium Seafood Watch,
Monterey Bay Aquarium’s sustainable seafood buying guide. We order our fish and seafood
from Santa Monica Seafood and its partner FishChoice, which is always rated by Monterey Bay
Aquarium Seafood Watch as either a “best choice” or a “good alternative.” Our tuna salad is
wild albacore tuna which is caught using the sustainable “poll and troll” method. Additionally,
we obtain our produce, beef, chicken and dairy all come locally from the state of California.
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Cleaning supplies and practices. For cleaning supplies, we largely procure Butler Chemicals’
Green janitorial products. Butler Chemicals’ glass cleaner is non- toxic, and its no- rinse floor
cleaner is enzyme- based instead of detergent- based. We use a wall-mounted system that
automatically dilutes the bulk chemical concentrations with water to ensure the appropriate
concentration level for the staff to use to avoid overuse of chemicals. We utilize non-
chlorinated powdered cleanser. We employ Simple Green’s biodegradable industrial degreaser
for the spot- cleaning of our outdoor area.
Carbon emissions. We encourage reduction of carbon emissions in every way we can. We
encourage our employees to take public transport, ride their bikes or rideshare. To incentivize
employees to do this, every day that an employee uses one of these modes of transportation
both to and from work, his/her name is put into a raffle for a monthly drawing, resulting in a
prize (i.e., prizes include a little cash attached to a fun gift such as theater tickets, box of See's
chocolates, etc.). At our kiosk, we stock helpful public transport information, and these
materials are also included in our new employee orientations. We keep a bicycle air pump on
site for anyone, including beach- goers and customers, to use as needed. There are several
public bike racks around our restaurant, as well as on- site at the Annenberg Community Beach
House.
Recycling. Proper recycling is a main protocol at Back on the Beach, and we train our staff
accordingly. We are fortunate to live in a municipality that seriously encourages waste
reduction. We have use mixed use recycle bins and food scraps/waste bins provided to us by
the City of Santa Monica, along with trash bins. We have three color-coded plastic bins
strategically placed at several places within our restaurant for employees to use: blue for mixed
use recycling, black for trash and green for food scraps. Our office, front server area,
dishwashing area and several places in the kitchen area all have distinct color Slim Jim
receptacles to assist in proper recycling facilitation. Of our three large (city- managed) bins
outside the kitchen door, the mixed use recycle bin is always the first to fill up. We estimate
that we divert at least 80% of discards to mixed-use recycling and food waste composting.
Environmental leadership. Back on the Beach is a proud partner with many environmental
organizations and participates in community initiatives to raise environmental awareness and
promote environmental practices. We take part in “Meatless Mondays” and were also involved
in “Meatless in March 2018.” We volunteer with environmental organizations. Back on the
Beach’s owners have been longtime members of Angles Sierra Club and TreePeople
(treepeople.org), Los Angeles County Beekeepers Association, as well as Wilderness Travel
Course (wildernesstravelcourse.org). We have periodically volunteered with TreePeople on the
Urban Forestry Tree Plantings that take place along West L.A.’s sidewalks and its Mountain
Forestry Tree Plantings that take place around Malibu and Topanga. We donate food to
Sustainable Works’ and Heal the Bay’s events. Additionally, although it is not primarily an
environmental group, we are longtime contributors to Planned Parenthood, as we believe that
the exponential growth of human population may be the biggest threat to the planet's
ecosystem.
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Furnishing, equipment, and décor
Furnishings have been selected to withstand the heavy use and environmental factors they
endure. Wooden wainscoting in the dining room references the historic Marion Davies Guest
House on the property, which is open to visitors. Outdoor chairs, tables, and umbrellas are
sturdy and durable.
A custom-built cart houses sundries, snacks, and rentals (boogie boards, beach chairs, etc.) and
can be moved to different locations on the property based on visitor traffic.
Thematic uniforms, menus, décor, or other elements
Uniforms consist of sky- and ocean blue t-shirts with the Back on the Beach logo, reflecting the
beach environment. Employees may wear clean cargo shorts or jeans in good repair, and must
wear closed-toed shoes.
The café has a simple and clean style consistent with the natural beauty of the coastal
surroundings. The large windows allow ocean and beach views from every table inside, and
umbrellas enhance visitor comfort at the outdoor tables. The thematic color is blue, reflecting
the ocean and the sky. Walls are decorated with artisan ceramics and historic photos of the
Gold Coast and the Marion Davies estate.
The menus are enclosed in weatherproof sleeves and can be changed to reflect daily menu
additions which are selected by the chefs based on availability of local produce and fish.
Interpretive elements highlighting the environmental and cultural history of the site
The Annenberg Beach House and Back on the Beach are privileged to be located at a site with
rich environmental and cultural history. Our décor reflects the aesthetic of the Marion Davies
Beach House, and we display historic photos of the Gold Coast and the Marion Davies estate in
the restaurant. Our front-of-the-house staff members learn about the history of the property as
part of their initial training both so they can answer guest questions and to foster their own
appreciation of the history of their workplace.
Other programs or services to complement the public’s beach experience
Back on the Beach actively supports Heal the Bay’s beach cleanup days. We rent and sell
equipment and supplies people may need for a spontaneous beach experience, such as hats,
sunglasses, swim diapers, towels, beach chairs, and boogie boards.
The beach experience in Santa Monica frequently includes bike rides and walks on the beach in
our area. We offer free glasses of water to people who stop in, along with any information they
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may want about the Annenberg Beach House, the history of Santa Monica Beach, and the role
of the City in preserving this important environmental and cultural asset.
Healthy Foods Plan
The restaurant has featured healthy, organic, and locally grown food on its menu from the
beginning, including additional options (vegan, gluten-free, non-GMO) as they have become
available. We use Mary’s Free-Range Chicken, local cage-free eggs, and grass-fed beef. We
purchase sustainable fish guided by the Monterey Bay Aquarium Seafood Watch.
Burger options include both a house-made vegetable patty and Impossible Burgers along with
beef.
Many menu items are vegetarian, vegan, and gluten-free so that all our guests have broad
choices of meals. We include vegan and gluten-free options in each category so our guests do
not have to order a series of side dishes and appetizers. Our chefs are mindful of the dietary
requirements and choices of the thousands of guests we serve each year and strive to offer
healthy options for everyone. From a discerning Westside gourmet to a hard-to-please child,
guests at Back on the Beach can have a pleasurable healthy meal throughout the day.
Please see Environmental and Sustainable Practices section above for further details.
Tenant Improvement Plan
If awarded this lease, Back on the Beach Food Co., Inc. is prepared to make capital
improvements totaling approximately $300,000 including replacement of the roof, exhaust fans
and cooler; repair of exterior foundation cracks; renovation of restrooms; addition of a
retractable fabric canopy; renovation of dining room floors; replacement of exterior doors and
windows; and replacement of the walk-in cooler. The improvements are planned to be made
over a three-year period with construction scheduled for non-summer months. All
improvements are conditional upon approval that they comply with the California Coastal Act,
Santa Monica Proposition S, and County Health Codes, and will be closely coordinated with the
City of Santa Monica’s Economic Development Division.
Please see attached Renovation Plan. Sufficient funds are on hand and available for capital
improvements.
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Back on the Beach Cafe
excerpts from our employee practices & customer service policy:
“Service begins before the customer walks in the front door.”
Being a prepared Server
Acceptable standards of Personal Hygiene.
Long hair tied back, clean hands & nails at all times.
Clean & wrinkle-free uniform and apron.
Stocked apron corkscrew, a fully-charged hand-held device.
Complete knowledge and menu, including ingredients, specials,and today's desserts.
Personal money/change bank: (at a minimum) $20 in singles, $15 in fives, $5. in coinage.
A smile and a helpful attitude and teamwork!
Sequence of Events
If guests are waiting to be seated, they should be acknowledged, even if you are not the one
whose primary responsibility is to seat them. “Someone will be with you momentarily.”
The greeting & spirit of Service
First impressions are important. During the greeting you're setting the tone for the entire dining
experience. Initially, we should make eye contact with each guest. If wearing sunglasses, raise
them for a moment for the initial greeting. Let guests know you're present by 'genuinely being
present' = The 10 second likeability rule.
Read the guests' signals so you can care for their needs:
Do they need a drink? Are they in a hurry? Do they need more time?
Do they need help with the menu? Are there any kids who need help first?
Taking an order and being a tour guide.
First, ask how everyone's doing and move on to a friendly comment: the weather or the beach is
always a general, pleasant and reassuring friendly connection. If they don't cue you with specific
comments, simply ask about anything to drink? and let them know you'll be right back with their
drinks and talk about ordering. Remember, in Santa Monica, its a water-saving regulation to only
provide water upon request.
It's ok to ask if anyone wants a glass of water but never bring water to any guest unless it is requested.
Good tour guiding strengthens your personal connection with quests and speeds up the order-
taking process:
guest How's the Fred's salad?
server Oh, we're famous for our Fred's salad. It's one of our most popular items.
It's romaine hearts, a scoop of chicken salad, grilled potatoes, and blue crumbles all
tossed together in our house-made lemon herb dressing and then dusted with very
finely grated parmesan cheese.
guest How big is it?
server It is pretty large. It's an entree-sized salad...
Always repeat the order back to each guest. Confirm it before leaving the table.
If the table is lacking something, ie place settings or condiments, etc. Please get it yourself or
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make sure a busser etc, does it immediately. This is YOUR responsibility to have it taken care of
QUICKLY.
Please note that we do not have a policy of 'up-selling' or 'suggestive-selling' extra
items with each table or guest, like some chain restaurants do increase sales. However,
you are welcome recommend something else but never aggressively to each guest.
Asking the table if they want to start off with something to share is generally sufficient.
Orchestrations
An essential part of the job is coordinating the needs of your entire station,
in addition to the needs of individual tables.
Match your pace to fit the guests needs.
Never leave or empty your station of tables empty-handed.
Work with as many tables as you can in one trip.
Tidy up and service beverage refills as you go.
Time your orders.
Appetizers must be on the table before entrees.
Food Delivery
Even if using a food runner, confirm the table's order is correct.
Make sure empty plates are removed before the main course is delivered.
Make sure the food is presented in an appetizing and sanitary manner.
Report problems to the manager, every time.
The Check Back which is not when you bring the bill!
Return to the table after a few minutes to ensure the guests satisfaction.
"Please let me know if there is anything else you need."
Notice that this is not a direct question and doesn't require a response. It tries not to be too
intrusive in their meal yet indicates you're available if they need anythin.
Coffee, Dessert, anything Else?
Always offer coffee, cappuccino, tea or a dessert.
Feel free to tempt by offering a dessert by name: "Would anyone care for a slice of chocolate
mousse cake?" Instead of "Would" anyone like dessert?"
The Check
Always double-check the guest check bill for accuracy before presenting.
A guest shouldn't have to look for you to get the check !!!
Never assume the change from the cash is yours. Always bring back the change unless the
guest specifically tells you to keep it. Even if you're sure, it is mandatory to ask 'Do you need me
to make any change for you?'
If a guest pays the check and lingers, continue to provide service with a periodic check back.
You may do this by offering a refill of coffee or water.
Notes on gratuity: There is a difference between a voluntary gratuity, which the customer
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voluntarily leaves, and an automatic gratuity charge, such as '18% gratuity on parties of 6 or more'. As far
as the IRS is concerned, automatic gratuity is a service charge. It is also accounted for separately on
your end-of-shift server paperwork. If you have added 18% onto the check, you must BOTH clearly circle
and highlight it in with a pen AND verbally tell the customer that its has been added on. It is unfair and
bothersome if someone leaves an additional tip without knowing it. This may also leave a lingering
feeling of ill-will associated with the restaurant.
Alcohol Awareness
Preventing Intoxication
1 Is the guest old enough? at least 21 years old, check photo ID
Inform manager if you're unsure about an ID's authenticity
2 House policy: Don't serve a guest more than one drink at a time.
3 Be aware how many drinks a guest is consuming.
4 Offer food with all alcoholic beverages.
5 If you suspect that a guest is intoxicated, have a manager monitor the situation and
make decisions.
Signs of intoxication Server actions
Guest becomes noticeably louder or more quiet. Keep an eye on guest.
Guest becomes overly friendly. Keep count of drinks and time span. Recommend food.
Complains of weak drinks or slow service. Serve drinks at a slower rate. Inform manager.
Guest has trouble walking, slurred speech, With manager's supervision, guest needs to be tactfully
or shows aggressive signs. informed that no more drinks will be served. Offer non-
alcoholic drinks and food. Look for support among
guest's friends. Ask if guest is planning on driving.
If guest appears a danger to self or others, police must
be called.
Back on the Beach Cafe has a class 41 license: "On-sale Beer & Wine - Eating place (Restaurant)
which authorizes the sale of beer and wine for consumption on the premises where sold. Distilled
spirits may not be on the premises (except brandy, rum, or liqueurs for use solely for cooking
purposes). Minors are allowed on the premises.
"Then how can we sell margaritas?" Our margaritas are not made with tequila, but they are
made from real agave which has been fermented to wine compliant alcohol levels. and are delicious!
To serve beer and wine in CA at a restaurant you must be 21 or older, or at least 18 years old if your primary
responsibility is that of a food server. FYI, 18 year-olds may not bartend in California.
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Safety & Sanitation
Safety
Foot ware should be slip resistant.
Don't risk back injury! Get help for lifting heavy objects, bend the knees and lift with the legs.
Use a ladder or step stool to reach things from high shelves.
Report all prospective hazards, for both employees and customers, to the management.
Pick it up ! : butterpads, spilled liquids, silverware on floor, fallen food, etc
are potential hazards.
If the floor is wet, the yellow caution sign should be out and displayed.
Know your fire extinguishers:
The red fire extinguisher in the dining room is for Class ABC fires. It is a dry chemical extinguisher for :
ordinary combustibles, flammable liquid and energized electrical.
(and not good for a kitchen grease fire). If needed, remember the acronym PASS:
P ull the pin
A im the hose at base of fire
S queeze the trigger
S weep over base of the fire.
The kitchen has 2 other types of extinguishers, including an automated ansul system
above the exhaust hoods over the grills.
It may be faster and safer to first try to smother and suffocate a small fire before reaching
for an extinguisher !
All work-related injuries are covered by Workman's Compensation Insurance.
If it's a life-threatening emergency, call 911
Mgmt protocol if an employee gets injured:
Urgent Care: UCLA Health Santa Monica Wilshire Immediate Care 2424 Wilshire Blvd (310) 828-4503 Mon-Fri 9 am – 9 pm / Sat & Sun 9 am – 6 pm
or
Brentwood Urgent Care 1156 26th St, Santa Monica 310.829.4505
Mon-Fri 8 am – 8 pm ./ Sat & Sun 9 am – 5 pm
Emergency / Afterhours
St. John's Hospital (emergency room) 2121 Santa Monica Blvd 310.582.7089
or
UCLA / Santa Monica Hospital (emergency room) 1250 16th Street (at Wilshire) 310.825.9111
Amtrust Workman's Comp Insurance Policy # TWC3894993
` customer service 877.528.7878 claims 888.239.3909 amtrustclaims@qrm-inc.com
Forms that needs to be filled out (and signed by employee)
(a) DWC-1 form 'Worker's Comp Claim Form'
(b) Work Comp Claims E2
It is advisable that if a manager takes an injured employee to a medical facility, that
you bring along the employees personnel file which has important required
information ( SS#, date of hire, address, etc.)
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Sanitation
Handy Tips
Use scoops & tongs to handle ice and food, ie lemon wedges. Don't use fingers!
Use disposable gloves as directed, ie cutting lemon wedges.
Avoid touching food-contact surfaces of dishes, utensils, and equipment.
Handle plates by the bottom or the edge, keeping your fingers off the surface.
Handle glasses, bowls an cups by the side and bottom to avoid touching the rim.
Handle utensils by their handles.
10 Essentials for Safe Food-Handling
as recommended by the National Restaurant Assc. The following my not directly apply to servers.
1 Keep foods out of the Temperature Danger Zone 41 - 135 degrees F.
Temps between 70 - 125 are especially dangerous.
2 Inspect foods thouroughly for freshness and wholesomeness before cooking and serving.
3 Store foods and equipment properly.
4 Only use sanitized equipment and table surfaces.
5 Avoid letting micro -organisms from one food contaminate another food.
6 Observe good grooming and personal hygiene, especially frequent hand-washing.
7 Avoid preparing food further in advance than absolutely necessary.
8 Dispose of waste properly
9 Keep insects and animals out.
10 Handle ice properly.
How to wash your hands: When to wash your hands:
Turn water on as hot as you can stand. After you use the rest room, eat, smoke,
Apply enough soap to build up a good lather. touch raw foods, touch your face or hair,
Vigorously scrub hands and fore arms for at least 20 seconds. or phone, cough, sneeze, handle anything
Clean finger tips, fingernails, and between fingers. dirty, return from break, etc.
Rinse hands and arms thoroughly under running water.
Dry hands and arms.
This handwashing section may seem like overkill to some. After all, its
something we've been doing since childhood BUT most food-borne illness
occurs from staff members not washing their hands properly after using
the restroom !!!
Cell Phones
Cell phones are not allowed to be used while employees are clocked in,
making it a safer, more pleasant, and attentive working environment,
Cell phones are vehicles of bacterial contamination.
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BACK ON THE BEACH
Cafe
Cleaning Crew
Back on the BeachOrganizational Chart
Fred Deni and Jim Christel
Co-owners
Azain Bustamante
General Manager
Riley Bustamante and
Jonathan Anguiano
Executive Chefs
Back of House
Prep Cook
Line Cook
Dishwasher
Pantry / Salad Station
Front of House
Host
Counter
Server
Busser
Runner
Derek Williams
Assistant Manager
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Job Description
Server
Title: Server
Reports to: Owner, Manager
Summary Position:
The purpose of this position is to interact with our guests and ensure they have a great experience
when dining at the Back On The Beach. Restaurant Servers are responsible for positive guest
interactions while serving guests in a friendly and efficient manner. At all times, servers are
expected to be attentive to our guest needs; making them feel welcome, comfortable, important
and relaxed. Servers are expected to have knowledge of food being served at Back On The
Beach.
Duties and Responsibilities:
• A server must always be prepared before the start of their shift. This includes:
• Proper attire
• Apron with pens, scratch paper, change bank, corkscrew
• Daily soup and food specials
• Welcome and greet guests. Make all our guests feel comfortable and let them know
you’re there to personally take care of them.
• Inform guests of specials and menu changes.
• Make recommendations you genuinely feel your guests will enjoy.
• Up-sell food & beverage items using selling techniques.
• Answer questions regarding regions where food products come from, how food is
prepared.
• Answer questions regarding wine list, where wine comes from.
• Take food and beverage orders from guests.
• Deliver food and beverages from kitchen as needed.
• Perform side work at the start and end of each shift as required by service station
assignment.
• § Maintain clean service areas.
• § Monitor and observe guests dining experience. Ensure guests are satisfied with the
food and service. Respond promptly and courteously to any requests.
• Prepare final bill, present check to guest, accept payment, process credit card charges or
make change (if applicable).
• Be ready and willing to assist fellow servers as situations arise.
• Be ready and willing to assist bus person with clearing and resetting tables.
• Thank guests for their visit and invite them to return.
• Be available to fill in as needed to ensure the smooth and efficient operation of the
restaurant as directed by the restaurant manager or owner.
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End of shift side work/ closing duties
At the end of each shift, each server must fulfill requirements of leaving a clean workstation. No
server is allowed to leave until a manager or supervisor ensures that all side work is complete
before ending shift. This includes...
• Restocking beer fridge
• Restock back up fridge in the office
• Restock fridges in server station (Gatorade, bottle water, milk boxes, apple juice, milk,
etc.)
• Restock coffee bean and espresso
• Restock any necessary cups, glasses, and side plates.
• Refill all ketchup bottles, syrups and Mustards, Chalula, Tabasco, Parmesan cheese
• Refill All sugar containers must be full
• Refill salt and pepper shakers
• Run all pitchers through dishwasher.
• Clean espresso machine and espresso grinder, empty used espresso grounds bin,
• Run all milk containers and spoons through dishwasher.
• Run ice tea containers and lemonade container through dishwasher, clean sprouts with a
brush.
• Wipe down/ clean soda machine and remove spouts and soak in soda water. (turn off
machine)
• Empty and clean coffee pots and station
• Refill ice tea bags
• Wipe down all counters in server station (including underneath smoothie station, coffee,
espresso machine, and tea machines)
• Wipe down the front and top of coolers in server station
• Empty out trash and recycle bins.
Attitude
• Must follow the 3-legged stool theory to be a successful Back on the Beach employee.
• have a little bit of fun, make a little bit of money and take care of the customer
• Positive, upbeat and energetic.
• Confident and knowledgeable about our food and beer.
• Able to work at a fast pace.
• Willingness to assist server or staff when needed to give customer outstanding service.
• Teamwork approach to the position is essential
Appearance
• Clean Back on the Beach staff shirt
• Kaki shorts/pants (without holes or frayed edges).
• No open toed shoes or holes in shoes
ALL SERVERS MUST WORK TOGETHER AND COOPERATE IN MAKING SURE
THAT ALL SIDE WORK IS COMPLETED. SERVERS WILL NOT BE HELD
RESPONSIBLE FOR JUST THEIR SECTION
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Title: Busser
Reports to: Owner, Manager
Summary position:
The primary responsibility of a Busser is to reset tables in a speedy professional and effective
manner as guests leave the restaurant. Bussers are also responsible for the grooming of the entire
restaurant and its perimeters, as well as supporting servers and service staff with refills and
clearing tables. Other duties will be expected as need arises.
Duties and Responsibilities:
• Obtain service area assignments at the beginning of each shift.
• Promptly greet guests as they are seated
• Clear tables after guests leave. Takes tableware to dish room and place silverware, dishes,
glassware, etc. in appropriate areas for washing.
• Between settings promptly clean tabletops, chairs, path walk and deck. Check floor and
clean as required. Reset and arrange tabletop.
• Respond appropriately to guest requests. Communicate guest requests to server
immediately.
• Communicate with server and hostess to assure efficient seating, table utilization and
customer service.
• Assist server and runner as needed with food delivery, especially with large parties and
during peak hours.
• Thank guests as they are leaving – Good people skills.
• Show flexibility in terms of your schedule to ensure the smooth and efficient operation of
the restaurant as directed by the restaurant manager or immediate supervisor.
• Maintain a high level of personal cleanliness
• Be a team player; Help out fellow employees when possible.
• Be able to fulfill physical requirements of a Busser’s job – carry heavy trays (20lbs. at
least) for long periods of time.
• Invest in a lifter’s belt to protect your back.
• Be able to work in a standing position for long periods of time (up to 8 hours).
End of shift side work/ closing duties
At the end of each shit, each busser must fulfill requirements of leaving a clean workstation. No
busser is allowed to leave until a manager or supervisor ensures that all side work is complete
before ending shift. This includes...
• Bring in all dishes and buss trays to dishwasher.
• Put away umbrellas and lock storage compartment
• Lock chairs.
• Sweeping and cleaning of path walk and deck.
• Picking up all trash from the sand (using a designated strainer located in utility room)
• Vacuuming main and north room (if guest are present notify the manager of not being
able to complete duty).
• Empting sanitation buckets and placing dirty towels in linen bag
• Make sure that all inside tables are clean and set to start the next shift.
• MANAGER/SUPERVISOR MAY ASK FOR ADDITIONAL TASKS TO BE
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COMPLETED
Attitude
• Must follow the 3-legged stool theory to be a successful Back on the Beach employee.
• have a little bit of fun, make a little bit of money and take care of the customer
• Positive, upbeat and energetic.
• Confident and knowledgeable about our food and beer.
• Able to work at a fast pace.
• Willingness to assist server or staff when needed to give customer outstanding service.
• Teamwork approach to the position is essential
Appearance
• Clean Back on the Beach staff shirt
• Cargo shorts/jeans (without holes or frayed edges).
• No open toed shoes or holes in shoes
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Job Description
Host
Title: Host
Reports to: Owner, Manager
Summary Position:
Welcome and warmly greet guests on arrival. Take reservations and manage the efficient and
timely seating of our guests to a table that best serves their wishes.
Duties and Responsibilities
• Must be on time and have proper work entire
o Manager may determine if outfit is appropriate
• Warmly and graciously greet all guests upon arrival.
• Check reservation book for daily reservations. Advise bussers for reservation set up and
server for reservation time and size.
• When possible, open the front door for guests entering or leaving the restaurant.
• When immediate seating is limited, record guest names and number of people in party.
• Call out name and number of party when tables become available.
• Provide guests with estimated waiting time, always maintaining a professional, courteous
attitude when confronted with hostile, impatient or irate guests.
• Accommodate special seating requests for guests whenever possible.
• Seat guests based on guest preferences and balancing of customer flow in service
stations.
• Upon seating, offer guests a menu and inform them of their server’s name. Inspect table
for proper presentation and completeness.
• Relay messages to servers and bus-persons as needed.
• Rolling of silver ware must be done through shift
• Clean menus of food and stains.
• Perform other duties as assigned by the manager on duty.
• Thank guests as they leave and invite them to return. Relay guest comments or
suggestions to the manager on duty.
End of shift side work/ closing duties
• Roll ups (booth bins must be full)
• Collect all menus
• Wiped inside & out
• Wipe down host stand
• Restock silver ware found at the counter
• Roll host stand inside the restaurant (as well signs and umbrella)
• Place close signs on front and rear doors
• Ensure that host is clean and remove all unnecessary objects found under the stand.
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• Ask manger for any further duties
• An opening host should never be left with HAVE FULL roll ups.
Attitude
• Must follow the 3-legged stool theory to be a successful Back on the Beach employee.
• have a little bit of fun, make a little bit of money and take care of the customer
• Positive, upbeat and energetic.
• Confident and knowledgeable about our food and beer.
• Able to work at a fast pace.
• Willingness to assist server or staff when needed to give customer outstanding service.
• Teamwork approach to the position is essential
Appearance
• Clean Back on the Beach staff shirt
• Cargo shorts/jeans (without holes or frayed edges).
• No open toed shoes or holes in shoes.
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Job Description
Counter
Title: Counter
Reports to: Owner, Manager,
Summery position:
The counter staff duties and responsibilities are simple and straightforward. As food counter, you
will need to assist customers who wish to take away food or drinks as well as other staff in
preparing drinks for seated customers. A counter helps levitates the weight of the servers in
helping prepare drinks and making sure servers have what is needed. Your observations,
awareness and along with cleanliness is critical in being at the counter, as you will always need
to maintain a clean workstation that is visible to oncoming customers. A counter plays an
important role in making sure that all items are stocked for a busy service. Other duties will be
expected as need arises.
Duties and responsibilities
• A counter must always start the shift with proper work attire and must be clean.
• Upon arrival each counter must set up or make sure that all components of the counter are
available for service.
• Beverages cups and glassware shelves must be always stock.
• All straws, all plastic cups/lids, coffee cup/lid, condiments needs to be stocked and
accessible for take-away and restaurant use.
• Brewing containers and tea components need to be clean stocked.
• All counter machines need to be maintained clean and clear of any items that don’t belong
or need to be washed.
• All beverage refrigerators must be stocked with all drinks, juices, milks and orange juice.
• Lemons and limes need to be accesses able for drinks but must only be placed on a drink if
requested. These to containers must always be washed out.
• Welcome and greet guests. Make all our guests feel comfortable and let them know you’re
there to personally take care of them.
• Inform guests of specials and menu changes.
• Make recommendations you genuinely feel your guests will enjoy.
• Be ready and willing to assist fellow servers as situations arise.
• Be ready and willing to assist bus person with clearing and resetting tables.
• Thank guests for their visit and invite them to return.
• Be available to fill in as needed to ensure the smooth and efficient operation of the
restaurant as directed by the restaurant manager or owner.
End of shift side work/ closing duties
• Restock all:
o beverage cups/ glass ware
o straws
o to-go cups/ lids
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o all beverage refrigerators (must be wiped from the inside)
o condiments (mayo, ketchup, mustard, etc.)
• Clean
o soda machine (remove all nozzles and place in soda water)
o coffee machine and pots
§ pots should be taken to the dishwasher to be placed in a cleaning solution
to remove coffee stains.
o Espresso machine
§ Nozzles (place in hot water)
§ remove draining pan
§ exterior cleaning
o Ice tea and lemonade dispensers (taken to dishwasher)
o Smoothie machine
§ All blenders and lids (taken to dishwasher)
§ Scrub and wipe down top to bottom with hot water
o Display case
§ Wipe down with glass cleaner
§ Wrap all pastries
o All cabinet and counter tops
o Thrash bins
§ Cleared of all thrash then washed off
o Sweep counter floors
• Back of the house Restock
o Counter is always responsible in always making sure that the restaurant is fully
restocked for a restaurant service. This includes all restaurant items that are found
on the shelves in front of the ice machine and the beverage shelve near the front
alcohol fridge. As well the counter will need to check with manager for any
additional request.
Attitude
• Must follow the 3-legged stool theory to be a successful Back on the Beach employee.
• have a little bit of fun, make a little bit of money and take care of the customer
• Positive, upbeat and energetic.
• Confident and knowledgeable about our food and beer.
• Able to work at a fast pace.
• Willingness to assist server or staff when needed to give customer outstanding service.
• Teamwork approach to the position is essential
Appearance
• Clean Back on the Beach staff shirt
• Cargo shorts/jeans (without holes or frayed edges).
• No open toed shoes or holes in shoes.
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Title: Dishwasher
Reports to: Chef, Kitchen Lead, and Managers
Summary of Position:
The dishwasher is an organized employee, who is a committed team player being attentive and
alert of kitchen cooks and front of the house staff. The dishwasher ensures that dishware for the
front and back of the house are cleaned and sanitized.
Duties and Responsibilities
• Cleans and sanitize station to insure a clean work space.
• Fills up 3-compartment sink to proper water levels. Ensures cleaning chemicals are at the
correct solution mixture
• Sets up all sanitation buckets through the kitchen
• Makes restaurant hourly restroom checks. Sweeps, sanitize, loads proper paper and soap
products
• Washes all wares including pots, pans, glasses, flatware, using load in machine and 3-
compartment sink.
• Correctly places and stores all clean equipment in assigned storage shelves
• Cleans all thrash/recycled receptacles with all purpose cleaner
• Maintains exterior thrash bins area clean. This includes, thrash bins, concrete floors, and
grease barrels
• Ensures that all work areas remain safe, clean and sanitized to health guidelines
• Preforms various types of cleaning projects
• May assist in preparing foods for cooking and serving as directed from chef or kitchen
managers.
End of shift side work/ closing duties
• Wash all dishware and kitchen equipment
• Scrub down all dishwashing machine and 3 compartment sink
• Properly store all cleaning products in designated area
• Remove all floor mats and wash to remove any food debris
• Scrubs all stainless steel walls and polish
• Sweeps floors and mops to ensure no food it left behind
• Makes a final restroom check
• Makes sure that a thrash/ recycle receptacles are wash
• Takes out laundry bag and places new bag
• Picks up all sanitation buckets to be clean
• Sweeps exterior thrash bin are for any food or thrash debris
Attitude
• Must follow the 3-legged stool theory to be a successful Back on the Beach employee.
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• have a little bit of fun, make a little bit of money and take care of the customer
• Positive, upbeat and energetic.
• Confident and knowledgeable about health and safety
• Able to work at a fast pace.
• Willingness to assist staff when needed to give customer outstanding service.
• Teamwork approach to the position is essential
Appearance
• Clean Back on the Beach staff shirt or chef coats
• Black pants
• Anti-slip shoes
• All staff members must wear a hair nets
• Nails must be manicured and clean
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Job Description
Line Cook
Title: Line Cook
Reports to: Chef, Kitchen Lead, and Managers
Summary of Position:
The backbone of any restaurant responsible for preparation of food, grilling, sautéing or frying to
specifications of restaurant menu Line cooks maintain a high energy tempo environment,
working together on guest tickets. Line cooks maintain a cleanliness work environment in
accordance to health and safety regulations in executing daily task.
Duties and Responsibilities
• Sets up and stocks work stations with proper menu items
• Prepares menu items using knives, kitchen equipment,
• Cooks menu items by sautéing, frying or grilling according to menu recipes
• Maintains a high standard of cleanliness and complies with food and health standards
• Checks inventory to ensure that dates and temperatures are checked
• Assist chefs, kitchen leads, and team members
• Practices sustainable procedures ( food prep, utilize all components raw ingredients,
disposing of food scraps and waste in proper waste bins )
• Cleans and sanitizes all work stations and kitchen equipment at the end of shift
• Generates a list of food preparation for next shift or next day
End of shift side work/ closing duties
• Remove all non-slip mats and clean them
• Sweep kitchen floors
• Scrub floors with floor guard cleaning solution
• Mop kitchen floors
• Empty food/thrash bins in proper dumpster bins
• Wash and sanitize all, cutting boards, kitchen equipment, utensils, sandwich refrigerators,
• Wash and sanitize all prep stations, line stations
• Wash and scrub stove tops, flat tops, and fryers
• All oil catch tray must be dispose oil barrels and rinse
• Fryers must be drained
• Check inventory for next day preparation
• Consolidate all bins
• Date and label all food under your station. USE FIRST must be stamped on
• Ensure that all perishable foods are store into the walk-in fridge or freezer
• Place all floor mats back
• Double check station that everything is organized according to food safety standards.
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• Make temperature readings of all refrigerators on log sheet
• Turn off all stove tops, heaters, ovens
• All knifes must be cleaned and sanitize and hung in knife station
• Towels and aprons must be place in laundry bag
• Last kitchen employee takes out laundry bad to storage unit
Attitude
• Must follow the 3-legged stool theory to be a successful Back on the Beach employee.
• have a little bit of fun, make a little bit of money and take care of the customer
• Positive, upbeat and energetic.
• Confident and knowledgeable about our food
• Able to work at a fast pace.
• Willingness to assist staff when needed to give customer outstanding service.
• Teamwork approach to the position is essential
Appearance
• Clean Back on the Beach staff shirt or chef coats
• Black pants
• Anti-slip shoes
• All staff members must wear a hair nets
• Nails must be manicured and clean
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Title: Pantry/ Salad Station
Reports to: Chef, Kitchen Lead, and Managers
Summary of Position:
The pantry is quintessential position of preparing and stocking food for the cold station. Pantry
prepares salads, sandwiches, cold appetizers, dressings, sauces, pastries, and entree sides. Ensure
that the food preparation are consistent and up to restaurant standards. Receipts are to be
followed using measuring utensils, mixing equipment and slicing machine. The pantry supports
all kitchen staff with any ingredients that may be needed from the walk-in fridge.
Duties and Responsibilities
• Sets up and stocks work stations with proper menu items
• Prepares menu items using knives, kitchen equipment,
• Cooks menu items by using ovens, toasters, panini grill, mixer, slicer, according to menu
recipes
• Assist line cooks with any raw ingredients needed from the walk-on fridge
• Maintains a high standard of cleanliness and complies with food and health standards
• Applies effective use of safety equipment to prevent injuries
• Checks inventory to ensure that dates and temperatures are checked
• Assist chefs, kitchen leads, and team members
• Practices sustainable procedures ( food prep, utilize all components raw ingredients,
disposing of food scraps and waste in proper waste bins )
• Cleans and sanitizes all work stations and kitchen equipment at the end of shift
• Generates a list of food preparation for next shift or next day
End of shift side work/ closing duties
• Remove all non-slip mats and clean them
• Sweep kitchen floors
• Scrub floors with floor guard cleaning solution
• Mop kitchen floors
• Empty food/thrash bins in proper dumpster bins
• Wash and sanitize all, cutting boards, kitchen equipment, utensils, sandwich refrigerators,
• Wash and sanitize all prep stations, line stations
• Wash and scrub stove tops, flat tops, and fryers
• All oil catch tray must be dispose oil barrels and rinse
• Fryers must be drained
• Check inventory for next day preparation
• Consolidate all bins
• Date and label all food that are under your station. USE FIRST must be stamped on
• Ensure that all perishable foods are store into the walk-in fridge or freezer
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• Place all floor mats back
• Double check station that everything is organized according to food safety standards.
• Make temperature readings of all refrigerators on log sheet
• Turn off all heaters, ovens
• All knifes must be cleaned and sanitize and hung in knife station
• Towels and aprons must be place in laundry bag
• Last kitchen employee takes out laundry bad to storage unit
Attitude
• Must follow the 3-legged stool theory to be a successful Back on the Beach employee.
• have a little bit of fun, make a little bit of money and take care of the customer
• Positive, upbeat and energetic.
• Confident and knowledgeable about our food
• Able to work at a fast pace.
• Willingness to assist staff when needed to give customer outstanding service.
• Teamwork approach to the position is essential
Appearance
• Clean Back on the Beach staff shirt or chef coats
• Black pants
• Anti-slip shoes
• All staff members must wear a hair nets
• Nails must be manicured and clean
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Title: Prep Cook
Reports to: Chef, Kitchen Lead, and Managers
Summary of Position:
A prep cook, is responsible for providing all around kitchen support in the preparation of meals
and ingredients. Preps cook are the first set of kitchen personal to arrive. They set up all
necessary equipment needed to cook food. Prep cook keeps all storage shelves of dry goods and
walk-in fridge clean and organize. They check in all food deliveries and label food items using
the First In First Out Method (FIFO). They perform daily tasks given by chefs, line cooks and
pantry cooks in order to provide smooth dining service.
Duties and Responsibilities
• Sets up and stocks work stations with proper menu items
• Prepares menu items using knives, kitchen equipment,
• Measures all ingredients according to recipe book
• Cooks menu items by using sautéing, frying, grilling, ovens, toasters, panini grill, mixer,
slicer, according to menu recipes
• Assist line cooks with any raw ingredients needed from the walk-on fridge
• Maintains a high standard of cleanliness and complies with food and health standards
• Labeling and stocking all ingredients
• Checks inventory to ensure that dates and temperatures are checked
• Keeps all dry storages and walk-on shelves clean and organized
• Applies effective use of safety equipment to prevent injuries
• Assist chefs, kitchen leads, and team members
• Practices sustainable procedures ( food prep, utilize all components raw ingredients,
disposing of food scraps and waste in proper waste bins )
• Cleans and sanitizes all work stations and kitchen equipment at the end of shift
• Generates a list of food preparation for next shift or next day
End of shift side work/ closing duties
• Remove all non-slip mats and clean them
• Sweep kitchen floors
• Scrub floors with floor guard cleaning solution
• Mop kitchen floors
• Empty food/thrash bins in proper dumpster bins
• Wash and sanitize all, cutting boards, kitchen equipment, utensils, sandwich refrigerators,
• Wash and sanitize all prep stations, line stations
• Wash and scrub stove tops, flat tops, and fryers
• All oil catch trays must be dispose in oil barrels and rinsed
• Fryers must be drained
• Check inventory for next day preparation
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• Consolidate all bins
• Date and label all food that are under your station. USE FIRST must be stamped on
• Ensure that all perishable foods are store into the walk-in fridge or freezer
• Place all floor mats back
• Double check station that everything is organized according to food safety standards.
• Make temperature readings of all refrigerators on log sheet
• Turn off all heaters, ovens
• All knifes must be cleaned and sanitize and hung in knife station
• Towels and aprons must be place in laundry bag
• Last kitchen employee takes out laundry bad to storage unit
Attitude
• Must follow the 3-legged stool theory to be a successful Back on the Beach employee.
• have a little bit of fun, make a little bit of money and take care of the customer
• Positive, upbeat and energetic.
• Confident and knowledgeable about our food
• Able to work at a fast pace.
• Willingness to assist staff when needed to give customer outstanding service.
• Teamwork approach to the position is essential
Appearance
• Clean Back on the Beach staff shirt or chef coats
• Black pants
• Anti-slip shoes
• All staff members must wear a hair nets
• Nails must be manicured and clean
page 94
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Title: Runner
Reports to: Owner, Manager, Chef
Summary position:
The food runner position performs as an assistant to the food server to enhance the service level.
The food runner does not participate in the general order taking of the guest. However, you will
be asked to retrieve several food items at a time. You will be able to facilitate on your own and
at times with other runners what food plates correspond to the table number. Your observations
and awareness of the tables is critical for a smooth dining experience. You are the line of
communication from the floor to the Chef. Communication skills, tolerance and even mannered
temperament are necessary attributes for smooth food rush.
Duties and Responsibilities
• Obtain service area assignments at the beginning of each shift.
• Thorough knowledge of correct ingredients, descriptions, presentation & the garnish `
• To properly plate and garnish each menu item to ensure a consistent "picture perfect"
appearance to the guest.
• Delivering finished menu items to guests in a timely & efficient manner, making sure that
all food items that are ordered by each party (table) are delivered together.
• To make sure every food item that is prepared is accounted for on a check.
• Responsible for proper maintenance and sanitation of expo line area and all expo line
equipment.
• To inform the proper team members (chef, manager, line cook, server, etc.) of any needs
or inefficiency that affects kitchen performance, and ultimately, the guest.
• Communicating kitchen small ware needs (plates, spoons, pans, etc.) to the Chef.
• Never serve food to a table if the guest is away. Bring it back to the kitchen until the
person has returned to their seat.
• Food should never be dropped and left unattended.
• Runners should pass the food off to the server if the server is in the station and able to
serve the food to the table.
• Make sure you ask the table if they are all set or if they would like anything else at the
time. Be smart and ask questions if something is obvious, (i.e. Would you like ketchup
with your fries?) Make a visual check of the table to see if everything is OK. Look for
the PROPER silverware & side plates needed for each meal before leaving the table.
Communicate any food or beverage requests to the server and take care of the things
that are needed at the table.
• When you are working you are working! There will be no fooling around at the line.
All communication should be about things pertaining to your job. The people in the
runner station are not there to be entertained by unprofessional conversation at the line
with the expediter and food runners
• Maintain a high level of personal cleanliness
• Be a team player; Help out fellow employees when possible.
• Be able to fulfill physical requirements of a runner's job – carry heavy trays (20lbs. at
least) for long periods of time.
• Invest in a lifter’s belt to protect your back.
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• Be able to work in a standing position for long periods of time (up to 8 hours).
End of shift side work/ closing duties
At the end of each shit, each runner must fulfill requirements of leaving a clean workstation. No
runner is allowed to leave until a manager or supervisor ensures that all side work is complete
before ending shift. This includes...
• Wiping and clean all runners equipment
• Restocking of all condiments and serving utensils
• Refilling 2oz ramekins and squeeze bottles (with corresponding dressing and sauce)
• Wrapping any open bread bags or scone pans
• Sweep and mop floor to start the next shift
• Assist closing busser with closing duties
• MANAGER/SUPERVISOR MAY ASK FOR ADDITIONAL TASKS TO BE
COMPLETED
Attitude
• Must follow the 3-legged stool theory to be a successful Back on the Beach employee.
• have a little bit of fun, make a little bit of money and take care of the customer
• Positive, upbeat and energetic.
• Confident and knowledgeable about our food and beer.
• Able to work at a fast pace.
• Willingness to assist server or staff when needed to give customer outstanding service.
• Teamwork approach to the position is essential
Appearance
• Clean Back on the Beach staff shirt
• Cargo shorts/jeans (without holes or frayed edges).
• No open toed shoes or holes in shoes.
page 96
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Seasonal Employees
- Off-season January-April, October -December (35 employees)
- Summer season May-September (85-100 employees)
- We hire all positions (Servers, Bussers, Runners, Barista, Host, Line Cooks, Pantry,
Dishwashers, Cleaning crew)
- Our Process begins in early April, where we reach out to former employees who have
worked for us in the past. This outreach helps back on the beach to create a foundation of
knowledgeable staff to get out summer season started.
- This foundation helps us with our training base, to ensure that we continue the culture and
environment back on the beach is known for. A 42yr family run business, with dedicated
staff members who are proud and eager of proving a casual and welcoming environment to
local, domestic and foreign guest.
- We then begin to promote a summer hiring to local schools. Santa Monica High School,
St. Monica Catholic HS, Santa Monica College.
- This is part of the employment of youth that is particular valuable to back on the beach that
gets us involved in the community.
- Hiring kids in the summer helps back on the beach fill the need of staffing to cover the
high volumes of beach guest.
- The positions that we look for kids to fill up are
o take-away window minimal skills need. Work under a kitchen lead who teaches
them basic culinary skills (knife skills, preparation of raw veggies, how to use the
fryer, cooking times for poultry, meat and fish, safety and sanitation protocols,
ticket reading,
o rental cart: a seasonal kiosk set up next to the Annenberg pool. They are trained in
customer relations, items sales, site history,
o host: trained in customer service, communications skills, ability to be a team
member, patience and composure.
o bussers: trained in customer service, clearing plates, glassware, cutlery, team work,
multitasking, action oriented, customer focus
o dishwashers: trained in cleaning and sanitation, safe and health, team work, time
management, work ethic, communications
- Developing these skills to young staff members creates a close bond to growth and
knowledge. Most of them kids are part of the restaurant most of the educational
development.
- Kids go to college and come back for summer jobs. They experience multiple summers
and refer close friends or family members.
- After this process we put ads out in indeed, where we can hire potential experience servers,
kitchen workers, barista, runners, bussers and restaurant cleaning services.
- Seasonal employees work 2-5 months. depending if their hired in April or June.
- Back on the beach uses the summer to evaluate seasonal employee in determination to be
hired beyond the summer.
- If not retained for off-season work, many employees are invited back next summer.
- We have many seasonal employees who are full-time during moths of April- September
and to work elsewhere October - March
- Back on the beach also refers employees to business friends
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- Back on the beach becomes a good source for recommendations
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Mon Tue Wed Thu Fri Sat/Sun
KITCHEN/TAKE-OUT WINDOW CLEANING
EMPTY TRASH BINS X X X X X X
POWER WASH ALL FOOD, THRASH & RECYCLE BINS X X X X X X
POWER WASH ALL FLOOR MATS X X X X X X
SWEEP FLOORS AND POWER WASH FLOORS. PAY ATTENTION TO BASEBOARDS/CORNERS.X X X X X X
CLEAN AND SANITIZE EXPOSED AREAS OF TABLES, COUNTERTOPS, BACKSPLASHES X X X X X X
CLEAN AND SANITIZE SINK AND DRY-SHINE.X X X X X X
CLEAN OUTSIDE OF APPLIANCES X X X X
CLEAN AND SANITIZE ALL PUSH CARTS X X X X X X
CLEAN LIGHT FIXTURES X X X
CLEAN OVEN X X X
CLEAN GRILL AND STOVE TOPS X X X X X X
CLEAN EXTERIOR OF FRYERS X X X
CHANGE FOIL PAPER UNDER GRILL AND STOVE X X X X X X
CLEAN HOOD FILTERS X X X
SPOT CLEAN STAINLESS STEAL WALLS AS NECESSARY X X X
DRY STORAGE AREAS (SWEEP AND MOP)X X X
CLEAN MOPS/BRUSHES X X X X X X
DISHWASHER STATION
SWEEP FLOORS AND POWER WASH FLOORS. PAY ATTENTION TO BASEBOARDS/CORNERS.X X X X X X
CLEAN AND SANITIZE EXPOSED AREAS OF TABLES, COUNTERTOPS, BACKSPLASHES X X X X X X
CLEAN AND SANITIZE SINK AND DRY-SHINE.X X X X X X
CLEAN WHITE FLOOR DRAINS X X X X X X
BATHROOM CLEANING
EMPTY TRASH CANS, REPLACE LINER X X X X X X
X X X X X X
X X X X X X
CLEAN AND DISINFECT IN AND AROUND TOILETS AND SINKS X X X X X X
CLEAN MIRRORS, DRY-SHINE BRIGHT WORK X X X X X X
DISPENSERS/HAND DRYERS WILL BE SANITIZED AND POLISHED.X X X X X X
SWEEP, MOP, PAY ATTENTION TO BASEBOARDS AND CORNERS.X X X X X X
SPOT CLEAN DOORS AND DOOR FRAMES AS NECESSARY.X X X
SWEEP EXTERIOR OF RESTROOMS X X X X X X
COUNTER/SERVER STATION
SWEEP AND MOP FLOORS. PAY ATTENTION TO BASEBOARDS/CORNERS X X X X X X
CLEAN AND SANITIZE SINK AND DRY-SHINE.X X X X X X
CLEAN WHITE FLOOR DRAINS X X X
DRY STORAGE AREAS (SWEEP AND MOP)X X X X
Property Maintaince/ Housekeeping
THRASH BIN AREA (BINS, FLOORS, DRAINS)
GREASE BARRELS
GREASE TRAP
MAIN ENTRANCE FLOORS
EXHAUST HOODS
FLOOR DRAINS
PEST CONTROL ONCE A MONTH
2x times a week
THOROUGHLY SANITIZE SINKS, COMMODES, URINALS, COUNTERTOPS, PARTITIONS, GRAB BARS,
CHANGING TABLES, TILE WALL
3X TIMES A WEEK
ONCE A WEEK
EVERY 3MONTHS
2X TIMES A YEAR
EVERY 4 MONTHS
page 99
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page 100
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Back on the Beach at Sunset
page 112
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page 113
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page 114
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page 115DocuSign Envelope ID: 82485F9D-778F-4B63-8A9F-F111E5219D7B5.D.dPacket Pg. 272Attachment: 02_Concession_Agreement_2022-FINAL w EXHIBITS EXECUTED 040722 (6200 : Back on the
Rental Bid (3.1.7)
Back on the Beach Food Company Inc. proposes to pay the City of Santa Monica a minimum
annual rent of $200,000 or a percentage rent of 8% of gross sales, whichever is greater. The
percentage will apply to all food and beverages, alcoholic beverages, catering, and retail sales
and rentals.
page 101
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James Christel, Co-owner
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and Jim Christel
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AGREEMENT NO. 11238 (CCS)
Exhibit 2.
Premises
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445 Pacific Coast Highway (Back on the Beach Café)
and
415 Pacific Coast Highway (Annenberg Community
Beach House)
Restaurant Building Floor Plan
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Restaurant Building and adjacent, enclosed exterior beach and patio at
445 PCH
Equipment Building and adjacent exterior area within 10 feet of the
building at 415 PCH; northern most room designated as the "sand
groomer storage room" excluded from Premises
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AGREEMENT NO. 11238 (CCS)
Exhibit 3.
Rental Equipment & Price
List
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Back on the Beach Cafe 2021
Items from the cart that are for sale:
large plush beach towel $22.
swim goggles $16
sunscreen $16
bucket with sand toys $11
swim diaper $3
sun hat $16.
rentals $8.00 / less than 2 hours
$15.00 / more than 2 hours (all day)
plus tax
all items must be returned by closing umbrella
beach chair
boogie board
You must leave a goverment -issue photo id till paid for upon return.
You must be at least 18 years old.
This rental cart closes at 4pm. After 4:00, rentals may be returned
up till 7:30 pm at the Cafe's front counter. Ids can be retrieved there.
page 59
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AGREEMENT NO. 11238 (CCS)
Exhibit 4.
State Operating Agreement
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Marion Davies Beach House
OPERATING AGREEMENT
for
the Marion Davies Beach House
INDEX
t '
Operating Agreement
1. PREMISES ...................... ; ............................................................................. 2
2. TERM ..................... , ...................................................................................... 3
3. USE OF PREMISES ..................................................................................... 3
4. CONSIDERATION ......................................................................... .-.............. 5
5. CONSTRUCTION AND COMPLETION OF IMPROVEMENTS .................... 6
6. MAINTENANCE OBLIGATIONS OF CITY ...................................... : ........... 10
7. CONCESSIONS .......................................................................................... 11
8. TAXES ........................................................................................................ 11
9. RECORDS AND ACCO.UNTS .......................................... · ............... .-........... 12
10. UTILITIES AND SERVICES ............................................................... : ........ 13
11. INSURANCE ................................. : ............................................... ~ .... : ........ 13
12. HOLD HARMLESS AGREEMENT .............................................................. 14
13. PROHIBITIONS AGAINST ASSIGNING, SUBLETTING ........................... 15
14. NOTICES .................................................................................................... 15
15. DEFAULTS AND REMEDIES ..................................................................... 16
16. SOVEREIGN IMMUNITY ............................................................................ 20
17. TERMINATION ........................................................................................... 20
18 .. SURRENDER OF THE PREMISES; HOLDING OVER .............................. 20
19. REAL PROPERTY ACQUISITION .............................................................. 21
20. COMPLIANCE WITH LAWS, RULES, REGULATIONS, AND POLICIES ... 21
21. NONDISCRIMINATION .............................................................................. 21
22. ACCESSIBILITY LAWS .............................................................................. 22
23. UNION ORGANIZING ................................................................................. 23
24. NATIONAL LABOR RELATIONS BOARD CERTIFICATION ...................... 23
25. DRUG-FREE WORKPLACE ....................................................................... 23
26. ENVIRONMENTAL AWARENESS AND RESOURCE PROTECTION ....... 23
27. HAZARDOUS SUBSTANCES .................................................................... 23
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, ,', I I
Marion Davies Beach House Operating Agreement
28. SIGNS AND ADVERTISING ....................................................................... 25
29. INTELLECTUAL PROPERTY RIGHTS ....................................................... 25
30. CHILD SUPPORT COMPLIANCE ACT ...................................................... 27
31. DISPUTES ................................................................................................ '. ... 27
32. LIMITATION ................................................................................................ 27
33. PARAGRAPH TITLES ................................................................................ 27
34. AGREEMENT IN COUNTERPARTS .......................................................... 27
35. AGREEMENT IN WRITING ........................................................................ 28
36. INSPECTION ................................................................................. ; ............ 28
37. SUCCESSORS IN INTEREST .................................................................... 28
38. PARTIAL INVALIDITY ................................................................................. 28
39. TIME OF ESSENCE .................................................................................... 28
40. DURATION OF PUBLIC FACILITIES ............................................... 1 ......... 28
41. WAIVER OF RIGHTS, CLAIMS, AND AGREEMENT TERMS .................... 29
42. INTERPRETATION OF AGREEMENT ............................................. : ......... 29
43. INDEPENDENT CONTRACTOR ................................................................ 29
44. MODIFICATIONS AND APPROVAL OF AGREEMENT ............................ 29
EXHIBIT A-DEED FROM JOSEPH W. DROWN .............................................. A1
EXHIBIT B -1998 RE-USE PLAN ...................................................................... 81
EXHIBIT C -STD 21, DRUG-FREE WORKPLACE CERTIFICATION .............. C1
ii
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''
Marion Davies Beach House Operating Agreement
' WHEREAS, State and City desire to enter into this Agreement to provide for the
long term development, operation, control, and maintenance of the Marion Davies
Beach House as a public recreational facility by City, hereinafter referred to as "The Re-
-Use Project"; and
WHEREAS, State intends to include in this Project certain real property of
approximately two acres immediately westward of and adjacent to the Marion Davies
Beach House and under the jurisdiction of the California State Lands Commission under
a separate agreement; and
WHEREAS, the Legislature in the Budget Act of 2004/05 has authorized the
State and City to enter into said Agreement;
NOW, THEREFORE, in consideration of the mutual covenants hereinafter
contained, the parties hereto agree as follows:
1. PREMISES
State authorizes City to develop, operate, control, and maintain the property
known as the Marion Davies Beach House at 415 Pacific Coast Highway at Santa
Monica State Beach, hereinafter referred to as the "Premises". The Premises was
deeded to State by Joseph W. D~own and recorded in Los Angeles County on March
28, 1960 in Book D-794 at Page 196. Said deed is attached hereto and incorporated
herein as Exhibit A.
City agrees to accept the 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. The Premises are formally determined eligible for listing in the
National Register of Historic Places and, therefore, are listed in the California Register
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of Historical Resources. Portions of the Premises have been designated a City of Santa
Monica Landmark and/or a City of Santa Monica Point of Historic Interest. · Thus, all
alterations, additions, and betterments to the Premises must comply with the Secretary
of the Interior's Standards for the Treatment of Historic Properties (36 C.F.R. 6a et
seq.), where applicable; the Guidelines for Preserving, Rehabilitating, Restoring and
Reconstructing Historic Buildings, where applicable; and the National Historic
Preservation Act (16 U.S.C. 470 et seq.), where applicable, hereinafter referred to as
"Historic Ordinances and Laws".
2. TERM
The term of this Agreement shall be for a period of fifty (50) years, with an option
· to extend up to fifty (50) additional years as provided herein, and shall commence on
the first of the month following approval by the State of California, Department of
General Services. Either party to this Agreement may request an extension of this term
up to fifty (50) additional years when such request is made in writing not later than one
(1) year prior to the expiration of the first fifty (50) year term of this Agreement. Such
extension shall be requested in writing by either party and shall be granted upon
acceptance of such term extension in writing by the other party. State's acceptance of
City's extension of the term of this Agreement shall be granted only if the City is in
compliance with the terms and conditions of this Agreement on the date of the City's
request for extension and the effective date of such extension and shall not otherwise
be withheld.
3. USE OF PREMISES
A. City agrees to develop, operate, control, and maintain the Premises at its
own cost and expense as a public recreation facility with related concessions
and/or other facilities accessible and subject to the use and enjoyment of the
general public. Development of the Premises shall be conducted in accordance
with the goals of the 1998 Re-Use Plan and all amendments thereto, which is
attached hereto and incorporated herein as Exhibit B (herein "1998 Re-Use
Plan"); Historic Ordinances and Laws, where applicable; all applicable State
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general planning principles, State Park and Recreation Commission policies; and
all federal, state, and local government laws, rules, and regulations. The
· operation of the Premises shall be conducted in accordance with the goals of the
approved 1998 Re-Use Plan, all applicable State general planning principles,
State Park and Recreation Commission policies, and all federal, state, and local
government laws, rules, and regulations.
8. · Using a grant from the Annenberg Foundation ("Foundation"), provided
with terms and conditions through an Agreement between the City and the
Foundation ("Grant Agreement"), City shall make capital improvements resulting
in the rehabilitation and adaptive reuse of the Premises {"The Re-Use Project")
consistent with the goals of the 1998 Re-Use Plan.
C. All modifications and additions to the Premises shall be made in
accordance with the Grant Agreement and State's requirements for construction
and completion of improvements as described below in Paragraph 5. All material
modifications of the 1998 Re-Use Plan will be subject to State approval, which
the State will not unreasonably withhold, condition, or delay. Any disapproval by
the State shall be set forth in writing with the specific reasons therefore. The
failure to so disapprove (with a reasonably detailed explanation) within ten (10)
business days after request for approval is received in writing by State therefore
will be deemed to be the State's approval of such request.
D. If City fails to substantially comply with all terms and conditions of the
Grant Agreement, as mutually determined by the State and Foundation, State
may terminate this Agreement upon one hundred eighty (180) days written
notice, subject to the City's and Foundation's rights in accordance with
Paragraph 15, Defaults and Remedies, hereof.
E. If City fails to provide substantial public access to the facility, as
determined in the sole and good faith discretion of the State, within five (5) years
of the commencement of this Agreement, which time period will be extended day
by day for force majeure events or any other delays resulting from any causes or
events beyond the reasonable control of the City, State shall have the right to
terminate this Agreement and take over operation of the Premises, subject to the
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City's and Foundation's rights in accordance with Paragraph 15, Defaults and
Remedies, hereof.
F. , 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.
G. 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
A. 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, subject to the City's and Foundation's rights in accordance with
Paragraph 15, Defaults and Remedies, hereof, 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.
B. 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 for the development, renovation, operation, and maintenance of lands
and/or facilities located on the Premises. Any excess revenues generated on the
Premises shall be administered in accordance with California Public Resources
Code 5080.37.
C. State is not obligated to provide any capital outlay or other funding to the
City for the development, operation, control, or maintenance of the Premises
unless specifically provided for in current or future bond acts.
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updated Preliminary Statement of Probable Construction Cost. The historical
elements of the Design Development documents must conform where applicable
to the Historic Ordinances and Laws and the California Historical Building Code,
California Code of Regulations, Title 24, Part 8. If the State disapproves any
element of the Design Development, City shall promptly submit necessary
modifications and revisions, provided that the State may disapprove an element
of the Design Development only if it is materially inconsistent with the approved
Schematic Design. Specifically related to the Re-Use Project, the State shall
make appropriate staff available for design and review updates and may
participate informally in design development reviews prior to final review and
approval of Design Development.
C. State Approvals: Any disapproval by State pursuant to the approval
process outlined in this Paragraph 5, Construction and Completion of
Improvements, shall be set forth in writing with the specific reasons. The failure
to so disapprove (with a reasonably detailed explanation) within ten (10) ,
business days after request for approval is received in writing by State therefore
will be deemed to be the State's approval of such request.
D. Reimbur~ement: Specifically related to the Re-Use Project, City shall
reimburse State monthly for all expenses reasonably incurred by State relating to
the approvals required by Paragraph 5, Construction and Completion of
Improvements, or acquisition of permits as described below in Section G. State
will produce records of such costs for review by City on a monthly basis. Such
records shall include the title, hourly rate, and hours worked for all staff time
included in such costs.
E. Use of Consultants and Contractors: City shall employ contractor(s)
appropriately licensed in California in the completion of all Improvements.
Additionally, City shall utilize professional consultants, including licensed
architects(s) and engineer(s) who have demonstrated experience in the
rehabilitation, restoration, repair, and seismic strengthening of historic buildings
utilizing the Secretary of the Interior's Standards for the Treatment of Historic
Properties (36 CFR part 68) and the California Historical Building Code,
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·' California Code of Regulations, Title 24, Part 8; at a minimum architects and their
consultants must meet the Secretary of Interior's Professional Qualifications
Standards in the discipline of historic architecture (48 FR 44738-44739).
However, nothing in this stipulation may be interpreted to preclude the Chy from
using the properly supervised services of persons who do not meet the
Secretary of Interior's Professional Qualifications Standards. Contractors and
consultants shall use the latest American Institute of Architects' standards of
practice to develop comprehensive construction plans, including schematic
design plans, design development plans, and construction documents, and to
conduct independent inspections and monitoring of all construction where
required by code. In no event shall State be deemed to have control of or be
responsible for City's final hiring decisions, the day-to-day management of the
project, or administration of contracts with contractors or consultants.
F. Acceptance of Plans and Work: Sta.te's review and approval of the
Schematic Design and the Design Development as specified in this Paragraph 5,
Construction and Completion of Improvements, shall be for the purpose of
determining that such work conforms in scope and quality to State's policies and
standards required pursuant to this Agreement, and in no way shall relieve City
or its contractors or subcontractors of the responsibility to perform and complete
the work (1) in accordance With generally accepted industry standards, (2)
faithfully adhering to the approved plans, specifications, and drawings, and (3) in
accordance with all applicable codes, laws, regulations, or other requirements,
including but not limited to, the standards contained in this Agreement.
. G. Permits: At its sole cost and expense, including mitigation costs, City shall
obtain all permits, licenses, and other approvals necessary for the construction
and completion of the Re-Use Project. Such permits may include, but are not
limited to, those required under the California Environmental Quality Act (CEQA),
County Fire Department, California Coastal Act, California Historical Building
Code, and State Fire Marshal. City shall reimburse State for all costs incurred by
State on behalf of City in association with acquisition of said permits. State will
produce records of such costs for review by City on a monthly basis. The State
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.. shall cooperate with City with respect to securing said permits including the
execution of documents required by a governmental authority to be initiated by
State.
H. Completion of Improvements: Once prior approvals, permits, etc. have
been received as required herein above, and the work on any Improvement has
begun, City shall prosecute to completion with reasonable diligence all approved
Improvements. All work shall be performed in a professional manner, and work
on historic elements will comply with the Historic Ordinances and Laws, the
California Historical Building Code, California Code of Regulations, Title 24, Part
8, and comply substantially 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 Improvements. City shall comply with
public bidding requirements as set forth in the California Public Contract Code.
I. Completion of Construction: For all Improvements 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 form mutually
acceptable to City and State; (3) submit evidence that all Improvements are clear
of any mechanic's liens and/or stop notices; (4) submit a verified accounting of
the cost for Improvements, excluding equipment and trade fixtures that are the
personal property of City, in a form mutually acceptable to City and State; and (5)
submit a verified report in a form mutually acceptable to City and State
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 Ill (42 U.S.C. 12101 et seq.).
J. Title to Improvements: Upon termination of this Agreement, title to all
Improvements existing or hereafter erected on Premises, regardless of who
constructs such Improvements, shall become State's property, and 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,
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or resist said title. The foregoing notwithstanding, State may elect, by notice to
City, that City must remove any Improvements that are peculiar to City's use of
the Premises. In this event, City shall bear the cost of restoring the Premises to
a reasonable condition consistent with the remaining Improvements.
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 Improvements or any other improvements of any kind that may be
erected, installed, or placed thereon in a clean, safe, wholesome, and sanitary
condition free of vermin, trash (except normal day to day accumulations, which
shall be collected on a normal and regular basis), garbage (except normal day to
day accumulations, which shall be collected on a normal and regular basis), 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
the Historic Ordinances and Laws and all other applicable laws, codes,
regulations, ordinances, and generally accepted industry standards pertaining to
such work.
8. Should City fail, neglect, or refuse to undertake and complete any required
maintenance, State, after providing written notice to the City and a reasonable
opportunity to cure, 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) business 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.
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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
shall give City reasonable written notice of its intention to enter the Premises for
such inspection and/or work.
7. CONCESSIONS
City may grant concessions in or upon the Premises consistent with the 1998 Re-
Use Plan or as amended pursuant to the terms of this Agreement, terms and conditions
of the Grant Agreement, the Historic Ordinances and Laws, and 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. In
accordance with Sections 5080.03 of the California Public Resources Code,
· Concessions shall provide for the safety and convenience of the general public in the
use and enjoyment of, and the enhancement of recreational and educational
experiences on the Premises and no concessions created solely for their revenue
producing potential shall be granted by City. 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. The State, acting through its representative, may conduct
additional independent reviews of the concession operations upon written notification of
such intent to City. Each concession contract will include a copy of this Agreement as
an exhibit. No concession contract will include an expiration date beyond the expiration
date of this Agreement.
8. TAXES
By signing this Agreement, City 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
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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, 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 a manner acceptable to State on an annual basis, which annual report
shall be submitted for the period commencing July 1st and ending June 30 th 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. City shall provide State with a monthly attendance report to include a
reasonable monthly estimate of the number of visitors and vehicles to the Marion
Davies Beach House. Such monthly report shall be submitted to State by the
last business day of the following month.
C. 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.
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10. 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.
11. INSURANCE
A. Liability Insurance: At its sole expense, City agrees to maintain in force
during the term of this Agreement commercial general liability insurance, insuring
against claims for injuries to persons or property occurring in, upon, or about
Premises. Such 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 every five (5) years to reflect changes in the
prior year's Consumer Price Index (CPI).
8. Fire Insurance: Fire insurance with extended coverage endorsements
thereon on all improvements located on the Premises, whether furnished by
State or constructed upon the Premises by City and/or any Concessionaire, in an
amount equal to the full replacement cost and/or value thereof. This policy shall
contain a replacement cost endorsement naming the City and/or any
concessionaire as the insured provided that if there is a lender on the security of
the improvements so insured, the proceeds of any such policy or policies may be
made payable to such lender.
C. State agrees that City, at City's option, may self-insure the coverage
required by this Agreement.
D. 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:
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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.
E. 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
been obtained. Further, at least ten (10) 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 paragraph, 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.
F. 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.
12. 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
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but not limited to the Americans with Disabilities Act of 1990 Titles I, II and Ill ["ADA"],
however caused or alleged to have been caused, provided, however, in no event shall
I
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 ariy 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 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.
13. 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.
14. NOTICES
Any notice and/or report required by this Agreement 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:
City: City of Santa Monica
2600 Ocean Park Blvd.
Santa Monica, CA 90405
Telephone: 310-458-8974
Fax: 310-399-6984
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' State: Department of Parks and Recreation
Angeles District Office
Copy to:
1925 Las Virgenes Road
Calabasas, CA 91301
Telephone: 818-880-0360
Fax: 818-880-6165
Attn: District Superintendent
· Department of Parks and Recreation
Concession and Reservations Division
P.O. Box 942896
Sacramento, California 94296-0001
Attn: Division Chief
Telephone: 916-653-7733
Fax: 916-657-1856
Copies of any notices and/or reports by either party shall be provided to
Foundation at the following address:
Foundation: 10877 Wilshire Boulevard, Suite 1605
Los Angeles, California 90024
Attention: Managing Director
Telephone: (310) 209-4560
Fax: (310) 209-1631
15. DEFAULTS AND REMEDIES
A Unless a shorter time frame is provided otherwise herein, any failure by a
party to this Agreement to observe or perform a provision of this Agreement,
where such failure continues for one hundred eighty (180) 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 one hundred eighty (180) day period, the offending party shall not be
deemed to be in default if an effective cure is commenced within the one hundred
eighty (180) period and thereafter diligently prosecuted to completion.
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B. Subject to the rights of the Foundation and State's covenants and
agreements for the benefit of the Foundation as provided herein this Section 15,
upon an event of default by City that continues after all applicable cure periods,
State shall have the right to terminate this Agreement by thirty (30) days written
notice to City and to obtain immediate possession of the Premises. 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.
C. Upon an event of default by State that continues after all applicable cure
periods and subject to the rights of the Foundation, City shall have the right to
terminate this Agreement by thirty (30) days written notice to State and State
shall obtain immediate possession of the Premises. In such event, City shall be
entitled to all rights and remedies at law and/or in equity, including but not limited
to, costs and expenses incurred by City in terminating this Agreement, and
compensation for all detriment proximately caused by State's failure to perform
its obligations under this Agreement.
D. State acknowledges the Foundation as the provider of the funding under
the Grant Agreement and as having a principal interest in the continuation of this
Agreement and the rights of the City hereunder. The intent of the State and
Foundation for the Premises is that it be operated as a public park and recreation
facility, open and accessible to the public in perpetuity. To that end, State
provides Foundation with the following remedies, and State covenants and
agrees that State, on behalf of itself and all successors and assigns, will perform
in accordance with the following:
1 ) Default by City: If the State retakes possession of the Premises, in
case of default by City, Foundation shall have the following remedies:
a) State will operate the Premises in accordance with the terms
and conditions imposed on City in the Grant Agreement; or
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b) If the State wishes to grant authority to operate the Premises
in accordance with the terms and conditions imposed on City in the
Grant Agreement to a third party, the third party will be mutually
agreed upon by State and Foundation in their sole discretion, and
until such agreement, State will comply with clause (1 a) of this
Paragraph 15 D.
2) If the State intends to take any action to privatize the Premises
through sale of the property by State:
a) State shall pay to Foundation the then depreciated cost of
the facilities placed, created, or developed pursuant to the Grant
Agreement and utilizing Grant Funds on the Premises.
b) The foregoing shall not preclude City and/or Foundation from
pursuing the remedies provided in the Public Park Preservation Act
of 1971 (California Public Resources Code Section 5400 et seq.),
the California Environmental Quality Act (California Public
Resources Code Section 21000 et seq.), and all other remedies
afforded by law.
E. During the term of this Agreement, in the event of destruction, loss, or
damage by fire or other cause of any of the State-owned buildings,
improvements, or fixtures located on the Premises that the City determines (1) to
be essential to the continued operation of the contract and (2) cannot reasonably
be repaired as mutually determined by the State, City, and Foundation, the City
may terminate this Agreement or request an amendment to the Agreement
allowing for phased or limited rebuilding, as long as the modified project is
consistent with the primary goal of providing maximum recreational access to the
public and approved in writing by the Foundation. A decision by the City to .
terminate the Agreement under this provision or request an amendment to the
Agreement shall be communicated in writing to State as soon as practicable. If
the Agreement is so terminated, State shall be entitled to the proceeds payable
under any applicable insurance policies pertaining to the loss as its interest may
appear, and State shall pay to Foundation the then depreciated cost of the
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facilities placed, created, or developed pursuant to the Grant Agreement and
utilizing Grant Funds on the Premises up to the total value of the insurance
proceeds. In the event that coverage is provided through the City's self-
insurance program, the City shall consider the use of its then available self-
insurance reserves to support rebuilding or repair of the Premises pursuant to
this section. Receipt of such proceeds by State or Foundation shall be in
addition to the right of State and Foundation to pursue whatever other remedies it
may have to recover any losses due to the occurrence.
F. During the term of this Agreement, if the Premises or any Improvements
thereon belonging to State are taken in eminent domain, the entire award shall
be paid to State, and State shall pay_ to Foundation the then depreciated cost of
the facilities placed, created, or developed pursuant to the Grant Agreement and
utilizing Grant Funds on the Premises up to the total value of the award. The
foregoing shall not preclude City and/or Foundation from seeking an award from
the taking authority for any losses of City and/or Foundation, including for the
taking of City's and/or Foundation's improvements or fixture, equipment, or other
property or interests that City and/or Foundation may be entitled to under
Eminent Domain law and/or the Public Park Preservation Act of 1971(California
Public Resources Code Section 5400 et seq.).
G. The amount to be paid as "the then depreciated cost of the facilities" in the
event of termination under this Paragraph 15 shall be based on a straight-line,
one hundred (100) year capital recovery schedule, one hundred thousand dollars
($100,000) for each one hundred thousand dollars ($100,000) of beginning cost,
multiplied by the remaining years of the contract (including extension options, as
applicable).
H. State agrees that the foregoing rights set forth in this Paragraph 15, as
well as the other rights set forth in this Agreement, are for the direct benefit of
Foundation, that Foundation is a third party beneficiary of the foregoing rights,
that Foundation shall have the right to obtain specific performance of the
foregoing obligations and that the foregoing rights shall survive any termination of
this Agreement as a direct agreement with and for the benefit of the Foundation
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and shall run with the Premises for a period of one hundred (100) years from the
date this Agreement is fully executed by the State.
16. SOVEREIGN IMMUNITY
For all purposes of this Agreement, the State hereby waives all rights to claim the
defense of sovereign immunity pertaining to issues arising out of or related to this
Agreement.
17. TERMINATION
The State and City shall not terminate this Agreement except to the extent set
forth in Paragraph 15, Defaults and Remedies, and Paragraph 21, Nondiscrimination,
hereof.
18. SURRENDER OF THE PREMISES; HOLDING OVER
A Surrender:
B.
1) On expiration or within thirty (30) days after earlier termination of
this Agreement, City shall surrender the Premises to State with all fixtures
and Improvements in good condition, except for fixtures, improvements,
and Improvements that City is permitted by the State or 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.
2) 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 Paragraph, City shall hold State harmless for all
damages resulting from City's failure to surrender the Premises.
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
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this agreement except those pertaining to the term shall apply to the temporary
tenancy.
19. 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, which the State will not
unreasonably withhold, condition, or delay. Any disapproval by the State shall set forth
in writing specific reasons therefore. The failure to so disapprove (with a reasonably
detailed explanation) within ten (10) business days after request for approval is received . ·
in writing by State will be deemed to be the state's approval of such request.
20.. 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 atknowledges 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 affecting health and safety,
hazardous materials, pest control activities, historical preservation, environmental
impacts, and building standards.
21. 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
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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 paragraph, and subject to the rights under
Paragraph 15, Defaults and Remedies, 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.
22. ACCESSIBILITY 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
Ill of that law), the Rehabilitation Act of 1973, and all related regulations, guidelines, and
amendments to both laws. ·
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.
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23. UNION ORGANIZING
City shall not use the Premises to hold a meeting with any employee(s) or
supervisor(s) if. the purpose of the meeting is to assist, promote, or deter union
organizing. This provision does not apply if the Premises are equally available, without
charge, to the general public for holding a meeting. Breach of this provision shall
subject City to civil penalties and damages pursuant to California Government Code §§
16645.5 and 16645.8.
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.
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, but are not limited to, the California Public Resources Code Sections
5024 and 5097 et seq., State's Resource Management Directives, and the Historic
Ordinances and Laws.
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;
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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 paragraph 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
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
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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. City shall develop an Integrated Pest Control Management Plan as· part of
the Operations Plan developed pursuant to the Grant Agreement. Said plan shall
provide for the ongoing maintenance and control of any and all pests that may
cause damage to the Premises. 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. The report may be submitted on a DPR 191, Pest Control
Recommendation, or equivalent.
28. SIGNS AND ADVERTISING
All signs, logos, names, placards, or advertising matter shall be inscribed,
painted, or affixed upon Premises shall be in compliance with State law and shall
receive prior written approval of the State. Approval will be granted only when said
signs or marketing materials ·are consistent with the purposes of this Agreement. All
signs will include the logo and recognition of California State Parks and will be approved
by State. State recognizes and assents to the Foundation's right, as donor, to approve
and have installed permanent signage recognizing its donation pursuant to the Grant
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.
Any works developed by City pursuant to this Agreement, including all related
copyrights and other proprietary rights therein, shall belong to State upon creation, and
shall continue in State's exclusive ownership upon termination of this Agreement.
These works shall include, but are not limited to, all drawings, designs, reports,
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specifications, notes, and other work developed in the performance of this Agreement.
Upon request, City shall deliver to State the disk or tape that contains the design files of
any work that is performed with the assistance of Computer Aided Design and Drafting
Technology, and shall specify the supplier of the software and hardware necessary to
use said design files. City intends and agrees to assign to State all rights, title, and
interest in and to such materials as well as all related copyrights and other proprietary
rights therein, unless otherwise agreed to in writing.
City warrants that it is the sole exclusive owner and has the full right, power, and
authority over all tangible and intangible property deliverable to State in connection with
this Agreement, and that title to such materials conveyed to State shall be delivered free
and clear of all claims, liens, charges, judgments, settlements, encumbrances, or
security interests.
City agrees not to incorporate into or make any deliverables dependent upon any
original works of authorship or Intellectual Property Rights of third parties without (1)
obtaining State's prior written permission, and (2) granting to or obtaining for STATE a
nonexclusive, royalty-free, paid-up, irrevocable, perpetual, world-wide license to use,
reproduce, sell, modify, publicly and privately perform, publicly and privately display,
and distribute, for any purpose whatsoever, any such prior works.
City further warrants that all deliverables do not infringe or violate any patent,
copyright, trademark, trade secret, or any other intellectual property rights of any
person, entity, or organization. City agrees to execute any documents reasonably
requested by State in connection with securing State's registration of patent and/or
copyrights or any other statutory protection in such work product including an
assignment of copyright in all deliverables. City further agrees to incorporate these
provisions into all of its contracts with architects, engineers, and other consultants or
contractors.
City, at its sole expense, shall hold harmless, protect, defend, and indemnify
State against any infringement action and/or dispute brought by a third party in
connection with any deliverable hereunder. City shall pay all costs, expenses, losses,
damages, judgments, and claims including reasonable attorney's fees, expert witness
fees, and other costs.
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30., 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.
8. 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.
31. DISPUTES
City shall continue with any and all responsibilities under this Agreement during
any dispute.
32. LIMITATION
This Agreement is subject to all valid and existing contracts, leases, licenses,
encumbrances, and claims of title that may affect Premises.
33. PARAGRAPH 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.
34. AGREEMENT IN COUNTERPARTS
This Agreement is executed in counterparts, each of which shall be deemed an
original.
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35. AGREEMENT IN WRITING
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.
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. SUCCESSORSININTEREST
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.
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 unenf~rceable, 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.
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41. WAIVER OF RIGHTS, CLAIMS, AND AGREEMENT TERMS
Unless otherwise provided by this Agreement, no waiver by e_ither party at any
time of any of the terms, conditions, or covenants of this Agreement shall be de~med 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.
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
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
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NITIAL WORKING ASSUMPTIONS
Economic
* 415 PCH will be a publicly financed project. The
City may also consider private funding sources
as long as there is signi1icant public access, con·
trol, and use of the site.
·k A reasonable assumption about initial capital
lnve·stment by the City is up to $2.5 million.
·* While the goal of 415 PCH is financial self-suffi•
cie111cy, City subsidies may be considered if the
site provides a significant public benefit.
'A' The site will remain in public ownership and City
control, bu• there may be involvement of the pri·
vate sector. provided the private use is consistent
with, an overall public purpose.
Regulatory
·,t· The North House will be preserved.
Consideration will be gi.,.en to preserving the pool
and the adaptive re-use of other buildings, if
doi11g so is economically feasible and consistent
with the development plan. The existing restau-
rant will be retained in its location.
·,i.: Any new development at 415 PCH will follow all
existing local and State planning and zoning
starndards. including the requirements of
Proposition S. Amendments to these regulations
and Y,e voter initiative will only be considered in
order to achieve an extraordinary public purpose.
·t.; A minimum of 168 parlking spaces will be
required to support the existing public use. ,, !,'
Intensity of Use
;~· The City will seek to secure approval for a traffic
signal or half signal on PCH, and any develop-
ment plan that involves a significant increase in
vehicular traffic will require a traffic signal or half
signal. •;c, Development •intensity" (i.e., amount of floor
area. parking. building sizes and heigllts) ,~ill
be addressed in the context of specific project
concepts. Uses of the Site
-.~-The open space character of the site will be * Uses that meet local needs will be emphasized, b emphasized, including places that provide
ut balanced with the site's role as a regional relief from the sun and sand.
resource.
i-.: Both civic and commercial uses will be evaluat-
ed regarding the extent to which they provide
public benefit.
* Use of the site will emphasize its coastal loca-
tion.
* The site will combine pUtblic recreation uses
which maximize its unique character and con-
sider compatibility with the neighborhood.
Design and Urban Form
* Site design (i.e., the arrangement of buildings,
landscaping and site amenities and their rela•
tionship to surrounding develop,ment and the
beach) will be addressed in the 1:::011te.~t of spe-
cific project concepts.
* Site design will be environrner1tally sensitive
and incorporate model sustainability develop•
ment practices. '.ii' Uses at the site will serve a diverse public and
provide a broad array of facilities and services to
reflect the socio-economic needs of the regional
population. ·Jr; Site design will allow for the inckision of public
art either by incorporation in, the design
process or by a separate public art component. -;,. The site will be used during; the day and evening,
on weekends and throughout the year.
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PROCESS
t-a..
w
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t-u
0
Analyze site, site
history, opportunities
and conslraints
>
0 z
The City Council appointed a 415 PCH Working
Groupi to develop a recommendation for the use
of 415 PCH.
The Working Group members are:
Ken Genser, Co-Chair (City Council)
M/cflael Feinstein, Co-Chair (City Council)
Mar;got Alofsin (Landmarks Commission)
Ken Breisch (Planning Commission)
Susan WI/son (Recreation and Parks)
Sergio Zeba/Jos (Architectural Review Board)
(.)
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z
<( .,
Development or four
Conceptual Alternatives
CJ
UJ
LL
I u ..J
0::: 0::: <t: a..
~ <(
Development of
Preferred
Alternative
The consultants hired by the City to develop the
alternatives are:
Mou/e & Po/yzoides,
Architects and Urbanists
(Planning and Design)
Landmark Partners
(Economic Consultant)
Kaku Associates, Inc.
(Traffic Etigi11eer)
Staff support was provided by the City's
Department of Community and Cultural Services.
w >-z <t: :::,. ~ ..,
Review of Preferred
Alternative by City
Boards ands
Commissions
~
::J
l \i<"lU """) l ~l'1<t
Presenlation lo
City Council
Process 1/me/ine
The Working Group began meP.ting in
September of 1997 and met a1oproxirnatel~·
twice a month. Meetings were publicly post-
ed and advertised, and more th an 150 peo-
ple attended these meetings and participat-
ed in public input opportunities.
The Working Group spent four sessions
studying the site, its histmy. an,d its various
possibilities and restrictions.
The results of these meetings were present
ed in an open house on NovemtJter 15, 1997.
The Working Group then developed four dif-
ferent alternatives and presented them
February 1. 1998 at a communi1y workshop.
A final preferred scheme was then developed
and is presented in this report.
7
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RECOMMENDED SCHEME PROJECT FINANCING
DEVELOPMENT COSTS ANNUAL OPERATING COSTS 1. City Operation. City staff handles al• opoerat,uns.
The total capital cost for the Recommended Unlike most City park and community facilities, 2. Ew-Profit Lessee. City leases builcling to a woiessicr·
Scheme is approximately $9.5 million. which are fully subsidized by the City, the al banquet operator but directly operates •ecrcalio11
Recommended Scheme inclu,ctes several rev-uses. Lease Is based on a ,n;nirnurn rent plus percen'.-
Propo:sed funding sources include: enue sources to offset most, but not all, annual age rent. A one-time capital coritrib:Jtion is also
* A City capital contribution of about $2.5 million; operating costs: assumed.
* Public debt financing 3. ewt=il2lliill Ma!Jiilil:rJlS:nl !:&Imai;1. Cit"( hires a pro-
* Parking. 300 spaces are provided. Revenues fessional banquet manager for an an11ual · 'ee and Cly
assume 65% validation (Nortll House, Main manages recreation uses directly.
Use of Funds Amount Building &nd Visitor Center) a11d 35% non-vali-
dation. Parking revenues are projected to Net Main Building Scenarios
!Restore North House $1,189,500 exceed parking operating costs. Revenue&
'1,1ain Biuilding Rehab 1,500,000 City Ops Lessee Prof. Mgr
rv'isitor Center 600,000 * North House. Meeting cenuer focusing on
Concession Stands 75,000 non-profit and community uses. Meeting room Parking $218,369 $218.369 $218,369
Restore Pool/Pool House 590,000 rentals are projected to exceed operating
North House 14,850 14,850 14,850
Park/Rec.Areas/Pkg Lots 1,463,500 Visitor Ctr. 90,000 90,000 90,000
Site Prepl\Jtill1ies ~
expenses. Concessions 5,0,000 50,000 50,000
Subtotal 6,128,820 Recreation (367,437) (367,437) (367,4371
Contingency @10% 6,123,881 * Visitor Center. Lease to a Federal or State Main
Indirect Costs@25% 1,685,426 agency. such as the National Park Service and Buildino $520,313 $500,00 S545,875
Add'I Kitchen Cost 500,000 the California Department of Parks and
i:urn., Fixtures & Equip. §.QQJlQ.Q Recreation. Rental income is ,projected to TOTAL $526.095 $505,782 S551,657
Total Capital Cost sa l22Z 1211
exceed City's operating costs.
Less Annual
• Financing Costs 780,792 * Beach Concessions. Lease revenues from Debt
concessionaires for beach amenities and food Service' (640,105) (594,560) (640105'1
TOTAL PROJECT COST $10.307,919 are projected to exceed concession operating Less Existing
costs. Par1ting
Revenues (110500 (110,500,l (110 500) * Recreation Uses. Use fees for the pool help Sources of Funds Amount
City Ca1pital Contribution S2,500.00
offset, but do not completely pay for staffing NET
::land/Debt Financina 7 807 919
and other operating costs of the pool, park, play SURPLUS
TOTAL $10,307,919
fields and volleyball courts. l(DEFIC!TI (224,510) (199 27B) (198,948)
* The Main Building. The banquet and meeting • Lessee Operation cl the Main Bu,ld,ng assu'Tles a one-:ine
facility will be the project's pri;ncipal revenue $500,000capilal co11tribution wt-ich ,edtJCes the Cit;-'s a,•n~•al
source. Three operating scenarios are possible, debt service. C•ty debt service assu-nes 25-year t:ion<Js el e !>%
1nteresl
each with a different net revenue result: 16
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Marion Davies Beach House Operating Agreement ~,
EXHIBIT C -STD 21, DRUG-FREE WORKPLACE CERTIFICATION
STATE OF CALIFORNIA
DRUG1-FREE WORKPLACE CERTIFICATION
STD. 21 (Rev. 12/93JICA ST PKS, EXCEL 4/9/1999)
. CERTIFICATION
I, 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, execute<! on
the date below, is made under penalty of perjury under the laws of the State of California.
CONTRACTOR/BIDDER FIRM NAME FEDERAL ID NUMBER
BY IAulhorizld Signaturo) DATE EXECUTED
PRINTED NAME ANO TITLE OF PERSON SIGNING TELEPHONE NUMBER (Include Af9a 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:
I~ 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 infonn
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.
4. At 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 1or 1grants
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 tenns and conditions of this certificate shall have the same force,
meaning, effect and enforceability as if a certificate were separately, specifically, and individuaJly provided
for each contract or grant between the contractor or grantee and this state agency.
C-1
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AGREEMENT NO. 11238 (CCS)
Exhibit 5.
Request for Proposals
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CITY OF SANTA MONICA
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
REQUEST FOR PROPOSALS
Community Services
RELEASE DATE: September 7, 2021
DEADLINE FOR QUESTIONS: September 17, 2021
RESPONSE DEADLINE: October 18, 2021, 5:00 pm
APPROVED FOR ADVERTISEMENT
CITY CONTACT:
Joyce Perez
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City of Santa Monica
Request for Proposals
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
Table of Contents
1. Introduction
2. Scope of Work
3. Vendor Questionnaire
4. Evaluation Criteria
5. Award Process
6. Terms & Conditions
Attachments:
A - Proposer Checklist
B - Non-Discrimination Policy, Debarment Certification & Non-Collusion
Declaration
C - Lease Area
D - FY21-22 Living Wage Certification
E - Oaks Intitiative Disclosure Form
F - Sample Concession Agreement
G - Certificate of Compliance
H - Insurance Requirements
I - Sustainable & Healthy Food Purchasing Guidelines
J - Performance Bond
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City of Santa Monica
Community Services
Request for Proposals
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
1 INTRODUCTION
1.1 Summary
The City of Santa Monica, (referred to hereafter as “the City”) is inviting proposals from
qualified persons or firms interested in providing food and beach equipment rental
services at the Annenberg Community Beach House at Santa Monica State Beach for
an initial term of ten (10) years with one (1) option for renewal of five (5) years, to be
exercised at the City’s sole discretion.
1.2 Background
The City operates the Annenberg Community Beach House (“Beach House”) at Santa
Monica State Beach under an Operating Agreement by and between the State of
California and the City. The mission of California State Parks is to provide for the health,
inspiration, and education of the people of California by helping to preserve the state’s
extraordinary biological diversity, protecting its most valued natural and cultural
resources, and creating opportunities for high-quality outdoor recreation.
The City agrees to develop, operate, control, and maintain the Premises at its own cost
and expense as a public recreation facility with related concessions and/or other
facilities accessible and subject to the use and enjoyment of the general public.
1.3 Contact Information
The City has designated Joyce Perez, as its contact (the “City Contact”) for this request
for proposals (this “RFP”). The City Contact’s information is listed below:
Any inquiries or requests regarding this procurement should be submitted via
ProcureNow. Other City officers, agents, employees or representatives do not have
authority to respond on behalf of the City. Contact with unauthorized City personnel
during the selection process may result in disqualification.
Project Contact:
Joyce Perez
Sr. Administrative Analyst
415 Pacific Coast Highway
Annenberg Community Beach House
Santa Monica, CA 90402
Email: joyce.perez@santamonica.gov
Phone: (310) 458-2201 Ext: 5144
Procurement Contact:
Joyce Perez
Sr. Administrative Analyst
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City of Santa Monica
Community Services
Request for Proposals
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
415 Pacific Coast Highway
Annenberg Community Beach House
Santa Monica, CA 90402
Email: joyce.perez@smgov.net
Phone: (310) 458-2201 Ext: 5144
Department:
Community Services
Department Head:
Andy Agle
Director of Community Services
1.4 Timeline
Proposal Calendar
The following is a list of key dates:
Release Project Date September 7, 2021
Question Submission Deadline September 17, 2021, 12:00pm
Question Response Deadline September 24, 2021, 12:00pm
Proposal Submission Deadline October 18, 2021, 5:00pm
Final Candidate Interviews TBD
Staff Recommendation Made to
Council for Bid Award
TBD
Start Date of Contract TBD
2 SCOPE OF WORK
Insert detailed statement/scope of work and deliverables including reporting
requirements. List the criteria that must be met and that will be used to score and
evaluate the proposals.
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City of Santa Monica
Community Services
Request for Proposals
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
2.1 Goal of this Request for Proposals (RFP)
The goal of this RFP is to award a concession contract to an individual or business
entity to develop, operate, and maintain food and beach equipment rental services to
enhance the visitor recreational experience at the Beach House.
2.2 Objectives of this RFP
• Concessions must be distinct and clearly unique to Santa Monica Beach culture, and
celebrates its rich history, active lifestyle, sustainability, and accessibility. This includes
menus, concept(s), and creativity. The City does not want a generic enterprise; food,
beverages, and retail and rental items, shall reflect the City of Santa Monica, its values,
lifestyle and environment.
• If brands are to be used, they should be local and consistent with the goal outlined
above.
• The City seeks to optimize food, beverage and retail revenue for the City, not through
high prices to customers but through elevating the use of the café by beach -goers and
local residents on a year-round basis to the fullest extent possible and practical.
• In order to optimize revenues on a year-round basis, the concessionaire should
provide reasonable prices, excellent cost-value perception, high quality, use of fresh
ingredients wherever possible and hopefully not just be a place to get a sandwich and a
drink when at the beach, but food and beverage locations that visitors have heard and
read about and look forward to using as part of the Santa Monica beach visit. If local
residents find these attributes they are more likely to use these facilities and support
year-round use.
• Retail and rental items offered should be of high quality, well made, have a Santa
Monica beach experience theme, well-maintained and fairly priced in order to optimize
usage and revenues.
• Proposers should review the City of Santa Monica's Sustainable and Healthy Food
Purchasing Guidelines in the Attachment I of this RFP and be certain that these goals
are addressed to the fullest extent possible and practical.
2.3 Site History and Description
The City is responsible for the operation and enhancement of Santa Monica’s most
recognized and intensely used public space – Santa Monica State Beach. Five acres of
this prized public resource is the Annenberg Community Beach House, a unique
community beach and event facility. Located north of the Santa Monica Pier at 415
Pacific Coast Highway, the Beach House at Santa Monica State Beach incorporates
historic elements of the former Marion Davies Estate with relatively new and modern
additions. The site, which is open year-round, has something for everyone, including
spectacular views, community & cultural events, and amenities such as the splash pad,
playground, gallery, beach courts & fields, Marion Davies Guest House, historic pool,
free wi-fi and the adjacent café.
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City of Santa Monica
Community Services
Request for Proposals
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
Due to its prime location, first-class amenities, and rich history, this one of- a kind public
beach facility has become a popular destination for those seeking a quintessential
Southern Californian experience - "an easy day at the beach."
2.4 Beach House Facilities
The Beach House is available to rent year-round for social and corporate events and
meetings, and film and photo shoots that may provide opportunities for catering services
from the concessionaire or other caterers on the approved list. Catering license fe es are
different from the rental percentage and are subject to current percentages imposed on
the approved caterers.
A varied schedule of cultural programs, classes, docent tours of the Marion Davies
Guest House, art exhibits and recreational amenities are offered to the public year-
round. During the summer, amenities and programs including summer inspired classes,
the pool, Monday Fun Day, Game Room, annual events such as the Community Picnic
and Cardboard Yacht Regatta may provide additional and unique concession
opportunities.
2.5 Beach Café
Currently known as Back on the Beach Café, the existing restaurant at 445 Pacific
Coast Highway has been managed by an independent operator. The café currently
provides daily indoor and outdoor food service year-round, with possible closures on
Thanksgiving Day and Christmas Day. Its casual atmosphere, ocean views, and the
rare opportunity to dine on the sand make it a favorite of locals and visitors alike.
The concessionaire will be required to operate the existing beach café for sit-down food
service beginning in TBD 2021 and throughout the term of the ten-year contract. The
concessionaire will also be required to provide take-away food service from the beach
café and beach-related equipment rentals and catering services for special events and
meetings held on the site.
The concessionaire shall be responsible for all tenant improvements to the building and
for providing all interior decor.
2.6 Beach Concession Building
A beach concession building of approximately 1,000 square feet is located at the north
end of the site near the beach volleyball courts and large area of sand. The
concessionaire has access to the 210 square foot concession room with a 31 square
foot restroom; the remaining area of the building is occupied by Beach Maintenance.
The concessionaire will be responsible for making all tenant improvements to the
concession room needed to provide equipment rentals, such as beach chairs and
umbrellas, to the beach-going public.
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City of Santa Monica
Community Services
Request for Proposals
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
2.7 Description of Concession Operations
This section is intended to provide prospective proposers an overview of the current and
proposed services covered in this RFP.
Gross Sales and Rent: The City of Santa Monica does not disclose gross sales
information for individual businesses; rent revenue for beach concessions is public
information and is included is the City’s annual budget documents. The amounts below
include rents paid by the current concession operation.
Fiscal Year Rent Paid to the City
FY 2013-14 $242,354
FY 2014-15 $266,687
FY 2015-16 $297,807
FY 2016-17 $313,508
FY 2017-18 $352,956
Outdoor Seating: Outdoor seating is flexible based on operator set-up within defined
space and boundaries.
Gross Square Footage of Building (est.) Café: 3,770 sq.ft
Concession Building: 210 sq. ft.
Operating Days & Hours Café
• Daily: Opening at 8AM
• Closing will change per season, allowing for breakfast and lunch at minimum and
dinner May through September
• Concession may close Thanksgiving Day, Christmas Day and New Year’s Day
Equipment Rentals
• April – September: Daily, hours to be mutually agreed upon with Beach House
management relative to Beach House operating schedule
• October – March: Upon demand during business hours
• Concession may close Thanksgiving Day, Christmas Day and New Year’s Day
The City will work with the concessionaire as it relates to the above days and hours
during inclement weather and/or other unusual or out-of-the-ordinary circumstances that
affect operations. Concessionaire may open longer hours and extended days at
concessionaire’s option, subject to prior written approval of the City.
Building Description: See photos and floorplans of the current buildings in Lease Area,
Attachment C of this RFP. Note that all equipment, furniture and fixtures are the
property of the incumbent concessionaire and are not part of the as-is condition
provided by the City.
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City of Santa Monica
Community Services
Request for Proposals
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
Menu, Retail/Rental & Pricing: High quality, healthy, reasonably priced sandwiches,
salads, beverages, desserts, snack items, retail and rental items found in similar
operations in Santa Monica area and other similar beach environments. Healthy menu
options and menu items consistent with the City of Santa Monica’s Sustainable and
Healthy Food Purchasing Guidelines included as Attachment I of this RFP, and a
children’s menu (with pricing and portions) are very important.
Pricing must be reasonable, provide excellent price-value, and be set at levels that
optimize customer counts and participation.
Parking: Parking is available year-round on a first come, first served basis. Park & Pay
machines are located in each section of the lot.
The City will provide a limited number of monthly parking passes for the
concessionaire’s employees based on the City’s pre-approved number of passes.
Build-Out and Minimum Capital Investment: The City will provide the buildings in an as-
is condition. Personal property, furniture, equipment, and signage installed by the
current concessionaire remains the property of the current concessionaire and will be
removed.
Concessionaire will be responsible for building-out the interior as well as any exterior
renovations, all of which are to be ADA compliant, at operator total cost and expense.
All design, equipment, furnishings, signage, etc. shall be subject to the prior review and
approval of City Departments, Boards and Commissions. When installed, ownership of
all improvements will revert to the City.
Equipment: Concessionaire will provide all required Loose Equipment, including, but not
necessarily limited to pots, pans, utensils, table ware, point of sale system, menu
boards, office equipment, safe, retail fixtures, bikes, skates, etc. Concessionaire will
retain ownership to all Loose Equipment.
Architectural Guidelines: The City, in its proprietary capacity, reserves the right to
review all proposed build-out, renovation and remodeling to the buildings and all such
work must be representative of the character of Santa Monica State Beach. All
proposed improvements must comply with applicable law.
2.8 Minimum Agreement Requirements & Qualifications
This ten (10) year concession agreement with one (1) option for renewal of five (5)
years will provide for the operation of food service and beach equipment rental services
at the Beach House. The intent of the concession agreement is to provide the public
with high-quality, reasonably priced food service in an authentic manner and
atmosphere that enhances the visitor’s experience and the natural and cultural
resources of the Santa Monica State Beach.
The following is a summary of important concession agreement provisions. It is critical
for proposers to understand all the terms and conditions of the Sam ple Concession
Agreement included herein as Attachment F. The successful proposer shall be
expected to accept the provisions of the Sample Concession Agreement as written. If
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City of Santa Monica
Community Services
Request for Proposals
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
necessary, minor clarifications, approved by the City Attorney, and approved by the
State, may be made prior to the concession agreement execution.
At a minimum, the successful proposer will be required to:
2.8.1. Use the concession facilities solely for the operation and maintenance of
concession stands selling approved beach concession Items consisting of (i) food, (ii)
alcoholic and non-alcoholic beverages, and (iii) beach related sundries.
2.8.2. Pay rent to the City for all concession services including food service and beach
equipment rental operations on a monthly basis. The rent , at a minimum, shall be eight
(8%) percent of gross receipts or $200,000 annually, whichever is greater. The
Minimum Annual Rent of $200,000 shall be adjusted to reflect changes in the Consumer
Price Index (CPI), estimated at 3-5% annually. The final rent to be paid will be
negotiated between the City and the selected proposer based on the bid amount
presented in the proposal, the proposed Operations Plan, and the extent of proposed
tenant improvements.
2.8.3. Implement the Operations Plan and Tenant Impro vement Plan, as described in
Proposal instructions that clearly demonstrates the proposer’s plan to provide
accessible services and facilities that comply with Federal, State, and Local accessibility
guidelines. The plans will become exhibits of the final concession contract subject to
City and State review and approval.
2.8.4. Maintain the premises, facilities, furnishings, and equipment in good condition in
accordance with City standards and concession agreement provisions
2.8.5. Procure and maintain for the term and any extension of the contract a Security
Deposit in the amount of twenty thousand dollars ($20,000). In addition, the
concessionaire shall have procured and shall maintain for a minimum of one year a
Performance Bond, included in this RFP as Attachment J, in the amount of one year's
Minimum Annual Rent ($200,000) as described in the Sample Concession Agreement
included as Attachment F.
2.8.6. Pay for all taxes applicable to the operation of the concession, including
possessory interest taxes, and all utility services as required by the concession
agreement.
2.8.7. Provide commercial general liability, worker’s comp, and property insurance as
required by the concession agreement, detailed in Insurance Requirements, Attachment
H.
2.8.8. Obtain all necessary licenses, permits, and approvals as set forth in the
concession agreement and abide by all applicable health, safety, and environmental
codes and regulations.
2.8.9. Comply with the letter and spirit of current and subsequent guidelines or plans ,
including Santa Monica State Beach General Plan amendments or updates,
management and interpretive plans, historic structure reports, and others that may
apply.
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City of Santa Monica
Community Services
Request for Proposals
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
2.8.10. Demonstrate compliance with labor laws as specified in the concession
agreement.
2.8.11. Equip and maintain high-quality, sit-down food service at the beach café.
2.8.12. Equip and maintain high-quality, take-away food service during the summer
months, some holidays and possibly some off-season public events.
2.8.13. Make available high-quality catering services for special events and meetings at
the Beach House. The right to cater at the Beach House is not exclusive, and is subject
to the same fees and restrictions as other approved Beach House caterers.
2.8.14. Promote healthy and sustainable food practices such as serving healthy, locally,
and sustainably grown, organic foods, and organic ingredients whenever possible.
2.8.15. Use recycled products that, at a minimum, are consistent with existing City
regulations and modified as necessary to meet future regulations.
2.8.16. Equip and maintain high-quality, beach-related equipment for rent and related
items for sale at the beach concession building, beach cart or from the Café, such as
chairs, umbrellas, and boogie boards, and various sundries that provide for the health,
safety, and convenience of visitors.
2.8.17. Maintain an “A” rating from the Los Angeles County Health Department. Anytime
the County Health Department rating drops below an “A”, concessionaire shall notify
City within two business days and shall have ten days to correct any deficiency.
2.9 Additional Concession Services
Proposers may suggest other unique concession opportunities to enhance visitor
experience at the Beach House. These suggestions will be considered during the
proposal review process and will be negotiated with the successful proposer along with
the level of service, hours of operation, and financial terms. Examples of additional
services that may be considered include:
• Seasonal, public food service in specific areas of the site, such as food carts, or pool-
side food and beverage service.
• "Beach butler" service to provide sand and beach-side chair and umbrella rental and
set-up.
The successful proposer will not:
• Provide sales or services considered inappropriate, deemed objectionable, or
denied by the City of Santa Monica.
• Charge prices in excess of those approved by the City of Santa Monica.
• Promote or participate in activities that are incompatible with the rules,
regulations, guidelines, or the mission of the City of Santa Monica.
Note: Terms and conditions of the agreement are set forth in detail in the Sample
Concession Agreement.
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Community Services
Request for Proposals
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
2.10 Minimum Qualification of Proposer
Certain minimum qualifications have been established in order for proposals to be
considered as described in this RFP. Proposers shall have:
• Ten (10) or more years of continuous experience in the operation and management of
a high-quality retail or food service operation.
• Demonstrated managerial, and staffing resources to maintain high quality, successful
operation.
• Demonstrated financial capacity to finance proposed improvements and operating
costs for the project that it proposes.
• A valid Small Business Qualification
The proposing entity and any proposed sub-contractors must meet the requirements of
California's Small Business Certification Program. Certification must be valid at time of
submission, and for the term of the contract. In order for a business to be eligible for
certification, it must:
• Be independently owned and operated;
• Not dominant in field of operation;
• Have principal office located in California
• Have owners (officers, if a corporation) domiciled in California; and
• Including affiliates, be either:
A business with 100 or fewer employees; an average annual gross receipts of $15
million or less, over the last three tax years;
A manufacturer with 100 or fewer employees; or
A micro business. A small business will automatically be designated as a micro
business if gross annual receipts are $5,000,000 or less; or the small business is a
manufacturer with 25 or fewer employees.
2.11 Original Documents
Proposer shall complete and return the following documents:
• Proposal (including cost proposal)
• RFP Addenda if issued
• Non-Discrimination Policy Acknowledgement
• Non-Collusion Declaration (this does not need to be notarized)
• Certification Regarding Debarment
If selected to provide the service, the following form must be submitted:
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Community Services
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• Oaks Initiative Disclosure Form (if the award amount is >$25,000 annually; identifies
recipients of public benefit in relation to political donation restrictions: click here for more
information)
A City of Santa Monica business license must be obtained, or current business license
number provided. For more information, go to the Business License page.
3 VENDOR QUESTIONNAIRE
3.1 Proposal
3.1.1 Letter of Transmittal*
Please upload your letter of Transmittal as a PDF here. Make sure to include the
following items.
A. Identify the submitting organization;
B. Identify the name, title, telephone and e-mail address of the person authorized by
the organization to contractually obligate the organization;
C. Identify the name, title, telephone and e-mail address of the person authorized to
negotiate the contract on behalf of the organization;
D. Identify the names, titles, telephone and e-mail addresses of persons to be
contacted for clarification;
E. Be signed by the person authorized to contractually obligate the organization;
F. Acknowledge receipt of any and all amendments to this RFP.
*Response required
3.1.2 Experience & Qualifications*
Provide a detailed description of the relevant experience and qualifications of the
proposing organization including the experience of principal individuals of the
organization (last ten years). Include information sufficient to understand the full scope
of the proposer's experience developing and managing food service and retail sales
including specific roles and accomplishments; dates, size, and type of operation; type of
capital improvements; and amount of annual revenues. If applicable, include experien ce
and qualifications of sub-contractor(s).
*Response required
3.1.3 Key Personnel*
Describe the project team composition and include resumes of key personnel. Proposed
members should be available for ninety (90) days from the proposal due date. The City
must be promptly notified of any changes in key personnel prior to award.
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Community Services
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BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
*Response required
3.1.4 References*
Provide the name, address, phone number, and email for at least two business
references that can verify the experience and qualifications of the proposing ent ity and
at least two financial references that can verify the financial statements included in the
proposal. If the proposing entity or any of its principals have previously held or currently
hold a public concession contract, include the contact name and telephone number of
the agency administering the contract
*Response required
3.1.5 Ability to Finance*
Present evidence that the proposer has the financial capability to carry out the tenant
improvements and operations as proposed. Identify and describe the specific sources of
funding to be used. Evidence may include complete financial statements, audited i f
possible, and/or a detailed financial resume/balance sheet listing all income, expenses,
and assets, including partial ownership interest in and income from any partially owned
assets, and list direct and contingent liabilities. Please include a detailed pro forma,
including amortization of capital expenditures and operations for at least three years.
*Response required
3.1.6 Operations Plan*
Provide a detailed description of the type of operation proposed. Please provide
information sufficient to evaluate your understanding of and commitment to the visitor-
serving nature of the Beach House; the type and style of service to be provided; the
type of foods to be served; the types, costs, and quality of items to be sold or rented;
and the management and operational policies and procedures. Please address the
following aspects in your proposal:
• Vision/Mission statement to guide development and operation of the concession
• Description of the products, merchandise, and services to be offered including a
sample menu and prices for sit-down, take-away, and catering food services, and a list
of proposed rental and retail items
• Customer service plan that ensures the highest level of service to Beach House
visitors including how complaints will be managed and employee training policies
• Food preparation methods
• Organizational structure of staffing and management that includes position titles and
salaries for all job classifications, a summary of the job qualifications and duties, and the
number of existing or proposed employees in each job classification and duties
• Proposed use of subcontractors including a rationale for why subcontracting is
preferred and how it best meets the goal of providing high-quality service to visitors
• Employee training policies
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Community Services
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BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
• Employment opportunities for youth
• Marketing and/or advertising plan
• Community involvement activities
• Environmental and sustainable practices, including conservation and recycling
• Description of furnishings, equipment, and decor
• Description of thematic uniforms, menus, decor, or other elements
• Maintenance and housekeeping plan including a description of how funds will be
allocated
• Interpretive (educational) elements highlighting the environmental and/or cultural
history of the site
• Other programs and/or services to complement the public's beach experience.
Healthy Foods Plan
Describe how the proposed operation provides healthy, locally, and sustainably grown,
organic foods, and uses sustainable practices, locally-grown and organic ingredients,
and recycled products whenever possible. Identify the suppliers and measures
necessary to achieve these goals. Additional measures that promote sustainable
practices and healthy foods may be included.
Tenant Improvement Plan
Describe any proposed tenant improvements beyond those that will be completed by
the City. The description should list the type of improvements and a timeline for
completion. Please note, due to the restrictions imposed by Proposition S (City Council
Resolution 8121) and other laws, the total amount of improvements allowed may be
limited. It is the responsibility of the concessionaire to understand and comply with any
and all applicable planning and zoning requirements including but not limited to the
California Coastal Act, Proposition S, and County Health Codes.
*Response required
3.1.7 Rental Bid*
Describe the proposed annual rent for the concession operations as proposed including
the restaurant and beach concession. The proposal should be structured as "a
guaranteed amount (Minimum Annual Rent) or a Percentage Rent, whichever is
greater." Proposers shall bid both the Minimum Annual Rent and the Percentage Rent
and each year shall pay whichever amount is greater. For the purposes of this RFP, the
Minimum Annual Rent bid must be NO LESS THAN two h undred thousand dollars
($200,000) per year and the Percentage Rent bid must be at least eight percent (8%) of
gross sales.
Proposers may bid a different Percentage Rent for each of the different profit centers
(food and non-alcoholic beverages, alcoholic beverages, retail sales and rentals, and
catering).
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Community Services
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*Response required
3.2 Other Required Responses
3.2.1 RFP Addenda if issued
3.2.2 Business License Requirements
WHO NEEDS A BUSINESS LICENSE?
1. Is this vendor physically located in the City of Santa Monica?
Yes (Vendor must have a City of Santa Monica business license - contact the Business
License unit for the appropriate forms. Skip question 2 & continue to “ADDITIONAL
REQUIREMENTS” section below)
No (Continue to the next question)
2. Does this vendor physically come into the City of Santa Monica to conduct business
and/or make deliveries?
Yes (Vendor must have a City of Santa Monica Out-of City Business License. contact
the Business License unit for the appropriate forms. Continue to “ADDITIONAL
REQUIREMENTS” section below)
No (STOP, no license needed)
ADDITIONAL REQUIREMENTS:
If this vendor is located in or comes into the City of Santa Monica to conduct
business, in addition to having a CITY OF SANTA MONICA BUSINESS LICENSE, they
will be required to have insurance (see agreement for descriptions).
The business license documentation is only required from the successful Proposer.
3.2.3 Notice Regarding Disclosure of Contents of Documents*
All responses to this Request for Proposal (RFP) accepted by the City of Santa Monica
(City) shall become the exclusive property of the City. All proposals accepted by the City
shall become a matter of public record and shall be regarded as public, with the
exception of those elements of each proposal which are defined by the contractor as
business or trade secrets and plainly marked as "Trade Secret", "Confidential" or
"Proprietary". Each element of a proposal which a contractor desires not to be
considered a public record must be clearly marked as set forth above, and any blanket
statement (i.e. regarding entire pages, documents or other non-specific designations)
shall not be sufficient and shall not bind the City in any way whatsoever. If disclosure is
required or permitted under the California Public Records Act, or otherwise by law, the
City shall not in any way be liable or responsible for the disclosure of any such records
or part thereof.
☐ Please confirm
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Community Services
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BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
*Response required
4 EVALUATION CRITERIA
No. Evaluation Criteria Scoring Method Weight (Points)
1. Experience & Qualifications
Assign points that may be awarded based
on evaluation of the scope, extent
applicability and quality of proposer’s
experience. Evaluation will be based on
documented experience on similar projects,
level of previous projects of comparable
complexity, scale and nature; training and
proven expertise in the area of work
required; experience in projects completed
for public entities.
Points Based 15
(15% of Total)
2. Project Team/Key Personnel
Assign points that may be awarded for
relevant experience and qualifications of
key personnel based upon the resumes
and experience narratives submitted.
Points Based 10
(10% of Total)
3. Financial Resources
Assign points that may be awarded based
on the financial resources, history, and
references of the proposer, as well as the
financial ability to finance tenant
improvements and operations as proposed.
Points Based 15
(15% of Total)
4. Project Understanding & Approach
Assign points that may be awarded based
on the proposer’s effective communication
and understanding of the project goals and
quality of responses to the Operations Plan.
Points Based 30
(30% of Total)
5. Compatibility
Assign points that may be awarded for the
compatibility of proposed operation with the
surrounding uses and local community.
Points Based 5
(5% of Total)
6. Rental Bid
Assign points that may be awarded based
on evaluation of the competitiveness,
appropriateness and feasibility of proposed
Minimum Annual Rent and Percentage
Rent and the ability to maintain competitive
pricing with the proposed annual rent to the
City.
Points Based 15
(15% of Total)
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Community Services
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7. Proposal/Presentation
Assign points that may be earned based
upon overall quality of responses,
thoroughness and completeness of the
proposal and responsiveness to RFP
requirements.
Points Based 10
(10% of Total)
5 AWARD PROCESS
5.1 Selection
The City of Santa Monica, through either the City Council or the City Manager (or his
designee) has the sole authority to select the consulting firm and reserves the right to
reject any and all proposals. The City reserves the right to approve or reject all sub-
consultants and engineers proposed to be retained by the prime consultant. Upon
signing of the agreement, no change in proposed personnel or sub-consultants can be
made without the City’s review and written authorization.
By submitting a response to this RFP, prospective consultants waive the right to protest
after award or seek any legal remedies whatsoever regarding any aspect of this RFP.
The City reserves the right to select any number of finalists. In addition, the City
reserves the right to issue written notice to all prospective consultants of any changes in
the RFP terms or proposal submission schedule, should the City determine in its sole
and absolute discretion that such changes are necessary.
The City reserves the right to request additional information from any proposing
consultant and to reject any and all proposals. All original work products, including
computer files, shall remain the property of the City.
The City reserves the right to retain an expert to evaluate the proposing consultant’s
work or qualifications at all stages in the selection process. Additionally, any contract
entered into will be subject to termination at any stage if in the judgment of the City,
such termination is in the best interest of the City. In the event such decision is made,
appropriate written notice would be given before any termination and the consultant
would be compensated on a pro-rata basis for work performed.
The responsible proposer whose proposal is the most advantageous to the City, taking
to consideration all the evaluation factors will be recommended for the contract award.
Notwithstanding the Evaluation Team’s selection, the City reserves the right to award
this RFP and the resultant Contract in any manner it deems to be in the best interest of
the City and make the selection based on its sole discretion. The City is the sole and
exclusive judge of quality and compliance with proposal specifications in any of the
matters pertaining to this RFP.
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5.2 Contract Award and Execution
Selection of a proposer with whom the City enters into contract negotiations with, or a
recommendation of an award by the Evaluation Committee or any other party, does not
constitute an award of Contract. Once the City formally awards the contract, the
successful consultant will be notified to enter into an agreement. If the selected
consultant does not enter into the agreement, the City will begin negotiations with the
second highest ranking proposing consultant.
Please review all contract forms prior to submitting a proposal. The City of Santa
Monica intends to use these forms as the baseline agreements with the successful
consultant. The City will not entertain proposals to make material changes to the
contract form once the project has been awarded. If you wish to request changes to the
contracting forms, you must do so during the proposal process. In addition, the City
requires compliance with several other policies and ordinances, proposing consultants
will need to complete these Exhibits and submit with their Proposal.
The RFP document and the successful proposal response, as amended by agreement
between the City of Santa Monica and the successful consultant, will become part of the
contract documents. Additionally, the City of Santa Monica may ve rify the successful
consultant’s representations that appear in the proposal. Failure of the successful
consultant to perform as represented may result in elimination of the successful
consultant from further negotiation or in contract cancellation or term ination.
No oral explanation or instruction of any kind or nature whatsoever given before the
award of a contract to a consultant shall be binding. The City of Santa Monica shall not
be bound, or in any way obligated, until the City has awarded the contract and all
documents have been executed. The proposing consultant may not incur any
chargeable costs prior to final contract execution.
6 TERMS & CONDITIONS
6.1 Best Qualified Person Or Firm
The award, if any, will be made to the best qualified person or firm(s). In evaluating
whether a proposer(s) is (are) the best qualified person or firm(s) pursuant to the Santa
Monica Municipal Code, City staff may utilize some or all of the following criteria:
A. The training, credentials and experience of the person or firm;
B. The demonstrated competence, ability, capacity and skill of the person or firm to
perform the contract or provide the services;
C. The capacity of the person or firm to perform the contract or provide the service
promptly, within the time specified, and without delay;
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D. The sufficiency of the person’s or firm’s financial and other resources;
E. The character, integrity, reputation and judgment of the person or firm;
F. The ability of the person or firm to provide such future service as may be needed;
G. The price which the person or firm proposes to charge, including whether the
price is fair, reasonable and competitive; and
H. Any other factor which will further the intent set forth in Section 608 of the City
Charter.
The City shall have absolute discretion in determining the applicability and weight or
relative weight of some or all of the criteria listed above and is not required to select the
lowest monetary proposer.
6.2 Receiving Time / Late Proposals
It is the responsibility of proposer to see that their proposal is submitted with sufficient
time to be received by the City prior to the proposal closing time. The receiving time in
the City Office will be the governing time for acceptability of proposals.
Late proposals are not accepted.
6.3 Acceptance of Conditions Governing this RFP
Submission of a proposal constitutes acceptance of the Evaluation Factors contained in
this RFP.
6.4 Incurring Cost
Any cost incurred by the proposer in preparation, transmittal, presentation of any
proposal or material submitted in response to this RFP shall be borne solely by the
proposer.
6.5 Prime Consultant Responsibility
Any agreement that may result from the RFP shall specify that the prime consultant is
solely responsible for fulfillment of the agreement with the City. The City will make
agreement payments only to the prime consultant.
6.6 Sub-consultants
Use of sub-consultants must be clearly explained in the proposal, and major sub -
consultants must be identified by name. Prime consultants shall be wholly responsible
for the entire performance whether or not sub-consultants are used.
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6.7 Amended Proposals
A proposer may submit an amended proposal before the deadline for receipt of
proposals. Such amended proposals must be complete replacements for a previously
submitted proposal and must be clearly identified as such in the transmittal letter. City
personnel will not merge, collate, or assemble proposal materials.
6.8 Proposer’s Rights to Withdraw Proposal
Proposers will be allowed to withdraw their proposals at any time prior to the deadline
for receipt of proposals. The proposer must submit a written withdrawal request signed
by the proposer’s duly authorized representative addressed to the City Contact.
6.9 Proposal Offer Firm
Responses to this RFP, including proposal prices, will be considered firm for ninety (90)
days after the due date for receipt of proposals or sixty (60) days afte r receipt of a best
and final offer, if one is requested.
6.10 Best and Final Offer
The City reserves the right to request Best and Final Offers from any or all proposers.
This will be the only opportunity to amend or modify proposals based on feedback from
the City. Information from competing proposals will not be disclosed to other proposers
prior to submission of a Best and Final Offer.
6.11 Living Wage Requirement
Any agreement issued as a result of this Request for Proposal may be subject to the
City’s Living Wage Ordinance, Santa Monica Municipal Code Chapter 4.65 (LWO), and
its implementing regulations.
6.12 Disclosure of Proposal Contents
All proposals are subject to the provisions of the California Public Records Act,
California Government Code section 6250 et seq ., and any information submitted with a
response is a public record subject to disclosure, unless a specific exemption applies.
6.13 Notice Regarding Disclosure of Contents of Documents
All responses to this Request for Proposal (RFP) accepted by the City of Sa nta Monica
(City) shall become the exclusive property of the City. All proposals accepted by the City
shall become a matter of public record and shall be regarded as public, with the
exception of those elements of each proposal which are defined by the con tractor as
business or trade secrets and plainly marked as "Trade Secret", "Confidential" or
"Proprietary". Each element of a proposal which a contractor desires not to be
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considered a public record must be clearly marked as set forth above, and any blanket
statement (i.e. regarding entire pages, documents or other non-specific designations)
shall not be sufficient and shall not bind the City in any way whatsoever. If disclosure is
required or permitted under the California Public Records Act, or otherwise by law, the
City shall not in any way be liable or responsible for the disclosure of any such records
or part thereof.
6.14 No Obligation
This RFP in no manner obligates the City to the eventual rental, lease, purchase, etc.,
of any goods or services offered until a valid written agreement is executed by the City
and the selected proposer.
6.15 Termination
This RFP may be canceled at any time and any and all proposals may be rejected in
whole or in part when the City determines such action to be in the best interest of the
City of Santa Monica.
6.16 Sufficient Appropriation
Any agreement awarded for multiple years as a result of this RFP may be terminated if
sufficient appropriations or authorizations do not exist. Such termination will be effected
by sending written notice to the selected proposer. The City’s decision as to whether
sufficient appropriations and authorizations are available will be accepted by the
selected proposer as final.
6.17 Errors and Restrictive Specifications
If a proposer discovers any ambiguity, conflict, discrepancy, omission, or other error in
the RFP, the proposer should immediately notify the City Contact designated in Section
I, B. Without disclosing the source of the request, the City may issue a written
addendum to clarify the ambiguity, or to co rrect the problem, omission, or other error.
If prior to the submission date, a proposer knows of or should have known of an error in
the RFP but fails to notify the City Contact of the error, the proposer shall submit their
proposal at his, her or its own risk, and, if awarded an agreement, shall not be entitled
to additional compensation or time by reason of error or its later correction.
6.18 Legal Review
The City requires that all proposers agree to be bound by the General Requirements
contained in this RFP.
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6.19 Governing Law
This RFP, and any agreement entered into pursuant to this RFP, are governed by the
laws of the State of California.
6.20 Oral Changes and Basis for Proposal
Proposers may not rely upon oral explanations. All changes and addenda will be issued
in writing. Only information supplied by the City in writing through the City’s Contact, or
in this RFP should be used as the basis for the preparation of proposals.
6.21 Agreement Terms and Conditions
The agreement between the City and the selected proposer(s) will follow the format
specified by the City and contain the terms and conditions set forth in Attachment F,
Sample Concession Agreement. However, the City reserves the right to negotiate
with a successful proposer the final provisions or provisions in addition to those
contained in this RFP. The contents of this RFP, as revised and/or supplemented, and
the successful proposal will be incorporated into and become part of the agreement.
Should a proposer object to any of the City’s terms and conditions, as contained in this
Section or in Attachment F, that proposer must propose specific alternative language in
his, her, or its proposal. Proposer must provide a brief discuss ion of the purpose and
impact, if any, of each proposed changed followed by the specific proposed alternate
wording. The City may or may not accept the alternative language. General references
to the proposer’s terms and conditions or attempts at complete substitutions are not
acceptable to the City and may result in disqualification of the proposer.
6.22 Proposer’s Terms and Conditions
Proposers must submit with the proposal a complete set of any additional terms and
conditions that they expect to have included in an agreement negotiated with the City.
6.23 Proposer Qualifications
The City may make such investigations as necessary to determine the ability of the
proposer to adhere to the requirements specified within this RFP.
6.24 Right to Waive Minor Irregularities
The City reserves the right to waive minor irregularities and the right to waive mandatory
requirements, provided that all of the otherwise responsive proposals fail to meet the
same mandatory requirements and/or doing so does not otherwise materially affect the
procurement. This right is at the sole discretion of the City.
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6.25 Change in Agreement or Representatives
The City reserves the right to require a change in the selected proposer or
representatives if the assigned representatives are not, in the opinion of the City,
meeting its needs adequately.
6.26 City Rights
The City reserves the right to award the proposal to separate proposers on any of the
services as set forth in the proposer’s proposal. It is further understood that if the
proposer to whom any recommended award is made fails to enter into an agreement
with the City, award may be made to the next best qualified person or firm, who shall be
bound to perform as if she, he or it received the award in the first instance.
6.27 Right to Publish
Throughout the duration of this procurement process and agreement term, potential
proposers, and proposers, must secure from the City written approval prior to the
release of any information that pertains to the potential work or activities covered by this
procurement or the subsequent agreement. Failure to adhere to this requirement may
result in disqualification of the proposer or termination of the agreement.
6.28 Ownership of Proposals
All documents submitted in response to the RFP shall be become the property of the
City of Santa Monica and are subject to the provisions of the California Public Records
Act, as described in Section II. A. 11. herein.
6.29 Agreement Award
Proposal will be evaluated by a committee comprised of City staff and may include
outside consultants (the “Evaluation Committee”). The Evaluation Committee will make
an award recommendation to City staff. City Council may give approval of the
agreement and/or direct staff to negotiate the final terms and execute the agreement.
This agreement shall be awarded to the proposer or proposers whose proposal is best
qualified, taking into consideration the evaluation factors set forth in the RFP. The most
qualified proposal may or may not have received the most points or be the lowest cost
proposal. Proposers will be notified when the award is being made or an award
recommendation goes to the City Council for approval.
6.30 Protest Deadline
All parties wishing to file a protest shall comply with the procedures set forth in Santa
Monica Municipal Code section 2.24.260 found here. Proposer may file a written protest
with the Director of Finance no more than seven calendar days following the posting of
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City of Santa Monica
Community Services
Request for Proposals
BEACH CAFE AND EQUIPMENT RENTAL CONCESSION
award recommendation on the City’s online vendor portal website.
Protests received after the deadline will not be accepted.
6.31 Records and Audits
The Consultant shall maintain such detailed reco rds as may be necessary to
demonstrate its performance of the duties required by this Agreement, including the
date, time and nature of services rendered. These records shall be maintained for a
period of three years from the date of the final payment under this Agreement and shall
be subject to inspection by City. The City shall have the right to audit any billings or
examine any records maintained pursuant to this Agreement both before and after
payment. Payment under this Agreement shall not foreclose the right of City to recover
excessive and/or illegal payments
6.32 Enforcement of Agreement/Waiver
A party's failure to require strict performance of any provision of this Agreement shall
not waive or diminish that party's right thereafter to demand strict compl iance with that
or any other provision. No waiver by a party of any of its rights under this Agreement
shall be effective unless expressed in writing and signed by the party alleged to have
granted the waiver. A waiver by a party of any of its rights shall not be effective to waive
any other rights.
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AGREEMENT NO. 11238 (CCS)
Exhibit 6.
Waiver of Liability and
Release
There are significant elements of risk in any adventure, sport or activity associated with (referred to herein
as “activity”) use of any equipment. It is up to you to master the basics‐moving, maneuvering, shifting
gears, braking and turning‐before beginning your activity, to obey traffic regulations and to yield to
pedestrians.
ACKNOWLEDGEMENT OF RISKS: I recognize that there are inherent risks in this type of activity. These risks
my result in serious injury or death, and include but are not limited to the following: 1)falls; 2)collisions
with pedestrians, cycles, cycle riders, vehicles, manmade and natural objects; 3)hazards of trails, routes or
roadways including even or unstable surfaces, steep grades, sharp turns, and or; 4)the presence of water,
sand, gravel, mud, oil and debris – which may inhibit my ability to maneuver or stop; 5)cold weather and
heat related injuries or illnesses including hypothermia, frosting, frostbite, heat exhaustion, heat stroke,
and dehydration; 6)inclement weather, fog banks which can reduce visibility to near zero, varied or severe
wind, weather or physical coordination, ability to balance or control the equipment, the speed at which I
travel and my ability to follow directions; 7)loss of or damage to personal property; 8)fatigue, chill and or
dizziness, which my diminish my/our reaction time and increase the risk of an accident; and 9)accidents or
illnesses occurring in remote places where there are no available medical facilities.
I understand the description of these risks is not complete and that unknown or unanticipated risks may
result in injury, illness or death. I understand the use of alcohol or drugs may impair my abilities.
EXPRESS ASSUMPTION OF RISK AND RESPONSIBILITY: I agree to assume responsibility for those risks
identified herein and those not specifically identified. I certify that I am (we are) physically and mentally
capable of participating in this activity. My/Our participation in this activity is purely voluntary. No one is
forcing me/us to participate. I/We elect to participate in spite of the risks. Therefore, I assume full
responsibility for myself and any minor children for which I am responsible, for bodily injury, accidents,
illness, death, loss of personal property, and any related expenses.
CONVENANT OF GOOD FAITH: I recognize that you as provider of services, will operate under a covenant
of good faith and fair dealing but that you may find it necessary to terminate an activity due to forces of
nature, medical necessities or problems in the group, and/or refuse or terminate, the participation of any
person you judge to be incapable or meeting the rigors or requirements or participation in the activity. I
accept your right to take such actions for the safety of myself and or other participants I acknowledge that
no guarantees have been made with respect to cycling objectives.
AUTHORIZATION: I hereby authorize any medical treatment deemed necessary in the event of any injury
while participating in the activity. I either have appropriate insurance or in its absence agree to pay all
costs of rescue and/or medical services as may be incurred on my/our behalf. I agree that any film or
photographs of me/us, as participants, become your property and may be used for promotional or
commercial purposes.
RELEASE: In consideration of services or property provided, I, for myself and any minor children for which I
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AGREEMENT NO. 11238 (CCS)
am a parent, legal guardian or otherwise responsible and heirs, personal representatives assigns, do
hereby release (CONCESSIONAIRE) its principles, directors, officers, agents, employees and volunteers, and
each and every land owner, the City of Santa Monica and the County of Los Angeles, The State of
California, their municipal and/or governmental agencies upon whose property an activity is conducted,
all of its affiliates, from all liability and waive any claim for damage arising from any cause whatsoever
(except that which is the result of gross negligence).
I HAVE READ THE FOREGOING WARNING, ACKNOWLEDGEMENT OF RISKS, ASSUMPTION OR RISKS AND
RESPONSIBILITIES, AND RELEASE OF LIABILITY. I UNDERSTAND BY SIGNING THIS DOCUMENT I MAY BE
WAIVING VALUABLE LEGAL RIGHTS.
Date Name (please print) Age Signature Refused
1)
2)
3)
4)
5)
If the participant is under 18, the Parent or Legal Guardian must also sign
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AGREEMENT NO. 11238 (CCS)
Exhibit 7.
Menu
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california omelette 18
cage-free eggs, feta, tomato, spinach, breakfast potatoes, mini scone
cheese omelette 16
choice of cheddar, gruyere or jack, breakfast potatoes, mini scone.
add bacon or ham, +$2
ocean house scramble 18
cream cheese, avocado, jack cheese, side breakfast potatoes, mini scone
two eggs any style 12 three eggs any style 15
breakfast potatoes, mini scone breakfast potatoes, mini scone
polenta & eggs 18
crispy polenta, mushrooms, spinach, marinara, parmesan, two eggs over medium
breakfast quesadilla 18
scrambled egg whites, spinach, jack cheese, salsa, breakfast potatoes
sub egg whites + $2.50 sub fruit +$2.50 add chicken chorizo +$3.
back on the beach egg sandwich 18
fried egg, bacon, aged cheddar, avocado, arugula, tomato aioli, breakfast potatoes
north african shakshuka 19
house-made lamb sausage, eggs, tomato and pepper stew, feta cheese, side grilled bread
tofu scramble vegan 18
sauteed vegetables, red onion, black beans, soyrizo, side breakfast potatoes
huevos rancheros 18
crispy corn tortilla, fried eggs, avocado, ranchero salsa, rice, black beans, queso fresco
buttermilk pancakes 13
+$1 to add banana, blueberry, or chocolate chips
+$1 to add 2oz pure maple syrup
french toast 14
+$1 to add 2oz pure maple syrup
bananutella french toast 18
sliced bananas, nutella, almonds, whip cream
oatmeal 11
raisins, walnuts, & brown sugar upon request
granola sundae house-made 13
organic vanilla yogurt, seasonal fruit
fruit plate 13
bagel & lox 20
capers, red onion, sliced tomato, cream cheese, fruit garnish
bagel 4.25 sausage 4
toast 2.5 ham 4
mini scone 2.5 bacon 4
sorry, no substitutions during busy peak hours
DAYTIME
MENU page 42
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fred's salad 18
romaine, chicken salad, grilled potatoes, blue crumbles,
parmesan, lemon herb dressing
marion davies salad 17
organic greens, cranberries, candied pecans,
blue crumbles, lemon vinaigrette
santa fe salad 17
chopped romaine, black beans, grilled corn, red onion,
tomato, avocado, cilantro lime dressing
chicken, apple, goat cheese salad 20
romaine, arugula, goat cheese, almonds,
honey lemon vinaigrette
caesar salad 14
romaine hearts, croutons, caesar dressing, parmesan
add mary's grilled chicken breast $6.75 / add tuna salad or chicken salad $6.5 / add grilled salmon $8.75
back on the beach burger 20
grass-fed beef, aged cheddar, avocado, arugula, tomato aioli, fries, potato chips or green salad
grass-fed burger 18
fries, potato chips or green salad
impossible burger 20
vegan ground beef patty, lettuce, tomato, onion, fries, potato chips or green salad
black bean & portabello veggie burger
with gruyere cheese, lettuce, tomato, garlic aoli, side fries or green salad 20
blackened chicken breast sandwich 19
mary's chicken, caramelized onion, cole slaw, piquillo pepper aioli, pimento cheese, on ciabatta,
fries, potato chips or green salad
mary's chicken salad sandwich 18
bacon, avocado, lettuce, grain mustard aioli, toasted sourdough, fries, potato chips or green salad
tuna salad sandwich pole / line caught tuna 19
lettuce, tomato, multi-grain grain bread, fries, potato chips or green salad
turkey wrap 19
house-roasted turkey, lettuce, tomato, cheddar, cranberry mayo, fries, potato chips or green salad
vegetarian power bowl vegan 17
brown rice, roasted zucchini, yellow squash, broccolini, butternut squash, avocado
salmon a la plancha 21 / rainbow trout a la plancha 22
with seasonal vegetables and grilled potatoes
grilled fish tacos 20
marinated alaskan cod, slaw, pico de gallo, rice & beans
fish & chips 19
tempura-battered alaskan cod, tartar sauce, lemon
french fries 5 sweet potato fries with chipotle aioli 8
fried calamari tartar sauce 17
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kid's menu
chicken fingers fries or potato chips 11.50
grilled cheese sandwich fries or potato chips 10.00
kid's burger grass-fed fries or potato chips 10.25
kid's cheeseburger grass-fed fries or potato chips 10.75
hot dog kosher fries or potato chips 10.25
veggie dog fries or potato chips 10.25
pancake plain buttermilk 7.00
pancake blueberry or banana 7.50
pasta butter 9.00
pasta marinara 9.75
beverages
ice tea 3.5 lemonade 3.5
mineral water 3 / 5.5 gatorade 3.5
coke diet coke, root beer, orange, sprite 3 cranberry juice 'ocean spray'3.5
orange juice fresh squeeze 3 / 4.5 apple juice 'martinelli's 3.25
San Pelligrino sparkling juices blood orange, lemon, or grapefruit 3.5
smoothies strawberry, mango, or pina colada 5
coffee organic 'intelligentsia'3.5 espresso organic 4
cappuccino 4.75 cafe mocha 5.25
ice-blended mocha 5 hot chocolate 4.75
tea organic ginger beer non-alcoholic bundaberg 6
earl grey, breakfast, mint, chamomile 4.5
beer & wine
IPA ice-cold DRAFT lagunitas california 9 angry orchard gluten-free hard cider 8
blonde ale DRAFT angel city la 9 guinness stout ireland 12
orange wheat DRAFT hanger 24 9 lambic framboise raspberry belgian beer, since 1822 14
corona mexico 9 heineken holland 9
corona light mexico 9 hard seltzer white claw black berry or mango 8
chardonnay cabernet sauvignon 14 hands washington 12/42
girasol california organic 12/42 imagery sonoma 48
the snitch napa 60 red velvet (blend) cupcake california 38
sauvignon blanc kim crawford nz 14/50 pinot noir rare earth california organic 11/38
pinot grigio pertico italy 14/50 merlot velvet devil washington 36
sparkling brut wolf blas australia 12/42 rose Listel 12/42
proseco cupcake italy 40 mimosa 13
rose proseco pasqua italy 55 aperol spritz italian aperitif 13
byob corkage fee 15 margarita from 100% fermented agave, delicious 13
18% gratuity added to groups of 6 or more. During peak hours, we seat only complete parties & please
only 1.5 hours max at table if other families are waiting to be seated.
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Back on the Beach Cafe
dinner menu
to begin
salmon poke
ponzu, avocado, green onions, toasted sesame seeds, crispy tortilla chips 16
mezze plate
hummus, red pepper spread, eggplant tapenade, herb feta tomato, olives, flatbread 17
grilled selva shrimp
5 selva shrimp, blistered cherry tomatoes, over creamy polenta 18
[ selva shimp is certified by both asc (aquaculture stewardship council) & ocean-wise ]
fried calamari
chipotle aioli, fresno chili 17
cauliflower milanese florets
lemon garlic aioli 15
sweet potato fries 7
spicy chipotle mayo
starters salads
small market salad
mixed greens, shaved market vegetables 10
small caesar salad 10
croutons, parmesan
entrees
salmon a la plancha
mashed potatoes, market vegetables, lemon caper sauce 28
grilled rainbow trout
garbanzo lentil medley, soyrizo, topped w/celery slaw 29
mary's half chicken
garlic mashed potatoes, market vegetables, cherry tomato, chicken au jus 28
grilled steak
10oz hanger, herb potatoes, creamy spinach 28
crispy peanut tofu
brown rice, snap peas, zucchini, brocolini, siracha soy sauce vegan 24
enchiladas verdes
soyrizo papa, tomatillo salsa, jalapeno tofu crema, with brown rice and nopal cactus salad vegan 23
fred's salad
romaine, chicken salad, grilled potatoes, blue crumbles, parmesan, lemon herb dressing 18
santa fe salad
chopped romaine, black beans, grilled corn, red onion, tomato, avocado, cilantro lime dressing 17
back on the beach burger
grass-fed beef, aged cheddar, avocado, wild arugula, tomato aioli, side fries or green salad 20
impossible burger
vegan ground beef patty, lettuce, tomato, onion, side fries or green salad 20
black bean & portabello veggie burger
with gruyere cheese, lettuce, tomato, garlic aoli, side fries or green salad 20
DINNER
MENU
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beverages
ice tea passion berry unsweetened 3.5 coffee organic 'intelligentsia' 3.5
lemonade 3.5 espresso organic 4
mineral water still or sparkling 3 / 5.5 cappuccino organic 4.75
fountain drinks 3 cafe mocha 5.25
coke, diet coke, root beer, orange, sprite hot chocolate 4.5
ginger beer 6 personal-pot-of-tea organic 4.5
'bundaberg' non-alcoholic ginger soda english breakfast, earl grey, green, mint, chamomile
bottled juices ice-blended mocha 5
apple 'martinelli's 3.25 smoothies ice-blended & sweet 5
cranberry 'ocean spray' 3.5 strawberry, mango, or pina colada
san pelligrino sparkling juices 3.5
pomegranate orange, lemon, or grapefruit
beer
IPA ice-cold DRAFT lagunitas california 9 angry orchard hard cider gf 8
blonde ale ice-cold DRAFT angel city LA 9 guinness stout ireland 12
Orange Wheat Ale DRAFT hanger 24 calif. 9 lambic framboise raspberry belgian beer, since 1822 14
corona mexico 9
hard seltzer white claw blk berry or mango 8 corona light 9
heineken zero non-alcoholic 7 heineken holland 9
wine
whites reds
chardonnay girasol ca organic 12/42 cabernet sauvignon 14 hands washington 12/42
the snitch napa 60 imagery sonoma 48
sauvignon blanc kim crawford nz 14/50 merlot velvet devil washington 36
pinot grigio pertico italy 14/50 red velvet (blend) cupcake california 38
sparkling brut wolf blass australia 12/42 pinot noir rare earth ca organic 11/38
proseco cupcake italy 40 rose listel france 12/42
rose proseco pasqua italy 55
margarita made with real fermented agave 13
byob corkage fee 15. aperol spritz italian aperitif, refreshing 12
kid's menu
chicken fingers fries 11.50 pasta butter side parmesan 9.00
grilled cheese sandwich fries 11.00 pasta marinara side parmesan 9.75
kid's burger grass-fed fries 10.25 hot dog kosher fries 10.25
kid's cheeseburger grass-fed fries 10.75 veggie dog fries 10.25
pooches
although we love them, dogs/pets are not allowed on the beach in santa monica nor at the annenberg community
beach house site. ADA service animals are exempt.
green
We strive to be environmentally correct. Our fish & seafood is sustainable. Our coffee & tea is organic, our ground beef is grass-fed, our eggs are
cage-free. We purchase some organic produce, when in season. All office & restaurant paper products are a minimum of 20% post-consumer
recycled. Our lighting is LED . . .
unruly kids will be sold to pirate ships waiting offshore. aargh...
During peak hours, we seat only complete parties & please only 1.5 hours max at table if other families are waiting to be seated.
18% gratuity added to groups of 6 or more.
warnings: Consuming raw or under-cooked meats, poultry, seafood, shellfish or eggs may increase your risk of foodborne illness. Please
inform us in advance of any food allergies.
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Fred's Salad romaine, chicken salad, grilled potatoes, blue crumbles, vinaigrette $17
Caesar Salad $11
Santa Fe Salad romaine, black beans, corn, red onion, tomato, avocado $16
Marion Davies Salad greens, cranberries, pecans, bleu $16
Side scoop chicken salad or tuna salad add + $6.50
Tuna Salad Sandwich $13
lettuce, tomato ( ala carte )
Chicken Salad Sandwich $12
Mary's chicken salad, lettuce, tomato ( ala carte )
Grilled Turkey Wrap $13
house-roasted turkey, lettuce, tomato, cheddar, cranberry mayo ( ala carte )
Hamburger grass-fed 8 ounce $17
lettuce, tomato with side fries add cheese + 1.00
Black Bean Veggie Burger $19
black bean & mushroom patty, lettuce, tomato with side fries
Impossible Burger vegan patty $19
lettuce, tomato with side fries
Vegetarian Power Bowl vegan $16
brown rice, roasted vegetables, carrot puree, avocado
Grilled Fish Tacos $19
three tacos, marinated alaskan cod, slaw, pico de gallo
TAKEAWAY WINDOW MENU page 47
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french fries 5 ice cream bar 4
sweet potato fries 7 fruit popcycle bar 2.25
whole fruit 1.50
chips small / large 2 / 5
chicken fingers fries 11 .00
kids burger grass-fed fries 9.75
kids cheeseburger fries 10.25
hotdog fries 9.75
veggie dog fries 9.75
lemonade 3.5 ice tea 3.5
cranberry juice 3.5 apple juice 3.25
gatorade 3.5 milk 2.75
sodas coke, sprite, fanta, root beer 3
sparkling juices San Pelligrino blood orange, lemon, or grapefruit 3.5
mineral waters 3 / 5.5
coffee 3.5
note: the cafe tables are for full-service dining and not for take-away food
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north room gatherings
310.393.8282 ask for louise or fred
(sample)
choice menu
fred's salad
romaine, chicken salad, potatoes, blue crumbles, lemon vinaigrette, parmesan
tuna salad sandwich
sustainable line-caught tuna, lettuce, tomato, on sliced multigrain bread,
fries or green salad
fish tacos
alaskan cod, pico de gallo, shredded lettuce, crema fresca, corn tortilla,
black beans & rice
california omlette
feta, tomato, spinach, side grilled potatoes and mini scone
coffee, lemonade, ice tea
kid's choices
chicken fingers & fries
pasta marinara
SAMPLE CATERING MENUS page 49
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hors'doeuvre / coctail party menu
310.393.8282 / beachcook@aol.com
sample menu
$38.50/guest (beverage service additional)
passed hors' doeuvres
spanikopitas
spinach & cheese flaky phyllo triangles
maui shrimp spring roll
sweet & spicy sauce
buratta & tomato confit crostini
mini potato rostis
with smoked salmon & dill cream cheese
fruit & cheese table
jarlsberg, brie, aged cheddar, cambozola
grapes, dried apricots and marcona almonds
crackers & toasts
beverages
iced tea lemonade, waters & assorted sodas
beer, wine & champagne
wine-based cocktails
cosmos, cucumber mules, pomegranite mojitos
additional food choices available / prices vary depending on items selected
beverages, assorted non-alcoholic $8.00/person
beverages, including beer & wine: $24/person for 4 hour open bar, or 'on consumption'
labor estimate for 100 guests: $1650
9.5% sales tax
20% service charge (This fee covers all pre and post event labor, workman's comp and liabiltiy
insurance and other costs incurred in the planning and production of your event. This is not a gratuity which is left to the client's discretion.)
items & prices subject to change (need to be confirmed at time of booking).
other costs to consider: rentals, décor & entertainment.----------------------------------------------------------------
-----------------------------------------------------
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meetings & retreats
48 hour advance notice 15 person minimum
310.393.8282 ask for fred or louise
classic breakfast
$16.50/person
mini scones & croissants
seasonal fresh fruit
granola house-made & vanilla yogurt organic
coffee, tea, fresh oj
+$7.50/person to include egg scramble with jack & avocado egg, cheese & bacon croissant
sandwiches
+$30.00/hour service staff (3 hour minimum)
just coffee service $38.00 (16-18 cups), includes drop off & pick up
sandwich & salad table
$22.50/person
sandwich varieties, choose 4:
tuna salad albacore, chicken salad mary's, turkey house-roasted,
roast beef, ham&swiss, caprese fresh mozzarella, tomato, basil, or grilled vegetable
caesar salad
red-jacket potato salad
roasted corn salad with arugula and red onion
lemonade & iced tea
luncheon buffet
$30.00/person
poached salmon dill cream sauce
mango chicken salad with apples, grapes & jicama
orzo pasta with grilled vegetables
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marion davies salad greens, cranberries, blue crumbles, caramelized walnuts
bread rolls & butter
lemonade & iced tea
(additional salad options available)
+$6.00/person mini desserts: cookies, brownies, pecan bars, apple crumble bars
+$2.00/each assorted sodas
+$38.00 thermal coffee (16-18 cups)
+$30.00/hour service staff (3 hour min)
9.5% tax & 20% service additional
items and prices subject to change
box lunch
$16.50/each
sandwich, bag of chips, whole fruit, cookie
20% administrative & production charge
(this fee covers all kitchen equipment and serving wares, workman's comp
and liability insurance and other costs incurred in the administrative planning and
production of your event. This is not a gratuity which is left to the discretion of the
client)
-----------------------------------------------------------------
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(sample) mitzah
310.393.8282 / beachcook@aol.com
each event is customized, this is meant to be a conversation starter
tray passed hors' doeuvres
california rolls
bbq chicken skewers
flatbread margarita pizza
kids buffet
grass-fed beef sliders
chicken fingers
tater tots
caesar salad
penne marinara
adults buffet
whole roasted salmon
dill cream sauce
chicken piccatta
mary's chicken, lemon caper sauce
grilled market vegetables
rice pilaf
marion davies salad
dessert s'more bar & assorted finger sweets
beverages soft drinks, lemonade, water, coffee
estimated costs:
food $32./kid & $46./ adult dessert $12./person beverages, non-alcoholic $8./person
beer & wine: (a) $24/adult for 4 hour open bar, or (b) 'on consumption' where you pay per opened bottle.
labor for 100 guests for this type of event is estimated at $1650.
rentals for 100 guests (standard linens, glassware, plates, flatware) estimated at $1800.
9.5% sales tax
20% service charge (This fee covers all pre and post event labor, workman's comp and liabiltiy
insurance and other costs incurred in the planning and production of your event. This is not a gratuity which is left to the client's discretion.)
items & prices subject to change (need to be confirmed at time of booking)
other costs to consider: décor & entertainment-------------------------------------------------------------------
page 53
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-------------------------
weddings
310.393.8282 / beachcook@aol.com
each event is customized, this is meant to be a conversation starter
sample
buffet menu
$60.00/guest
appetizer station anitpasta bar
long-stemmed artichoke hearts, black & green olives
sliced meats & salamis, fine assorted cheeses
passed hors' doeuvres
spanikopitas
chicken sate skewers
buratta & tomato confit crostini
tenderloin of beef
carving station, horseradish cream sauce
wild alaskan salmon salmon
dill cream sauce
spinach cannelloni
light crepes filled with spinach, ricotta, mushrooms
mashed potatoes or rice pilaf
tuscan grilled vegetables
insalata ricci
organic greens, tomato, feta, toasted almonds
page 54
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sample
sit-down choice menu (wedding)
$65.00
passed hors' doeuvres
spicy tuna sashimi mini tacos
with avocado
wild mushroom tartlets
shrimp spring rolls
mini potato rostis
with smoked salmon & dill cream cheese
grilled stone fruit starter salad
colman farm arugula, burata, tarragon vinaigrette
(stone fruits available in summer season)
filet mignon
mashed potatoes & grilled asparagus
black cod
miso marinaded, sticky brown rice, asian vegetables
polenta with spanish leeks
eggplant, romesco sauce
page 55
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additional food options
hors' doeuvres
tray-passed
mini potato rostis
with smoked salmon & dill cream cheese
lobster tartlets
fred salad cups
crostinis
buratta & tomato confit, white bean & sage,
eggplant parmesan, marinated shrimp & goat cheese, classic tomato basil
suppli
saffron-infused arborio rice balls
classic deviled eggs
crab cakes
lump crab meat, tartar sauce
ceviche shooters
sushi varieties
stationary
sushi bar
crudite
hummus & pita
baked brie with walnuts, brown sugar,
entrees
rack of lamb
pork tenderloin
niman ranch short ribs
chicken milanese
chicken piccatta
rosemary chicken breast
herb-crusted halibut
ginger-glazed salmon
seabass
stuffed portabello mushrooms
page 56
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whole roasted tomatoes with couscous
stuffed cabbage and stuffed peppers
rolled eggplant parmesan
squash lasagna
sides
sauteed brocollini haricot verts grilled brussel spouts
fingerling potatoes potatoes au gratin
heirloom baby carrots
couscous quinoa rices
food prices vary depending on items selected
beverages, assorted non-alcoholic $8.00/person
beer & wine: (a) $24/adult for 4 hour open bar,
or (b) 'on consumption' where you pay per opened bottle.
labor estimate for 100 guests: $24.00.00 for plated events, $1650 for buffets.
rentals for 100 guests (standard linens, glassware, plates, flatware) estimated at $1800.
9.5% sales tax
20% administrative & production charge (This fee covers all kitchen equipment and serving wares,
workman's comp and liability insurance and other costs incurred in the planning and production of
your event. This is not a gratuity which is left to the client's discretion.)
items & prices subject to change (need to be confirmed at time of booking).
other costs to consider: dessert, décor & entertainment.
-------------------------------------------------------
page 57
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beach canopy platters
summer 2016
310.393.8282 / beachcook@aol.com
48 hour advance notice please
platters feed 8 – 12 guests
sandwich platters
$100.00 / 10 sandwiches halved
choose 2 of the following types per platter
tuna salad sandwich
green leaf lettuce, tomato
smoked salmon wrap
spinach wheat tortilla, red onion, basil, cream cheese, arugula
caprese sandwich
fresh mozzarella, basil, pesto, tomato
turkey avocado sandich
green leaf lettuce
mary's chicken salad sandwich
green leaf lettuce, tomato
picnic salad platters
$80.00
mediterranean pasta salad
garbanzo beans, almonds, olive, tomatoes, parmesan, sun-dried tomato vinaigrette
red quinoa salad
grilled corn, red bell pepper, asparaugs, lime vinaigrette
soba noodle salad
sesame dressing, crunchy vegetables, ginger tofu
kale caesar salad
garlic croutons, parmesan, caesar dressing
cold entree platters
$125.00
beach bowl
teriyaki mary's chicken, broccolini, brown rice, pineapple
vietnamese pork lettuce wrap
ground pork, soy and fish sauce, fresno chili, lime, shaved carrot, lettuce
page 58
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AGREEMENT NO. 11238 (CCS)
Exhibit 8.
Annual Evaluation
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Back on the Beach
Annual Evaluation Form
Concession Agreement
CITY OF SANTA MONICA
CONCESSIONAIRE DATE
BUILDING LOCATION TYPE OF CONCESSION
EXCELLENT(E)SATISFACTORY(S)NEEDS IMPROVEMENT(NI)NONCOMPLIANCE/UNACCEPTABLE(NON)COMPLIANCE(COM)NOT APPLICABLE(NA)MONTHLY BASE RENT 8 6 2 0
MONTHLY PERCENTAGE RENT 4 3 1 0
ACCURACY OF STATEMENTS 4 3 1 0
ANNUAL REPORT OF GROSS SALES 0 4
MAINTAINS REGISTER
JOURNAL/$TRAIL 0 4
PERFORMANCE BOND 0 4
LIABILITY INSURANCE 0 4
AUTO INSURANCE 0 4
OTHER:0 4
REQUIRED IMPROVEMENTS 0 4
TIME SCHEDULE 0 4
CERTIFICATE OF DEPOSIT 0 4
OTHER:0 4
OPERATING DAYS/HOURS 4 3 1 0
AUTHORIZED FOOD/EQUIPMENT
RENTAL/RETAIL ITEMS 4 3 1 0
PERMITTED
SIGNAGE/ADVERTISING 4 3 1 0
OPERATING WITHIN BOUNDARIES
OF LEASE SPACE (EXHIBIT#4)
4 3 1 0
OTHER:4 3 1 0
EQUIPMENT RENTAL AND RETAIL
ITEMS 8 6 2 0
FOOD AND BEVERAGE 8 6 2 0
PRICES 4 3 1 0
BEST EFFORT TO PROMOTE
HEALTHY FOOD AND SUSTAINABLE
FOOD PRACTICES
4 3 1 0
CUSTOMER SERVICE 8 6 2 0
CONCESSION PERFORMANCE RATING
Community Services Department
Cultural Affairs Division
COMMENTS
Explain items which are rated excellent, needs
improvement or noncompliance/ unacceptable. Make
recommendations for correction for NI and NON
rating. Attach additional sheets as necessary.BONDS/INSURANCE/FINANCIAL COMPLIANCECATEGORIES
Circle the appropriate points in each
category. If category is not applicable,
check not applicable (NA) box.CONSTRUCTIONUSE OF PREMISESQUALITY ASSURANCE1 of 2
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Back on the Beach
Annual Evaluation Form
Concession Agreement
CITY OF SANTA MONICACONCESSION PERFORMANCE RATING
Community Services Department
Cultural Affairs Division
OTHER:4 3 1 0
(E)(S)(NI)(NON)(COM)(NA)
FIRE SAFETY/PREVENTION 4 3 1 0
GAS/ELECTRIC 4 3 1 0
GENERAL SAFETY 4 3 1 0
OTHER:4 3 1 0
INTERIOR -
HOUSEKEEPING/CLEANLINESS 4 3 1 0
INTERIOR -
FACILITY MAINTENANCE 4 3 1 0
EXTERIOR -
HOUSEKEEPING/CLEANLINESS 4 3 1 0
EXTERIOR -
FACILITY MAINTENANCE 4 3 1 0
EXTERIOR - APPROVED
PAINTING AND DISPLAYS 4 3 1 0
OTHER:4 3 1 0
TOTAL POINTS PER COLUMN
TOTAL POINTS RECEIVED
FROM ALL CATEGORIES PERCENT RATING
()() X 100 =
OVERALL RATING (Based on percent rating)
ARE THERE ANY NONCOMPLIANCE OR UNACCEPTABLE RATINGS IN ANY CATEGORY
RATER'S SIGNATURE TITLE DATE
Date:
In signing this report I do not necessarily agree with the conclusion of the rater.
CONCESSIONAIRE'S SIGNATURE TITLE DATE
*NOTE: A rating of UNACCEPTABLE or NONCOMPLIANCE in any category will result in an overall rating of no higher han NEEDS IMPROVEMENT.
/
MAXIMUM POINTS POSSIBLE
FOR RATED CATEGORIES
RATER DISCUSSED REPORT WITH
CONCESSIONAIRE?
CATEGORIES COMMENTS
SAFETYFACILITY MAINTENANCE Yes No
EXCELLENT (90% to 100%)SATISFACTORY (70% to 89%)NEEDS IMPROVEMENT (60% to 69%)UNACCEPTABLE (less than 60%)
Yes
No
2 of 2
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AGREEMENT NO. 11238 (CCS)
Exhibit 9.
Improvement Plan
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RFP 2021 Back on the Beach Cafe
Capital Improvement Plan (work performed during non-summer months)
Year 1
$125,000. Roof replacement
$ 7,000 Roof-top mechanical screen
$20,000 Replace all 3 roof-top Upblast Exhaust Fans & Swamp cooler
$ 5,000 Repair exterior cracking cement foundation border on south wall base.
$157,000 subtotal
Year 2
$25,000 Access renovating restrooms, including new tiled walls, sinks, fixtures,
and partitions.
$30,000 Retractable canopy over exterior south facing deck with wall-mount heaters.
This proposed simple metal frame with retractable fabric canopy, when and if
approved, can be built as a temporary structure.
$ 18,000 Dining room floors. Remove carpeting, resurface floors
$73,000 subtotal
Year 3
$55,000 Access replacing all exterior doors & windows
$15,000 Replace existing walk-in cooler
$70,000 subtotal
$300,000. projected total for 3 years, to be paid for out of savings
page 41
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AGREEMENT NO. 11238 (CCS)
Exhibit 10.
Insurance Requirements
Concessionaire shall procure and maintain for the duration of the Agreement insurance against
claims for injuries to persons or damages to property that may arise from or in connection with the
Concessionaire’s possession, occupancy, operation or use of the premises by Concessionaire, its
directors, officers, agents, representatives, employees, contractors, subcontractors, volunteers,
guests, customers, an invitees.
Minimum Scope and Limits of Insurance
Coverage shall be at least as broad as:
1.Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering
CGL on an “occurrence” basis, including products and completed operations, property damage,
bodily injury and personal and advertising injury, with limits of no less than $1,000,000 per
occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply
separately to this project/location (Insurance Services Office Form CG 25 04) or the general
aggregate limit shall be twice the required occurrence limit.
2.Liquor Liability: Insurance with limits of no less than $1,000,000 per occurrence.
3.Workers’ Compensation: Workers’ Compensation insurance as required by the State of
California, with Statutory Limits and Employers’ Liability Insurance with limits of no less than
$1,000,000 per accident for bodily injury or disease (see footnote #1).
4.Property Insurance: Insurance covering all personal property stored on the premises, along
with any tenant improvements and betterments. The policy shall be written on an “all risks”
basis (excluding earthquake) and insure the personal property and improvements/betterments at
full replacement cost. The policy shall also be endorsed to provide business interruption
coverage in an amount equivalent to one year of monthly base rent at the time of the loss.
If Concessionaire maintains broader coverage or higher limits than the minimums shown above,
the City of Santa Monica requires and shall be entitled to the broader coverage or higher limits
maintained by the Concessionaire. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the City of Santa Monica.
Other Insurance Provisions
1.The insurance policies are to contain, or be endorsed to contain, the following provisions:
a.Additional Insured Status: The City of Santa Monica, its officers, officials, employees
and volunteers are to be covered as additional insureds on the CGL policy with respect to
liability arising out of the use, occupancy, operations or maintenance of the leased
premises, including work or operations performed by or on behalf of Concessionaire. CGL
coverage can be provided in the form of an endorsement to the Concessionaire’s insurance
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AGREEMENT NO. 11238 (CCS)
(at least as broad as Insurance Services Office Form CG 20 10 11 85, or if not available,
through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37).
b.Primary Coverage: For any claims related to this Agreement, the Concessionaire’s
insurance shall be primary coverage as least as broad as Insurance Services Office Form
CG 20 01 04 13 as respects the City of Santa Monica, its officers, officials, employees and
volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its
officers, officials, employees or volunteers shall be in excess of the Concessionaire’s
insurance and shall not contribute with it.
c.Notice of Cancellation: Each insurance policy required herein shall state that coverage
shall not be cancelled except after notice has been given to the City of Santa Monica.
d.Waiver of Subrogation: Concessionaire hereby grants to the City of Santa Monica a
waiver of any right of subrogation which any insurer of said Concessionaire may acquire
against the City of Santa Monica by virtue of payment of any loss. Concessionaire agrees
to obtain any endorsement that may be necessary to affect this waiver of subrogation, but
this provision applies regardless of whether or not the City of Santa Monica has received a
waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor
of the City of Santa Monica for all work performed by the Concessionaire, its employees,
agents and subcontractors.
e.Loss Payee: The property insurance shall name the City of Santa Monica as Loss Payee as
its interests appear.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Santa Monica. The City of
Santa Monica may require the Concessionaire to purchase coverage with a lower retention or
provide satisfactory proof of ability to pay losses and related investigations, claim administration,
and defense expenses within the retention. The policy language shall provide, or be endorsed to
provide, that the self-insured retention may be satisfied by either the name insured or the City of
Santa Monica.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in California with a current
A.M. Best rating of no less than A:VII, unless otherwise acceptable to the City of Santa Monica.
Verification of Coverage
Concessionaire shall furnish the City of Santa Monica with original certificates and amendatory
endorsements (or copies of the applicable policy language effecting coverage provided by this
clause).
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AGREEMENT NO. 11238 (CCS)
All certificates and endorsements are to be received and approved by the City of Santa Monica
before the lease commences. However, failure to obtain required documents prior to the lease
beginning shall not waive the Concessionaire’s obligation to provide them. The City of Santa
Monica reserves the right to require complete, certified copies of all required insurance policies,
including the endorsements required herein, at any time.
Failure to Maintain Insurance Coverage
If Concessionaire, for any reason, fails to maintain insurance coverage which is required pursuant
to this Agreement, the same shall be deemed a material breach of contract. The City of Santa
Monica, at its sole option, may terminate this Agreement and obtain damages from the
Concessionaire resulting from said breach.
Maintenance/Concessionaire Improvements
Concessionaire shall require and verify that all contractors hired by the Concessionaire maintain
CGL with limits of no less than $1,000,000 per occurrence and comply with the insurance
requirements stated herein for all maintenance, repair and tenant improvements performed on the
leased premises. Contractors performing capital improvements must maintain CGL limits of no less
than $3,000,000 per occurrence. All exceptions must be approved in writing by the Risk Manager.
Footnotes
# 1: Workers’ Compensation insurance coverage is not required if the Concessionaire does not
have employees. The Concessionaire must, however, execute the City’s Workers’
Compensation Coverage Exemption Declaration Form.
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