HomeMy WebLinkAboutItem No. 13 License Agreement with JT's RentalsCity Council Agenda Report
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 22-160
Agenda Date: 4/26/2022 Status: Approval FinalVersion: 1
File Type: Council Consent
Calendar
In Control: City Council / Successor Agency
Agenda Number: 13)
License Agreement with JT’s Rentals to Host Various Water-Related Rental Activities at
Launch Pointe
Approve and authorize the City Manager to execute a License Agreement and any subsequent
extensions with JT’s Rentals to host a variety of water -related rental activities and in such final form as
approved by the City Attorney.
Page 1 City of Lake Elsinore Printed on 4/21/2022
REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Beau Davis, Assistant Community Services Director
Date: April 26, 2022
Subject: License Agreement with JTS Rentals to Host Various Water-Related
Rental Activities at Launch Pointe
Recommendation
Approve and authorize the City Manager to execute a License Agreement and any subsequent
extensions with JTS Rentals to host a variety of water-related rental activities and in such final form
as approved by the City Attorney.
Background
In the Spring of 2020, the City took over the boat fleet operations to have more control over the
operations and maintenance of the program.
Historic conditions in 2020 related to increased water levels and the Covid-19 Pandemic led to
above-average demand for water-related activities on Lake Elsinore. The specific demand for the
Boat Rental operators out of Launch Pointe exceeded all expectations. As a result of the
increased visitation in 2021, the vessels and City Staff at Launch Pointe’s Boat Rental operations
have been pushed beyond its ability to continue operations efficiently and cost-effectively.
In 2021, City Staff began discussions with multiple boat rental vendors to determine the best
possible partner to host water-related rentals out of Launch Pointe.
Those discussion led staff to believe that partnering with JTS Rentals presented the best option.
This decision was based on the company’s ability to guarantee revenues to be paid to Launch
Pointe, JTS’s owners and operators are located in Lake Elsinore with a broad knowledge of
Launch Pointe and the Lake, and that JTS has independently implemented procedures and
devices on their vessels to increase the safety of operators and other lake users.
Discussion
JTS Rentals has a successful history of safely hosting rentals operations in Lake Elsinore and
represents a proven model to provide Launch Pointe with appropriate compensation for the
exclusive right to host all water-related rental opportunities out of Launch Pointe. JTS Rentals will
purchase all boats from the City for $211,743 which City staff has determined represents a fair
market value for the fleet.
JTS Rentals – License Agreement
April 12, 2022
Page 2
The license agreement with JTS Rentals will provide an annual revenue stream of $25,000 for
the first years and will increase by CPI in subsequent years. In addition, the City will receive a
percentage of the vessel rental charges ranging from 2% to 12% of gross rental revenues.
Fiscal Impact
The City will receive $211,743 for the purchase of vessels fishing boats. The City will also receive
an annual revenues stream from the license agreement along with a percentage of the booking
rentals as noted above. There is no negative impact on the City.
Exhibits
A – JTS Rentals License Agreement
LICENSE AGREEMENT
THIS LICENSE AGREEMENT (“License”) is entered into as of April __, 2022 by and
between the City of Lake Elsinore, a municipal corporation (“City”), and JTS Rentals LLC, a
California limited liability company (“Licensee”).
RECITALS
This License is made with reference to the following facts which are a substantive part hereof:
A. City desires to encourage and promote public recreational activities at Lake
Elsinore.
B. City is the owner of certain real property located at the City of Lake Elsinore Launch
Pointe Recreation Destination & RV Park, 32040 Riverside Dr., Lake Elsinore, CA 92530,
Assessor Parcel Number 379120008 (“Launch Pointe”).
C. Licensee desires to operate a Watercraft Rental Business at a designated location
at Launch Pointe from April 1, 2022 through December 31, 2026 in a professional and safe
manner.
D. City finds that the Watercraft Rental Business, as defined herein, shall not interfere
with, but rather will contribute to the safety and convenience of the general public in the use and
enjoyment of, and the enhancement of recreational and educational experiences available in the
City and such business is compatible with the general development plans for Lake Elsinore.
E. Licensee desires to obtain from the City a License in order to conduct exclusive
Watercraft Rental Business within the designated area at Launch Pointe in accordance with the
terms and conditions set forth herein.
NOW THEREFORE, based on the foregoing and the promises, covenants and
undertakings contained in this License, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the City and Licensee agree as follows:
1. Definitions. The following terms shall have the meanings set forth below.
“Boats” means a conventional vessel in excess of 13 feet in length and propelled by an
such as a pontoon board, speed boat or fishing boat.
"City" means the City of Lake Elsinore, a municipal corporation.
"Director" means the City's Community Services Director or designee.
“Kayak” means a light narrow boat that has both ends tapered to a point and propelled by
a double-bladed paddle.
“Launch Pointe” is defined in Recital B.
"Licensee" means JT’s Rentals, LLC, and its principals.
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“PWC” means a personal watercraft, a vessel 13 feet in length or less, propelled by an
engine, that is designed to be operated by a person sitting, standing, or kneeling on the
vessel, rather than in the conventional manner of sitting or standing inside the vessel.
“Rental Office” means the modular container or containers placed near the launch ramps
of Launch Pointe as shown on the Site Map attached hereto as Exhibit A. Licensee is
authorized to use the address of Launch Pointe at 32040 Riverside Dr., Lake Elsinore, CA
92530 to identify the general location of the Rental Office for the purposes of advertising
and other promotional materials, maps and navigation systems, provided, however, that
Licensee shall not use this address for the purpose of receiving mail.
“SUP” means stand up paddleboard, a surfboard-like apparatus propelled by a single
paddle.
“Term Commencement Date” means the dated upon which this License has been fully
executed by the parties hereto.
“Watercraft” means a Boat, PWC, Kayak, and/or SUP.
"Watercraft Rental Business" means the rental of Watercraft to be conducted at the Rental
Office and operations related thereto as further set forth in Section 6.
2. License Term. This License is effective from and after the License
Commencement Date through December 31, 2026 (“License Term”). A “License Year” is a
period of twelve (12) consecutive calendar months commencing on each January 1 of the
License Term, except for the first License Year which commences on the License
Commencement Date and ends on December 31, 2022. Except as otherwise specifically stated
in this License, references to the “License Term” shall include the original License Term and any
extension, renewal or holdover thereof.
3. License Fee.
A. Guaranteed Minimum Annual License Fee. From and after the Term
Commencement Date, Licensee shall pay to City during each License Year a Guaranteed
Minimum Annual License Fee (“GMALF”) in the amount of $25,000, payable in five equal $5,000
installments no later than the first day of May, June, July, August and September of each License
Year.
B. Annual Increase to GMALF. The GMALF set forth in Section 3.A shall be
increased annually commencing on January 1 of each License Year commencing on January 1,
2023 and each License Year thereafter (each of which day shall be referred to as an “Adjustment
Date”). Each Adjustment Date shall be numbered in sequence (e.g., First Adjustment Date,
Second Adjustment Date, Third Adjustment Date, etc.). Each such annual increase in GMALF
shall be determined as follows:
As used in this License, “Index” means the Consumer Price Index for All Urban
Consumers (CPI-U) for the Riverside Area, as published by the United States Department of
Labor, Bureau of Labor Statistics. The GMALF will be adjusted to reflect the percentage increase
(but not any decrease) in the Index for the month of January of the current License Year,
compared with the month of January that is twelve (12) preceding such Adjustment Date.
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City shall notify Licensee of each annual increase in GMALF, in writing, as soon as
reasonably possible following each Adjustment Date. If the Index ceases to be published, is
published less frequently, or altered in some other manner, then the most nearly comparable
Index or procedure as determined by City will be substituted.
C. Percentage License Fee. In addition to the GMALF hereinabove agreed
to be paid by Licensee, Licensee shall pay to City at the time and in the manner herein specified
an additional license fee (sometimes referred to herein as “Percentage License Fee”) as follows:
Boats (Pontoon Boats, Ski/Speed Boats, Fishing Boats). Revenue Share based
on annual Gross Sales of Boat related Rental Business:
Gross Sales of Boat Rental Business Revenue Share Percentage
$0 - $300,000 8%
$300,001 – $400,000 9%
$400,001 - $600,000 10%
More than $600,000 12%
PWC. Revenue Share based on annual Gross Sales of PWC related Rental
Business:
Gross Sales of PWC Rental Business Revenue Share Percentage
$0 - $200,000 2%
$200,001 – $300,000 3%
More than $300,000 5%
Kayak and SUP. Revenue Share based on annual Gross Sales of Kayak and SUP
related Rental Business:
Gross Sales of Kayak and SUP Rental
Business
Revenue Share Percentage
$0 - $100,000 5%
More than $100,000 10%
Within fifteen (15) days after the end of each calendar month of the License Term,
commencing with the fifteenth (15th) day of the month following the Term Commencement Date,
and ending with the fifteenth (15th) day of the month next succeeding the last month of the License
Term, Licensee shall furnish to City a statement in writing, certified by Licensee to be correct,
showing the total Gross Sales made in, upon, or from the Rental Office during the preceding
calendar month (or fractional month at the beginning of the License Term if the Term
Commencement Date is other than the first day of a month). Licensee shall also furnish to City a
statement of the annual Gross Sales of Licensee within thirty (30) days after the close of each
calendar year. Licensee shall pay the Percentage License Fee on a monthly basis within fifteen
(15) days following the end of each calendar month during the License Term.
D. The term “Gross Sales”, as used herein, means the total gross receipts of
all goods, wares and merchandise sold and leased including the actual charges for all services
performed by Licensee and fees charged by Licensee and by anyone including subtenant,
licensee or concessionaire in, at, from, or arising out of the use of the Rental Office, whether
wholesale or retail, whether for cash or credit, or otherwise, and including the value of all
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consideration other than money received for any of the foregoing, without reserve or deduction or
inability or failure to collect, including but not limited to sales, leases and services: (a) where the
orders therefore originate in, at, from, or arising out of the use in whole or part of any portion of
the Rental Office, whether delivery or performance is made from the Rental Office or from some
other place and regardless of the place of bookkeeping for, payment of, or collection of any
accounts; or (b) made or performed by mail, telephone, or internet orders received or filled in, at,
or from the Rental Office; or (c) made or performed by means of mechanical or other vending
machines in the Rental Office (unless such vending machines are for Licensee’s employees’
exclusive use only); or (d) which Licensee, or any subtenant, licensee or concessionaire, in the
normal and customary course of its business, would credit or attribute to its operations at the
Rental Office or any part thereof.
Any deposit accepted and retained by Licensee 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, irrespective of whether or when Licensee receives payment therefore. Gross Sales
shall not include sales taxes, luxury taxes, consumer excise taxes, gross receipts taxes and other
similar taxes now or hereafter imposed upon the sale of merchandise or services, but only if
collected separately from the selling price of merchandise or services and collected from
customers. In calculating Gross Sales, there shall be excluded (or deducted if previously reported
or included in Gross Sales):
i. Cash refunds made to customers in the ordinary course of
business;
ii. Proceeds from the sales of fixtures, equipment, or property which
are not stock-in-trade, including bulk sales not in the ordinary
course of business;
iii. Receipts from vending machines uses solely by Licensee’s
employees;
iv. Goods returned to sources or transferred to or from another store
or warehouse owned by or affiliated with Licensee not for the
purpose of avoiding the inclusion of the sales price in Gross Sales;
v. Sums received in the settlement of claims for loss of, or damage to
goods; and
vi. Sales of gift certificates from the Rental Office, provided, however,
any gift certificate redeemed at the Rental Office shall be included
in Gross Sales when redeemed.
E. The Licensee shall keep at the Rental Office (and shall require any
permitted subtenant to keep at the Rental Office) full, complete and proper books, records and
accounts of its daily Gross Sales, both for cash and on credit, of each separate department and
concessionaire at any time operated in the Rental Office. The City and its authorized agents
and employees shall have the right at any and all times, during regular business hours, to
examine and inspect all of the books and records of the Licensee, including any sales and use
tax reports or returns pertaining to the business of the Licensee conducted in, upon, or from the
Rental Office, for the purpose of investigating and verifying the accuracy of any statement of
Gross Sales and to allow an audit of the business of Licensee to be made by a certified public
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accountant of City’s selection. If the statement of gross sales previously made to City is found
to be inaccurate, then and in that event, there shall be an adjustment, and one party shall pay to
the other on demand such sums as may be necessary to settle in full the accurate amount of
such Percentage License Fee that should have been paid to City for the period or periods
covered by such inaccurate statement or statements. If such audit discloses an inaccuracy of
greater than FIVE PERCENT (5%) error with respect to the amount of Gross Sales reported by
Licensee for the period of such report, then the Licensee shall immediately reimburse City the
cost of such audit; otherwise the cost of such audit shall be paid by the City. If such audit shall
disclose an under-reporting of Gross Sales of more than TEN PERCENT (10%) with respect to
the amount of Gross Sales reported by Licensee for the period covered by such report or shall
disclose a consistent or intentional under-reporting of Gross Sales as commercially understood
within Licensee’s business sector or general accounting standards applicable to Licensee’s
business, such discrepancy or under-reporting shall be deemed conclusively a material breach
of this License and shall entitle City to all of the remedies provided in this License, including the
right to terminate the License.
4. License. Provided that all of the terms and conditions of this License are fully
satisfied, the City hereby grants to Licensee an exclusive license to conduct the Watercraft Rental
Business within Launch Pointe. The Watercraft Rental Business shall only be conducted from the
Rental Office. The Licensee shall operate all vessels in accordance with all applicable laws,
ordinances, resolutions, policies and rules governing the use of Lake Elsinore. Licensee shall not
permit any noxious or offensive activity to be carried on upon any portion of Launch Pointe, nor
shall anything be done or maintained on the Launch Pointe which may be or become an
annoyance or nuisance. The License is subject to all liens, encumbrances, covenants, conditions,
restrictions, rights, rights of way, dedications and other matters of title (whether or not of record)
existing on the date of this License.
5. Security Deposit. On or before Term Commencement Date, Licensee shall
deposit with City a security deposit of $500 (“Security Deposit”). The Security Deposit shall be
held by City as security for the faithful performance by Licensee of all of Licensee’s obligations
under this License. The Security Deposit shall not bear interest. If any License Fee shall be
overdue and unpaid, or if Licensee shall fail to observe or perform any of its obligations under this
License, then City may, at its option and without prejudice to any other remedy which City may
have on account thereof appropriate and apply such Security Deposit or so much thereof as may
be necessary to compensate City in respect of the payment of the License Fee or damage
sustained by City due to such breach on the part of Licensee; and Licensee shall forthwith upon
demand restore such Security Deposit to the original sum deposited and failure to do so shall be
considered a default under this License. Should Licensee comply with all of its obligations under
this License and promptly pay all of the License Fee, the balance of the Security Deposit shall be
returned in full to Licensee following the end of the License Term.
6. Licensee’s Conditions to Operating the Watercraft Rental Business. Licensee
agrees to comply with the following conditions:
A. Rental Business.
i. JT’s Rentals, LLC shall obtain and maintain a City of Lake Elsinore
Business License.
ii. Operate a Watercraft rental business from Rental Office.
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iii. Licensee shall provide a minimum of five (5) Boats and five (5) PWCs
for rental from the Rental Office on Friday, Saturday, Sunday and all
nationally recognized holidays from May 1st through September 30th
from 10:00 a.m. to 6:00p.m. Licensee has the option to rent Watercraft
from the Rental Office on all other days during the License Term from
sunrise to sunset.
iv. It is the responsibility of the Licensee to ensure that the area for using
Watercraft is safe and that there is sufficient water depth to safely
operate such Watercraft.
v. The Watercraft offered for rental shall be in good operating condition
and meet or exceed all State of California and federal safety standards
for the public rental of such Watercraft. Watercraft are to be licensed
and identified as follows:
Each PWC vessel shall display the City’s Commercial Pass sticker
at all times. The sticker shall be affixed to the vessel within four
inches of the vessel's C.F. numbers on the port side. The
Commercial Pass is good for a full calendar year (Jan-1 to Dec-
31). The City shall provide, at no additional charge, Commercial
Lake Use Passes to be kept with each vessel at all times while on
the Lake.
Each Boat and PWC must be registered with the California
Department of Motor Vehicles as a vessel for livery. The certificate
of number (CF#s) must be displayed on both sides of the bow.
All Boat and PWC vessels shall be labeled as a rental with the
company name, clearly visible within 50 feet. An acceptable
labeling would be "JT’s Rentals".
The Licensee shall properly equip the any Watercraft consistent
with State of California boating laws.
Fueling of Boats and PWCs shall be restricted to a designated area
away from the shoreline and boat launch. The designated refueling
area shall be fitted with secondary containment which at a minimum
shall consist of an impervious ground covering and four inch (4“)
berms on all four (4) sides. (i.e., tarp overlaying pool noodles).
The Licensee shall be responsible for maintaining the Watercraft
and safety equipment in good and substantial repair and condition.
The Licensee shall maintain a retrieval Watercraft for recovery of
disabled Boats and PWCs.
vi. Licensee shall design, administer and promote the Rental Business to
allow the general public ("Participants") to rent Watercraft. In order to
assure the highest standard of safety to the Participants, Licensee shall
require that:
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Each Participant follow applicable rules and regulations.
Each Participant complete a "Boat and PWC Renter Orientation
Checklist" or a similar checklist approved by the Director.
Each Participant sign the "Waiver & Release Agreement" in the
form attached hereto as Exhibit B. The Licensee shall provide the
signed "Waiver & Release Agreements" to the City at the end of
every month.
Each Participant shall be given a copy of the safety flyer.
Each Participate have a U.S. Coast Guard approved, wearable and
properly sized Life Jackets, provided by Licensee.
vii. Licensee shall provide, maintain, and repair at its sole cost and
expense the materials, supplies, and equipment necessary for the
proper conduct of the activities contemplated under this License.
viii. Licensee shall, in cooperation with the City, maintain web presence for
boat rentals to continue under the Launch Pointe brand and Licensee’s
name to maximize customer base, adding the additional watercraft
rentals available at Launch Pointe (that is, PWC, SUP, and Kayak
rentals).
ix. Licensee may install, at its expense and at a location approved by the
Director, beach docks for operation of PWC rentals on the water.
x. Licensee shall establish and maintain a reservation system for
Watercraft rental to the general public allowing for advance
reservations as determined by Licensee and a priority reservation
system for Participants with confirmed guest reservations at Launch
Pointe allowing such Launch Pointe guest to reserve a Watercraft up to
sixty (60) days in advance
B. Maintenance of Launch Pointe.
i. City shall provide reasonable non-exclusive ingress and egress through
Launch Pointe to the Rental Office for purposes of operating the
Watercraft Rental Business. With respect to the use of the Rental Office
and the Boat Launch, Licensee shall:
Maintain the Rental Office in a condition that matches the level of
maintenance of Launch Pointe. The Rental Office and surrounding
area shall be free from weathered or tattered equipment and free
from trash and debris.
Licensee shall grant access to the City to review and inspect the
Rental Office with no notice.
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All temporary advertisement banners, must be maintained and free
from discoloration and signs of weathering.
C. Special Events; Closure.
i. Licensee shall notify the Director in writing, at least sixty (60) days in
advance, of any special event request and obtain a Special Events
Permit in accordance with applicable provisions of the City's Municipal
Code.
ii. City reserves the right to schedule special events in the Lake. Licensee
shall be notified of dates and type of event no less than thirty (30) days
in advance. Under no circumstances shall City be required to
compensate Licensee as a result of such events, provided, however,
that City may provide an alternative temporary location upon which to
operate the Rental Business.
iii. City reserves the right to close the Lake and/or Launch Pointe or portion
thereof without notice for reasons of potential adverse health, safety
and other unforeseen situations. Under no circumstances shall City be
required to compensate Licensee as a result of such a closure. The City
may or may not temporarily relocate operations depending on the
conditions of the health or safety concern.
7. City’s Obligations Related to the Watercraft Rental Business. City agrees to
comply with the following conditions:
A. Responsibilities of City.
i. City shall provide the container or containers that comprise the Rental
Office.
ii. City as shall provide storage space for all Watercraft at Launch Pointe
(either in a container that is part of the rental office or a designated area
within Launch Pointe).
iii. City shall cooperate with Licensee in marketing and advertising of the
Watercraft Rentals offered at Launch Pointe, including allowing
advertisement of rental operations to be displayed on Launch Pointe
Façade.
iv. City shall provide parking for one (1) vehicle per Watercraft Rental, a
list must be provided to Launch Pointe’s manager no later than 24 hours
prior to rental date.
v. City shall provide designated dock space for docking prior to W atercraft
rental and retrieving W atercraft upon completion of rental.
8. Liens. Licensees shall not suffer or permit to be filed or enforced against Launch
Pointe any mechanics’, laborers’, materialmen’s, contractors’, subcontractors’ or any other liens
arising from any work performed or caused to be performed by the Licensee as a result of the use
of the Launch Pointe by the Licensee or the public. Licensee shall pay all such liens before any
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action is brought to enforce the same against Launch Pointe. City shall have the right to post and
maintain on the Launch Pointe such Notices of Non-responsibility as desired by City or as may
be provided by law.
9. Suspension of Watercraft Rental Business. City may, in the exercise of its
discretion, suspend operation of the Watercraft Rental Business when the City deems Licensee's
operation of the Watercraft Rental Business as failing to follow the safety requirements as set
forth in Section 6 and/or otherwise needlessly endangering the public's health and safety.
10. Inspections. The City hereby reserves the right to enter upon the Rental Office at
any time to inspect, investigate, and survey the Rental Office, the Watercraft and the Watercraft
Rental Business as deemed necessary for administration and enforcement of the terms of this
License, or to determine the need for any actions necessary for operation of the Watercraft Rental
Business as provided herein.
11. Independent Contractor. It is understood that Licensee shall act as and be an
independent contractor and shall not act as an agent or employee of the City. Licensee
acknowledges that the use provided hereunder is intended by City to result in the access to and
enjoyment in the particular water-related activities conducted. Licensee has the sole responsibility
for ensuring that the activities are conducted in a reasonable and prudent manner.
12. Compliance with Laws. Licensee shall comply with all applicable federal, state
and local laws, codes, ordinances and regulations. Licensee shall not have any outstanding
charges with any local, state, or federal regulatory agencies.
13. Permits. Licensee represents and warrants to City that it has all licenses, permits,
qualifications, insurance and approvals which are legally required of Licensee. Licensee
represents and warrants to City that Licensee shall, at its sole cost and expense, keep in effect
or obtain at all times during the License Term, any licenses, permits, insurance and approvals
which are legally required of Licensee. Licensee shall also maintain a City of Lake Elsinore
business license.
14. Indemnification; Waiver. The parties agree and acknowledge that the Watercraft
Rental Business which the Licensee will operate may require participants to perform strenuous
or exacting physical activities; therefore, Licensee agrees to indemnify and hold City and its
employees, officers, directors, agents and contractors (collectively, “City’s Representatives”)
harmless, and to defend City and the City’s Representatives with counsel reasonably satisfactory
to City, from and against any and all liabilities, losses, actions, damages, obligations, judgments,
costs and expenses (including, without limitation, attorneys’ fees) (collectively, “Liabilities”) which
City or any of the City’s Representatives may incur or suffer arising out of or in any manner
connected with (i) the use of Launch Pointe by the Licensees or the public or (ii) the breach of or
failure of Licensee to perform any of Licensees’ covenants contained in this License.
15. Non-liability. To the fullest extent permitted by law, neither City nor any of the
City’s Representatives shall bear any responsibility for any Liabilities arising out of or in any
manner connected with any person’s use of Launch Pointe, and all persons using Launch Pointe
do so completely at their own risk.
16. Insurance Requirements.
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A. Insurance. Licensee, at Licensee’s own cost and expense, shall procure
and maintain, for the duration of the contract, unless modified by the City’s Risk Manager, the
following insurance policies.
i. Workers’ Compensation Coverage. Licensee shall maintain
Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her
employees in accordance with the laws of the State of California. In addition, Licensee
shall require each subcontractor to similarly maintain Workers’ Compensation Insurance
and Employer’s Liability Insurance in accordance with the laws of the State of California
for all of the subcontractor’s employees. Any notice of cancellation or non-renewal of all
Workers’ Compensation policies must be received by the City at least thirty (30) days prior
to such change. The insurer shall agree to waive all rights of subrogation against City, its
officers, agents, employees and volunteers for losses arising from work performed by
Licensee for City. In the event that Licensee is exempt from Worker’s Compensation
Insurance and Employer’s Liability Insurance for his/her employees in accordance with
the laws of the State of California, Licensee shall submit to the City a Certificate of
Exemption from Workers Compensation Insurance in a form approved by the City
Attorney.
ii. General Liability Coverage. Licensee shall maintain commercial
general liability insurance in an amount not less than two million dollars ($2,000,000) per
occurrence for bodily injury, personal injury and property damage. If a commercial general
liability insurance form or other form with a general aggregate limit is used, either the
general aggregate limit shall apply separately to the work to be performed under this
Agreement or the general aggregate limit shall be at least twice the required occurrence
limit. Required commercial general liability coverage shall be at least as broad as
Insurance Services Office Commercial General Liability occurrence form CG 0001 (ed.
11/88) or Insurance Services Office form number GL 0002 (ed. 1/73) covering
comprehensive General Liability and Insurance Services Office form number GL 0404
covering Broad Form Comprehensive General Liability. No endorsement may be attached
limiting the coverage.
iii. Automobile Liability Coverage. Licensee shall maintain automobile
liability insurance covering bodily injury and property damage for all activities of the
Licensee arising out of or in connection with the work to be performed under this
Agreement, including coverage for owned, hired and non-owned vehicles, in an amount
of not less than one million dollars ($1,000,000) combined single limit for each occurrence.
Automobile liability coverage must be at least as broad as Insurance Services Office
Automobile Liability form CA 0001 (ed. 12/90) Code 1 (“any auto”). No endorsement may
be attached limiting the coverage.
iv. Watercraft Liability Coverage. Licensee shall maintain watercraft
liability insurance appropriate for occurrence for bodily injury, personal injury and property
damage, and cover such services whether they are provided by the Licensee or by its
employees, subcontractors, or subcontractors. The amount of this insurance shall not be
less than two million dollars ($2,000,000) on a claims-made annual aggregate basis, or a
combined single limit per occurrence basis.
B. Endorsements. Each general liability and automobile liability insurance
policy shall be with insurers possessing a Best’s rating of no less than A:VII and shall be endorsed
with the following specific language:
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i. The City, its elected or appointed officers, officials, employees,
agents and volunteers are to be covered as additional insured with respect to liability
arising out of work performed by or on behalf of the Licensee, including materials, parts
or equipment furnished in connection with such work or operations.
ii. This policy shall be considered primary insurance as respects the
City, its elected or appointed officers, officials, employees, agents and volunteers.
Any insurance maintained by the City, including any self-insured retention the City may
have, shall be considered excess insurance only and shall not contribute with it.
iii. This insurance shall act for each insured and additional insured as
though a separate policy had been written for each, except with respect to the limits of
liability of the insuring company.
iv. The insurer waives all rights of subrogation against the City, its
elected or appointed officers, officials, employees or agents.
v. Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to the City, its elected or appointed officers, officials,
employees, agents or volunteers.
vi. The insurance provided by this Policy shall not be suspended,
voided, canceled, or reduced in coverage or in limits except after thirty (30) days written
notice has been received by the City.
C. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City. At the City’s option, Licensee shall
demonstrate financial capability for payment of such deductibles or self-insured retentions.
D. Certificates of Insurance. Licensee shall provide certificates of insurance
with original endorsements to City as evidence of the insurance coverage required herein.
Certificates of such insurance shall be filed with the City on or before commencement of
performance of this Agreement. Current certification of insurance shall be kept on file with the
City at all times during the term of this Agreement.
17. Amendment. This License may be amended, modified or terminated only by an
instrument in writing executed by Licensee and City agreeing to amend, modify or terminate this
License.
18. Survival. The obligations under this License shall survive the expiration of the
License and the License Term; provided, however, in no event shall Licensee have the right to
use Launch Pointe after the expiration of the License Term nor shall the public have the right to
use Launch Pointe for such an operation after such time.
19. Licensee Defaults. For the purpose of this License, the term "Default by Licensee"
shall mean the occurrence of any one or more of the following events:
A. Failure by Licensee to pay when due any payment of the License Fee or
any other sum of money payable under this License, provided that such
failure shall continue for a period of five (5) days after the date Licensee
receives written notice from City of such failure;
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B. Failure by Licensee to pay any premium for insurance required under this
License, or any other sum required to be paid by Licensee pursuant to this
License provided that such failure shall continue for a period of five (5) days
after Licensee receives written notice from City of such failure or failure by
Licensee to maintain any insurance required under this License;
C. Failure of Licensee to manage, operate, maintain, or use the Rental Office
for two consecutive weekends beginning May 1st through September 30th;
D. Commencement of any action or proceeding by or against Licensee under
any federal or state bankruptcy or insolvency law or other debtors relief
law, whether now or hereafter in force, including (but not limited to) any
action or proceeding to have Licensee declared bankrupt and any action or
proceeding seeking reorganization of Licensee or seeking an arrangement
with all or some of Licensee's creditors, whether or not a trustee or receiver
is appointed, provided that such action or proceeding continues without
dismissal for a period of ninety (90) days after its commencement;
E. Appointment, either voluntarily or involuntarily, of a receiver, trustee,
keeper, or other person to take possession of all or substantially all of the
assets of Licensee, if such appointment and possession continues without
dismissal for a period of ninety (90) days after commencement;
F. Execution by Licensee of an assignment for the benefit of its creditors of
all or substantially all of its assets that are available by law for the
satisfaction of claims of judgment by creditors of Licensee; or
G. Failure by Licensee to perform or comply with any other term, covenant, or
provision of this License including, but not limited to, the obligation to
operate the Watercraft Rental Business, not cured within five (5) days after
Licensee receives written notice from City of the default (which notice shall
specify the particulars of such default), or, in the case of a default
reasonably requiring more than five (5) days to cure, not cured within a
reasonable time after the giving of such notice, provided that the curing of
the default is commenced within the five (5) day period after City gives
Licensee notice of such default and is diligently and in good faith pursued
and executed to completion.
In the event of any Default by Licensee under this License that is not cured by Licensee within
any applicable grace period, and in addition to any and all other rights or remedies of City
hereunder, or as provided by law or in equity, City may exercise the following remedies at its sole
option:
H. Termination. In the event of any Default by Licensee, City shall have the
right to terminate this License and the License granted herein by giving
Licensee written notice of termination. No act by or on behalf of City (such
as entry onto the Rental Office by City to perform maintenance and efforts
to seek another Licensee), other than giving Licensee written notice of
termination, shall terminate this License. If City gives such notice, this
License and the License Term, as well as the license, right, and interest of
Licensee under this License, shall wholly cease and expire (except as to
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Licensee's liability) on the date specified in such notice as if such date were
the expiration date of the License Term without the necessity of re-entry or
any other act on City's part.
I. City shall be entitled to recover from Licensee, without limitation, as
damages any amount necessary to compensate City for all the detriment
proximately caused by Licensee's failure to perform its obligations under
this License, or which in the ordinary course of things would be likely to
result therefrom, including, without limitation, attorneys' fees and costs;
provided, however, the City shall have no right to consequential damages.
J. Right to Continue the License. City has the right, but not the obligation, to
continue this License in effect after a Default by Licensee, and may recover
License Fees when due for so long as City does not terminate this License.
Upon a Default by Licensee, City's acts of preservation, efforts to find
another Licensee, or the appointment of a receiver to protect its interest
under this License shall not constitute a termination of Licensee's License
interest.
Notwithstanding the foregoing, three (3) or more (consecutive or otherwise) Defaults by Licensee
occurring within a 12-month period shall constitute an automatic default hereunder without any
further obligation on the part of City in any way and shall entitle City to immediately terminate this
License and the License granted herein by giving Licensee written notice of termination.
20. Default by City. For the purpose of this License, the term "Default by City" shall
mean the occurrence of any one or more of the following events:
A. Failure by City to provide access to the Rental Office;
B. Default or breach by City of any other term, covenant, or provision of this
License, other than providing necessary access to the Rental Office to the
Licensee, not cured within fifteen (15) days after City receives written notice
from Licensee of the default (which notice shall specify the particulars of such
default), or, in the case of a default reasonably requiring more than fifteen
(15) days to cure, not cured within a reasonable time after the giving of such
notice, provided that the curing of the default is commenced within the fifteen
(15) day period after Licensee gives City notice of such default and is
diligently and in good faith pursued and executed to completion.
In the event of any Default by City under this License that is not cured by City within any applicable
grace period of 48 hours, Licensee shall have all other rights and remedies available hereunder,
or as provided by law or in equity, including the right to terminate this License or continue this
License in effect, and collect all damages directly and indirectly caused by the Default by City
(provided, however, Licensee shall have no right to consequential damages) and the right to
enforce specific performance of this License.
21. Entire Agreement. This License includes Exhibits A, B, and C which is attached
hereto and incorporated by reference herein. This License constitutes the complete exclusive
statement of License between the City and Licensee. All prior written and oral communications,
including correspondence, drafts, memoranda, and representations, are superseded in total by
this License.
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22. No Automatic Renewal of License. This license shall not automatically renew.
23. Construction. Headings in this License are for convenience only and are not part
of this License. When the context so requires, words in the masculine, feminine or neuter gender
shall include each other gender; and words in the singular or plural shall include each other.
Unless otherwise indicated, all references to paragraphs and subparagraphs are to this License.
This License is executed and delivered in the State of California and shall be construed and
enforced in accordance with and governed by the laws of the State of California.
24. Severability. In the event any portion of this License shall be declared by any court
of competent jurisdiction to be invalid, illegal or unenforceable, such portion shall be deemed
severed from this License and the remaining part of this License shall remain in full force and
effect, as fully as though such invalid, illegal and unenforceable portion had never been part of
this License.
25. Controlling Law and Venue. This License and all matters relating to it shall be
governed by the laws of the State of California and any action brought relating to this License
shall be held exclusively in a state court in the County of Riverside. The Licenses contained herein
shall not be construed in favor or against either party, but shall be construed as if all parties
prepared this License.
26. Interest. Any amounts required to be paid by one party to the other party under
this License shall bear interest from the date due until paid at the lesser of the rate of ten percent
(10%) per annum or the highest rate permitted by applicable law.
27. Attorneys’ Fees. If any action is brought to enforce this License, the prevailing
party(s) shall be entitled to recover all costs and expenses of the action including reasonable
attorneys’ fees.
28. Mediation. The parties agree to make a good faith attempt to resolve any disputes
arising out of this License through mediation prior to commencing litigation. The parties shall
mutually agree upon the mediator and shall divide the costs of mediation equally. If the parties
are unable to agree upon a mediator, the dispute shall be submitted to JAMS/ENDISPUTE
("JAMS") or its successor in interest. JAMS shall provide the parties with the names of five
qualified mediators. Each party shall have the option to strike two of the five mediators selected
by JAMS and thereafter the mediator remaining shall hear the dispute. If the dispute remain s
unresolved after mediation, either party may commence litigation.
29. Entire Agreement. This License contains the entire agreement between the
parties concerning the subject matter of this License and supersedes any and all other prior
agreements, understandings, or negotiations concerning such subject matter.
30. Enforcement. Enforcement of this License may be by any proceeding in law or in
equity against any person or persons or entity or entities violating or attempting to violate any of
the provisions of this License, and any party enforcing this License may seek to enjoin or prevent
such violating party or parties from doing so, may seek to cause any violation to be remedied
and/or to recover damages for any violation.
31. Notices. All notices or other communications required or permitted under this
License shall be in writing and shall be delivered personally or sent by United States mail,
registered or certified, return receipt requested, postage prepaid, addressed as set forth below.
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Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as
provided in this section.
If to City: City of Lake Elsinore
Attn: City Manager
130 South Main Street
Lake Elsinore, California 92530
If to Licensee: JTS Rentals LLC
Attn: John Alarcon
32005 Sugarbush Lane
Lake Elsinore, CA 92532
Any party may, by notice to the other, designate a different address for notices which shall be
substituted for that specified above. All notices and other communications given as provided in
this paragraph shall be effective upon receipt.
32. Counterparts. This License may be executed in two or more counterparts, each
of which shall be an original, but all of which shall constitute one and the same instrument.
33. Authority to Enter License; Administration. Licensee has all requisite power
and authority to conduct its business and to execute, deliver and perform the License. The
individual who has signed this License on behalf of the Licensee has the legal power, right, and
authority to make this License and to bind Licensee. The City Manager of the City shall execute
and administer this License on behalf of the City. The City Manager, or authorized representative,
shall have the authority to issue interpretations, waive provisions, enter into amendments and
extend the Initial Term of this License. Notwithstanding the foregoing, the City Manager may in
his/her sole and absolute discretion determine that any matter in connection with this License will
be presented to the City Council.
34. Prohibited Interest. Licensee maintains and warrants that it has not employed
nor retained any company or person, other than a bona fide employee working solely for Licensee,
to solicit or secure this License. Further, Licensee warrants that it has not paid nor has it agreed
to pay any company or person, other than a bona fide employee working solely for Licensee, any
fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or
resulting from the award or making of this License. For breach or violation of this warranty, C ity
shall have the right to rescind this License without liability. For the term of this License, no
member, officer or employee of City, during the term of his or her service with City, shall have any
direct interest in this License, or obtain any present or anticipated material benefit arising
therefrom.
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IN WITNESS WHEREOF, the parties have executed this License on the date set forth
below.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
Date: _________________, 2022 By: ______________________________
Jason Simpson, City Manager
ATTEST:
__________________________
CITY CLERK
APPROVED AS TO FORM:
___________________________
CITY ATTORNEY
“LICENSEE”
JTS RENTALS LLC, California limited
liability company
Dated: _________________, 2022 By: ______________________________
Lashel Trigg, Member/CEO
EXHIBIT A
SITE MAP
EXHIBIT B
WAIVER & RELEASE AGREEMENT
I, ____________________________(First, Middle, Last), fully understand that my participation in
using a boat, personal water craft/jet ski, SUP, or Kayak as either the Licensee or as a passenger
(hereinafter the "activity") in the waters of Lake Elsinore pursuant thereto exposes me to the risk
of personal injury, death or property damage. I hereby acknowledge that I am voluntarily
participating in this activity and agree to assume any such risks.
I hereby release, discharge, hold harmless and agree not to file a law suit against JT’s Rentals,
LLC and/or the City of Lake Elsinore, its officers, agents and employees for any injury, death or
damage to or loss of personal property arising out of, or in connection with, my participation in the
activity from whatever cause, including the active or passive negligence of JT’s Rentals, LLC and
for the City of Lake Elsinore or any other participants in the event class.
In consideration for being permitted to participate in the event class, I hereby agree, for myself,
my heirs, administrators, executors and assigns, that I shall indemnify and hold harmless JT’s
Rentals, LLC and/or the City of Lake Elsinore its officers, agents and employees from any and all
claims, demands, actions or suits arising out of or in connection with my participation in the event
class.
I HAVE CAREFULLY READ THIS RELEASE/HOLD HARMLESS AND FULLY UNDERSTAND
ITS CONTENTS. I AM AWARE THAT IT IS A FULL RELEASE OF ALL LIABILITY AND I SIGN
IT OF MY OWN FREE WILL.
Date:_________________________
Signature
Parent/Guardian if under age 18
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