TITLE
Recommendation to authorize City Manager to execute a first amendment to Permit No. 27552 to change the permittee’s name from Dream Cruises, Inc., to Hornblower Yachts, Inc.; to adjust the permit fees, including annual minimum fees; and to extend the term through November 30, 2011. (District 2)
DISCUSSION
On November 6, 2001, the City Council authorized the execution of Permit No. 27552 (Permit) with Dream Cruises, Inc., (Dream Cruises) for commercial operations of harbor and dinner cruises, whale watching tours, and all charters, except scuba diving and sport fishing (Attachment A). The Permit was executed for a five-year term with three five-year options to renew, subject to approval by the City Manager.
In December 2004, Dream Cruises notified the Department of Parks, Recreation and Marine (PRM) of the sale of all interests and obligations to Hornblower Yachts, Inc.
(Hornblower). The new owners elected to continue operations under the name Dream Cruises for the duration of the initial five-year permit term.
The successor is now requesting to exercise the first five-year renewal option under the name Hornblower Yachts, Inc. The first amendment has been negotiated with the proposed major terms and conditions, as follows:
. Permit Term Extension: December 1, 2006, through November 30, 2011.
. Annual Minimum Permit Fee: $30,000. The annual minimum rate shall be adjusted using the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index for Los Angeles-Riverside-Orange Counties in each succeeding year of the Permit.
. Permit Fees:
~ Year 1 (December 1, 2006, through November 30, 2007): The greater of $30,000, or 6
percent of gross receipts.
~ Year 2 (December 1, 2007, through November 30, 2008): The greater of annual
rate, or 7 percent of gross receipts.
~ Years 3 - 5 (December 1, 2008, through November 30, 2011): The greater of annual
minimum rate, or 8 percent of gross receipts.
. Dock fee: $14.00 per lineal foot per mo...
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