TITLE
Recommendation to authorize City Manager to execute a new permit with Dockside Boat and Bed, Inc., to use and occupy portions of the docks, slips and end ties in Rainbow Harbor for the purpose of operating bed and breakfast inn accommodations and charters for a three-year term, with two, three-year options to renew; and
Authorize City Manager to execute any future amendments. (District 2)
DISCUSSION
Since 1999, Dockside Boat and Bed, Inc. (DBB), has operated bed and breakfast inn accommodations and charters from Rainbow Harbor. DBB contracts use of private vessels as overnight dockside accommodations. The permit has expired and DBB has requested authorization to continue operations. A new permit has been negotiated with DBB and the proposed terms and conditions are as follows: Permit Area: Slip space in Rainbow Harbor as assigned by the Marine Bureau. Permitted Use: The permit area shall be used for the purpose of berthing Permittee's vessels and for embarking and disembarking passengers in connection with bed and breakfast inn accommodations and charters. Permittee shall not operate dinner cruises, education charters, scuba-dive charters, sport fishing charters or point-to-point water-taxi service within the limits of the City of Long Beach. Permit Fee: Six percent (6%) of gross receipts or annual minimum guarantee of $4,600, whichever is greater. The permit fee shall increase to seven percent (7%) in permit year two and eight percent (8%) in permit year three. The City shall have the
option to change the minimum guarantee each year. The Permittee also pays the City's Transit Occupancy Tax. Dock Fee: $13.35 per linear foot occupied or reserved by the permittee, or Rainbow Harbor dock rate established by the City Council. Permittee is currently assigned
225-feet of dock space on Dock 5 in Rainbow Harbor. Term: Three-year term expiring June 30, 2009, with two, three-year options to renew at the discretion of the City Manager or his designee. . Utilities: Permittee shall be responsible for all utility payments. Insurance: Permittee shall provide insurance coverage as defined by the City's Risk Management Office. This matter was reviewed by Deputy City Attorney J. Charles Parkin on July 18, 2006, and Budget Management Officer David Wodynski on July 20,2006.
TIMING CONSIDERATIONS
City Council action is requested on August 8, 2006, to enable the execution of the permit.
FISCAL IMPACT
Revenue for the initial year of the permit is estimated at a minimum amount of $4,600. All revenue associated with the permit will be deposited in the Tidelands Operating Fund (TF) in the department of Parks, Recreation and Marine (PR).
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
NAME |
APPROVED: |
TITLE |
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GERALD R. MILLER |
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CITY MANAGER |