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AGENDA REPORT
DATE: May 14, 2001
TO: Honorable Mayor and Members of the City Council
THRU: John B. Bahorski, City Manager
FROM: Steve Cushman, Chief of Lifeguards
SUBJECT: PIER LANDING AGREEMENT
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To recommend approval of a revised agreement between the City of Seal Beach and Nuevo
Energy and Torch Operating Companies for use of the City's municipal pier landing platform
and vehicle parking on the adjacent beach lots.
DISCUSSION
This revision of the existing agreement between the City and Nuevo Energy and Torch
Operating Companies was a collective city staff effort, and the City Attorney's office has
approved as to form and content.
This revised contract not only raises the fees associated with pier landing use and vehicle
parking, but also includes changes in repair responsibilities, insurance indemnification and
contract length. Whereas, the City was responsible for repair of the pier landing, Nuevo
Energy and Torch Operating will now bear that liability. The length of the agreement has
also been extended from one to five years with parking fee adjustments based on the annual
Consumer Price Index on September 1, 2001 and September 1 of each year thereafter. This
adjustment date ties into the anniversary of the term under the prior lease.
FISCAL IMPACT
Under the provisions of this revised contract, the City will receive $4,800 a month for
landing fees and parking fees of $1,320 a month. The landing fee reflects an increase in
revenue from the prior agreement with Nuevo Company and Torch Operating Company of
$1,200. The parking fees increased $1,000 a month. The landing fees shall be adjusted on
September 1 of each year thereafter by the Consumer Price Index (CPI) for All Urban for the
Los Angeles- Anaheim- Riverside Metropolitan Area published by the United States
Department of Labor. Total annual increase in revenues is $26,400. If the CPI reflects an
annual increase of 3% the total increase in revenues over a five-year period would be
$85,140.
Agenda Item Q
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Pier Landing Agreement - Page 2
May 14, 2001
RECOMMENDATION
That council approve the revised agreement between the City of Seal Beach and
Nuevo Energy and Torch Operating Companies for use of the City's municipal pier
landing platform and vehicle parking on the adjacent beach lots.
Steve Cushman, Chief of Lifeguards