THREE YEAR MANAGEMENT AGREEMENT AND IRS DETERMINATION LETTER
CLEARWATER COMMUNITY SAILING CENTER MANAGEMENT AGREEMENT
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THIS MANAGEMENT AGREEMENT, entered into this ..ll.- day of
2002 by the City of Clearwater, Florida, as City, and Clearwater Co
Association, Inc., as Manager.
WHEREAS, City owns the real property and improvements consisting of approximately
3,658 square feet and located in Pinellas County, Florida, having an address of 1001
Gulf Boulevard, CLEARWATER FL 33767, and more particularly described in Exhibit A,
attached and incorporated as a part of this agreement. Such property shall hereinafter
be referred to as the "premises."
WHEREAS, Manager agrees to manage the Clearwater Community Sailing Center under
the terms and conditions described in this management agreement.
1. MANAGEMENT TERM.
The term of this agreement shall be for three (3) years; which term will commence on the
1 st day of October 2002, and shall continue until midnight on the 30th day of September
2005 (herein called the "initial term"). The manager shall have two (2) successive
options to extend the term of this agreement for successive periods of three (3) years
each (if more than one option period is granted, each such period is included in the term
"extended term" as used herein). No such renewal or extension shall be deemed a
waiver by City of any breach or default, which may then exist. Each extended term shall
be upon the same conditions and terms, and the rent shall be determined and payable,
as provided in this agreement, except that there shall be no privilege to extend the term
beyond the expiration of the extended term period as herein above specified. The
manager shall exercise the option for an extended term by notifying the City in writing at
least one (1) calendar month prior to the expiration of the then current term. City shall
have until the end of each term to review manager's performance and may deny renewal
if manager is in default of any provision of this agreement. Failure to exercise the option
for any period shall nullify the option for all subsequent periods.
2. RENT
(a) Base rent: Manager agrees to pay the City as rent during the initial term of this
agreement the sum of Twelve Thousand Dollars ($12,000) annually, payable in equal
monthly installments of One Thousand Dollars ($1,000) per month, the first such
installment being payable upon the execution of this agreement, and the balance of such
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installments being payable in advance at the beginning of each successive monthly
rental period thereafter. In addition, manager shall pay sales tax on all taxable collected
payments. For each successive extension hereunder, the annual rent shall be increased
by a sum equal to 5% of the annual rent for the immediately preceding agreement term
and such annual rent shall be payable in equal monthly installments. Manager shall pay
rent and any additional rent as hereinafter provided to City at such place as City may
designate in writing, without demand and without counterclaim, deduction or setoff.
(b) Percentage rent: Starting the second month of the second assignment year, and
continuing for the duration of the assignment and each extension thereof, the manager
agrees to pay and City agrees to accept as additional monthly percentage rent an
amount equal to twenty percent (20%) of the prior month's gross revenues less taxes
collected, said payment due on or before the 10th day of the month.
3. SECURITY DEPOSIT.
Manager shall deposit with City on the signing of this agreement the sum of One
Thousand Dollars ($1,000) as security for the performance of manager's obligations
under this agreement, including without limitation the surrender of possession of the
premises to City as herein provided. If City applies any part of the deposit to cure any
default of manager, manager shall on demand deposit with City the amount so applied
so that City shall have the full deposit on hand at all times during the term of this
ag reement.
4. LINE OF CREDIT.
City agrees to provide to manager a line of credit up to $50,000, which City at its sole
discretion may authorize. Such line of credit shall only be used by manager to pay
salaries for authorized employees and all payments must be repaid to City by the end of
the initial term.
5. USE OF PREMISES.
The premises are to be used by manager solely for the purposes and in the manner set
forth in the business plan (Exhibit C) attached and incorporated as a part of this
agreement, subject to City's reserved right to issue "fishing" permits allowing holders
thereof to use specifically identified areas of the managed premises for fishing, subject to
reasonable rules and regulations established by manager and approved by City. No
other use can be made of the premises during the term without the written consent of the
City.
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6. UTILITIES.
Water, sewer, electric and all other utilities of any kind shall be billed directly to manager
and are or shall be individually metered for the subject premises. All deposits for such
utilities shall be the sole responsibility of manager.
7. COMMON AREA MAINTENANCE AND TAXES
City shall be responsible for the common area maintenance charges assessed by the
owner's association against the Property and City shall pay real estate taxes.
8. OBSERVANCE OF LAWS AND ORDINANCES.
Manager agrees to observe, comply with and execute promptly at its expense during the
term hereof, all laws, rules, requirements, orders, directives, codes, ordinances and
regulations of governmental authorities and agencies and of insurance carriers which
relate to its use or occupancy of the demised premises.
9. ASSIGNMENT OR SUBAGREEMENT.
Manager shall not, without first obtaining the written consent of City, assign, mortgage,
pledge, or encumber this agreement, in whole, or in part, or sublet the premises or any
part thereof. City expressly covenants that such consent to sublet shall not be
unreasonably or arbitrarily refused. This covenant shall be binding on the legal
representatives of manager, and on every person to whom manager's interest under this
agreement passes by operation of law, but it shall not apply to an assignment or
subletting to the parent or subsidiary of a corporate manager or to a transfer of the
agreement hold interest occasioned by a consolidation or merger involving such
manager. If the premises are sublet or occupied by anyone other than manager, and
manager is in default hereunder, or if this management agreement is assigned by the
manager, the City may collect rent from the assignee, subtenant, or occupant, and apply
the net amount collected to the rent herein reserved. No such collection shall be deemed
a waiver of the covenant herein against assignment and subletting, or the acceptance of
such assignee, subtenant, or occupant as manager, or a release of manager from further
performance of the covenants herein contained.
1 O. ALTERATIONS AND IMPROVEMENTS.
(a). City will, at City's expense and as soon as practicable, purchase, complete, install,
and/or otherwise provide items listed on Exhibit D (Clearwater Community Sailing Center
Project Estimates), attached and incorporated hereunto.
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(b). Manager shall not make any structural alterations or modifications or improvements
which are part of the managed property without the written consent of the City, and any
such modifications or additions to said property shall become the property of the City
upon the termination of this agreement or, at City's option, the manager shall restore the
managed property at manager's expense to its original condition. The restrictions of this
paragraph shall not apply to maintenance of the managed property, but shall apply to
any change which changes the architecture or purpose of the property or which changes
any of the interior walls of the improvements or which annexes a fixture to any part of the
managed property which cannot be removed without damage thereto. In the event
manager desires to make any alterations or modifications, written notice shall be given to
the City. Unless the City objects to such proposals by notice to manager within twenty
(20) days after written notice from manager, the proposal shall be deemed approved.
Manager shall have no power or authority to permit mechanics' or material men's liens to
be placed upon the managed property in connection with maintenance, alterations or
modifications. Manager shall, within fifteen (15) days after notice from City, discharge
any mechanic's liens for materials or labor claimed to have been furnished to the
premises on manager's behalf. Not later than the last day of the term manager shall, at
manager's expense, remove all of manager's personal property and those improvements
made by manager which have not become the property of City, including trade fixtures
and the like. All property remaining on the premises after the last day of the term of this
agreement shall be conclusively deemed abandoned and may be removed by City and
manager shall reimburse City for the cost of such removal.
11. RISK OF LOSS.
All personal property placed or moved in the premises shall be at the risk of the manager
or owner thereof. The City shall not be responsible or liable to the manager for any loss
or damage that may be occasioned by or through the acts or omissions of persons
occupying adjoining premises or any part of the premises adjacent to or connected with
the premises hereby managed or any part of the building which the managed premises
are a part of or any loss or damage resulting to the manager or its property from bursting,
stopped up or leaking water, gas, sewer or steam pipes unless the same is due to the
negligence of the City, its agents, servants or employees.
12. RIGHT OF ENTRY
The City, or any of its agents, shall have the right to enter said premises during all
reasonable hours, to examine the same to make such repairs, additions or alterations as
may be deemed necessary for the safety, comfort, or preservation thereof, or of said
building, or to exhibit said premises. The right of entry shall likewise exist for the purpose
of removing placards, signs, fixtures, alterations or additions, which do not conform to
this agreement.
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13. RESTORING PREMISES TO ORIGINAL CONDITION.
Manager represents that the premises managed are in good, sanitary and tenantable
condition for use by manager. Manager's acceptance or occupancy of the managed
premises shall constitute recognition of such condition. Manager hereby accepts the
premises in the condition they are in at the beginning of this agreement and agrees to
maintain said premises in the same condition, order and repair as they are at the
commencement of said term, and to return the premises to their original condition at the
expiration of the term, excepting only reasonable wear and tear arising from the use
thereof under this agreement. The manager agrees to make good to said City
immediately upon demand, any damage to water apparatus, or electric lights or any
fixture, appliances or appurtenances of said premises, or of the walls or the building
caused by any act or neglect of manager or of any person or persons in the employ or
under the control of the manager.
14. INSURANCE.
Manager agrees to comply with all terms, provIsions and requirements contained in
Exhibit "B" attached hereto and made a part hereof as if said document were fully set
forth at length herein.
15. MAINTENANCE.
City shall keep the foundation, outer walls, roof and buried conduits of the premises,
including existing buildings, piers, docks, and items included on Exhibit D, attached, in
good repair, except that the City shall not be called on to make any such repairs
occasioned by the negligence of the manager, its agents, express or implied invitees, or
employees. City shall maintain the city owned property outside the fence from the sailing
center building up to the bridge, while the manager will be responsible for the upkeep of
the property within the fenced in area. Manager shall keep the inside of said premises
and the interior doors, windows and window frames of said premises in good order,
condition and repair and shall also keep the premises in a clean, sanitary and safe
condition in accordance with law and in accordance with all directions, rules and
regulations of governmental agencies having jurisdiction. The manager shall be
responsible for providing all light bulbs used on the premises. The plumbing facilities
shall not be used for any other purposes than that for which they are constructed and no
foreign substances of any kind shall be thrown therein, and the expense of any
breakage, stoppage or damage resulting from the violation of this provision shall be
borne by the manager. Routine maintenance of the heating and air conditioning system
and plumbing facilities shall be under the control of the manager, and manager agrees
that all operation, upkeep, and repairs will be at manager's expense, except where the
repairs shall be caused by the negligence or misuse by City or its employees, agents,
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invitees, or licensees, .or by catastrophic failure, or in the event of expected life cycle
replacement. In the event City pays any monies required to be paid by manager
hereunder, City shall demand repayment of same from the manager and the manager
shall make payment within ten (10) days of receipt of said demand. Manager's failure to
make such repayment within the ten (10) day period shall constitute default under the
terms of this agreement.
City will assume responsibility for life cycle replacement of the heating/air-conditioning
system, provided routine monthly maintenance has been performed.
City will assume responsibility for life cycle replacement of the elevator, provided routine
monthly maintenance has been performed.
16. DESTRUCTION OF PREMISES.
In the event that the building should be totally destroyed by fire, earthquake or other
cause, to such an extent that it cannot be rebuilt or repaired within sixty (60) days after
the date of such destruction, this management agreement shall be terminated. In the
event that the building should be partially damaged by fire, earthquake or other cause,
but only to such an extent that it can be rebuilt or repaired within sixty (60) days after the
date of such destruction, the management agreement shall be void or voidable, but not
terminated, except as otherwise provided herein. If the City intends to rebuild or repair
the premises, he shall, within fifteen (15) days after the date of such damage, give
written notice to manager of the intention to rebuild or repair and shall proceed with
reasonable diligence to restore the building to substantially the same condition in which it
was immediately prior to the destruction. However, City shall not be required to rebuild,
repair or replace any improvements or alterations made by manager within the building.
During the period of rebuilding or repairing, there shall be no diminution of rents. If, after
rebuilding or repairing has commenced, such rebuilding or repairing cannot be
completed within sixty (60) days after the date of such partial destruction, the City may
either terminate the agreement or continue with the agreement with a proportional rent
rebate to manager. If City undertakes to rebuild or repair, manager shall, at its own
expense, restore all work required to be done by such manager under this agreement.
17. EMINENT DOMAIN.
If the whole or any part of the premises hereby managed shall be taken by any public
authority under power of eminent domain, then the term of this management agreement
shall cease on the part so taken from the date title vests pursuant to such taking, and the
rent and any additional rent shall be paid up to that day, and if such portion of the
demised premises is so taken as to destroy the usefulness of the premises for the
purpose for which the premises were managed, then from that day the manager shall
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have the right to either terminate this management agreement or to continue in
possession of the remainder of the same under the terms herein provided, except that
the rent shall be reduced in proportion to the amount of the premises taken. The parties
agree that the manager shall not be entitled to any damages by reason of the taking of
this agreement, or be entitled to any part of the award for such taking, or any payment in
lieu thereof.
18. SUBORDINATION.
This agreement and the rights of the manager hereunder are hereby made subject and
subordinate to all bona fide mortgages now or hereafter placed upon the said premises
by the City and any other owner provided, however, that such mortgages will not cover
the equipment and furniture or furnishings on the premises owned by the manager. The
manager further agrees to execute any instrument of subordination, which might be
required by mortgagee of the City.
19. DEFAULT; REMEDIES.
(a) The manager further covenants that, if default shall be made in the payment of rent,
or any additional rent, when due, or if the manager shall violate any of the other
covenants of this agreement and fail to correct such default within fifteen (15) days after
a written request by the City to do so, then the City may, at its option, deem this
agreement terminated, accelerate all rents and future rents called for hereunder and
manager shall become a tenant at sufferance, and the City shall be entitled to obtain
possession of the premises as provided by law.
(b) In case the managed property shall be abandoned, as such term is defined by Florida
Statutes, the City, after written notice as provided by Florida Statutes to the manager,
City may (i) re-enter the premises as the agent of the manager, either by force or
otherwise, without being liable to any prosecution or claim therefore, and may relet the
managed property as the agent of the manager and receive the rent therefore and apply
the same to the payment of such expenses as City may have incurred in connection with
the recovery of possession, reduction, refurbishing or otherwise changing or preparing
for reletting, including brokerage and reasonable attorneys fees. Thereafter, it shall be
applied to the payment of damages in amounts equal to the rent hereunder and to the
cost and expenses of performance of the other covenants of manager as provided
herein; or (ii) the City may, at its option, terminate this agreement by giving the manager
fifteen (15) days' written notice of such intention served upon the manager or left upon
the managed property, and the term hereof shall absolutely expire and terminate
immediately upon the expiration of said fifteen (15) day period, but the manager shall
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nevertheless and thereafter be liable to the City for any deficiency between. the rent due
hereunder for the balance of the term of this agreement and the rent actually received by
City from the managed property for the balance of said term.
(c) The City, at its option, may terminate this agreement as for a default upon the
occurrence of any or all of the following events: an assignment by manager for the
benefit of creditors; or the filing of a voluntary or involuntary petition by or against
manager under any law for the purpose of adjudicating manager bankrupt; or for
reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or
insolvency; or the appointment of a receiver of the assets of manager; or the bankruptcy
of the manager. Each of the foregoing events shall constitute a default by manager and
breach of this agreement.
20. MISCELLANEOUS.
(a) The City shall have the unrestricted right of assigning this agreement at any time, and
in the event of such assignment, the City shall be relieved of all liabilities hereunder.
(b) This contract shall bind the City and its assigns or successors, and the manager and
assigns and successors of the manager.
(c) It is understood and agreed between the parties hereto that time is of the essence of
this contract and this applies to all terms and conditions contained herein.
(d) It is understood and agreed between the parties hereto that written notice sent by
certified or registered mail, or hand delivered to the premises managed hereunder, shall
constitute sufficient notice to the manager, and written notice sent by certified or
registered mail or hand delivered to the office of the City shall constitute sufficient notice
to the City, to comply with the terms of this contract.
(e) The rights of the City under the foregoing shall be cumulative, and failure on the part
of the City to exercise promptly any rights given hereunder shall not operate to forfeit any
of the said rights.
(f) It is hereby understood and agreed that manager shall use no signs in connection with
the premises hereunder, except inside the building, which signs shall be subject to the
prior approval of the City.
(g) It is understood that no representations or promises shall be binding on the parties
hereto except those representations and promises contained herein or in some future
writing signed by the party making such representations or promises.
Clearwater Community Sailing Center Management Agreement
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(h) It is hereby agreed that if any installment of rent or any other sum due from manager
is not received by City within five (5) days after such amount shall be due, manager shall
pay to City a late charge equal to five percent (5%) of such overdue amount. The City
shall not be required to accept any rent not paid within five (5) days subsequent of the
date when due absent the simultaneous payment of this late charge. The requirement for
a late charge set out herein shall not be construed to create a curative period or a grace
period for the timely payment of rent.
21. SUBROGATION.
The City and manager do agree that each will cause its policies of insurance for fire and
extended coverage to be so endorsed as to waive any rights of subrogation which would
be otherwise available to the insurance carriers, by reason of any loss or damage to the
managed property or property of City. Each party shall look first to any insurance in its
favor before making any claim against the other party. Nothing contained herein shall in
any way be considered or construed as a waiver or re-agreement by the City of any and
all of the other covenants and conditions contained in this agreement to be performed by
the manager.
22. PARKING SPACES.
Manager shall have the right to use and control any and all legal parking spaces/areas
on or about the managed premises subject to the needs of the City for special events
deemed necessary for official city business. The City agrees to cooperate with manager
in obtaining any and all permits for use and/or construction of parking spaces/areas
within the bounds of the management agreement area.
23. INDEMNIFICATION.
The manager shall indemnify the City against all liabilities, expenses and losses incurred
by the City arising out of or related to the managed premises or manager's use or
occupancy thereof, to include but not being limited to (a) failure by the manager, or its
agents, to perform any provision, term, covenant or agreement required to be performed
by the manager under this agreement; (b) any occurrence, injury or personal or property
damage which shall happen in or about the managed property or appurtenances
resulting from the condition, maintenance, construction on or of the operation of the
managed property; (c) failure to comply with any requirements of any governmental
authority or insurance company insuring the managed property or its contents; (d) any
security agreement, conditional bill of sale or chattel mortgage or mechanic's lien
connected with manager, its obligations or operations, filed against the managed
property, fixtures, equipment or personality therein; and (e) any construction, work,
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alterations or improvements by manager on the managed property. Such indemnification
shall include reasonable attorney's fees for all proceedings, trials and appeals.
24. "AS IS" CONDITION.
The manager accepts the managed premises on an "as is" basis, and City shall have no
obligation to improve or remodel the managed premises, except as set forth above at
paragraph 9(a).
25. CONSTRUCTIVE EVICTION.
Manager shall not be entitled to claim a constructive eviction from the premises unless
manager shall have first notified City in writing of the condition or conditions giving rise
thereto and, if the complaints be justified, unless City shall have failed within a
reasonable time after receipt of such notice to remedy such conditions.
26. JANITORIAL EXPENSES.
City will continue to maintain its current level of janitorial services for the managed
premises at its expense. Extraordinary expenses for cleanup or trash removal for major
regattas or non-routine functions shall be the expense of the manager.
27. SEVERANCE.
The invalidity or unenforceability of any portion of this agreement shall in nowise affect
the remaining provisions and portions hereof.
28. CAPTIONS.
The paragraph captions used throughout this agreement are for the purpose of reference
only and are not to be considered in the construction of this agreement or in the
interpretation of the rights or obligations of the parties hereto.
29. NO HAZARDOUS MATERIALS.
The manager herewith covenants and agrees that no hazardous materials, hazardous
waste, or other hazardous substances will be used, handled, stored or otherwise placed
upon the property or, in the alternative, that such materials, wastes or substances may
be located on the property, only upon the prior written consent of the City hereunder, and
only in strict accord and compliance with any and all applicable state and federal laws
and ordinances. In the event such materials are utilized, handled, stored or otherwise
placed upon the property, manager expressly herewith agrees to indemnify and hold City
harmless from any and all costs incurred by City or damages as may be assessed
Clearwater Community Sailing Center Management Agreement
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against City in connection with or otherwise relating to said hazardous materials, wastes
or substances at anytime, without regard to the term of this agreement. This provision
shall specifically survive the termination hereof.
30. CONFORMANCE WITH LAWS
Manager agrees to comply with all applicable federal, state and local laws during the life
of this Contract.
31. ATTORNEY'S FEES.
In the event that either party seeks to enforce this Contract through attorneys at law, then
the parties agree that each party shall bear its own attorney fees and costs.
32. GOVERNING LAW.
The laws of the State of Florida shall govern this Contract, and any action brought by
either party shall lie in Pinellas County, Florida.
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IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date
set forth above.
Approved as to form:
~
J n Carassas
City Attorney
Attest: _ ~;,. ~5-'d
~ <......, .--:~-
~1- -> OAI..' -..;> '. -.--.. .__ _ --::>
~J,~ ~\ L~\t.JG-.
Print Name:
Secretary
By:
.-ldJWilliam B
If City anager
Attest:
-
c.
CLEARWATER COMMUNITY
SAILING ASSOCIATION, INC.
BY:~
Prirft Name: ~~~ (n,. S hoc-=\:
Title: P~l&u-v-t
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Exhibit A
Commence at the Southwest corner of Section 17, Township 29 South, Range 15 East; thence
N8901 O'31"E along the South boundary of said Section 17, a distance of 843.47 feet to a point
of intersection with the centerline of the Gulf Boulevard Right-of-Way; thence N42013'31 "E
along the centerline of said Right-of-Way a distance of 1983.25 feet to a point of curvature;
thence along a curve to the left, said curve also being the centerline of the said Right-of-Way,
having a chord bearing of N34049'43"E, a radius of 1909.86 feet, a central angle of 14047'32",
an arc length of 493.07 feet, and a chord length of 491.71 feet to the Point of Beginning; thence
N5r35'40"W along a non-radial line a distance of 50.19 feet to the point of cusp, of a non-
tangent curve, said point also being on the west Right of Way line of Gulf Boulevard; thence
along a curve to the left, said curve also being the said west Right of Way line of chord bearing
ofN25058'24"E, a radius of 1859.86 feet, a central angle of 2038'32", an arc length of 85.77
feet, and a chord length of 85.76 feet; thence S61 044'07"E along a non-radial line a distance of
137.96 feet; thence S25051'33"W a distance of 95.81 feet; thence N5r35'40"W along a non-
radial line a distance of 88.73 feet to the aforementioned Point of Beginning.
Commence at the Southwest corner of SECTION 17, TOWNSHIP 29 SOUTH, RANGE 15
EAST, run N. 89010'31" E., 843.47 feet; thence run N. 42013'31" E. 886.07 feet, thence run S.
4r46'29" E., 50.00 feet to the Point of Beginning; thence run N. 42013'31" E. 630.00 feet,
thence run S. 4r46'29" E., 200.00 feet plus or minus to the Mean High Water Line of
Clearwater Harbor; thence run along said Mean High Water Line to a Point, Said Point being
the intersection of the Mean High Water Line and a Line having a Bearing of S. 4r46'29" E.,
from the Point of Beginning; thence run N. 4r46'29" W., 237.00 feet plus or minusto the Point
of Beginning.
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Exhibit B
INSURANCE AND RISK OF LOSS
HOLD HARMLESS
Manager agrees to hold the City, its elected officials, employees, and agents harmless against
all fines, penalties, and claims for bodily injury, sickness, disease, death or personal injury or
damage to property or loss of use resulting there from, arising out of this Agreement unless
such claims are a result of the City's negligence. This provision shall survive the termination of
this Agreement.
PAYMENT ON BEHALF OF CITY
Manager agrees to pay on behalf of the City, and to pay the cost of the City's legal defense, as
may be selected by the City, for all claims described in the Hold Harmless paragraph identified
immediately above. Such payment on behalf of the City shall be in addition to any and all other
legal remedies available to the City and shall not be considered to be the City's exclusive
remedy.
LOSS CONTROL/SAFETY
Precaution shall be exercised at all times by manager for the protection of all persons, including
employees, and property. Manager shall be expected to comply with all laws, regulations or
ordinances related to safety and health and shall make special effort to detect hazardous
conditions and shall take prompt action where loss control/safety measures should reasonably
be expected.
The City may order work to be stopped if conditions exist that present immediate danger to
persons or property. Manager acknowledges that such stoppage will not shift responsibility for
any damages from manager to the City.
BASIC COVERAGES REQUIRED
Manager shall procure and maintain the following described insurance, except for coverage
specifically waived by the City, on policies and with insurers acceptable to the City.
These insurance requirements shall not limit the liability of manager. The City does not
represent these types or amounts of insurance to be sufficient or adequate to protect manager's
interests or liabilities, but are merely minimums.
Such coverages shall protect manager from claims for damages for personal injury, including
accidental death, as well as any party directly or indirectly employed by manager.
Except for workers compensation and professional liability, manager's insurance policies shall
be endorsed to name the City as an additional insured to the extent of the City's interests
arising from this Agreement.
Except for workers compensation, manager waives its right of recovery against the City, to the
extent permitted by its insurance policies.
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Manager's deductibles/self-insured retentions shall be disclosed to the City and may be
disapproved by the City. They shall be reduced or eliminated at the option of the City.
Manager is responsible for the amount of any deductible or self-insured retention.
Insurance required of manager or any other insurance of manager shall be considered primary,
and insurance of the City shall be considered excess, as may be applicable to claims which
arise out of the Hold Harmless, Payment on Behalf of City, Insurance, Certificates of Insurance
and any Additional Insurance provisions of this Agreement. Where no specific limit of coverage
is mentioned in this Agreement, the minimum limit of insurance coverage required by the City
shall be $500,000.
Workers Compensation Coverage
Manager shall purchase and maintain statutory workers compensation insurance for all workers
compensation obligations imposed by state law and employers liability limits of at least
$100,000 each accident and $100,000 each employee/$500,000 policy limit for disease.
Manager shall also purchase any other coverage required by law for the benefit of employees.
General, Automobile, And Excess Or Umbrella Liability Coverage
Manager shall purchase and maintain coverage on forms no more restrictive than the latest
editions of the Commercial General Liability and Business Auto policies of the Insurance
Services Office.
Minimum limits of $500,000 per occurrence for all liability must be provided, with excess or
umbrella insurance making up the difference, if any, between the policy limits of underlying
policies and the total amount of coverage required.
Commercial General Liability Coverage - Occurrence Form Required
Coverage A shall include bodily injury and property damage liability for premises, operations,
products and completed operations, independent contractors, contractual liability covering this
Agreement, broad form property damage, and property damage resulting from explosion,
collapse or underground (x, c, u) exposures.
Coverage B shall include personal injury.
Coverage C, medical payments, is not required.
Manager is required to continue to purchase products and completed operations coverage, at
least to satisfy this Agreement, for a minimum of three years beyond the City's acceptance of
any renovation or construction projects.
Minimum limits of $500,000 per occurrence for all liability must be provided, with excess or
umbrella insurance making up the difference, if any, between the policy limits of underlying
policies and the total amount of coverage required.
Business Auto Liability Coverage
Business Auto Liability coverage is to include bodily injury and property damage arising out of
ownership, maintenance or use of any auto, including owned, non-owned and hired
automobiles and employee non-ownership use.
Clearwater Community Sailing Center Management Agreement
15
Excess Or Umbrella Liabil~ty Coverage
Umbrella Liability insurance is preferred, but an Excess Liability equivalent may be allowed.
Whichever type of coverage is provided, it shall not be more restrictive than the underlying
insurance policy coverage. Excess or Umbrella Liability insurance shall include bodily injury
and property damage coverage.
Manager shall purchase and maintain Excess or Umbrella Liability coverage over and above its
other liability coverage in the amount of $500,000.
Property Coverage for Sailing Center
The City shall maintain for the life of the Agreement, all risk/special perils (including sinkhole)
property insurance (or its equivalent) to cover loss resulting from damage to or destruction of
the sailing center, and its improvements, and any attached personal property or contents
belonging to the City.
Flood Insurance
City shall procure and maintain, flood insurance either for the insured value of any buildings or
structures located on the managed premises or the maximum amount of flood insurance
available through the National Flood Insurance Program.
EVIDENCE/CERTIFICATES OF INSURANCE
Required insurance shall be documented in Certificates of Insurance that provide that the City
shall be notified at least 30 days in advance of cancellation, non-renewal or adverse change.
New Certificates of Insurance are to be provided to the City at least 15 days prior to coverage
renewals.
If requested by the City, manager shall furnish complete copies of manager's insurance
policies, forms and endorsements.
For Commercial General Liability coverage, manager shall, at the option of the City, provide an
indication of the amount of claims payments or reserves chargeable to the aggregate amount of
liability coverage.
Receipt of certificates or other documentation of insurance or policies or copies of policies by
the City, or by any of its representatives, which indicate less coverage than required does not
constitute a waiver of manager's obligation to fulfill the insurance requirements herein.
Clearwater Community Sailing Center Management Agreement
16
Exl:1ibit C
Clearwater Community Sailing Association, Inc.
"Sailing For Everybody"
Business Plan
Authored by:
Paul Evans (Chairman CCSA non-profit formation program)
David Billing (Business Plan Committee)
Barbara Short (Business Plan Committee)
Joe Calio (Vice-Chairman CCSA non-profit formation program)
07/12/2002
Contents:
1. Mission
2. Goals
3. Facilities
4. Programs
5. Regattas
6. Example programs
7. Glossary
8. Biographies
9. Finances
Clearwater Community Sailing Center Management Agreement
17
..
1. Mission
The mission of the Clearwater Community Sailing Association is to promote community sailing
at the showcase, the Clearwater Community Sailing Center, and to promote educational sailing
programs for all under the slogan, "Sailing For Everybody." This includes youth, seniors,
disabled, recreational and Olympic class sailors.
2. Goals
The purposes of this non-profit organization shall be:
. To maximize utilization of the
. To expand CCSC facilities in size and scope, including parking
. To promote sailing education
. To build upon and enhance the fleet of boats for educational and recreational use
· To promote regattas on a local, national and international scale
. To more fully serve the community and local sailing
. To attract grants & funding from various sources
. To act as a focus for Olympic class training and racing
. Develop a strong volunteer program
· To alleviate the financial burden from the City of Clearwater and its tax base
3. Facilities
Years ago local sailors flocked to the beach at Sand Key to launch boats off the sandy area
where today stands the CCSC. It was due to the combined efforts of many local sailors from
individuals, Clearwater Yacht Club (CYC) and Windjammers of Clearwater (WJoC) that the site
was saved from becoming a parking lot and transformed it into one of the finest sailing facilities
in North America.
The current site consists of a modern building with office, storage, repair, elevator, utility, toilet,
shower and meeting facilities. The physical site includes all land from the edge of Gulf
Boulevard to the waters edge and from the property line of the Radisson Sand Key (at the
South) to the end of the beach (at the North)
The Phase I area consisting of the building, compound and parking lot are barely able to
support regional or mid winters grade regattas for larger classes. This puts a strain on
resources and space. It provides limits on regatta size and hurts the image of the CCSC with
visiting sailors. Furthermore it restricts the ability of the Center to generate larger lines of
Income.
Core to turning around the ability of the CCSC to be self-supporting and to be a truly useful
facility is its expansion into the facility it was originally envisaged to be, including Phase II with
Managed Storage.
Clearwater Community Sailing Center Management Agreement
18
..
Further additions would entail a re-arrangement of the existing compound and the addition of
special interest sheds and storage. Addition to the existing dock space on the South dock and
addition of a North dock would be a primary aim.
Modification of the existing space would make possible the establishment of a small rest area
with a cafe serving coffee, sandwiches and soda and a small chandlery stocking replacement
dinghy parts on site and with locker rental for sailors.
Addition of storage for user Groups such as Sailability, Windjammers, etc.
4. Programs
A sailing center lives or dies by its programs running day to day. These programs would be
expanded to include the following:
· CCSC supported teaching programs, with CCSC members
. Youth sailing and training
· Seniors sailing and training
· Private tuition lessons to CCSC members
· Olympic grade tuition from Olympic class members & instructors to other teams
· Collaborative courses with "Stay and Sail" package deals with adjacent hotels
· Expanded opportunities to use CCSC sailing boats with other local organizations such as
WJoC, CYC, Sailability, Sunfish group, etc.
· "Go Sailing" events to increase exposure to the public
· US Sailing Clinics
· Non-profit groups will continue to enjoy preferential use of meeting room
· Hours of operation extended by use of flex time - 8 AM to 4 PM and 12 PM to dusk with
core hours of 12 PM to 4 PM. Similar hours over weekends and holidays.
· Kayak and paddling sports
· Rental concession for day sailing visitors
Paralympic classes (Sonar [draft 3' 11"] and 2.4metre [3' 3"]) are not currently suitable for
launching at the current CCSC - future work might make this a possibility.
Significantly wider exposure for the and programs will be exploited in the Sailing Press including
Southwinds, Sailing World, Cruising World, SAIL, Sailing, etc. at all opportunities.
5. Regattas
The CCSC has tremendous potential to host many more regattas than it currently does,
especially with an attractive fee structure, support and improved facilities. Chief advantages are:
· Local accommodation extensive
· 365 days of the year compatible weather - especially attractive for MidWinter events
· On site repair and replacement
· Accessibility to Clearwater Harbor and Gulf of Mexico sailing
. On site refreshments
· Extensive beachfront makes dolly launching easy - IOD, Laser, Laser II, Cats.
Clearwater Community Sailing Center Management Agreement
19
· Need to exploit untapped catamaran racing circuit - Alter Cup, Olympic Training, Hobie
National events for all Hobie classes, Nacra, Inter and Prindle, etc.
The CCSC can genuinely become a major Regatta site - one that is grossly under utilized at
present.
6. Example programs
These example programs show how it can be done. These are all examples of Non-Profit run
Community Sailing Centers that have explanatory web sites. Some have a history; others are
growing, some just adding major building facilities. All seem vibrant and backed by their local
sailing community.
Sandy Hook Bay Catamaran Club - http://fleet250.orQ
Baltimore Community Sailing Center - http://www.downtownsailinQ.orQ
Naples (FL) Community Sailing Center - http://www.QulfcoastsailinQclub.orQ/NaplesCSC.htm
Savannah Sailing Center - http://www.savannahsailinQcenter.orQ
Boston Piers Park Sailing Center - http://www.piersparksailinQ.orQ
Boston Courageous Sailing Center - http://www.couraQeoussailinQ.orQ
Baltimore County Sailing Center - http://www.bcsailinQ.orQ
United States Sailing Center, Long Beach - http://www.uscsailinQ.orQ/.htm
Traverse Area Community Sailing - http://www.tacsailinQ.com
Lake Champlain Community Sailing Center - http://www.lccsc.orQ
Breakwater Yacht Club, Community Sailing Center, Sag Harbor NY -
http://www. breakwatervc. orQ
Regatta Point Community Sailing, Worchester MA - http://www.reQattapoint.orQ
Sail Sand Point Community Sailing Center, Seattle - http://www.sailsandpoint.orQ
Jericho Community Sailing Centre, Vancouver BC - http://www.isca.bc.ca
Hampton Roads Community Sailing Center - http://www.sailhamptonroads.orQ
Milwaukee Community Sailing Center - http://www.sailinQcenter.orQ
Edison Sailing Center - http://www.edisonsailinQcenter.orQ
Treasure Island Sailing Center - http://www.tisailinQ.orQ
Mount Desert Island Community Sailing Center - http://www.ellsworthme.orQ/mdisailinQ
Shake-a-Leg, Miami - http://www.shakealeQmiamLorQ
7. Glossary
CCSC - Clearwater Community Sailing Center
CYC - Clearwater Yacht Club
WJoC - Windjammers of Clearwater
Dusk - one half hour prior to sunset
8. Biographies of team members
Paul Evans is aged 43 and has been sailing for 36 years. Paul is currently Commodore of
Windjammers of Clearwater and owns a Catalina 36 sailboat. Paul owns his own consultancy
company in computing and software. Previously he was in charge of Semiconductor clean-room
Clearwater Community Sailing Center Management Agreement
20
.
design in the UK with responsibility for design, building, commissioning and runninQ Class 10
clean room facilities. Projects included annual budgets in excess of $20m with an emphasis on
finances, quality design and working with contractors.
Barb Short is former General Manager of PacketWorks of Clearwater (an Internet ISP) and in
charge of their day-to-day operations prior to being bought-out by a larger corporation. Barbara
is extensively well traveled in the US participating in multi-hull racing competitions, seeing other
Community Sailing Centers and takes a very active role as Activities Chair in WJoC. She and
her husband currently own 4 catamarans from 13 to 20 feet in length. Her contacts with multi-
hull sailors and organizations can be a major source of expanded events for catamaran sailing
at CCSC.
David Billing is a Past Commodore and member of the Board of Trustees at the Clearwater
Yacht Club. He is very actively involved in the Youth Sailing Program at the Clearwater Yacht
Club and travels the country widely with their youth team. He has extensive one design and
offshore sailing experience and currently owns "Running Bare", a Beneteau 31. David is a
software developer specializing in warehousing and distribution applications and is part owner
of Billing and Unger Associates, who provide full service automated snack & cold drink vending
services to the greater Clearwater area of Florida.
Joe Calio is past president of Sand Key Civic Association and presently on the Board of
Directors. Joe is a member of the Clearwater Fire Task Force charged with identifying the short
and long-term fire safety needs of the city. With Chief Sid Klein he started the Sand Key
Volunteer Police Beach Patrol. He is active in many projects on Sand Key including
beautification of Gulf Boulevard.
9. Finances
The year 2000-2001 City budget was used as a starting point for the outgoing expenses. The
income is based upon best estimates for new and existing programs. Significant new income
comes from a variety of sources including Managed Storage, Rental, Cafe / Parts, launching
fees and additional events in the calendar. A fast-track approach is required to ensure that the
new plans do not stagnate and that the "old ways" do not linger.
Government, Corporate, Organizational and individual sponsorship will be sought for capital
and revenue related line items.
Appendix A Shows Satellite photograph of CCSC site.
Appendix B Contains the timescales for completion of facilities, staffing and sailing event re-
organization.
Appendix C Contains the proposed rates table for the use of facilities
Appendix D Contains the Expenses and Income statements for the proposed Non-Profit
operation of the CCSC.
Clearwater Community Sailing Center Management Agreement
21
Appendix A. Facilities
Clearwater Community Sailing Center Management Agreement
Appendix B. Timeline, CCSC Re-orQanization
. .. .. .... .. .. .
Ilmellne, l;l;~l; Ke-orgamsatlon
faCilities
Re-organlze compounCl
ACICI sheCls
t:xtena upstairs
Nortn t-ence Dock
Norm Ijeacn Storage
I Retresnments
I Programs
I Promotion
I Regatta ::llgn ups
I Memoersnlp C1nve
VOlunteer anve
~tatllng ~
MOCllty hours
Re-examine staffing
Re-examine pnvate lessons
KeVlew Milestones uct UlJ!~'~uec Ul_Feb UJ IMarUJaaYUl Jun Ul _AU9 02.
Clearwater Community Sailing Center Management Agreement
Appendix C. Rates Table, 2002-2003
Activity per
Sailing, Sunfish / Laser rental hour $10
Sailing, Sunbird / JY-15 rental hour $12
Kayak rental hour $10
Package deal, hotels, per person week $100
Tuition, CCSC hour $40
Storage, North Beach year $900
Storage, central compound night $5
Upper room rental (also consider seasonal rate) half day $500
Launching, ramp (drive-up rate) day $4
Preferred Group membership
Event rate (<50 boats) day $200
Chase boat (large) hour $18
Chase boat (small) hour $15
Large event rate (>50 boats) negotiable
Classes (private) - CCSC cut hour $10
Individual membership year
Bronze, no charge launching & weekend storage $150
Silver add use of Sunfish & Laser $175
Gold add use JY -15 $200
Platinum add use Flying Scot $225
Family membership year
Bronze, no charge launching & weekend storage $250
Silver add use of Sunfish & Laser $275
Gold add use JY -15 $300
Platinum add use Flying Scot $325
Clearwater Community Sailing Center Management Agreement
Appendix D. 5 year BudQets
Expenditure CCSC 02-03 03-04 04-05 05-06 06-07
F F F F
FT Salaries (3) $100,000 1.06 $106,000 1.03 $109,180 1.03 $112,455 1.03 $115,829
FTno. 3 3 3 3 3
PT Salaries $20,720 $20,720 $20,720 $20,720 $20,720
PTno. 3 3 3 3 3
Special Pay
Overtime $1 ,400 1.06 $1 ,484 1.03 $1,529 1.03 $1,574 1.03 $1,622
Vacations
Sick Time
Funeral
Jury Duty
Public Hols.
Life Ins $20 $20 $20 $20 $20
Life Ins $300 $300 $300 $300 $300
Medical Ins $11,000 1.06 $11,660 1.06 $12,360 1.06 $13,101 1.06 $13,887
Pension
Private pension
Workers Com $3,000 1.06 $3,180 1.03 $3,275 1.03 $3,374 1.03 $3,475
SS Tax, etc. $12,072 1.06 $12,796 1.03 $13,180 1.03 $13,576 1.03 $13,983
IPersonnel Srv $148,5180 $156,1660 $160,5700 $165,1260 $169,8421
Contractors $150 1.03 $155 1.03 $159 1.03 $164 1.03 $169
inv purchase $2,500 1.03 $2,575 1.03 $2,652 1.03 $2,732 1.03 $2,814
Electricity $4,570 1.03 $4,707 1.03 $4,848 1.03 $4,994 1.03 $5,144
Gas & Water $13,590 1.03 $13,998 1.03 $14,418 1.03 $14,850 1.03 $15,296
Adverts $6,000 1.03 $6,180 1.03 $6,365 1.03 $6,556 1.03 $6,753
Tax 1.03 $0 1.03 $0 1.03 $0 1.03 $0
Equipment srv $2,500 1.03 $2,575 1.03 $2,652 1.03 $2,732 1.03 $2,814
Uniforms $1,500 1.03 $1,545 1.03 $1,591 1.03 $1,639 1.03 $1,688
Office $600 1.03 $618 1.03 $637 1.03 $656 1.03 $675
Supplies $4,000 1.03 $4,120 1.03 $4,244 1.03 $4,371 1.03 $4,502
Fuel $500 1.03 $515 1.03 $530 1.03 $546 1.03 $563
Memberships $1 ,000 1.03 $1,030 1.03 $1,061 1.03 $1,093 1.03 $1,126
Training $6,000 1 $6,000 1 $6,000 1 $6,000 1 $6,000
IOperating $42,9100 $44,017CI $45,1580 $46,3330 $47,5431
Garage $7,460 1.03 $7,684 1.03 $7,914 1.03 $8,152 1.03 $8,396
Documents $100 1.03 $103 1.03 $106 1.03 $109 1.03 $113
Telephone $1 ,000 1.03 $1,030 1.03 $1,061 1.03 $1,093 1.03 $1 , 126
Cell/ Nextel $1,800 1.03 $1,854 1.03 $1,910 1.03 $1,967 1.03 $2,026
Risk $510 1.03 $525 1.03 $541 1.03 $557 1.03 $574
IT $4,000 1.03 $4,120 1.03 $4,244 1.03 $4,371 1.03 $4,502
Building Maint $17,960 1.03 $18,499 1.03 $19,054 1.03 $19,625 1.03 $20,214
Cleaning $12,500 1.03 $12,875 1.03 $13,261 1.03 $13,659 1.03 $14,069
Postage $1,500 1.03 $1,545 1.03 $1,591 1.03 $1,639 1.03 $1,688
Credit Cards/Banking $3,000 1.03 $3,090 1.03 $3,183 1.03 $3,278 1.03 $3,377
Insurance $3,000 1.03 $3,090 1.03 $3,183 1.03 $3,278 1.03 $3,377
Broadband access $900 1.03 $927 1.03 $955 1.03 $983 1.03 $1,013
Clearwater Community Sailing Center Management Agreement
'- I _I oJ
Printing $4,000 1.03 $4,120 1.03 $4,244 1.03 $4,371 1.03 $4,502
Emp relations $250 1.03 $258 1.03 $265 1.03 $273 :1.03 $281
Ilnternal Srv $57,9800 $59,7190 $61,511CI $63,3560 $65,2571
Boats $9,320 1.03 $9,600 1.03 $9,888 1.03 $10,184 1.03 $10,490
Equipment (other) $5,000 1.03 $5,150 1.03 $5,305 1.03 $5,464 1.03 $5,628
ICapital $14,3200 $14,7500 $15,1920 $15.6480 $16,1171
Total: $263,728 $274,653 $282,431 $290,463 $298,758
Retained earnings $43,938 $34,720 $34,649 $28,324 $27,736
Clearwater Community Sailing Center Management Agreement
Appendix D. 5 year BudQets
Income CCSC including phase 2
2 3 4 5
per day mo yr per day mo yr per day mo yr per day mo yr per day mo yr
Storage $75100 12 $90,000 $75 100 12 $90,000 $80 100 12 $96,000 $80 100 12 $96,000 $85 100 12 $102,000
Room Rental $500 1 35 1 1 $17,500 $525 1 35 1 1 $18,375 $550 1 35 1 1 $19,250 $575 1 35 1 $20,125 $600 1 35 1 1 $21,000
Community Rental $250 24 1 1 1 $6,000 $250 24 1 1 1 $6,000 $250 24 1 1 1 $6,000 $250 24 1 1 $6,000 $250 24 1 1 1 $6,000
Boat Rental $18 4 4 1 52 $14,976 $19 4 4 1 52 $15,808 $20 4 4 1 52 $16,640 $21 4 4 1 52 $17,472 $22 4 4 1 52 $18,304
Rental Concess $0 1 1 12 1 $0 $0 1 1 12 1 $0 $0 1 1 12 1 $0 $0 1 1 12 1 $0 $0 1 1 12 1 $0
Chase boats $50 1 35 1 1 $1,750 $50 1 35 1 1 $1,750 $50 1 35 1 1 $1,750 $50 1 35 1 1 $1,750 $50 1 35 1 1 $1,750
Soda $1 40 2 1 52 $4,160 $1 40 2 1 52 $4,160 $1 40 2 1 52 $4,160 $1 40 2 1 52 $4,160 $1 40 2 1 52 $4,160
Sandwich $3 20 2 1 52 $6,240 $3 20 2 1 52 $6,240 $3 20 2 1 52 $6,240 $3 20 2 1 52 $6,240 $3 20 2 1 52 $6,240
Launching $4 20 2 52 $8,320 $4 20 2 52 $8,320 $4 20 2 52 $8,320 $4 20 2 52 $8,320 $4 20 2 52 $8,320
Large Regatta $500 6 1 1 $3,000 $500 6 1 1 $3,000 $500 6 1 1 $3,000 $500 6 1 1 $3,000 $500 6 1 1 $3,000
Small Regatta $350 6 1 1 $2,100 $350 6 1 1 $2,100 $350 6 1 1 $2,100 $350 6 1 1 $2,100 $350 6 1 1 $2,100
Seminars $325 6 1 1 $1,950 $325 6 1 1 $1,950 $325 6 1 1 $1,950 $325 6 1 1 $1,950 $325 6 1 1 $1,950
Member (Res) $150 80 1 1 $12,000 $150 80 1 1 $12,000 $150 80 1 1 $12,000 $150 80 1 1 $12,000 $150 80 1 1 $12,000
Member (No-Res) $200 50 1 1 $10,000 $200 50 1 1 $10,000 $200 50 1 1 $10,000 $200 50 1 1 $10,000 $200 50 1 1 $10,000
Member (Junior) $75 50 1 1 $3,750 $75 50 1 1 $3,750 $75 50 1 1 $3,750 $75 50 1 1 $3,750 $75 50 1 1 $3,750
Class (summer) $100 40 1 8 $32,000 $100 40 1 8 $32,000 $100 40 1 8 $32,000 $100 40 1 8 $32,000 $100 40 1 8 $32,000
Class (Sat.) $100 40 1 11 $44,000 $100 40 1 11 $44,000 $100 40 1 11 $44,000 $100 40 1 11 $44,000 $100 40 1 11 $44,000
Private/Resort $120 8 1 52 $49,920 $120 8 1 52 $49,920 $120 8 1 52 $49,920 $120 8 1 52 $49,920 $120 8 1 52 $49,920
$307,666
$309,373
$317,080
$318,787
$326,494
Clearwater Community Sailing Center Management Agreement
Exhibit D
Clearwater Community Sailing Center
Project Estimates
Video Security System
$16,897.00
Barrier Gates
$15,010.10
Sailing Center Boat Storage behind restrooms
$6,969.70
Boat Storage under Sand Key Bridge
$7,123.20
New Docks to Assist ADA sailing program
$28,000.00
Total requested
$74,000.00
Clearwater Community Sailing Center Management Agreement
Internal Revenue Service
Department of the Treasury
P. O. Box 2508
Cincinnati, OH 45201
Date: June 17, 2002
Person to Contact:
Cheryl Skaggs 31-04010
Customer Service Specialist
Toll Free Telephone Number:
8:00 a.m. to 6:30 p.m. EST
877-829-5500
Fax Number:
513-263-3756
Federal Identification Number:
59-2912008
Clearwater Community Sailing Association, Inc.
1001 Gulf Blvd.
Clearwater, FL 34767
Dear Sir or Madam:
This letter is in response to your request for a copy of your organization's determination letter. This letter will
take the place of the copy you requested. We have updated the address as shown above.
Our records indicate that a determination letter issued in February 1989, granted your organization exemption
from federal income tax under section 501 (c)(3) of the Internal Revenue Code. That letter is still in effect.
Based on information subsequently submitted, we classified your organization as one that is not a private
foundation within the meaning of section 509(a) of the Code because it is an organization described in
section 509(a)(2).
This classification was based on the assumption that your organization's operations would continue as stated
in the application. If your organization's sources of support, or its character, method of operations, or
purposes have changed, please let us know so we can consider the effect of the change on the exempt
status and foundation status of your organization.
Your organization is required to file Form 990, Return of Organization Exempt from Income Tax, only if its
gross receipts each year are normally more than $25,000. If a return is required, it must be filed by the 15th
day of the fifth month after the end of the organization's annual accounting period. The law imposes a
penalty of $20 a day, up to a maximum of $10,000, when a return is filed late, unless there is reasonable
cause for the delay.
All exempt organizations (unless specifically excluded) are liable for taxes under the Federal Insurance
Contributions Act (social security taxes) on remuneration of $100 or more paid to each employee during a
calendar year. Your organization is not liable for the tax imposed under the Federal Unemployment Tax Act
(FUT A).
Organizations that are not private foundations are not subject to the excise taxes under Chapter 42 of the
Code. However, these organizations are not automatically exempt from other federal excise taxes.
Donors may deduct contributions to your organization as provided in section 170 of the Code. Bequests,
legacies, devises, transfers, or gifts to your organization or for its use are deductible for federal estate and
gift tax purposes if they meet the applicable provisions of sections 2055,2196, and 2522 of the Code.
lk(Q)~V
1.>- .
-2-
Clearwater Community Sailing Association, Inc.
59-2912008
Your organization is not required to file federal income tax returns unless it is subject to the tax on unrelated
business income under section 511 of the Code. If your organization is subject to this tax, it must file an
income tax return on the Form 990- T, Exempt Organization Business Income Tax Return. In this letter, we
are not determining whether any of your organization's present or proposed activities are unrelc;lted trade or
business as defined in section 513 of the Code.
The law requires you to make your organization's annual return available for public inspection without charge
for three years after the due date of the return. You are also required to make available for public inspection
a copy of your organization's exemption application, any supporting documents and the exemption letter to
any individual who requests such documents in person or in writing. You can charge only a reasonable fee
for reproduction and actual postage costs for the copied materials. The law does not require you to provide
copies of public inspection documents that are widely available, such as by posting them on the Internet
(World Wide Web). You may be liable for a penalty of $20 a day for each day you do not make these
documents available for public inspection (up to a maximum of $10,000 in the case of an annual return).
Because this letter could help resolve any questions about your organization's exempt status and foundation
status, you should keep it with the organization's permanent records.
If you have any questions, please call us at the telephone number shown in the heading of this letter.
This letter affirms your organization's exempt status.
Sincerely,
g~g~
John E. Ricketts, Director, TE/GE
Customer Account Services
~