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CLEARWATER COMMUNITY SAILING CENTER MANAGEMENT AGREEMENTCLEARWATER COMMUNITY SAILING CENTER MANAGEMENT AGREEMENT THIS MANAGEMENT AGREEMENT, entered into this ? day of , 2010 by the City of Clearwater, Florida, as City, and Clearwater Community S iling 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 five (5) years; which term will commence on the 1st day of October 2010, and shall continue until midnight on the 30th day of September 2015. No such renewal or extension shall be deemed a waiver by City of any breach or default, which may then exist. The 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. City, in addition to any other right of termination set forth in this agreement, may terminate this Management Agreement for any municipal need as determined by the City Council on sixty (6) days written notice. 2. RENT Base rent: Manager agrees to pay the City as rent during the initial term of this agreement the sum of Fifteen Thousand Two Hundred Sixty-one Dollars and Twelve cents ($15,261.12) annually, payable in equal monthly installments of One Thousand Two Hundred Seventy-one Dollars and Seventy-six cents ($1,271.76) per month, and payable in advance at the beginning of each successive monthly rental period. 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. Clearwater Community Sailing Association Management Agreement 1 3. SECURITY DEPOSIT. In addition to the first month's rent of One Thousand Two Hundred Seventy-one Dollars and Seventy-six cents ($1,271.76), which is due and payable on the first day of the lease, the manager shall pay $1,271.76 in advance as a deposit 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 agreement. 4. BLANK. 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. 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. Building and Common Area Maintenance; Property Taxes City shall be responsible for building maintenance. The routine maintenance of the Property's common areas, such as but not limited to, hallways, bathrooms, rental rooms, offices, etc., shall be the responsibility of Manager. If Manager fails to maintain the Property's common areas in a satisfactory manner, seven (7) calendar days after the City has provided Manager written notice of the City's dissatisfaction with the Property's common area maintenance, and if the maintenance of the common areas has not improved to standard amenable solely to the City within the seven (7) calendar days after receipt of such notice, then at the City's sole discretion, the City may procure maintenance services for such common areas on Manager's behalf. The cost of which, shall be the responsibility of Manager. The City is responsible for paying the property 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 Clearwater Community Sailing Association Management Agreement 2 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. 10. ALTERATIONS AND IMPROVEMENTS. 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. Clearwater Community Sailing Association Management Agreement 3 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. 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, and docks 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 Clearwater Community Sailing Association Management Agreement 4 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, 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 Clearwater Community Sailing Association Management Agreement 5 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 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 Clearwater Community Sailing Association Management Agreement 6 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 never-the-less 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 Marine & Aviation Director, 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. Clearwater Community Sailing Association Management Agreement 7 (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. (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. (i) Consumption of alcoholic beverages is to be confined to the fenced in area of the Sailing Center, with the gate closed, appropriate signage and enforcement to prevent alcoholic beverages from being removed from the premises. The sale of alcoholic beverages will be confined to three special events per year as stipulated by City ordinance. 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 act as an independent contractor and agrees to assume all risks of providing the program activities and services herein agreed and all liability therefore, and shall defend, indemnify, and hold harmless the City, its officers, agents, and employees from and against any and all claims of loss, liability, and damages of whatever nature, to persons and property, including, without limiting the generality of the foregoing, death of any person and loss of the use of any property, except claims arising from the negligence or Clearwater Community Sailing Association Management Agreement 8 y willful misconduct of the City or City's agents or employees. This includes, but is not limited to matters arising out of or claimed to have been caused by or in any manner related to the Manager's activities or those of any approved or unapproved invitee, contractor, subcontractor, or other person approved, authorized, or permitted by the Management in or about its premises whether or not based on negligence. Nothing contained herein shall be construed as a waiver of any immunity from or limitation of liability the City may be entitled to under the doctrine of sovereign immunity or section 768.28, Florida Statutes. 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 this section. 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. 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. CLEAN UP EXPENSES. 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 Clearwater Community Sailing Association Management Agreement 9 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 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. IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date set forth above. CITY OF CLEARWAT/ER, FLORIDA By: William B. Horne II City Manager Attest: C hia E. Goudeau Cit Clerk CLEARWATER COMMUNITY SAILING ASSOCIATION, INC. Atte t: By: ?. T c+4i V ? Print Name: C. Co-aA: A hl ? l? Title: C 1166 r Yh Print ame: seem" W I S ON a1IfALF OP- CC 5A Clearwater Community Sailing Association Management Agreement 41`?R. 10 Lamilo Soto Assistant City Attorney Exhibit A Commence at the Southwest corner of Section 17, Township 29 South, Range 15 East; thence N89°10'31"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 N42°13'31"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 N34°49'43"E, a radius of 1909.86 feet, a central angle of 14°47'32", an arc length of 493.07 feet, and a chord length of 491.71 feet to the Point of Beginning; thence N57°35'40"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 of N25°58'24"E, a radius of 1859.86 feet, a central angle of 2°38'32", an arc length of 85.77 feet, and a chord length of 85.76 feet; thence S61 °44'07"E along a non-radial line a distance of 137.96 feet; thence S25°51'33"W a distance of 95.81 feet; thence N57°35'40"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. 89°10'31" E., 843.47 feet; thence run N. 42°13'31" E. 886.07 feet, thence run S. 47°46'29" E., 50.00 feet to the Point of Beginning; thence run N. 42°13'31" E. 630.00 feet, thence run S. 47046'29" 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. 47°46'29" E., from the Point of Beginning; thence run N. 47°46'29" W., 237.00 feet plus or minus to the Point of Beginning. ADDITIONAL LEASE TRACT: Commence at the Southwest Corner of Section 17, Township 29 South, Range 16 East; thence N89°10'31 "E, along the South boundary of said section 17, a distance of 843.47 feet to the centerline of Gulf Boulevard; thence N42°13'31"E, along said centerline, a distance of 886.07 feet; thence leaving said centerline S47°46'29"E, 50.00 feet; to the Easterly right-of-way line of Gulf Boulevard, thence N42°13'31"E, along said Easterly right-of-way line, a distance of 630.00 feet, to the point of beginning; thence continue N42°13'13"E, along said Easterly right-of-way line, a distance of 100 feet; thence leaving said Easterly right-of-way , S47°46'29"E, to the Mean High Water Line of Clearwater Harbor; thence along said Mean High Water Line to a point on a line lying S47°46'29"E of the point of beginning; thence N47°46'29"W, along said line, to the point of beginning. Clearwater Community Sailing Association Management Agreement 11 Exhibit B INSURANCE AND RISK OF LOSS LOSS CONTROUSAFETY 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. 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 employer's 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. Clearwater Community Sailing Association Management Agreement 12 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 and liquor 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. Excess Or Umbrella Liability 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. The City, at its option, may self-insure this exposure. 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. Clearwater Community Sailing Association Management Agreement 13 EVIDENCE/CERTIFICATES OF INSURANCE Required insurance shall be documented in Certificates of Insurance that provide that the City shall be notified 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 Association Management Agreement 14 U (? Q x c N d