Title:
Title
Agreement: Third Amendment to Hornblower Yachts Agreement No. 2009-0671
End
FileID
File ID: 2019-01141
Location
Location: Old Sacramento, District 4
Recommendation:
Recommendation
Adopt a Resolution authorizing the City Manager or the City Manager's designee to execute the Third Amendment to City Agreement No. 2009-0671 with Hornblower Yachts, Inc. dba Hornblower Cruises and Events.
Contact: Dustin Hollingsworth, Facilities and Real Property Superintendent, (916) 808-5538; Jody Ulich, Director, (916) 808-7733, Department of Convention and Cultural Services
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Third Amendment, City Agreement Number 2009-0671
Description/Analysis
Issue Detail: In 2009, the City entered into a Passenger Vessel Concession Agreement ("Concession Agreement") with Hornblower Yachts, Inc. dba Hornblower Cruises and Events ("Hornblower") for ten years, with two five-year extensions. Hornblower received the exclusive right to use a passenger boat dock located between the I Street Bridge and Tower Bridge along with other surrounding areas (collectively, the "Premises") for the operation of tour boats and other related activities.
In 2013, Hornblower notified the City of its intent to terminate the Concession Agreement due to loss of revenue related to the recession. At the time, Hornblower was operating two vessels in Sacramento, the "Empress" and the "Capitol." Hornblower and City agreed that Hornblower would move Empress to Berkeley and continue operating the smaller vessel "Capitol" in Sacramento.
Additionally, Hornblower was required under the Concession Agreement to operate a historic style passenger vessel. Hornblower has never operated such a historic-style passenger vessel. Due to Hornblower's default under the Concession Agreement, the City had the right to terminate the Concession Agreement. However, because the City valued the amenities provided by Hornblower to the publ...
Click here for full text