HomeMy WebLinkAbout15828 ORD - 10/22/1980AN ORDINANCE
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AUTHORIZING THE CITY MANAGER TO EXECUTE AN EXTENSION '
OF THE CONCESSION AGREEMENT AUTHORIZED BY ORDINANCE
NO. 14506, WITH JOHN NICHOLSON, AND EXTENDED BY
ORDINANCE NO. 15663, SAID EXTENSION TO CONTINUE THE
CONCESSION OPERATIONS AT THE BAYFRONT PLAZA AUDITORIUM
FROM OCTOBER 11, 1980 THROUGH OCTOBER 11,:1981, AS
MORE FULLY SET FORTH)IN THE EXTENSION AGREEMENT, A
SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO, MARKED
EXHIBIT "A", AND MADE A PART HEREOF; AND DECLARING
AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the City Manager be authorized to execute an
extension of the concession agreement authorized originally by Ordinance
No. 14506 and extended by Ordinance No. 15663, with John Nicholson, said
extension to continue the concession operations at the Bayfront Plaza
Auditorium from October 11,'1980 through October 11, 1981, as more fully
set forth in the extension agreement, a substantial copy of which is attached
hereto and made a part hereof, marked Exhibit A.
SECTION 2. The necessity to authorize extension of the aforesaid
concession agreement at the earliest practicable date creates a public emer-
gency and an imperative public necessity requiring the suspension of the
Charter rule that no ordinance or resolution shall be passed finally on the
date of its introduction but that such ordinance or resolution shall be read
at three several meetings of the City Council, and the Mayor, having declared
that such emergency and necessity exist, having requested the suspension of
the Charter rule and that this ordinance be passed finally on the date of its
introduction and take effect and be in full force and effect from and after
its passage, IT IS ACCORDINGLY SO ORDAINED, this the 29 day of October,
1980.
ATTEST:
City'Secretary
APPROVED:
DAY OF OCTOBER, 1980:
J. BRUCE AYCOCK, CITY ATTORNEY
Assistant City Attorney U
MAYO
,/THE CI
15828
OF CORPUS CHRISTI, TEXAS
SSP 2'719M
EXTENSION AGREEMENT
THE STATE OF TEXAS 0‘
COUNTY OF NUECES
WHEREAS, by authority of Ordinance No. 14506, passed and apprbved
September 29, 1978, a concession agreement was entered into by and between
the City of Corpus Christi and John Nicholson dba Auditorium Concessions for
a term of two years, beginning August 1, 1978 and ending on July 31, 1980, and
extended by Ordinance No. 15663 until October 31, 1980;
WHEREAS, said concession agreement provided in paragraph I for
extension of the agreement upon mutual consent of the concessionaire and
the City:
NOW, THEREFORE, it is agreed by and between the City of Corpus
Christi and John Nicholson dba Auditorium Concessions that the agreement
heretofore entered into under date of September 26, 1978, a copy of which is
attached hereto as Exhibit "1", and as extended, be and the same is extended
through October 11, 1981; provided, that such extension agreed hereby may
be cancelled by either party upon written notice of ninety (90) days to the
other party.
WITNESS OUR HANDS this the day of October, 1980.
ATTEST: CITY OF CORPUS CHRISTI
City Secretary R. Marvin Townsend
City Manager
APPROVED:
DAY OF OCTOBER, 1980:
J. BRUCE AYCOCK, CITY ATTORNEY
By
Assistant City Attorney
APPROVED
Department Head John Nicholson
dba Auditorium Concessions
pis '4
THE STATE OF TEXAS X
COUNTY OF NUECES X
4.
AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This contract made and entered into effective on the 1st day of August, 1978,
by and between the City of Corpus Christi, a municipal corporation, hereinafter
called "CITY", and
Mr.'John Nicholson dba Auditorium
Concessions, of Corpus Christi, Nueces County, Texas, hereinafter called "CONCESSIONAIRE".
W ITNESSET H:
The City hereby grants unto Concessionaire the rights of concession, as herein-
after defined, at the locations hereinafter specifically set out, subject to the terms,
conditions and covenants as follows, to -wit:
I
Terms of the Agreement. In consideration of the rent hereby provided to be paid
by the Concessionaire and the covenants on his/her behalf herein contained, the City
hereby grants Concessionaire rights to concession for a term beginning August 1, 1978,
and ending at 11:59 p.m. on July 31, 1980 (unless previously terminated under any
provision herein contained), at the designated concession locations in the Auditorium
for the sale and dispensing of food, beverages and other merchandise as hereinafter
provided.
Upon the mutual consent of the Concessionaire and the City, this agreement may
be extended for a period of up to one (1) year from the date of the scheduled termina-
tion of this contract as detailed above.
II
Concession Rights Defined. The concession rights and privileges herein granted
are the exclusive right to make direct sales to the public of soft drinks, alcoholic
beverages, and other merchandise usually and customarily handled by a concessionaire
in a facility such as the Auditorium, except that the City retains the right to:
(A) Handle catering separately and independently from the concession contract.
(B) Grant permission for conventions or private functions to sell food and
beverages to its own group when the sale of said meals is intrinsic to
the nature of the event as determined by the Convention Center Manager.
This right does not apply to public events for which tickets are to be
sold.
(C) Grant permission for merchandise to be given away on the premises and
is in no way obligated to the Concessionaire to force such merchandise
to be purchased through her/him.
(D) Use space designated for concessions in the Lounge (excepting inventory
storage) when the Concessionaire is not using such space.
.
(E) Make final' decision on matters which may arise not specifically covered
in the specifications, including the interpretation thereof.
(F) Exclude from this Agreement the right for Concessionaire to sell space
for either temporary or permanent signs. The City especially reserves
this right to itself.
(G) Approve the form of products to be sold and to require the containers to
be suitable for consumption of the product on premises immediately after
sale.
(a) Superintend sales to the extent that sales shall be only at and for a
reasonable length of time before and after the time of the performance
or function being served and so as to insure that the sales will not
interfere with the conduct of the performance or function being served.
(I) Make the final decision concerning the amount the Concessionaire will
charge a Lessee for the right to sell programs, novelties, records, tapes,
etc.
(J) Prohibit the opening of concessions when, in the opinion of the Convention
Center Manager, such activity does not complement an event.
III -
Location of Concession: The City will provide and make available to the Con-
cessionaire and, except for the supervision of the City, to be in the exclusive
control of the Concessionaire the following:
(1) Auditorium - One (1) Round Bar approximately 50' in circumference
(200 square feet), with installed equipment as detailed in Section
IV, item B.
(2) Storage Spaces: Restricted to storage room #334; and that space
located under the stairwell in corridor 133 as indicated on the
Auditorium architectural plans.
IV
The City agrees to furnish the following:
(a) Utilities: Standard outlets and connections for water and electricity for
service of concession activities only. Monthly utility bills will be paid by the City.
(B) Equipment: Installation and major maintenance and repairs to the following
will be paid by the City:
On Premises:
1 Three Compartment Sink, 4' long x 261/2" deep
1 Bottle Speedway
1 Dry Waste Chute
1 Towel Ring
1 Bottle Cooler Box, 50" long x 261/2" deep x 34" high
4 Ice Dispensers
1 Single hand sink.
A reasonable number of tables, chairs in lounge or other areas for patron
seating (placement and number to be determined by the Convention Center
Manager)
The above equipment is made of high quality stainless steel. Equipment furnished
by Concessionaire shall be of equivalent quality of that provided by the City,
and all installations must be approved by the Convention Center Manager. Any
permanently installed equipment will become the property of the City at the expiration
of this /lease agreement.
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O V
Obligations of Concessionaire. The Concessionaire will be responsible to the
City as follows:
(A) Compliance with all City health regulations and all ordinances of the
City of Corpus Christi as they affect the concession operation. Concessionaire
will secure at its sole expense all permits, licenses, etc., required by any govern-
mental agency, including a full liquor license.
(B) Insurance. The Concessionaire covenants that it will carry insurance as
follows:
1. Before permitting any employees to begin working in any capacity, Concessionaire
shall cover all employees by Workmen's Compensation Insurance, or other coverage
approved by the State Industrial Accident Board.
2. Before beginning or permitting the installation of any furnishings, fixtures,
equipment, etc., Concessionaire shall procure and keep in full force and
effect Public Liability and Property Damage Insurance under which the City
shall be co-insured.
3. Before opening up for business, Concessionaire shall procure either by
separate policy or by appropriate rider to its Public Liability Insurance
Products Liability coverage which is sometimes referred to as Food Handlers
or Restaurant Operators Protection (protecting against claims for damages
to persons claiming to have been served unwholesome foods, etc.).
The policies referred to in 2 and 3 above shall be in amounts providing for pro-
tection of not less than $50,000 against liability or damage to property in any one
accident ($250,000 aggregate) and protection of not less than $300,000 for injury to
one person subject to a limit of not less than $300,000 protection if injury to two
or more persons in a single accident or other occurrence.
The originals of all of the policies referred to in 1, 2 and 3 above, or copies
thereof, certified by the agent issuing them, shall be deposited by the Concessionaire
with the Convention Center Manager who shall forward them to the Director of Finance
for custody. They shall include provisions that they cannot be cancelled except after
the expiration of fifteen days after delivery of notice of the intention to cancel to
the Director of Finance. Failure on the part of the Concessionaire to furnish a new
policy or certified copy before the expiration date of such policy or failure to
furnish anew policy before the date so fixed for the cancellation of the existing
policy, so that the risk referred to shall be continuously protected will constitute
a default on the part of the Concessionaire entitling the City to its option to
terminate the entire agreement.
r -4-
OIf either of the policies referred to in 2 and 3 above do not show upon
their face that they are a flat premium policy and the premium has been paid in
full, they must be accompanied by a rider or other appropriate certificate or
waiver sufficient to establish that the company or agency issuing the same is
entitled to look only to Concessionaire for any premium payments and has no right
to recover any premiums from the City.
The Public Liability Policy or the policies referred to in 2 above shall include
provisions that the City is fully protected not only against claims on behalf of the
general public, but also against claims on the part of any of Concessionaire's
employees, including claims based upon alleged negligence on the part of City, its
officers, agents or employees. If Concessionaire cannot procure such broad protection
for the City as a part of its Landlord -Tenant Public Liability Policy, it shall at
its sole cost and expense furnish other appropriate policies, approved by the City
Insurance Committee and City Attorney, which will also protect City.
(C) Posting in a conspicuous place, visible from every location where merchan-
dise is sold, a schedule of prices approved in writing by the Convention Center
Manager. Prices charged shall not be in excess of those charged under similar con-
ditions elsewhere in City.
(D) Maintaining a clean, safe, orderly, and sanitary operation within the
concession locations and adjacent areas. Concessionaire will also be responsible
for the actions and demeanor of subcontractors, deliverymen, etc. while they are
conducting business within the building.
(E) Returning the premises and equipment to City in the condition received, .
except for normal wear and tear.
(F) Collecting debris in the concession stand in covered containers and placing
same in designated trash areas outside the building at the conclusion of each event
served.
(G)
Providing a detailed report at the conclusion of each event served on forms
to be provided by City and reporting income from subcontracts, if any, as earned.
(H) Consulting with and receiving approval from the Convention Center Manager
on the quality, quantity and price schedule of all concession merchandise.
(I) Requiring employees to wear appropriate uniforms to indicate the fact and
nature of such employment and to present themselves to the public in a clean and neat
condition and in polite and courteous manner. Drinking on duty, showing up in a con-
dition unfit for work, or objectionable conduct, will give the City the right to
demand the immediate dismissal of concession help, and if management or the Concessionaire
is the party involved, immediate cancellation of the contract. -
J -
Being prepared to furnish additional equipment (Dither than'that pi
vided by City) and personnel sufficient to serve up to 2,500 people in the Auditorium
during a 15 -minute intermission upon reasonable notice from the Auditorium Office.
(The term "sufficient" as used in the foregoing paragraph means that
Concessionaire will have on hand equipment and personnel adequate to
serve all persons attending the particular event.)
2. Concessionaire shall be prepared to furnish the following equipment upon
acceptance of this agreement:
All drink equipment apparatus
2 Portable Bars
(Note: Bars are to be stored in designated storage areas
after each event.)
(K) Serving only those food products which have been approved by the Convention
Center Manager. (No cooking whatsoever shall be permitted without the expressed
written permission of the Convention Center Manager.)
VI
General Provisions:
(A) It is a condition of the concession rights herein offered that City will
not be responsible to Concessionaire in any manner for merchandise, equipment, etc.,
belonging to Concessionaire if such are not removed from the concession locations
by Concessionaire during periods when concession locations may be otherwise occupied.
It is likewise a condition that equipment and merchandise which is not in the sole
possession of Concessionaire may not be removed. ,
(B) When temporary concession stands are required at locations other than those
already specified the City will provide the space, and Concessionaire will be respon-
sible for setting up and taking down such temporary concession stands.
(C) Operation of the concession will at all times be in keeping with the
activity using the facilities,and restraint shall be exercised in the handling of
any equipment to minimize interference with the served event caused by resulting
noise. The Convention Center Manager shall have the right to instruct Concessionaire
to cease those operations which produce disturbing noises during those periods when
the resulting noise will interfere with the enjoyment of the event in process. Such
instruction shall be immediately complied with. Sales of alcoholic beverages will
be allowed only after the written permission of the Convention Center Manager has been
obtained.
(D) Subcontracts:
(1) Concession items such as programs, novelties, song books, records,
tapes, pictures, etc., usually carried by traveling shows and not normally
stocked by Concessionaire are considered as subcontracts. Privilege agree-
ments between Concessionaire and the subcontractor for such items must be
(E)
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approved by the Convention Center Manager and, in case of a dispute,
the decision of the Convention Center Manager shall be final.
(2) Arrangements for vending machines and supervision of the machines
to see they are stocked and moved according to the event is the respon-
sibility of Concessionaire. Vending machines are considered to be sub-
contracts. Exempt from this contract are those vending machines located
in the restrooms and non-public areas.
(3) For the purpose of this agreement, the percentage of gross receipts
that the City will receive from subcontracts will be determined from the
total amount of money the Concessionaire receives from the Subcontractor
rather than the total purchase amount of the items sold by the Subcontractor.
Maintenance of City -owned equipment will be the responsibility of Concessionaire,
and City employees will not service the equipment unless a request for major repairs
or maintenance is reported to the Convention Center Office. Per this agreement, the
Concessionaire is not required to install an ice maker for the Lounge; however, he/she
is expected to furnish ice as required.
(F) Concessionaire shall acquaint himself with the regulations and rules of the
Alcoholic Beverage Commission and comply with the qualifications to obtain and keep
a license for the sale of alcoholic beverages.
VII
Consideration to be paid by the Concessionaire:
"Per this agreement, the Concessionaire shall make the following rental payment:
(1) 11 % of all gross sales on all items sold, including all drinks,
alcoholic and nonalcoholic, and food items; and
(2) 13 % of gross amounts received by Concessionaire from subcontracts."
VIII
Accounting Procedure: All payments due the City shall be due and payable without
demand at the office of the Convention Center Manager.
At the conclusion of each event, a report of the gross sales (and gross' receipts
in the case of subcontracts) shall be provided to the Convention Center Manager on forms
approved by the City. Payments from any calendar month shall be'due on the 20th day of
the following month, and such day shall be considered the due date for all intents and
purposes. Any payment which is not made within ten days after the date it is due shall
bear interest at the rate of 10% per annum from the date it became due until the date
it is paid. In the event any amount of sum owing by the Concessionaire to the City•
under this agreement remains unpaid after the demand for payment thereof and is there-
after collected by suit, 10% in addition computed on the amount otherwise recovered
(
thein by the City as attorney's fees and cost of the expense of collection shall
be paid.
The Concessionaire's cash register and all records relating to the operation
of the concession shall be subject to the examination and audit by the City at any
time. If Concessionaire shall knowingly furnish any incorrect statement of the amount
of gross sales, this will constitute a default entitling the City at its option to
declare this concession terminated. Any such report which shall understate the gross
sale for any month by as much as 10% of the true amount thereof shall be conclusively
deemed to have been knowingly and falsely furnished by Concessionaire, and the City,
in order to exercise its option of termination, shall only be required to establish
such falsity and shall not be required to establish actual knowledge on the part of
the Concessionaire.
IX
Termination: If at any time the City is of the opinion that the Concessionaire
is not in performance of the terms of this agreement, the City shall have the option
to terminate this agreement by notifying the Concessionaire in writing that a violation
of a condition of the contract has occurred and setting forth the nature of such vio—
lation. In the event such violation isnot discontinued, and a correction made on or
before the next event for which concessions are to be provided by.Concessionaire, or
within ten days of such notice, whichever date first occurs, then this agreement shall
be terminated except for the right of City to recover any and all sums payable by
Concessionaire. Concessionaire may appeal from such notice within five (5) days of
the receipt of same from the Convention Center Manager and such appeal shall be in
writing to the Director of Inspections and Operations and then to the City Manager
whose decision shall be final.
WITNESS OUR RANDS in duplicate originals at Corpus Christi, Texas this the
day of , 1978.
AriEST: CITY OF CORPUS CHRISTI
By
City Secretary R. Marvin Townsend
City Manager
APPROVED:
day of , 1978:
J. BRUCE AYCOCK, CITY ATTORNEY
BY
Assistant City Attorney
John Nicholson
dba Auditorium Concessions
Director of Finance
0
Corpus Christi,
,exas
.22 day of / k, 19 g(.)
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance, a
public emergency and imperative necessity exist for the suspension of the Charter
rule or requirement that no ordinance or resolution shall be passed finally on
the date it is introduced, and that such ordinance or resolution shall be read
at three meetings of the City Council; I, therefore, request that you suspend
said Charter rule or requirement and pass this ordinance finally,on the date it
is introduced, or at the present meeting of the City Council.
Respectfully,
MAYOR 1
THE CITY OF CORPUS CHRISTI, TEXAS
The Charter rule was suspended by the following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
The above ordinance was passed
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
by
the
following vote:
158,.28