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AN ORDINANCE
:4 I
AUTHORIZING THE CITY MANAGER TO EXECUTE A CONCESSIONS
AGREEMENT WITH MR. ROGER JAHNEL, DBA LEISURE FOOD SER-
VICES, INC. OF DENVER, COLORADO, SAID AGREEMENT TO
AUTHORIZE MR. JAHNEL TO OPERATE THE CONCESSIONS AT THE
MEMORIAL COLISEUM, PATIO AND EXPOSITION HALL BEGINNING
JANUARY g, 1981, AND ENDING AT 11:59 P.M. ON JANUARY 6,
1986, AS MORE FULLY SET FORTH IN THE CONCESSIONS AGREE-
MENT, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO,
MARKED EXHIBIT "A", AND MADE A PART HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the City Manager be authorized to execute a con-
cessions agreement with Mr. Roger Jahnel, dba Leisure Food Services, Inc. of
Denver, Colorado, said agreement to authorize Mr. `Jahnel to operate the con-
cessions at the Memorial Coliseum, Patio and Exposition Hall beginning on
January
, 1981, and ending at 11:59 p.m. on January 6, 1986, as more fully
set forth in the concessions agreement, a substantial copy of which is attached
hereto and made a part hereof, marked Exhibit A.
15958
CBOFILMED
P27jJ 4
THE STATE OF TEXAS
COUNTY OF NUECES
0.
AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This contract made and entered into effective on the -
, by and between the City of Corpus Christi, a municipal
corporation, hereinafter called "CITY", and Leisure Food Services, Inc.
, of Denver, Colorado , hereinafter called
(Bidders Residence City)
"CONCESSIONAIRE",
WITNESSETH:
The City hereby grants unto Concessionaire the rights of concession;
as hereinafter 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 its behalf herein con-
tained, the City hereby grants Concessionaire rights to concession for a
term beginning •January 6, 1981 and ending at 11:59 P.M., on January 6, 1986
(unless previously terminated under any provision herein contained), the
designated concession locations in the Coliseum, the Exposition Hall and the
Patio area for the sale and dispensing of food, beverages and other merchandise
as hereinafter provided.
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, beer, sandwiches, popcorn, candy floss, and other merchandise
usually and customarily handled by a concessionaire, except that the City
retains the right to:
(A) Handle catering separately and independently from the
concession contract.
(B) 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 Concessionaire.
r;.
Make final decisions on matters which may arise, not specifically
covered in the specifications and this contract, including the
interpretation thereof.
This contract does not include the right for Concessionaire to
sell space. for either temporary or permanent signs. The City
especially reserves this right to itself.
Approve the form of and -price of products to be sold and to re-
quire the containers to be suitable for consumption of the products
on premises immediately after the sale. A suitable print pattern
shall be used on all containers, cups, bags, plasticware, etc.
used by Concessionaire. Under no conditions shall there be any
reuse of these containers by Concessionaire after initial sale or
use.
(F) To superintend sales, to the extent that sales shall be at and
for a reasonable length of time before and after the time of the
performance or function being served, so as to insure that the
sales will not interfere with the conduct of the performance of
function being served.
III
Location of Concession. The City will provide and make available to
the Concessionaire and, except for the supervision of the City, to be in the
exclusive control of the Concessionaire the following:
(1) Exposition Hall - One (1) enclosed stand 8' x 15' with sink,
counter and cupboards.
(2) Coliseum - Two (2) 62' x 5' stands with sinks, work areas and
approximately 300 square feet of enclosed space for inventory
storage and office.
IV
The City agrees to furnish the following:
(A)
(B)
Utilities: Standard outlets and connections for gas, water
and electricity for service of concession activities only.
Monthly utility bills will be paid by the City.
Equipment:
1 - Walk in Freezer
. 1 - Walk in Beer Cooler
4 - 3 Keg Electric Beer Dispensers
1 - 2 Keg Electric Beer Dispensers
1 - 32 oz. Popcorn Popper
1 - 6 Burner Gas Range
2 - 2 Basket Electric Fryers
1 - Large Office Safe
1 - Chest Type Deep Freeze
3 - Electric Cash Registers
1 - Reach in Refrigerator
1 - Ice Machine & Walk -In Storage Bin (2000}1 per day)
2 - Electric Candy Floss Machines
1 - Sno Cone Machine
1 - 36" Hamburger Grill (Electric)
1 - 6' Electric Steam Table
2 - Office Desks
2 - Office Swivel Chairs
2 - Electric Jet Spray Drink Dispensers
-2-
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. This to include reasonable directives
of the Coliseum Manager. Concessionaire will secure at its
sole expense all permits, licenses, etc., reauired by any
governmental agency.
(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 protection of not less than $100,000 against liability or.,
damage to property in any one accident and protection of not less than $100,000
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. All
insurances shall name the City of Corpus Christi as an additional insured party.
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
3
the Concessionaire with the Coliseum 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 a new 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.
If 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 appro—
priate 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 merchandise is sold, a schedule of prices approved in
writing by the Coliseum Manager. Prices charged shall not
be in excess of those charged under similar conditions
elsewhere in City.
(D) Maintaining a clean, safe, orderly, and sanitary operation
within the concession locations and adjacent areas.
(E) Returning the premises and equipment to City in the Condition
received, except for normal wear and tear.
(F)
(G)
Collecting debris in the concession stands in covered
containers which they supply and placing same in designated
trash areas outside the building at the conclusion of each
event served.
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 Coliseum
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 them-
selves to the public in a clean and neat condition and in a
polite and courteous manner. Drinking or abusive language
on duty, showing up in a condition unfit for work, or objection-
able conduct, will give the City the right to demand immediate
dismissal of concession help, and, if management or Concessionaire
is the party involved, immediate cancellation of the contract.
(J) Being prepared to furnish additional equipment (other than
that provided by City) and personnel sufficient to serve up
to 6,000 people in the Coliseum during a 20 -minute intermission
upon reasonable notice from the Coliseum 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.)
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.
It is further a condition that Concessionaire is entitled to
use any and all equipment in the concession locations during
tenure of contract term. `
(B) When temporary concession stands are required at locations
other than those already specified the City will provide the
space and standard utilities that are available and Concessionaire
Xi11 be responsible for setting up and taking down such
temporary concession stands as well as furnishing any
temporary equipment to function such stand(s).
(C) Operation of the concession will at all times be in keeping
with the activity using the facilities end restraint shall
be exercised in the handling of any equipment to minimize
interference with the served event caused by resulting noise.
The Coliseum Manager shall have the right to instruct Concession-
aire 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. Beer sales will be allowed
only after the activity using the building first obtains
permission in writing from the City for such sales as set
forth in Ordinance IJo.14251 (Sale of Beer Request).
(D) Subcontracts.
(1) Concession items such as programs, novelties, song
books, autographed pictures, records, tapes, T-shirts,
' etc., usually carried by traveling shows and not normally
stocked by Concessionaire, and additional stands set up
on a temporary basis for this purpose with equipment not
owned by City or Concessionaire are considered as sub-
contracts. Privilege agreements between Concessionaire
and the subcontractor for such items must be approved by
the Coliseum Manager and, in case of a dispute, the
decision_of the Coliseum Manager shall be final.
(2) Arrangements for vending machines will be made by the '
Coliseum Manager but supervision of the machines to see'
they are stocked and moved according to the event is the
responsibility of Concessionaire. Vending machines are
considered to be subcontracts.
(3) When Concessionaire does not operate as a retailer but
supplies concessions on a per -person basis, such service
will be considered as a sub -contract. A flat fee of 20%
of gross receipts will be paid the City.
-6-
(5)
When the Concessionaire operates as a caterer, supplying
food on a per -person basis, such service shall be con-
sidered a food subcontract. A flat fee of 10% of gross
receipts will be paid to the City.
When the Concessionaire subcontracts for the sale of
novelties, programs, T-shirts, caps, pictures, souvenirs,
etc., a fee of 20% of sales will be charged the sub-
contractor'as a house privilege. A flat 50% of the
realized house priviledge will be paid the City. This is
to include sales of every nature by any subcontractor,
including vending machines.
(6) When the Concessionaire acts as a retailer, selling the
following items:
T -Shirts Souvenirs Novelties Tapes _Records
Toiletries Postcards Pictures Caps/Hats Emblems
a flat fee of 30% of sales shall be deemed the amount owed
the City.
(E) Maintenance of City -owned concessions oriented equipment will.
be the responsibility of Concessionaire. City employees will
not service the eauipment. -
(F) In the event an outside caterer wishes to buy ice, arrangements
will be handled through Concessionaire so his stock of ice will
not be depleted without his knowledge and such sales of ice, at
the current open market price, will be considered as part of
the gross sales of Concessionaire.
(G) Concessionaire -shall acquaint himself with the regulations and
rules of the Alcoholic Beverage Commission and comply with the
qualifications to obtain and keep a beer license. The Concession-
aire's
oncessionaire's inability to maintain this license can result in
termination of this contract.
VII
Consideration to be paid by Concessionaire.
In addition to payments to be made under the provisions of Article
VI, Concessionaire shall make the following payments:
(A) 37.0 % of gross sales on all basic concession items sold,
including all drinks, ice, peanuts, popcorn, cotton candy,
sno-cones, etc.
(B)
28.(x; of gross sales on food items including: chips,
doughnuts, hamburgers, pretzels, sandwiches, hot dogs,
french fries, chili dogs, tamales, burritos, coffee,
barbecue and pizza.
• VIII
Accounting Procedure. All payments due the City shall be due -
and payable without demand at the office of the Coliseum Manager.
At the conclusion of each event a report of the gross sales shall
be provided to the Coliseum Manager on forms approved by City. Payments
from any calendar month shall be due on the 15th 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 by the 15th of the following month 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 or sum owing by the Concessionaire
to the City under this agreement remains unpaid after the demand for payment
thereof and is thereafter collected by suit, 10% addition computed on the
amount otherwise recovered therein by the City as attorney's fees and cost
of the expense of collection shall be paid.
The Concessionaire's cash register tapes, records and inventories
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. The
City, in order to exercise its option of termination, shall only be reouired
to establish such falsity and shall not be required to establish actual know-
ledge on the part of the lessee of such facility.
In the event of default on the part of Concessionaire in payment
of any rental or in the performance of any of the covenants and obligations
herein described within ten days after the date the same is due, City of
Corpus Christi may at its option, after ten days written notice of intention
to do so, declare this agreement terminated.
-8-
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, City
shall have the option to terminate this agreement by notifying Concessionaire
in writing that a violation of a condition of the contract has occurred and
setting forth the nature of such violation. In the event such violation is
not discontinued, and a correction made on or before the next event for
which concessions are to be provided by Concessionaire, or within 10 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 Coliseum 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 HANDS in duplicate originals at Corpus Christi,
Texas, this the day of
ATTEST:
City Secretary
APPRO1rD: fe-Gccii J /7 )W.6;
J. BRUCE AYCOCK, CITY ATTORNEY
By
CITY OF CORPUS CHRISTI
R. Marvin Townsend
City Manager
Asst. City Attorney
APPROVED:
6
- (Dep . Head)
Sidde
oge
ahnel
Leisure Food Services, Inc.
That the foregoing ordinance was read fo he fi st time and passed to its
second reading on this•�the /7 day of� , 1920 , by the
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
That the foregoing ordinanceas read for a second time aqd passed to its
third reading on this the V day o , 19.10 , by the
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
That the fore i g ordina� as real for the third time and passed finally
on this the
%y� day o.� , 19J0 , by the following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
PASSED AND APPROVED, this the J,44/day of
ATTEST:
"City -Secretary
APPROVED:
/7 DAY OF , 19 Yo :
J. BRUCE AYCOCK, CITY ATTORNEY
By
Assistant Cit9 A'ttorney
/ /
THE ITY OF CORPUS CHRISTI, TEXAS
15958