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HomeMy WebLinkAbout19571 ORD - 12/16/1986AN ORDINANCE AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH UNICORN VENTURES FOR THE PLACEMENT OF VIDEO GAMES AT THE CORPUS CHRISTI INTERNATIONAL AIRPORT. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager is hereby authorized to execute a contract with Unicorn Ventures for the placement of video games and establishing rental rates at Corpus Christi International Airport, all as more fully set forth in the agreement, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit A. 09P.110.01 19571 MICROFILMED CONCESSION AGREEMENT THIS CONCESSION AGREEMENT entered into by and between the CITY OF CORPUS CHRISTI, TEXAS, a municipal corporation (hereinafter referred to as "City"), and ROBERT S. COBB, dba UNICORN VENTURES OF HOUSTON, TEXAS (hereinafter referred to as "Concessionaire"); WHEREAS, the City owns and operates the Corpus Christi International Airport located in Corpus Christi, Nueces County, Texas (hereinafter referred to as "Airport"); WHEREAS, Concessionaire desires to enter into a Concession Agreement with the City for the purpose of placing mutually acceptable entertainment equipment at said NOW, THEREFORE, a variety of Airport; in consideration of the foregoing and of the mutual covenants hereinafter contained, the parties agree for themselves, their successors, legal representatives as follows: CONCESSION SPACE - The City hereby and assignees, provides to Concessionaire, for the period and subject to the terms and conditions hereinafter stated, a Concession Space located in the alcove by the Hidden Harbor Lounge entrance in the main lobby of the terminal building of said Airport, the same space which is depicted and shown on the floor plan which is attached to this Agreement and made a part of hereof as Exhibit "A". CONCESSION TERM - This Agreement and all rights herein granted to Concessionaire shall become effective upon the execution hereof and shall extend for a term of three years , subject, however, to earlier termination as herein provided. FEES TO CITY - Concessionaire agrees to pay to the City monthly during each year of the term of this Agreement the following amounts: • Fifty percent (50%) of the Gross Revenues (as hereinafter defined) each month. tigij Provided that the first money taken from each piece'of equipment or machine in each calendar year shall be paid to Concessionaire to reimburse the payment of that year's annual occupation tax levied by the State, the City and the County. "Gross Revenues", as used herein, shall mean all moneys earned or received by Concessionaire from its operations in the Concession Space at the Airport after reimbursement for the payment of occupation taxes, but shall not include sums recovered (from insurance or otherwise) for damage to property of Concessionaire. Credit risks shall be borne solely by the Concessionaire, and for purposes of payment all income shall be treated in Gross Revenues whether collected or accrued, including any sums or receipts which may have been diverted by employees of Concessionaire or otherwise. Throughout the concession term, Concessionaire agrees to submit to the City, not later than the 20th day of each month, a full report, certified to be correct by an officer of the Concessionaire, of all Gross Revenues for the preceding month, together with a check for the percentage of Gross Revenues for the month payable under this Agreement. Concessionaire shall also submit a copy of Quarterly Financial Statements or State Quarterly Sales and Use Tax Reports or Annual Income Tax Return, whichever is applicable. RESPONSIBILITIES OF CONCESSIONAIRE - The Concessionaire agrees to provide and maintain in the Concession Space at the Airport throughout the term of this Agreement a variety of mutually acceptable entertainment equipment, including, but not limited to, at least four (4) electronic amusement devices. Such equipment and devices shall be used only within the Concession Space and shall remain available for use twenty-four (24) hours each day, seven (7) days per week. At all times through the duration of this Agreement, title to said equipment and devices shall remain with Concessionaire. ACCESS TO PREMISES - The right of ingress and egress to and from the Concession Space is granted Concessionaire, its employees, agents, guests, patrons, shippers and consignees over designated roadways, drives and walkways of the Airport without charge, except as herein otherwise provided; however, nothing herein -2- contairied shall be deemed to limit the City's right to impose charges upon the parking of vehicles. CONSTRUCTION - Concessionaire, at its own expense, may construct or install in or on any of the Concession Space partitions or other improvements necessary for use in connection with the concession operations described in this Agreement. The plan and specifications for any such construction, including the proposed costs associated therewith, must be approved by the City's Director of Aviation prior to the construction or installation thereof. MAINTENANCE - The Concessionaire shall keep all equipment and entertainment devices placed in the Concession Space pursuant to this Agreement in good and sufficient working condition, including all necessary lighting and window -treatments in the surrounding area and any repairs and adjustments required to keep such equipment and devices operating on a profitable basis. In the event any of such equipment or devices fails.to operate or cannot be operated in a good and sufficient manner, the City may give notice to Concessionaire of such malfunction or deficiency and Concessionaire shall proceed to perform all necessary repairs or adjustments to restore such equipment or devices to acceptable operating condition within a reasonable time. CITY'S RIGHT OF CANCELLATION FOR CAUSE - The City has the right to terminate this Agreement in its entirety upon the happening of any of the following events: 1. Immediately upon the occurrence of any act which operates to deprive the Concessionaire of the rights, powers,licenses, permits and authorizations necessary for the proper and lawful conduct and operation of the services authorized herein. 2. Immediately upon the making by the Concessionaire of an assignment for the benefit of creditors, which event shall constitute a breach of this Agreement, and there- upon this Agreement shall become null and void and no benefits thereunder shall pass to any assignee or trans- feree thereof. 3. Immediately upon the filing by or against the -3- Concessionaire of a petition in bankruptcy, which event shall constitute a breach of this Agreement, and there- upon this Agreement shall become null and void and no benefits thereunder shall pass to any trustee, assignee or transferee thereof. 4. Upon seven (7) days' written notice on the non-payment of fees due to the City in the event such non-payment has continued for a period of ten (10) days following the date such payment was due. 5. Upon thirty (30) days' written notice on the failure by the Concessionaire to perform, keep and observe any other of the terms, covenants and conditions of this Agreement, excepting those specifically listed above in this section, required on the part of the Concessionaire to be performed, kept or observed, in the event such failure has not been cured within fifteen (15) days following the date of written notice. All agreements herein made and obligations assumed are to be construed also as conditions and are made upon the express condition that if Concessionaire should fail to pay when due any one of the aforesaid installments of concession fees, or should fail to perform or observe any of the agreements or obligations herein made or - assumed by said Concessionaire, then snd thenceforth, in any of said events, this Agreement may be forfeited and thereby become null and void at the option of the City, and the City may immediately, or at any time after the breach of any of said covenants, re-enter said Concession Space, or any part thereof in the name of the whole, and repossess and have the same as the City's former estate and remove therefrom all goods and equipment not thereto properly belonging, and expel said Concessionaire and all other persons who may be in possession of said Concession Space without further demand or notice, except as provided above. The right in the City to terminate this Agreement as herein set forth is in addition to and not in exhaustion of such other rights that the City has or causes of action that may accrue to the City because of this Agreement, and the exercise or pursuit by the City -4- of any of the rights or causes of action accruing hereunder sL not be an exhaustion of such other rights or causes of action that the City might otherwise have. SECURITY - The City, as a party hereto, shall not be obligated to provide any police, watchmen or fire protection, and neither the City nor any of its agents, or officers or employees shall be liable or responsible to the Concessionaire for any damages to it or its property by reason of the lack of any such facilities or service. - CITY RIGHTS AND RESPONSIBILITIES - The City may refuse to allow the placement in the Concession Space of any particular equipment or entertainment device it deems objectionable, and it may similarly order the removal of any particular equipment or entertainment device from the Concession Space and Concessionaire agrees to remove same promptly at its own cost. The City shall provide electrical service to the equipment and devices placed in the Concession Space and shall also provide janitorial services for the Concession Space. RULES AND REGULATIONS - City and Concessionaire agrees to abide by all rules and regulations which may now or hereafter be promulgated or adopted by the Texas Amusement Machine Commission or any other agency of the State or federal government or by the City relative to the regulation of the affairs of Concessionaire and other tenants or concessionaires at the Airport. SIGNS - Concessionaire shall not erect or cause to be erected any signs at the Airport, including the interior and exterior of the Concession Space, in view of the public without having secured prior written approval of the City's Director of Aviation. AVAILABILITY OF RECORDS AND AUDIT REPORT - The Concessionaire agrees to make available to the City or its authorized representatives at any time, from Monday through Friday inclusive, between the hours of 9:00 a.m. and 5:00 p.m., all records, books or pertinent information as may be required for audit purposes. Within 60 days following the end of each year of this Agreement, Concessionaire shall provide the City with a statement of -5- Gross Revenues for the preceding year for the Concessionaire operation at the Airport. INDEMNIFICATION AND INSURANCE - Concessionaire agrees to fully indemnify and forever save and hold harmless, the City, its officers, agents and employees, from and against any and all claims, actions, lawsuits, demands and liabilities, and all expenses incident to the investigation and defense thereof, based upon or arising out of damages, injuries or death to any persons or their property, caused by or alleged to have been caused by the default or negligence or other activities of Concessionaire, its agents or employees, under this Agreement. Concessionaire shall procure and keep in force at all times during the term of this Agreement full liability and property damage insurance coverage in a company or companies satisfactory to the City, protecting the City against any liability or loss or claim by reason of any alleged negligent or wrongful act or conduct of Concessionaire on the Concession Space or any part or appurtenance of the Airport, or in connection with any activity related to the Airport, in the amount of $300,000/$300,000/$50,000, which insurance coverage shall include the City as additional named insured. A certificate of insurance naming the City as additional insured shall be furnished the City in duplicate and shall not be cancellable except upon notice in writing to the City by certified mail ten (10) days prior to the effective date of cancellation. ENJOYMENT OF PRIVILEGES - The City agrees that, on payment of the fees and performance of the covenants and agreements on the part of Concessionaire to be performed hereunder, Concessionaire shall peaceably have and enjoy the Concession Space and privileges of said Airport granted herein. Concessionaire shall not willfully permit the Concession Space to be used for any unlawful purpose or purposes that will injure the reputation of the Airport. SURRENDER OF PRIVILEGES - Upon the expiration of this Agreement, Concessionaire's right to use the Concession Space and enjoy the privileges herein provided shall cease and Concessionaire shall forthwith upon such expiration or termination surrender the same. Concessionaire covenants that at the expiration of the term -6- herein provided the Concession Space will be yielded to the City in as good condition as when the same were entered upon by the Concessionaire, fire, accident or the public enemy and reasonable wear excepted. CITY ENTRY TO CONCESSION SPACE - The City or its authorized representatives may enter upon the Concession Space at any reasonable time for any purpose necessary, incidental to or connected with the performance of its obligations hereunder or in the exercise of its governmental functions. The City in no way intends to bind itself with respect to its governmental functions, nor does it bargain or agree to convey or transfer its police powers or others such powers or functions hereunder. ASSIGNMENT - Concessionaire shall not at any time assign this Agreement or operations hereunder, or any part thereof, without having first secured prior written approval of, the City. OFFICIAL NOTICE - Notices to the City provided for herein shall be sufficient if sent by certified mail, postage prepaid, addressed to the Airport Director , Route 2 Box 902, Corpus Christi, Texas 78410, and notices to Concessionaire if sent by certified mail, postage prepaid, addressed to Robert S. Cobb, P.O. Box 570005, Houston, Texas 77257, or to such other respective addresses as the parties may designate to each other in writing from time to time. RIGHT OF FIRST REFUSAL - In the event the City determines that additional amusement equipment similar to the equipment or devices described herein can be acquired for use at the Airport for additional financial gain, the City grants to the Concessionaire the first right of refusal to furnish and develop such additional amusement under such terms and conditions as may be obtained by the City for such a concession at that time. IN WITNESS THEREOF this Agreement is executed in duplicate originals, both of equal force and effect, as of this day of 19 ATTEST: CITY OF CORPUS CHRISTI, TEXAS Armando Chapa, City Secretary Craig McDowell, City Manager This day of 19 By J.K. Lontos, Asst. City Manager Hal George, City Attorney By: Assistant City Attorney -8- CONCESSIONAIRE Robert S. Cobb That the foregoing ordinance v{4 read for first lime and p ed to its second reading on this the %/ day of , 19 , by the ?: following vote: Luther Jones Dr. Jack Best David Berlanga, Sr. Leo Guerrero Joe McCo b Frank Mendez Bill Pruet Mary Pat Slavik Linda Strong That the foregoing ordinance read for e seco d time and sed to its third reading on this the day of �„ � , 19 , by the following vote: Luther Jones Dr. Jack Best David Berlanga, Sr. Leo Guerrero That the for going ordina on this the J0( day o Luther Jones Dr. Jack Best David Berlanga, Sr. Leo Guerrero PASSED AND APPROVED, AT ST: Joe McComb Frank Mendez Bill Pruet Mary Pat Slavik Linda Strong was ead for the hird time and passed finally , 19, by the following vote: this the Joe McComb Frank Mendez Bill Pruet Mary Pat Slavik Linda Strong day of City Secretary MAYOR THE CITY OF CORPUS CHRISTI, TEXAS APPROVED: 774 DAY OF A//y.c.4z1 , 19/L: Cly AtLorney 99.044.01 19571 PUBLISHER'S AFFIDAVIT STATE OF TEXAS, lss; AD# 63051 County of Nueces. 1 DEL MAR COLLE8E Before me, the undersigned, a Notary Public, this day personally came. MURIEL LA RUE who being first duly sworn, according to law, says that he is the _._,.;, . ENIOg_AGGQjINZC�, GZEI of the Corpus Christi Caller and The Corpus Christi Times, Daily Newspapers published at Corpus Christi, Texas,, in said County and State, and that the publication of BID NOTICE. Del Mar College will received sealed bids.dd s_.2.d._ t.Q._G..B, of which the annexed is a true copy, was published in lqcfn. CALLER -TIMES PU$ 1s.UJJ s;, W.. 20,21 • on the - day of NOVEUBFP-_.__.19$6..., and once each consecutive days tSdL2 Times. 46.00 day thereafter for... two C MURIEL LA RUE Subscribed and sworn to before me this 25.thh day of NOVEMBER 19.. 86 Public, Nueces Cou. ., Texas EUGENIA S. CORTEZ 6-30-89 �rtj'f err`+ " AY NOV 1986 o CITY SECNETf,n,"S- �• OFFICE 3�. \fit fife, Mrs Alvil��a' o15Tz;� — pro daughters, Mrs. Di- TUC Ona Harbison and Mrs. Pe folanda Lazarine, all of 89, c Beeville; four sisters, Mrs.' Satui Adela Leo and Mrs. Josie Hi Corpus, both of Edinburg; 1991 Mrs. Andrea Schultz of sack San Antonio, and Mrs. Carni Mary Russett of Browns- nolo Wile; and , four Schc grandchildren. Engi A Rosary will be recit- hom ed at 7:30 p.m. Monday Miss e' l l sell for you :t STATE OF TEXAS, County of Nueces. PUBLISHER'S AFFIDAVIT }ss: AD# 70755 CITY OF CC./CITY SECRETARY 5 + Before me, the undersigned, a Notary Public, this day personally came. MURIEL LARUE who being first duly sworn, according to law, says that he is the SENIOR ACCOUNTING CLERK of the Corpus Christi Caller and The Corpus Christi Times, Daily Newspapers published at Corpus Christi, Texas,, in said County and State, and that the publication of NOTICE OF PASSAGE OF ORDINANCE ON SECOND READING AUTHROZIING THE of which the annexed is a true copy, was published in CALLER -TIMES PUBLISHING CO. on the24th day of....NOVEMBER ,,__.1986., and once each day.._._..._..thereafter for one consecutive day one Times. $ _28.75_ MURIEL LA RUE Subscribed and sworn to before me this...24r4,_..r_day of._...J4U)YEMB_ER 19R6 Notary Public, Nueces Co , Texas EUGENIA S. CORTEZ 6-30-89 )TICE„?{OF PASSAGE OF c ORDINANCE ON 6 FIRST READING AUTHORIZING THE EXECU- c TION OF AN AGREEMENT F WITH UNICORN VENTURES n FOR THE #'LACEMENT OF VIDEO GAMES AT THE COR -•!,f PUS ' CHRISTI' INTERNATIONAL AIRPORT, d PROVIDING FOR A THREE -: 'YEAR TERM; -AND PAYMENT OE FIFTY PERCENT 150%) OF GROSS REVENUES EACH MONTH: •' : ', Was,ppssed and ,approved, Z1 on fir'st:readlhgr bj the CO 1 Council of the City of Corpus t Christi, Texas on the 11th day 2 of November, 1986 and the F full text of said ordinance is available to the public in the Office of the City Secretary E /s/ Armando Chapa F Coy Secretary Corpus Christi, Texas a