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
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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
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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