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HomeMy WebLinkAbout022287 ORD - 07/25/1995ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A FIVE YEAR LEASE WITH PAN AMERICAN GOLF CORPORATION, D/B/A AS "HELEN'S SNACK BAR", FOR CONCESSION OPERATIONS IN 1900 SQUARE FEET AT THE GABE LOZANO SR. GOLF CENTER CLUBHOUSE, AT A PAYMENT OF TWELVE PERCENT (12%) OF GROSS SALES PER MONTH. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager, or his designee, is hereby authorized to execute a five year lease with Pan American Golf Corporation, d/b/a as "Helen's Snack Bar", for concession operations in 1900 square feet at the Gabe Lozano Sr. Golf Center Clubhouse, at a payment of twelve percent (12%) of gross sales per month. A copy of the Lease is on file with the City Secretary. AG5000.711.vr 022287 M1� utwin-u That the foregoing ordinance was read for the first time and passed to its second reading on this the C\ Day of .3uLik 1 , 19 61.5by the following vote: Mary Rhodes Cl`',;; Betty Jean Longoria p Dr. Jack Best) John Longoria at, Betty Black " Edward A. Martin Oiiiikt. Melody Cooper (1.,-L_,, Dr. David McNichols a____ Tony Heldenfels act, U That the fore of ordinance was read for the second time and passed finally on this the 25 day of , 19 b by the following vote: Mary Rhodes I —at— Betty Jean Longoria Yo , Dr. Jack Best John Longoria (,(k_ Betty Black � Edward A. Martin T hP j Melody Cooper a,,,, Dr. David McNichols Tony Heldenfels PASSED AND APPROVED, this the 25 day of 3( , 19 C6. ATTEST: /97%."C City Secretary MAYOR‘,/ THE CITY OF CORPUS CHRISTI APPROVED: /6, DAY OF c7L-( /C C_ , 1975 : JAMES R. BRAY, JR., CITY ATTORNEY By: „4 4-0 A 4 LPA, ✓ Alison Gall way Assistant City Attorney AG5000.71 I.vr 022297 LEASE WITH PAN AMERICAN GOLF CORPORATION TO PROVIDE CONCESSION SERVICES THE STATE OF TEXAS § KNOW BY ALL THESE PRESENTS: COUNTY OF NUECES § This Lease (this "Lease") is entered into between the City of Corpus Christi, Texas, a municipal corporation with home rule power, (the "City"), and Pan American Golf Corporation of Nueces County, Texas (the "Concessionaire"). In consideration of the covenants, agreements and conditions herein contained, the City and Concessionaire agree as follows: 1. Term. City does hereby contract with Concessionaire for concession services at the Gabe Lozano Sr. Golf Center subject to all terms and conditions of the Lease. The term of this Lease shall be for a period of five (5) years, beginning on the 61st day after fmal Council approval, unless sooner terminated, and extending from month to month, upon the same terms and conditions as set out herein, until a new contract is agreed upon. 2. Concession Rights, In consideration of the rent hereby provided to be paid by the Concessionaire, and of the covenants herein, City grants Concessionaire the exclusive right to use the designated concession location, including the usual utilities, as shown on the attached and incorporated Attachment No. 1, at Gabe Lozano Sr. Golf Center to make direct sales to the public of food, drinks and beer. Concessionaire may use vending machines in selling beverages, snacks, tobacco and other merchandise customarily handled by a concessionaire. Concessionaire will be able to use a mobile concession on the golf course grounds with prior written approval from the Director of Park & Recreation or his designee ("Director"). City expressly retains the right to: (a) Make final decisions on matters which may arise, not specifically covered in this Lease, including the interpretation hereof. (b) This Lease does not include the right for Concessionaire to sell space for either temporary or permanent signs. The City reserves this right to itself. (c) Approve the form and price of products to be sold and to require disposable containers (paper or plastic) to be suitable for consumption of the products on premises immediately after the sale Bottles shall not be permitted. Under no conditions shall there be any reuse of these containers by Concessionaire after initial sale or use. (d) Approve the sale of products other than those listed above, and the form and price of such additional products. 3. Location. Except for the supervision of the City, Concessionaire shall have exclusive control over the concession area located in Gabe Lozano Sr. Golf Center, shown on the attached and incorporated Attachment No. 1 ("Premises"), subject to the terms, conditions, and covenants of this Lease. 4. Utilities. Included as part of the monthly rental payment City shall provide electrical service for lights, refrigerators, etc., water and wastewater service, and garbage pickup as usual utilities for concession activities. 5. Concessionaire Responsibilities. The Concessionaire will be responsible to the City as follows: (a) Concessionaire shall furnish, install, service and maintain in good working order all equipment, including exhaust hood, and supplies required to properly execute this Lease. Concessionaire shall furnish all cooking, dispensing and cooling equipment required by the concession operation. Vending equipment shall remain the sole and exclusive property of the Concessionaire. (b) Concessionaire will operate the concession in accordance with all federal, state, and local laws and all relevant rules and regulations that may be promulgated by City Manager of the City of Corpus Christi, Texas or his designee ("City Manager"). (c) 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, in the amounts which comply with state and federal laws. -2- (2) Before beginning to use or permitting the installation of any furnishings, fixtures, equipment, etc. at the Premises, Concessionaire shall procure and keep in full force and effect a Comprehensive General Liability insurance policy under which the City shall be named as additional insured. (3) Before opening up for business, Concessionaire shall procure either by separate policy or by appropriate endorsement to its comprehensive general liability insurance, 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.). (4) Liquor Liability Clause. Before opening up for business, Concessionaire shall procure Host Liquor Liability endorsement to the Commercial General Liability coverage insurance with a $1,000,000 Combined Single Limit. The Certificate of Insurance must show that the Host Liquor Liability endorsement in the required amount is included in the Commercial General Liability policy. The policies referred to in 2 and 3 above shall have minimum limits of not less than $1,000,000 combined single limit. The policies in 2, and 3, and 4 shall name the City of Corpus Christi as Additional Insured. The originals of all the policies referred to in 1, 2, 3 and 4 above, or copies thereof, certified by the agent issuing them, shall be deposited by the Concessionaire with the "Director." The insurance polices shall include provisions that they can not be canceled or materially altered except after the expiration of sixty (60) days after delivery of written notice of such intention to the "Director." Failure on the part of the Concessionaire to furnish a new policy or certified copy thirty (30) days 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 shall constitute a default on the part of the Concessionaire entitling the City at its option to terminate the entire Lease. If any of the policies referred to in 2, 3, and 4 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 an endorsement 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 -3- from the City. "Director" shall be notified within two working days of failure to make a premium payment on time. The Liability Policy or the policies referred to in 2 above shall include 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 the City, its officers, agents, or employees. (d) The food and drink shall be dispensed by attendants furnished by the Concessionaire at Concessionaire's expense. Minor cleanup duties shall consist of keeping tables clean, cleaning up of spilled food and drink, frequent cleaning of windows, floors and ceiling fans and removal of trash from the Premises and the outside area. (e) Concessionaire shall furnish as a part of this Lease, all related supplies and condiments. Tables and chairs in the service area are provided by the City. (0 Concessionaire will make periodic inspections of the public restrooms located in the same building as the Premises, checking said restrooms, for cleanliness, vandalism, and unlawful activity. The Concessionaire shall keep the restrooms free from litter and debris, and stock the restrooms with supplies (supplies will be provided in bulk to the Concessionaire by the Park & Recreation Department). The Park and Recreation Department shall clean and sanitize the restrooms. In addition, the Concessionaire will immediately report, upon discovery, any vandalism or malfunction of facilities to the "Director" (880-3461) or Head Golf Pro (883-3696), and any problems relating to unlawful activity to the Police Department (882-1911). (g) "Director" shall approve the quality, quantity, and price schedule of all concession merchandise. Selling price shall exclude all applicable state and local sales tax. All commissions or percentages paid to the City shall be on basis of gross sales, less sales tax. (h) It is understood Concessionaire will establish good public relations and promote this concession service to all citizens of Corpus Christi and its visitors. Hours of operation will coincide with the Pro Shop hours or as approved by the "Director". (i) Concessionaire shall provide for the sale of various sundry items (i.e., aspirin, non-prescription cold tablets, insect repellant, etc.). A list of such items -4- being offered for sale and their price must be approved by the "Director" prior to sale. 6. Monthly Payments Commencing with the effective date of this Lease, Concessionaire shall pay to City twelve percent (12%) of Concessionaire's gross sales for the life of this Lease, calculated on a monthly basis. Gross sales shall be defined as total revenue of goods sold excluding all applicable sales tax. Concessionaire shall file with the "Director" on or before the 10th day of each month a monthly report of gross receipts, the report form being designed and supplied by the Director of Finance or her designee ("Director of Finance"), as the same may be amended from time to time. Concessionaire shall submit to the Director of Park and Recreation a copy of all quarterly sales and use tax reports. Concessionaire shall, by the 10th day of each month, pay to the City at the Office of Collections the required percentage of gross receipts. The Director of Finance shall approve Concessionaire's system of accounting for the gross receipts. The Director of Finance shall have authority to audit Concessionaire's records of gross sales upon demand by the Director of Finance. 7. Books of Account. The Concessionaire shall at all times during the term hereof keep true, accurate, complete and auditable records, in a form satisfactory to the Director of Finance of the City of Corpus Christi, Texas. The Concessionaire further agrees that the Director of Park and Recreation shall have the right to examine all pertinent books and records at any and all reasonable times for the purpose of determining the accuracy thereof and compliance with the provisions hereof. The making of any willfully false report or revenue by the Concessionaire shall be grounds for the immediate cancellation and termination of this Lease at the option of the City. Any such report which shall understate the gross by ten percent (10%) of the true amount hereof shall be conclusively deemed to have been knowingly and falsely furnish by Concessionaire. 8. Retention of Records. Aside from permanent books, ledgers, journal accounts and records, the Concessionaire will not be required to retain beyond twelve (12) months following the completion of any year of the term hereof collateral papers and forms such as original invoices, sales checks or slips, cash register and adding machine tapes and analogous supporting data. The Concessionaire shall, upon receipt of written request from the "Director", prepare and submit such reports and analyses of the operation of the concession services under this Lease is such form and content as the City may reasonable require in the administration of this Lease. Any further accountancy records as required by federal, state or local agencies shall be the responsibility of the Concessionaire. 9. Audits. If, as a result of any inspection and audit, it is established that additional amounts are due, Concessionaire shall pay such additional amounts to the City upon written demand made by the City not later than thirty (30) days after completion of such audit and inspection. If the results of such audit reveal a difference of more than two percent (2%) between Gross Receipts reported by -5- Concessionaire and Gross Receipts as determined by the audit, the cost of the audit shall be paid by the Concessionaire. 10. Other Food. Any allowances or adjustments for allowing other food or drinks on the Premises must have prior approval from Concessionaire. 11. General Provisions. (1) Concessionaire will not on the grounds of handicap, sex, race, color or national origin, discriminate or permit discrimination against any person or group of persons in any manner. The City hereby reserves the right to take action as the United States Government may direct to enforce this covenant. (2) The Concessionaire will refrain from any unlawful employment practices and comply with all lawfully adopted regulations related thereto. (3) City retains the right at any time to cancel this Lease upon sixty (60) days written notice to Concessionaire. The Concessionaire may terminate this Lease, if the Concessionaire provides the "Director" sixty (60) days advance written notice. Notices shall be given in writing by sending by first class mail, postage prepaid, to the following: TO CITY: TO CONCESSIONAIRE: Director of Park and Recreation P. O. Box 9277 Corpus Christi, Texas 78469 Pan American Golf Corporation 4037 Gollihar Road Corpus Christi, Texas 78411 or at such other address as each party may designate to the other in writing. (4) Concessionaire will furnish service on a fair, equal, and non-discriminatory basis to all users thereof, and will charge fair, reasonable, and non-discriminatory prices for each unit of service. (5) Concessionaire shall not make alterations, additions, or improvements to the Premises without prior written consent of the "Director." All alterations, improvements, and additions made by the Concessionaire upon termination of this Lease become the property of the City in fee simple, without any further action or process of law. (6) In the event any legal action is undertaken by any party hereto, to collect for any damages growing out of or compensation due under this Lease, the prevailing party shall be -6- reimbursed for all court costs and expenses and reasonable attorney's fees of not less than ten percent (10%) of the total amount of the judgment. (7) Concessionaire shall fully indemnify, save, and hold harmless the City of Corpus Christi, its officers, employees, and agents (hereinafter "the Indemnitees") against any and all liability, damage, loss, claims, demand, and actions of any nature whatsoever on account of personal injuries (including, without limitation on the foregoing, workers' compensation and death claims), or property loss or damage of any kind whatsoever, which arise out of or are in any manner connected with, or are claimed to arise of or be in any way connected with, the performance of this concession Lease, regardless of whether such injury, loss or damage shall be caused by, or be claimed to be caused by, in whole or part, the negligence or other fault of the Indemnitees or any of them. Concessionaire shall at its own expense investigate all such claims and demands, attend to their settlement or disposition, defend all actions based upon and pay their settlement or other disposition, defend all actions based thereon and pay all charges of attorneys and all other costs and expense of any kind arising from any such liability, damage, loss, claims, demands, and actions. (8) Concessionaire shall submit a completed Disclosure of Interest Form as part of this Lease. (9) Concessionaire covenants to pay payroll taxes, Medicare taxes, FICA taxes, unemployment taxes, and all other related taxes according to Circular E Employer's Tax Guide, publication 15, as it may be amended. Concessionaire shall provide proof of payment of these taxes to "Director" within thirty (30) days after payment is due upon "Director's" written request therefor. Failure to pay or provide proof of payment shall be grounds for immediate termination of this Agreement. SIGNED this day of , 199 ATTEST: CITY OF CORPUS CHRISTI, TEXAS Armando Chapa City Secretary Approved to form this the / 9 day of James R. Bray, Jr., City Attorney By: LA it Cwt ectuiet4 Alison Galtaway Assistant City Attorney JB:H: C132295 Juan Garza, City Manager City ager By: Conces ionaire , 19(15 -7- 1 NO CLUB HOUSE