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HomeMy WebLinkAboutC2006-348 - 8/29/2006 - Approved State of Texas Couaty of Nueees Kit~hen Fa~ilities Lease Between the City of Corpus Christi and F JJ LLC 9 9 i",..c r'" ... .n... U .., '"'9 ~ L P/l 1 56 This Kitchen Facilities Lease ("Lease") is between the City of Corpus Christi, a Texas home-rule municipal corporation ("City") acting through its duly authorized City Manager, or designee, ("City Manager"), and Frank and Jaime's City Cafe ("Concessionaire"), acting through FJJ LLC, Owner. RECITALS 1. The City owns and operates the Corpus Christi City Hall located at 1201 Leopard Street, Corpus Christi. Nueces County, Texas, ("City Hall"), and 2. Concessionaire desires to enter into a lease with the City to operate a food service kitchen facility concession, with the understanding that the scope of business operations pennitted by this Agreement is limited to offering the general public such services as are commonly associated with food service businesses, and nothing in the Agreement may be construed as conferring any rights already granted, or to be granted, to other City Hall cOllCessionaires; and. 3. The City represents that it has the right to grant the concession together with all facilities, rigltts, licenses. services and privileges in the manner and to the extent set forth herein. Now therefore. in consideration of the mutual covenants herein, the parties agree as follows: AGREEMENT: 1. Term. This Lease begins, for a period of one year; subject, however, to earlier termination as provided herein. This Lease may be renewed for two consecutive twelve month periods, by mutual agreement of Concessionaire and the City Manager, or designee, ("City Manager"). Thereafter, the Lease may be renewed for 90 day periods, by mutual agreement of Cot.cessionaire and the City Manager, or designee, ("City Manager"). 2. tremiJes. The City leases Concessionaire approximately 460 square feet for storage areas, food preparation areas, kitchen facilities, and serving lines, ("Premises"), all located on the sixth floor of the City Hall, 1201 Leopard Street, Corpus Christi, Texas. The City Manager will also designate a seating area on the sixth tloor where the food can be eaten ("Seating Area"), this Seating Area can be changed by the City Manager on 30 days written notice to Concessionaire. The Concessionaire may not, without the prior written consent of the Contract Administrator, or designee. ("Contract Administrator"), rearrange Of otherwise decorate the Seating Area. I. 2006-348 08/29/06 Ord026934 FJJ LL( , "-'~'-'-'-""--""""MlIIIIfII' ",^",,~, .._.."="."._.,._.._.....o;.,-.e-,,..___.._____._ ..._... 3. Consideration A. Amount. Concessionaire must pay the City 8% of monthly Gross Receipts, if monthly Gross Receipts are $5,999.00 or less monthly, 7% of monthly Gross Receipts, if monthly Gross Receipts are $6,000.00 or more but less than $7000.00, monthly, 6% of monthly Gross Receipts, if monthly Gross Receipts are $7.000.00 or more, monthly. B. Gross Receipts. "Gross Receipts" means all cash or credit, less applicable sales tax, received by Concessionaire for any food service item sold or produced (i.e. "Goods") at the Premises. C. Payment. Concessionaire must pay the Fee set out in Section 3A monthly, in arrears for the prior month. on or before the 20th day of each month to: Director of Finance P.O. Box q277 Corpus Christi. Texas 78469-9277 D. Reports. Concessionaire must provide a monthly report of Gross Receipts, certified by a duly authorized officer of Concessionaire, to the Contract Administrator on or before the 20th day of each month for the prior month. E. Sales. Sales to individuals must be for cash. The Contract Administrator may au1borize credit to City departments, or may authorize credit card usage if Concessionaire so requests. 4. Goods. A. Quality. Concessionaire must dispense quality food, food-products, noaalcoholic beverages and related items ("Goods") at competitive prices. 5. Records, Audit, and Reports. A. Records. Concessionaire must keep true and accurate accounts, records, books and data, which must show all the Gross Receipts of the Concessionaire under the Lease. All un4erlying documentation for Concessionaire's certified monthly statements, including cash register tapes, must be preserved by Concessionaire for at least 5 years. City may terminate this Lease for failure to preserve such records or provide them to City upon Contract Administrator's request. 2. B. Inspection and Audit of Records. The Contract Administrator may at all reasonable times inspect and audit such books, records, cash registers, and other data relating to ConcesslOnaire' s business hereunder to confirm the Gross Receipts as defined herein. If, as a result of any inspection or audit, it is established that additional amounts are due, Concessionaire must pay such additional amounts to the City not later than 30 days after completion of such inspection or audit. If the results of such audit reveal a di tlerence of more than two percent (2%) between Gross Receipts reported by the ConcessiOnaire and Gross Receipts reported by the audit, ConcessiOnaire must pay the cost of the audit. C. Operating Income Reports. The Concessionaire must furnish the Contract Administrator income statements pertaining to this Lease at least four times a year no less often than on a quarterly basis. Further, Concessionaire must submit within 60 days after the close of each Lease year, a cumulative statement of income pertaining to thIS Lease, which covers the entire preceding Lease year, to the Contract Administrator. Such statements must contain information that the Contract Administrator deems necessary and must show adequate detail of all Gross Receipts of the Concessionaire's operations at the Premises, 6. Use. A. Use of Premises. Concessionaire may use the Premises for the following purposes and no other use without the specific written permission of the Contract Administrator. 1. Concessionaire may use the Premises of the Kitchen Facilities to prepare and sell food products, i.e. Goods. 2. 'Kitchen Facilities" means the kitchen facilities, food preparation area, and storage area within the Premises. B. Required Service. 1. Hours. Concessionaire must operate the Kitchen Facilities from at least 7:00 a.m. to 3:00 p.m. Monday through Friday, but may operate longer hours if Concessionaire so desires. City Hall will be closed on holidays recognized by the City and no food service will be required. Contract Administrator has the authority to change the hours at Concessionaire's written request. 2. Breakfast. Service must include, but not be limited to, breakfast sandwiches, taquitos. donuts and rolls. 3. Lunch. Cafeteria style food will include, but not be limited to, one main entree meal choice per day with choices of two vegetables and one combination meal of salad or soup or sandwich. The menu must be cyclical. Short order service will include, but not be limited to: (a) hamburgers, hot dogs, sandwiches, etc.; (b) salad plates, fruIt plates, green salads, etc.; ( c) pastries such as pies, cookies, cakes, brownies, ete; (d) beverages such as cotlee, tea, milk, juices, fountain drinks. 3 ~",^^.".- 4. Inventory. Concessionaire's inventory must include, but not be limited to, items such as trays, paper goods, plastic ware, cookware and small appliances needed to promote the level and quality of service contemplated by this Lease. C. Exclusions. 1. City Manager or Contract Administrator may authorize other food service suppliers to: (a) use the Seating Area and (b) cater events at City Hall, to provide food items for special events. meetings, or City Council food. Any third party user must clean up and repair any daDlage to the Seating Area that is caused by its use of the Seating Area. No third party may use the Kitchen Facilities. 2. Operation of Vending Machines will be by a separate contract and is expressly excluded from this Lease: however, no vending machines will be placed on the Sixth Floor of City Hall. 7 Equipment. A. Equipment Installation. City and Concessionaire must provide at its cost all fumishings, equipment, and improvements necessary to provide a Kitchen Facility on the 6th floor of the City Hall during the Lease and any extension thereof. The City will provide equipment shown in attached Exhibit A. The Concessionaire shall provide a listing of make, model, energy efficiency. and age of equipment it supplies under this Lease, which will be attached and incorporated as Exhibit 8. Provided, however, that City must pay, for the cost of installing any permanent tixtures or equipment. A list of all permanently installed fixtures or eq1lipment will be attached and incorporated as Exhibit C. Contract Administrator is authorized to amend Exhibits Band C to reflect new or replacement Equipment. The new Exhibit B or C becomes effective when filed with the City Secretary. All equipment supplied by Concessionaire must be used for storage, preparation, and/or sale of food, food products and non alcoholic beverages (i.e. Goods) in the Kitchen Facilities. When any of the equipment becomes obsolete or no longer useful for the purpose originally intended, Concessionaire shall replace such equipment at its expense. Energy efficient equipment must be used to replace any of the equipment. B. Title to Improvements. Title to all improvements permanently constructed, installed or attached to the Premises passes to the City at the time of installation or construction. Title to all moveable trade fixtures and equipment and all expendable equipment furnished by Concessionaire at all times remains with Concessionaire; Concessionaire must remove its moveable equipment within a reasonable time after termination or cancellation. 4. ......" ,.- C. Maintenance. Concessionaire must maintain all equipment in the Kitchen Facilities regardless of who owns the equipment. All City-owned Equipment is guaranteed to work for the first six months of this Lease and any repairs during this time will be paid by City. After the first six months. any repair of City-owned Equipment that exceeds $500 will be paid by the City or deducted from the rent owed by Concessionaire, as mutually agreed by Concessionaire and Contract Administrator. If a repair is in excess of $1 ,000, Concessionaire and contract Administrator wl11 determine whether 10 repair or replace the City-owned Equipment and will mutually agree hllw to divide the cost of the repairs. Ownership of Equipment that must be replaced is governed b: the terms of Section 78. D. Maintenance. The Contract Administrator may, at all reasonable times without notice, inspect the Premises to determine if satisfactory maintenance is being performed. If not, Contract Administrator will so notif) Concessionaire in writing. If the maintenance is not performed by Concessionaire within a reasonable time stated in the written notice, Contract Administrator may perfonn the maintenance and charge the City's cost plus 10% overhead to the Concessionaire. E. Cleaning and Sanitation. Concessionaire must maintain the highest standards of sanitation in all areas of food service and its personnel food handling procedure operation of the Kitchen Facilities, Concessionaire must clean the Seating Area and tables. Kitchen Facilities and Seating Area must be cleaned daily by Concessionaire. Concessionaire must sanitize all equipment monthly and post on or near each machine a sanitation chart showing the dates the sanitation was performed. F Food Laws. Concessionaire must adhere strictly to all pure food laws and to all applicable local, city. county, state and federal health and safety regulations and statutes. 8. Trash and Grease Trap. A. Trash. Concessionaire must remove all trash and garbage to the City's dumpster and must not pile boxes or other containers around the Premises. City will provide a dumpster and dillposal for the contents. Concessionaire must not dispose of toxic or hazardous materials, as defined by the Environmental Protection Agency. in the dumpster. B. Grease Trap. Concessionaire will clean, or have cleaned, the grease traps on no leS5 than a monthly basis or more often if deemed necessary, and will properly dispose of the cOlltents of the grease trap 9. Udlities. In return for part of the consideration, City will provide Concessionaire water, wastewater. gas, electricity, and the same lighting, heating, cooling and ventilation as generally provided in City Hall. City will provide a telephone extension for local calls only on its phone system; Concessionaire must provide all its other own phone service. 5 ~'__C-~ 10. Penonnel. Concessionaire must employ sufficient qualified personnel at all times to provide satisfactory service and efficient operation of Kitchen Facilities operations - Management personnel must be thoroughly trained and experienced in Kitchen Facilities operations. Concessionaire is an independent contractor and Concessionaire or its agents or employees are not City employees and thus not entitled to benefits normally accorded City employees. Concessionaire must be solely responsible for the actions or omissions of its employees or agents in performing the obligations of this Lease. Concessionaire must comply with all applicable government regulations and statutes related to employing personnel. If requested, Concessionaire must furnish evidence of its and its employees' compliance with all health regulations to the Contract Administrator. Premises and employees are subject to health inspections or qualitications as required by law. 11. Operation Costs. Concessionaire must pay all its costs of operating hereunder, including without limitation, lllsurance, all taxes, permits and licenses required by law. 13. Laws, Ordinances, Etc. Concessionaire must observe and obey all applicable laws, ordinances. regulations and rules of the federal, state, county and City governments. 14. Rules. The City Manager may adopt and enforce reasonable rules and regulations with respect to the use of the City Hall, and related facilities which Concessionaire agrees to obey and observe 15. Iaspection. Concessionaire must allow the Contract Administrator access to the Premises and equipment at all reasonable hours, to examine and inspect the Premises for purposes necessary. incidental to, connected with the Concessionaire's performance, or in the exercise of its governmental functions. City personnel shall have the right at all reasonable times to enter upon the Premises. including the Kitchen Facilities. for purposes of inspection, repair, fire or police action, and enforcement of this Lease. 16.. Termination. A. Concessionaire. This Lease may be canceled by the Concessionaire if anyone or more of the following events occur: 1. The permanent abandonment of the City Hall. 2. Issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use of the City Hall, which remains in effect for 90 days 6. ~."'--'-'- 3. I f Concessionaire's Kitchen Facilities are so damaged by fire, explosion. the elements. the public enemy, or other casualty not ilttributable to Concessionaire or its employees as to remain untenable Jor more than 30 days, Concessionaire may give the Contract \dministrator written notice of its intention to cancel this Lease in its entirety as of the date of such damage or destruction. B. City. City may cancel this Lease at any time with or without cause. Notice of cancellation must be in writing and will be effective no more than 60 days from the date of \vTitten notice. This notice of cancellation can include, but is not limited to, defaults. breaches, lack of service, or omissions leading thereto. C. Delinquency. Concessionaire will be deemed "delinquent" or "m default" if the City has not received Concessionaire's monthly rental payment and financial statement on or before 5:00 p.m. on the 20th day of the month following the calendar month for which the rental obligations accrue. If the 20th day of the month falls on a weekend or a holiday. the respective payments and financial statement must be tendered on the first business day thereafter. In the event of such delinquency or default the City Manager may, at his option, terminate this Lease after Concessionaire fails or refuses to pay the amounts due or provide the required financial statements within fifteen (! 5) days after City has sent written notice to Concessionaire of such delinquency or default. 17. Indemnity. Concessionaire must indemnify and hold harmless City, its officers, .ployees, or agents ("Indemnities") from and against aU claims, demands, actions, ...ages, losses, costs, liabilities, expenses, and judgments recovered from or asserted ..st City on account of injury or damage to person or property to the extent any such ...age or injury may be incident to, arise out of, or be caused, either proximately or ......tely, wholly or in part, by an act or omission, negligence, or misconduct on the part of Cencessionaire or any of its agents, servants, employees, contractors, patrons, guests, UleDlees, or invitees entering upon the Premises or any Improvements thereon pursuant t. this Lease with the expressed or implied invitation or permission of Concessionaire (eollectively "Concessionaire's Invitees") or when any such injury or. damage is the result, proximate or remote, of the violation by Concessionaire, or Concessionaire's Invitees of Bay law, ordinance, or governmental order of any kind, or when any such injury or damage may in any other way arise from or out of the Improvements located on the Prelllises herein or out of the use or occupancy of the Improvements to the Premises or the Prelllises itself by Concessionaire, or Concessionaire's Invitee!. 7 Coneessionaire covenants and agrees that in case City shall be made a party to any Ii....tion against Concessionaire or in any litigation commenced by any party t other than C..cessionaire relating to this Lease, Concessionaire shan defend City upon receipt of reMoRable notice regardiDg commencement of such litigation. 18. Insurance. The Concessionaire must obtain and maintain the minimum insurance listed on the attached and incorporated Exhibit D for the period of the Lease at its own expense and use an insurance company or companies acceptable to the Contract Administrator and must furnish the Contract Administrator with a Certificate of Insurance evidencing that such insurance is in effect. The Certificate must specify parties who are additional insured and must indicate endorsements which are specifically included or excluded. Such Certificate and insurance must not be canceled, materially changed, or not renewed without 30 days prior written notice to the Contract Administrator. A copy of all insurance policies will be provided to the Contract Administrator upon his/her written request. 19. Assignment. This Lease may not be, in whole or in part, assigned or transferred directly or indirectly without the prior written consent of the City. 21. Redelivery. ConcessIOnaire must make no unlawful or offensive use of the Kitchen Faeilities and must. at the expiration or sooner cancellation hereof, without notice, redeliver the Kitchen Facilities to the City, peaceably. quietly and in good order and condition, reasonable use an4 wear thereof excepted 21. Attorney's Fees. If any action or proceeding is brought to collect the fees due or to become due hereunder. or any portion thereof, or to take possession of the Premises, or to enforce compliance with the Lease. or for failure to observe any of the covenants of the Lease, Concessionaire must pay the City such sum as the Court may adjudge reasonable as attorney's tees in said action or proceeding, or in the event of an appeal as allowed by the Appellate Court, if a judgment is rendered in favor of the City. 22. Non-Waiver. Any waiver of any breach of covenants herein contained to be kept and performed by either party hereto is not deemed or considered as a continuing waiver, and does not operate to prevent the other party hereto from declaring a forfeiture, termination or caacellation for any succeeding breach, either of the same condition or covenant or otherwise. Acceptance or payment of fees will not be deemed a waiver. 23. Force Majeure. Neither Concessionaire nor the City will be held in default under this Lease for failure to perform hereunder. if such failure is due to strikes, riots, insurrections, fire, war, acts of God, inability to obtain labor, machinery, material or merchandise or for any cause beyond a reasonable control, provided every reasonable effort has been made to perform as required herein. 8 However. the City will not be responsible for any loss to the Concessionaire due to temporary suspension of operations. regardless of cause. Such suspension(s) may result from but are not limited to: power failure. tire. and/or extraordinary weather conditions. 24. Nondiscrimination. ConcessIOnaire agrees that, during the Lease, it will: a) Treat all applicants and employees without discrimination as to race, color, religion, sex, national origin, marital status, age, or handicap. b) Identify itself as an "Equal Opportunity Employer" in all help wanted advertising or requests. 25. Notices. All notices, demands, requests or replies provided for or permitted by this Lease shall be in writing and may be delivered by anyone of the following methods: (1) by personal delivery: (2) by deposit wi th the United States Postal Service as certified or registered mail, return receipt requested, postage prepaid to the addresses stated below; (3) by prepaid telegram, or (4) by deposit with an overnight express delivery service at: [f to City: City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469-9277 Attention:Purchasing Department, Mike Barrera Fax Number: (361 ) 826-3174 [f to Concessionaire: FT LLC 1809 Morgan Ave Corpus Christi, Texas 78404 Fax number: (3611 888-6018 Notice deposited with the United States Postal Service in the manner described above will be deemed effective one (1) business day after deposit with the U. S. Postal Service. Notice by telegram or overnight express delivery service will be deemed effective one (1) business day after transmission to the telegraph company or overnight express carrier. 2" Taxes and Fees. Concessionaire must pay all taxes, licenses, and fees required to operate aIMi maintain it's Kitchen Facilities on the Premises. Further, Concessionaire must pay all taxes which its use of the Premises and Kitchen Facilities may cause to be assessed against the Premises and Kitchen Facilities. Concessionaire must pay all payroll taxes and related taxes and fees incident to operation of its Kitchen Facilities on the Premises. All such taxes and fees must be paid prior to the due date thereof 9 ......~'",.... Additionally, Concessionaire covenants to timely 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 must provide proof of payment of these taxes to the Contract Administrator within 30 days after his/her written request thereof. Failure to payor provide proof of payment is grounds for immediate tennination of this Lease. 27. ~ifiC.tiODS. No changes or modifications to the Lease may be made, nor any provIsIOn waived, unless in writing signed by a person authorized to sign agreements on behalf of each party. 28. FlaaKing. City recognizes that Concessionaire may borrow funds for improvements to the Kitchen Facilities. and its lender or lenders will require a first lien upon Concessionaire's leasehold. The fee simple estate of Lessor in the surface estate burdened by Concessionaire's leasehold estate must be exempt from such lien, and any lien must contain the following language' "Lender agrees that the lien created by this instrument is effective only as to Concessionaire's leasehold estate created by that certain lease dated executed by the City of Corpus Christi, as Lessor, and _' as Concessionaire, and does not affect Lessor's interest. being the fee simple estate burdened by Concessionaire's leasehold estate" or such other. similar. language as may be approved by the City Attorney. In the event of any foreclosure by any lender of its lien or liens on the Kitchen Facilities or fixtures. or trade fixtures, such lender succeeds hereunder to all rights, privileges, and duties of Concessionaire. including without limitation paying rent, as if said lender was originally named tenant herein, and such lender will have a reasonable time after date of foreclosure (not more than 180 days) to sublease The Kitchen Facilities to such parties as may be approved by City. .29. Signs. Concessionaire must not place, paint. or otherwise affix any sign at, on or about the Premises, or any part thereof, without the Contract Administrator's prior written approval. The City may require ConceSSIOnaire to remove, paint, or repair any signs allowed. If Concessionaire does not remove. paint or repair the signs within ten days of demand thereof in writing, the City may remove, paint or repair the signs and charge Concessionaire the City's expenses plus 10% overhead. Concessionaire agrees to pay within 30 days after City sends an invoice to Concessionaire. Concessionaire may place menu signs and displays in the walls of the cafe. Additionally, Concessionaire intends to periodically exhibit the work of local artists at the cafe. Concessionaire may do so with prior approval of Contract Administrator. 10. ~._---,~ 30. AlterationslImprovements. Concessionaire must not make any alterations to the Premises without the prior written consent of the City Manager 31. Cllanges in Lease. ThIs Lease contains the entire agreement between the parties. None of the covenants. terms. or conditions of this Lease may be altered or waived, except by a written instrument. duly signed by authorized representatives of the parties hereto. And no act or omission or waiver by the City as to a default, either in whole or in part, by Concessionaire of a covenant, term, or condition of this Lease, waives the City's right to insist upon Concessionaire's full performance in the sanle manner and to the same extent as the same are herein covenanted to be performed by the Concessionaire. 32. Lease Relationship. The parties hereby create a landlord/tenant relationship, and this Lease must be construed conclusively in favor of that relationship. Nothing herein, neither the method of computation of rent, or any other provision contained herein, or any of the acts of the parties, creates a relationship of principal and agent, or of partnership, or of joint venture between the parties hereto. 33. Holding Over. If Concessionaire, with the consent of City, continues to remain on the Leased Premises after the lease term, then Concessionaire becomes a tenant from week to week, notwithstanding the duration of time for which rent may be paid, and the City Manager has the absolute right to terminate such tenancy upon 7 calendar days notice. 34. Pest Control. City \\ ill provide pest control services to the Premises and Seating Area approximately quarterly. Concessionaire may provide more frequent pest control services at its expense, but must notifY the Contract Administrator at least two (2) business days prior to any pesticide application. 35. Captions. The captions employed in this Lease are for convenience only and do not in any way limit or amplify the terms or provisions hereof. 36.. Interpretation. This Lease will be interpreted according to the Texas laws which govern the interpretation of contracts Venue lies in Nueces County, Texas, where this Lease was entered into and will be performed 11 ~..,'- 37. Eatirety Clause. This Lease and the incorporated and attached exhibits constitute the entire agreement between the City and Concessionaire for the use granted. All other agreements, promises, and representatIOns. unless contained in this Lease, are expressly revoked, as the parties intend to provide for a complete understanding within the provisions of this Lease and its exhibits. uf the terms, I..:onditions, promises, and covenants relating to Concessionaire's operations and the Premises to be used in the operations. The unenforceability, invalidity, or illegality of any provision of this Lease does not render the other provisions unenforceable, invalid. or illegal 3& Severance Clause. If for a reason any section, paragraph, subdivision, clause, phrase, word, or provision of this lease is held and invalid or unconstitutional by a final judgment of competent jurisdiction, it does not affect any other section, paragraph, subdivision, clause, phrase, word, or provision of this lease for it is the detinite intent of this lease that every section, paragraph, subdivision. clause. phras..:. word. or provision here of the given full force and effect for its purpose Signed in duplicate Originals~__}L. 2006. Attest: ~.--_ B~ _ Armando hapa, City Secretary By: ~ A ___ ____________________ Skip Ni!d& ~tanager ~')( t~ 0 2 ~9 3\rrM06l11.lw ~ r,t)tt~'l =. f /7- ~ ~ ._'__ ._.___-..._.......A ~rrtrr .-ft-r' (~ Legal t(mn approved by Attorney. by ____ ____ ; Mary Fisher, City _______, Assistant City Attorney. /. Approved as to fonn: g-2"-(J~ : r;j(o(}Miti Doyl . Curtis Santo Istant City Attorney ~h;~ AJNiN L4W ~~'6tJ "..'....'- Exhibit A (List of equipment provided by the City.) ........'.....,~ Exhibit B (List of equipment provided by the Concessionaire.) - - Exhibit C (List of all permanently installed equipment and fixtures.) -^- INSURANCE REOUIREMENTS SECTION I. SUCCESSFUL BIDDER'S LIABILITY INSURANCE B. Successful Bidder must not commence work under this agreement until all insurance required herein has been obtained and approved by the City. Successful Bidder must not allow any subcontractor to commence work until all similar insurance required ofthe subcontractor has been obtained. Successful Bidder must furnish to the City's Risk Manager, two (2) copies of Certificates of Insurance, with the City named as an additional insured for all liability policies. A blanket waiver of subrogation is required on all applicable policies, showing the following minimum coverage by insurance company(s) acceptable to the Cit 's Risk Mana er. MINIMUM INSURANCE COVERAGE Bodily Injury and Property Damage A. TYPE OF INS CE 3O-Day Notice Cancellation, non- renewal, material change,or termination required on all certificates Commercial Geoeral Liability including: 1. Commercial Form 2. Premises - Operations 3. Products! COllf>leted Operations Hazard 4. Contractual Insurance 5. Food Handlers.Liabihty 6. Independent Contractors 7. PersonallnJlll} Workers' Compensation $500,000 COMBINED SINGLE LIMIT Required if Successful Bidder employs any person other than hlmself1 herself: WHICH COMPLIES WlTH THE TEXAS WORKERS' ICOMPENSA TION ACT & SECTION II OF THIS EXEUBIT Employers' Liability c. $ 100,000 In the event of accidents of any kind, Successful Bidder must furnish the Risk Manager with copies of all reports of such accidents at the same time that the reports are forwarded to any other interested parties. ~.,'- INSURANCE REQUIREMENTS SECTION I. SUCCESSFUL BIDDER'S LIABILITY INSURANCE A. Successful Bidder must not commence work under this agreement until all insurance required herein has beea obtained and approved by the City. Successful Bidder must not allow any subcontractor to commence work until all similar insurance required of the subcontractor has been obtained. B Successful Bidder must furnish to the City's Risk Manager, two (2) cOIJies of Certificates of Insurance, with the City named as an additional insured for all liability policies. A blanket waiver of subrogation is reqllired on all applicable policies, showing the following minimum coverage by insurance company(s) acceptable to the City's Risk Manager. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30-Day Notice of Cancellation, non- renewal, Bodily Injury and Property Damage material clange or termination required on all certificates Commercial General Liability including: 1. COJ8mercial Form $500,000 COMBINED SINGLE LIMIT 2. Pre-.i,ses - Operations 3. Pr~ctsl Completed Operations Hazard 4. Co*actual Insurance 5. Fooi Handlers Liability 6. Independent Contractors 7. Personal Injury Workers' cempensation Required if Successful Bidder employs any person other than himself I herself: WHICH COMPLIES WITH THE TEXAS WORKERS' .COl\1PENSA nON ACT & SECTION II OF THIS EXHIBIT Employers' Liability $100,000 C. In the event of accidents of any kind, Successful Bidder must furnish the Risk Manager with copies of all reports .f such accidents at the same time that the reports are forwarded to any other interested parties. City Hall Food Sci.ntIPc insurance requirements 9-12"(}2 cp Risk ~ ~""'"*""' SEC110N II. ADDITIONAL REQUIREMENTS A. If applicable, as stated in Section I - B. Table, Successful Bidder must obtain workers' compensation coverage through a licensed insurance company or through self-insurance obtained in accordance with Texas law. If such coverage is obtained through a licensed company, the contract for coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. Whether workers' compensation coverage is provided through a licensed insurance company or through self-insurance. the coverage provided must be in an amount sufficient to assure that all workers' compensation obligations incurred by Successful Bidder will be promptly met. B. Certificate ofInsurance: · The City of Corpus Christi must be named as an additional insured on the liability coverage, except for the Workers' Compensation coverage and a blanket waiver of subrogation is required on all applicable policies. · If your insurance company uses the standard ACORD form, the cancellation clause (bottom right) must be amended by adding the wording "changed or" between "be and "canceled", and deleting the words, "endeavor to", and deleting the wording after "left". · The name of the project must be listed under "Description of Operations". · At a minimum, a 30-day written notice of material change, non-renewal, termination or cancellation is required. ( If the Certificate of Insurance on its face does not show the existence of the coverage required by items I - B Table (1)-(7), an authorized representative of the insurance company must include a letter specifically stating whether items I-B. Table (1 )-(7) are included or excluded. City HalltFood Service Bidder Insurance requirements 9-12-02 tIP Risk Mgmt. ~.;-.-.,-