HomeMy WebLinkAboutC2007-035 - 3/5/2007 - NAPage 1 of 8
ONE YEAR LEASE WITH
GEORGE EDWARDS, DBA G. EDWARDS ENTERPRISES,
TO PROVIDE CONCESSION SERVICES
AT GABE LOZANO SR. GOLF CENTER AND
AT OSO BEACH MUNICIPAL GOLF COURSE
THE STATE OF TEXAS §
COUNTY OF NUECES §
KNOW BY ALL THESE PRESENTS:
This Lease (this "Lease') is entered into between the City of Corpus Christi, a Texas
home-rule municipal corporation ("City"), and George Edwards, dba G. Edwards
Enterprises 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. The City leases the Premises described on the attached and i corporated
Exhibit "A" (Premises) to Concessionaire for one year beginning Z~
unless sooner terminated.
2. Concession Rights. In consideration of the rent paid by the Concessionaire, and of
the covenants herein, City grants Concessionaire the exclusive right to use the
Premises,. including the basic utilities at the Gabe Lozano Sr. Golf Center and Oso
Beach Municipal Golf Course to make direct sales to the public of food, drinks, and
beer
Concessionaire may use vending machines to sell beverages, snacks, tobacco and
other merchandise customarily handled by a roncessionaire. Concessionaire may use
a mobile concession on the golf course grounds with prior written approval from the
Director of Parks & Recreation or designee ("Director").
Director expressly retains the right to
(1) Make final decisions on matters that may arise, not specifically covered in this
Lease. including the interpretation hereof.
(2) Sell space for either temporary or permanent signs.
(3) Approve the form. price, and price increase of products and services to be sold
and/or provided by Concessionaire. Disposable containers (paper or plastic)
suitable for consumption of the products on Premises immediately after the sale are
2007-035
03/OS/0?
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F,dH girds. George
Page 2 of 8
required and must meet Directors approval. Glass bottles are not permitted.
Concessionaire must not reuse a container after initial sale or use.
3. Location. Except for the supervision of the Director, Concessionaire has exclusive
control over the Premises subject to the terms, conditions, and covenants of this Lease.
4. Basic Utilities. Included as part of the monthly rental payment to City, City will
provide. Basic electrical services for lights, refrigerators, air conditioning, etc.; water
service:: wastewater service; and garbage pickup. Concessionaire will be responsible
for additional electrical costs due to the installation of heavy-utility equipment or
adjustments to payments to the City
5. Concessionaire Res{~nsibilities. The Concessionaire will be responsible to the
City as follows:
(1}Concessionaire must furnish, install, service and maintain in good working order
all equipment, including cooking, dispensing, and cooling equipment, and supplies
required to properly execute this Lease. Vending machines remain the exclusive
property of the Concessionaire..
(2) 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").
(3) Insurance. Concessionaire must secure and maintain at Concessionaire's
expense during the term of this Lease, a Commercial General Liability insurance
policy with the limits and requirements shown on the attached and incorporated
Exhibit "B". The Certificate of Insurance must be sent to the Director and a copy to
City s Risk Manager and must provide 30 days written notice of cancellation, intent
to not renew or material change of any coverage required herein. Concessionaire
shall provide copies of all insurance policies to the Risk Manager upon City
Manager's written request.
(4) The food and drink will be dispensed by attendants furnished by the
Concessionaire at Concessionaire's expense. All employees who are involved in
the serving of alcoholic beverages must be certified through a TABC approved
program. Concessionaire's minor cleanup duties will consist of keeping tables
clean, cleaning up spilled food and drink, frequent cleaning of windows, floors, walls,
and ceiling fans (if installed) and removal of trash from the Premises and the outside
area
(5) Concessionaire will furnish all related supplies and condiments. Tables and
chairs in the service area are provided by the City.
(6) Concessionaire will provide suitable signs at the facility advising the public that
Concessionaire is serving as an independent contractor.
C6 '9C7D'; ~easeGeorce.EdHar 7s Concessr ^ y doc
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r ?) The Concessionaire will immediately report, upon discovery, any vandalism or
malfunction of facilities to the Director (880-3461) or Head Golf Pro (826-8010), and
any problems relating to unlawful activity to the Police Department (882-1911) if non-
emergency or 911 for emergency response.
(8) Goncessionaire 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.
(9) Director will approve the quality. quantity, and price schedule of all concession
merchandise. Selling price will exclude all applicable state and local sales tax. All
commNssions or percentages paid to the City must be on basis of gross sales, less
sales tax and alcoholic beverage tax.
(10} Concessionaire will sell various sundry items (i.e., aspirin, non-prescription
cold tablets, insect repellant, etc } A list of such items being offered for sale and
their price must be approved by the Director prior to sale.
6. MaMnthly Payments; Late Payment Fee. Commencing with the effective date of this
Lease, Concessionaire must, by the 10tH day of each month, pay to the City at the Office
of Collections the following: $1.00 per location for the first three (3) months for Gabe
Lozano Sr. Golf Center and Oso Beach Municipal Golf Course. Effective the fourth
month of this lease. lessee must pay thirteen percent (13%) of Concessionaire's
monthly Gross Receipts, or $1,300.00 per month, whichever is greater, for the Gabe
Lozano Sr. Golf Center concession; and thirteen {13%) of Concessionaire's monthly
Gross Receipts, for the Oso Beach Municipal Golf Course. These payments are for the
life of this Lease, calculated on a monthly basis. For any payment not paid by the 10tH
day of the month, Concessionaire shall pay, by the 10tH day of the following month, to
the City at the Office of Collections a late payment fee equal to five (5%) per cent of the
!ate payment.
'Gross Receipts' mean Concessionaire's total revenue for concession merchandise
sold at the Premises excluding applicable sales tax and alcoholic beverage tax.
Concessionaire must 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 designee {"Director of Finance"), as the same may be amended
from time to time Concessionaire must submit to the Director a copy of all quarterly
sales and use tax reports. The Director of Finance will approve Concessionaire's
system of accounting for the Gross Receipts..
?. Books of Account. The Concessionaire must keep true and accurate records in a
format acceptable to the Director of Finance. The Director or Director of Finance may
audit Concessionaire's records of Gross Receipts and all pertinent records at a
reasonable time to determine their accuracy and Concessionaire's compliance with the
Lease terms.
06 •:~907DC~easeGecrge Etlwarr.s Concessr ~ ~ 7oc
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If a monthly report of Gross Receipts understates Gross Receipts by 10% of the true
Gross Receipts.. that monthly report is deemed to be knowingly and falsely furnished by
Concessionaire and is grounds for the City to immediately terminate this Lease.
8 Retention of Records. Concessionaire will retain permanent books, ledgers,
journal accounts, and backup documentation for five years after the termination or
expiration of this Lease and any holdover periods. Concessionaire must comply with all
federal. state, or local accounting rules.
Upon the Director's written request, the Concessionaire will prepare a report of its
opera#ions under the Lease in a format acceptable to Director, and submit the report to
Director within 60 days of his written request thereof.
9. Audits. If an audit establishes that Concessionaire owes City more money,
Concessionaire must pay the additional money within 30 days after Director's written
demand thereof. If the audit establishes that Concessionaire has under reported Gross
Receipts by 2% or more. Concessionaire must pay all costs of the audit.
10 Other Food. Any allowances or adjustments for allowing other food or drinks on
the Premises must have prior approval from Concessionaire.
1 ~ General Provisions.
(1) Concessionaire will not on the grounds of disability, sex, race, color, or national
origin, discriminate or permit discrimination against any person or group of persons
in any manner The City Manager 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) Concessionaire will furnish service on a fair, equal, and nondiscriminatory basis
to all u~rs thereof, and will charge fair, reasonable, and nondiscriminatory prices for
each unit of service.
(4) Cancellation; Termination. Director retains the right at any time to cancel this
Lease without cause upon sixty (60) days written notice to Concessionaire. Director
may terminate this Lease with cause upon thirty (30) days written notice to
Concessionaire The Concessionaire may terminate this Lease without cause if the
Concessionaire provides the Director sixty (60) days advance written notice.
Notices must be given in writing by sending by first class mail, postage prepaid, to
the following:
IF TO CITY:
City of Corpus Christi
Attn~ Director of Parks and Recreation
P.O Box 9277
Corpus Christi, Texas 78469-9277
IF TO CONCESSIONAIRE:
George Edwards
dba G. Edwards Enterprises
5115 Cosner Dr.
__ _ Cor us Christi, Texas 78415
O6 `~947G: _easeGeorge Ed~aru Concessr ~ y ~o<
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_.-.__ _
__
(361;; 880-3461 (361) 814-9919
(361 j 880-3864 fax
or at any other address that each party may designate to the other in writing.
(5) Concessionaire may not alter the Premises without prior written consent of the
Director. All alterations made by the Concessionaire become the property of the
City in fee simple, without any further action or process of law upon termination of
the Lease.
(6) In any legal action undertaken by any party hereto to collect for any damages
growing out of or compensation due under this Lease, the prevailing party must be
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)lndernnity. To the extent permitted by Texas Law,
Concessionaire, its officers, members, partners, employees,
agents, and licensees ("Indemnitors") hereby fully indemnify, save
ar~d hold harmless the City of Corpus Christi, its officers,
employees, agents, licensees, and invitees ("lndemnitees") against
any and all liability, damage, loss, claims, demands and actions of
any nature whatsoever on account of personal injuries (including,
without limitation on the foregoing, worker's 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 caused
by, or are claimed to arise out of or be in any manner connected
with, or caused by either proximately or remotely, wholly or in part,
an act or omission, negligence or misconduct by lndemnitors or
lndemnitees or any of Indemnitor's of lndemnitee's agents,
servants, employees, contractors, patrons, guests, licensees, or
invitees entering upon the Premises pursuant to this Lease, or any
of the hazards commonly associated with the operation of a food
and beverage concession; or the violation by lndemnitees,
Concessionaire, or any of its agents, servants, employees,
contractors, patrons, guests, licensees, or invitees of any law,
ordinance, or governmental order of any kind, or improvements
located on the Premises herein or out of the use or occupancy of
the improvements to the Premises or the Premises itself by
Indemrtitees, Concessionaire, its agents, servants, employees,
contractors, patrons, guests licensees, or invitees.
The terms of indemnification are effective even though said injury
or damage may result from the sole negligence, contributory
06 ?9C7G~; ._easeGzarae Etlwarns Concessr ~ ~r hoc
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negligence, or concurrent negligence of lndemnitees or any of
them. Concessionaire must at its own expense, investigate all
those claims and demands, attend to their settlement, or other
disposition, defend all actions based thereon with counsel
satisfactory to lndemnitees and pay all charges of attorneys and all
other costs and expenses of any kind from any of said liability,
damage, loss, claims, demands, or actions.
(8) Concessionaire must complete an incident/accident report for each incident/injury
that occurs on the Premises. Concessionaire must provide City with copy of all
incident/accident reports as they are completed.
(9) Concessionaire must submit a completed Disclosure of Interest Form as part of
this Lease
(10) Concessionaire agrees to pay the costs of newspaper publication of this
Lease and related ordinance as required by the City Charter.
(11) 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 must 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 will be grounds for immediate termination of this Lease and a penalty fee
may be added
06 !'9Q7Dt' ',_easeGeorge.Edwares Concessr ^ y• doc
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SIGNED this-day of ~~, ~ ~____. 2007.
ATTEST:
-- ~,
' ~, .
Armando Chapa
City Secretary
CITY OF CORPUS CHRISTI
Ge ge .Noe
City Manager
APPROVED AS TO LEGAL FORM 7 February 2007
Doyle D Curtis
Chief, Administrative Law Section
Senior Assistant City Attorney
For City Attorney
STATE OF TEXAS
COUh1TY OF NUECES
This instrument was acknowledged before me on ~ ~ , 2007, by
George K Noe, City Manager, or designee ,
of the City of Cor ~ xas ho a-rule
mu,>~ipal corporate , on b alf of the corporatio ~'yP``s< ~," ~" Park.. `'
~ ci0('~ Fps' f.r~
~. z ~ n~~, - nT ~ ~,0 l ~~14
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Seal _' f ~ ~ - __
No ary Public, State of Texas ~~
My Commission Expires
Notary's Printed Name
O6 ! 507D~: ~easeGeorge.Edwares Concessr ^ ~r ioc
Page 8 of 8
CONS! NAIRE: Gee warms
Name` c~ (~ wv~'
~/
Title: ~~ ~ly~l ,~
STATE OF TEXAS
COUhlTY OF NUECES n
his instru nt was acknowledged before me or~~,~-- ~ -' , 2007, by
o rge E d r ~ ~ ~`
~ . ,~a•~~:•~• DONNA 1 DELEON
t '~ ` _'/'~~ : Notary Public
~..r---.__ _ Seal: I• ~,~_
STATE OF TEXAS
N to Public, State of Texas ~' `'~?~'~` My Comm. .08-11-2008
~' !t a,00~3 ~ ~
My Commission Expires s Printed Name
~6 ~i907DC '~easeGenrge Edwaras Concessr t rr doc
EXHIBIT A-1
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EXHIBIT B
INSURANCE REQUIREMENTS
Section I. CONCESSIONAIRE'S LIABILITY INSURANCE
A. Concessionaire must not commence work under this permit until all insurance required herein
has been obtained and such insurance has been approved by the City. Concessionaire must
not allow any subcontractor to commence work until all similar insurance required of the
subcontractor has been obtained.
B. Concessionaire must fumish to the City's Risk Manager, two (2) copies of Certificates of
Insurance, showing the following minimum coverage by an insurance company(s) acceptable to
the City's Risk Manager. The City must be named as an additional insured for the General
liabi~ty polk;y and a blanket waiver of subrogation is required on all applicable policies.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30 day wriitMn natlce of cancellation, material Bodily Injury and Property Damage
change, non-renarval or termination and a10-
day written notia~ of cancellation for non
payment of premium is required on all
certificates
Commerciat Ger~ral Liability including: $1,000,000 COMBINED SINGLE LIMIT
1. Con~nercial Form
2. Premises -Operations
3. Products/ Completed Operations
Hazard
4, Contractu~ Liability
5. Broad Forth Property Damage
6, Independ®nt Contractors
7. Perttonallnjury
LIQUOR LIABILITY $1,000,000 COMBINED SINGLE LIMIT
AUTOMO~LE LIABILITY--OWNED, NON- At a minimum, State required minimum limits
OWNED OR RENTED of $20,000 per person / $40,000 per
occurrence for Bodily Injury and $15,000 for
Property Damage
WORKERS' COMPENSATION WHICH COMPLIES WITH THE TEXAS
WORKERS' COMPENSATION ACT AND
# SECTION II OF THIS EXHIBIT
EMPLOYERS' LIABILITY $500,000
C. In the event of accidents of any kind, the Concessionaire must fumish the Risk Manager with
copies of aM reports of any accidents within 10 days of the accident.
Golf Course Concessionaire ins req ; 8-27-04 ep .Risk Mgmt
Sectior- Il. ADDITIONAL REQUIREMENTS
A. Concessionaire must obtain workers' compensation coverage through a licensed
insurance company. The contract for coverage must be written on a policy and
endorsements approved by the Texas Department of Insurance. The coverage
provided must be in an amount sufficient to assure that all workers' compensation
obligations incurred by Concessionaire will be promptly met.
B. Certificate of Insurance:
The City of Corpus Christi must be named as an additional insured on the
General Liab~ty 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 cancellation, material change, non-
renewal or termination and a 10-day written notice of cancellation for non-
payment of premium is required.
C. If the Cert~cate of Insurance does not show on its face the existence of the coverage
required by items 1.B (1)-(7), an authorized representative of the insurance company
must include a letter specifically stating whether items 1.6. (1)-(7) are included or
excluded.
Golf Cot~se Concessionaire ins req ; 8-27-04 ep Risk Mgmt