HomeMy WebLinkAboutC2008-412 - 10/20/2008 - NACONCESSION AGREEMENT WITH GEORGE EDWARDS, DBA G. EDWARDS
ENTERPRISES, TO PROVIDE CONCESSION SERVICES AT OSO BEACH
MUNICIPAL GOLF COURSE
THE STATE OF TEXAS §
KNOW BY ALL THESE PRESENTS:
COUNTY OF NUECES §
This Concession agreement (this "Agreement") 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 Concessionaire shall provide concession services at the Oso Beach
Municipal Golf Course, said premises depicted on the attached and incorporated Exhibit
"A" (Premises) on a month-to-month basis, effective upon signature by City Manager,
until terminated in accordance with this agreement.
2. Concession Rights. In consideration of the monthly payments paid by the
Concessionaire, and of the covenants herein, City grants Concessionaire the exclusive
right to provide concession services at the Premises, and authorizes use of the basic
utilities at the 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 concessionaire. 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
Agreement, 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
'red-arntmust- 1-Gla~~otttes 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
Agreement.
2008-412
10/20/08
Edwards, George
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4. Basic Utilities. Included as part of the monthly 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 Responsibilities. 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 agreement. 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"),
including all applicable health and food handler laws and regulations.
(3) Insurance. Concessionaire must secure and maintain at Concessionaire's
expense during the term of this Agreement, insurance 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. All employees who are involved in serving of beverages and food must
maintain all applicable food and drink handler permits. 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.
Concessionaire will provide suitable signs at the
icessionaire is servino as an independent contrs
the public that
(7) The Concessionaire will immediately report, upon discovery, any vandalism or
malfunction of facilities to the Director (826-3461) or Head Golf Pro (826-8016), and
any problems relating to unlawful activity to the Police Department (826-2600) if non-
emergency or 911 for emergency response.
(8) 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.
(g) 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
commissions 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.
(11) Concessionaire must be open for business during the same hours that the golf
course is open. Concessionaire shall make sure to provide adequate staffing to
provide concession services.
(12) Concessionaire must maintain a service contract for pest control at the
Premises.
6. Monthly Payments; Late Payment Fee. Commencing with the month of final
Council approval, Concessionaire must, by the 10th day of each month, pay to the City
at the Office of Collections the following: thirteen percent (13%) of Concessionaire's
monthly Gross Receipts for the prior month for the Oso Beach Municipal Golf Course
concession. These payments are for the life of this Agreement, 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 late 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 10t"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.
7. 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
au i oncessionaire s records of Gross Receipts and all pertinent records at a
reasonable time to determine their accuracy and Concessionaire's compliance with the
Agreement terms.
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 Agreement.
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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 Agreement 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
operations under the Agreement in a format acceptable to Director, and submit the
report to Director within 14 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.
11. 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 users thereof, and will charge fair, reasonable, and nondiscriminatory prices for
each unit of service.
(4) Cancellation; Termination. Director may cancel this agreement immediately
for nonpayment of monthly fees. Director may cancel this agreement for other
cause upon ten days notice and opportunity to cure. Director may terminate this
agreement at any time without cause upon thirty days written notice to
Concessionaire. Notices must be given in writing by sending by first class mail,
postage prepaid, to the following:
IF TO CITY:
City of Corpus Christi IF TO CONCESSIONAIRE:
George Edwards
crea ion - ~5-a G-Edw~s Enterpnses
P.O. Box 9277 5115 Cosner Dr.
Corpus Christi, Texas 78469-9277 Corpus Christi, Texas 78415
(361)880-3461 (361)814-9919
361 880-3864 fax
or at any other address that each party may designate to the other in writing.
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(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 Agreement.
(6) In any legal action undertaken by any party hereto to collect for any damages
growing out of or compensation due under this Agreement, 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)Indemnity. To the extent permitted by Texas Law,
Concessionaire, its officers, members, partners, employees,
agents, and licensees ("lndemnitors") hereby fully indemnify, save
and 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 Agreement, 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
Indemnitees, Concessionaire, its agents, servants, employees,
contractors, patrons, guests licensees, or invitees.
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.
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(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 Agreement.
(10) 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 ten (10) days after payment is due
upon Director's written request therefor. Failure to pay or provide proof of payment
will be additional grounds for immediate termination of this Agreement.
SIGNED this~Q~day of ~, 2008.
ATTEST:
Arman o Chapa
City Secretary
APPROVED AS TO LEGAL FORM
Lisa Aguil
Assistant City Attorney
For the City Attorney
RE: George
CITY OF CO~~R++PUS~~CHRISTI
G~a,~
' el R. Escobar, P.E.
Interim City Manager
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Title:
STATE OF TEXAS
ment was acknowledged before me on '(~,/~1 ~ j , 2008, by
Seal:
Public, State of Texas ~~o;:v4~ DONNA I, DELEON
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STATE OF TEXAS
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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 furnish to the City's Risk Manager or designee with 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 liability policy and a blanket waiver of subrogation is
required on all applicable policies.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30 day written notice of cancellation, material Bodily Injury and Property Damage
change, non-renewal or termination is
required on all certificates Per occurrence -aggregate
$1,000,000 Combined Single Limit
Commercial General Liability including:
1. Commercial Form
2. Premises -Operations
3. Products/ Completed Operations
4. Contractual Liability
5. Food handlers Liability
6. Independent Contractors
7. Personal Injury -Advertising Injury
Liquor Liability $1,000,000 Combined Single Limit
At a minimum, State re uired minimum limits of
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Automobile Liability -Owned, non-owned or
Rented $50,000 per person / $100,000 per occurrence
for Bodily Injury and $50,000 for Property
Damage
Property Insurance Concessionaire will be responsible for any and
all damage to equipment used regardless if
owned, rented, leased or borrowed.
Workers' Compensation Which Complies With the Texas Workers'
Compensation Act and Section II of this Exhibit
$500,000
Employers' Liability
C. In the event of accidents of any kind, the Concessionaire must furnish the Risk Manager
with copies of all reports of any accidents within 10 days of the accident.
2008 Golf Course Concessionaire ins. req
10-2-OS ep Risk Mgmt
Section II.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
with 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.
The City of Corpus Christi must be named as an additional insured on
the General Liability coverage, and a blanket waiver of subrogation is
required on all applicable policies.
Page 10 of 10
* 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". In lieu of modification of the ACORD form,
separate policy endorsements addressing the same substantive requirements
are mandatory.
* 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 is required.
2008 Golf Course Concessionaire ins. req.
10-2-08 ep Risk Mgmt
H:\LEG-DIR\Lisa\200a Parks antl Recreation\LeaseGeor9e EtlwardsConcessn.shontean month October 8.doc