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HomeMy WebLinkAboutC2009-102 - 3/10/2009 - ApprovedLEASE AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND TRT HOTEL COMPANY LLC STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES § This lease agreement ("Lease") is entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation ("City"), acting through its duly authorized City Manager, or his designee ("City Manager"), and TRT Hotel Company LLC, acting through its Director of Sales and Marketing. WHEREAS, the City owns the McGee Beach Concession Stand and McGee Beach, Corpus Christi, Nueces County, Texas ("Premises"); WHEREAS, Lessee has requested the use of the Improvements on the Premises for the purpose of operating a food service operation and use of the beach area on the Premises, subject to the terms, conditions and covenants contained in this Lease; and, WHEREAS, City desires to allow Lessee to use the Premises for this purpose. NOW, THEREFORE, City and Lessee, in consideration of the mutual promises and covenants contained herein, agree as follows: Section 1. Definitions. (A) City means the City of Corpus Christi, Nueces County, Texas, a home rule municipal corporation. (B) City Manager means the City's City Manager or the City Manager's designee. (C) Council means the City's City Council. (D) Director means the City's Director of Park and Recreation or the Director of Park and Recreation's designee. (E) Finance Director means the City's Director of Finance or the Director of Finance's designee. (F) Improvements means all improvements at the Premises, including but not limited to the McGee Beach Concession Stand and restrooms. (G) Lease means this lease document, including all attached and incorporated exhibits. (H) Lessee means TRT Hotel Company LLC dba Omni Corpus Christi Hotel. (I) Parks means the City's Park and Recreation Department. (J) Premises means Improvements and 150 yards from patio south to the water located at McGee Beach in the City. 2009-102 Ord. 028089 03/10/09 TRT Hotel Company (K) Risk Manager means the City's Director of Risk Management or the Director of Risk Management's designee. Section 2 Purpose. The purpose of this Lease, between City and Lessee, is to enable Lessee to operate a snack bar, food and beverage operation, and also rent or sell beach accessories in the Premises. Lessee shalt not operate the Premises for any other purpose without Director's prior written approval. This Lease is not an exclusive right to operate a restaurant or food operation or beach accessories sales in the Marina area. Lessee may be allowed to use a mobile vending cart outside the Premises during special events, subject to approval of the Marina Superintendent. Section 3. Term and Termination. The City leases the Premises, subject to all terms and conditions of this Lease, to the Lessee for a period of three (3) years, with two one-year extension options, beginning on the last to occur of: (i) January 15, 2009; or (ii) upon final Council approval. Either party may terminate this lease, with or without cause, at any time, without penalty, upon six months written notice. Section 4. Contact Person/Lease Administrator. For this Lease, the City's contact person and lease administrator is the Director. Section 5. Lease Payments. (A) For and in consideration of the rights and privileges herein granted, Lessee agrees to pay the City, on a monthly basis, the monthly rental fee of $900.00 (nine hundred dollars). (B) All rental fees are due and payable on or before the 10th day of each month for the term of this Lease. Payment must be made to the order of the City of Corpus Christi and mailed to the City Collections Department, P. O. Box 9257, Corpus Christi, TX, 78469, or delivered to City Hall at 1201 Leopard Street, Corpus Christi, TX, 78401. (C) The monthly rental fee is increased by 5% beginning February 1, 2010, and each February 1 thereafter, by additional 5%. Section 6. Delinquency and Default Regarding Rental Payments. (A) Lessee is "delinquent" if the City has not received Lessee's monthly rental payment on or before 5:00 p.m. on the 10th day of the month in which payment is due. If the 10th day on the month falls on a weekend or holiday, the payment must be tendered on the first business day thereafter. (B) Lessee is in "default" for purposes of this Lease if Lessee fails or refuses to pay the amount due or provide the required statement of Gross Receipts within five (5) days after the City has sent a written notice of delinquency to Lessee. Section 7. Hours of Operation. Lessee shall determine its hours of operation. At a minimum, Lessee shall remain open from 10:00 am to sunset, seven days a week. Hours of operation may be adjusted, for scheduled seasonal activities and other special events with the prior written approval of the Director. Section 8. Utilities. (A) Lessee shall arrange for and pay for all utilities related to usage of Premises, including but not limited to water, garbage, electricity, and telephone, prior to the due date. Lessee is in "default" for purposes of this Lease if Lessee fails to pay any utility bill(s) within five (5) days after the Lessee has received a written notice of such failure from the City. (B) Lessee shall deposit, or cause to be deposited, all garbage and debris generated at the Premises into the garbage dumpster at the Premises. Lessee must obtain garbage pickup no less than five (5) days a week. Lessee shall keep the Premises and the area around the Premises neat and clean. Lessee shall maintain a clean and neat operation within the Premises. Trash receptacles are to be provided by Lessee. There must be a minimum of two (2) trash receptacles, or quantity deemed necessary by the Director, to ensure proper disposal of trash on the Premises and within 100 feet of the Premises. (C) Lessee is responsible to repair and maintain the Improvements, including but not limited to maintenance and repair of concession area, kitchen, restrooms. (D) During the days that Lessee is open for business, Lessee shall clean and inspect the restrooms located on the Premises at least twice a day. Lessee shall promptly notify the Director of any malfunction of the restroom. (E) Lessee agrees to comply with the attached Exhibit B regarding Product Selection Standards. Section 9. McGee Beach Lift Station. (A) (Omni) Lessee's responsibilities: Lessee shall notify the City via E-Mail at the E-Mail addresses below their schedule of events that require the McGee Beach restroom facility to be in operation. Lessee' schedule must include dates of the events with opening and closing times. The schedule shall be updated and resent via E-mail to the links below whenever event changes, additions or cancellations occur. Sal IyG(o~cctexas. com BobC(cilcctexas.com FosterC(a2cctexas.cnm Joe Tna.cctexas.com MARG RETC(cilcctexas. com 2. Lessee shall close the main water supply valve to the restroom and restaurant facility at closing time every day of event. Lessee shall arrange for City to test water for water quality before re- opening the water facilities for scheduled events. 3. Lessee shall secure the restroom, restaurant facility, and wet well hatch of the Lift Station with combination locks provided by the Wastewater Department. Lessee will utilize some type of odor control chemical or flushing to prevent odors during periods of non-use. (B) City Wastewater Department shall: Provide Lessee with three combination locks to ensure joint access to the facility for Lessee, Parks & Recreation, and Wastewater Departments. 2. Restore the Lift Station to automatic operation, and maintain the Lift Station. 3. Monitor the Lift Station via radio telemetry during scheduled events, and for high wet well levels and power outages during time periods between scheduled events. 4. Function check the Lift Station prior to scheduled events. 5. The City Wastewater Dept. is responsible for maintenance and repairs of the force main. (The force main leaves the liftstation and goes through the Seawall past the Coliseum to a manhole.) Section 10. Maintenance. (A) Lessee shall promptly arrange for all maintenance and repairs to the Premises and Improvements, including exterior and interior of the Premises and Improvements. Lessee is responsible for all costs for maintenance and repairs. However, the City shall promptly arrange for all maintenance and repairs to the roof of the building constituting the Premises, and the RTU, and the City shall be responsible for all costs of maintaining and repairing the roof and the RTU. (B) The "RTU" is a remote terminal unit, which contains the radio and associated electronics that enable City to monitor the Lift Station for failures remotely. Section 11. Furniture, Fixtures, and Equipment. (A) It is understood that Lessee will be responsible for furnishing and equipping the Premises and that the City has no obligation to furnish any equipment or furnishings for Lessee. (B) All personal property and trade fixtures furnished by or on behalf of Lessee will remain the property of the Lessee. If Lessee does not remove its personal property within thirty (30) days after the end of the Lease, Lessee shall have donated such personal property to the City for City's sole use. (C) All capital construction, such as installation of plumbing fixtures, kitchen hood system (if any) and architectural changes to the interior, will remain the property of the City. Section 12. City Use. (A) If Lessee is not using the Premises for intended purposes, then City has the right to use any or all of the Premises for City purposes. Lessee shall not be entitled to any compensation, in whatever form, either tangible or intangible, for the City's use of the Premises. (B) City retains the right to use or cross the Premises with utility lines and easements. City may exercise these rights without compensation to Lessee for damages to the Premises from installing, maintaining, repairing, or removing the utility lines and easements. City must use reasonable judgment in locating the utility lines and easements to minimize damage to the Premises. Section 13. Laws Affecting Operation of Premises and Performance. (A) It is Lessee's sole responsibility to operate the Premises at all times during the term of this Lease, in accordance with all applicable Federal, State, and local laws, ordinances, rules and regulations. It is Lessee's sole responsibility to ensure that the Improvements on the premises operate in compliance with all applicable building codes and health codes. (B) In addition, Lessee shall ensure that all sales of alcoholic beverages by Lessee are in compliance with all applicable provisions of State law pertaining to the sale of alcohol and alcoholic beverages at the Premises. (C) Lessee shall bear the expense and responsibility of meeting all requirements for acquiring all applicable licenses and permits. Lessee shall also bear the expense of meeting and complying with all health regulations and Certificate of Occupancy requirements applicable to food and beverage operations. (D) Furthermore, Lessee shall comply with any other Federal, State and local laws, ordinances, rules and regulations applicable to Lessee's performance under this Lease. This Lease is also subject to applicable provisions of the City Charter. (E) Lessee shall not utilize any glass containers on the Premises or Improvements. Lessee agrees to comply with the attached exhibit regarding Product Selection Standards. Section 14. Special Events. Lessee acknowledges that City may authorize special events staged at locations adjacent to or near the Premises, which may directly impact Lessee and Lessee's employees and Lessee's customer access to the Premises. Lessee shall cooperate with the City and/or special event permittee to coordinate activities related to the special event. Lessee shall have no claim for lost revenues as a result of such City authorized special event. Section 15. Inspection. Any officer or authorized employee of the City may enter upon the Premises, at all reasonable times and without notice, to determine whether Lessee is providing maintenance in accordance with and as required by Section 12(A), or for any other purpose incidental to City's retained rights of and in the Premises. Section 16. Capital Improvements. City may, from time to time, and in City's sole discretion, undertake capital improvements to the Premises. Prior to commencing any capital improvements, City shall notify Lessee, in writing, of the dates in which Lessee shall be required to vacate the Premises, should the Director deem this necessary. The City agrees that rent shall be abated during any period of time that Lessee is required to vacate the Premises. Lessee acknowledges and understands that City shall have no obligation to provide an alternate location for Lessee during any period that Lessee must vacate the Premises. Section 17. Relationship of Parties. This Lease establishes alandlord/tenant relationship, and none other, and this Lease must be construed conclusively in favor of that relationship. In performing this Lease, both City and Lessee will act in an individual capacity and not as agents, representatives, employees, employers, partners, joint venturers, or associates of one another. The employees or agents of either party shall not be, nor be construed to be, the employees or agents of the other party for any purpose whatsoever. Section 18. Insurance. (A) Lessee and its contractors or subcontractors shall secure and maintain at Lessee's expense, during the term of this Lease, insurance of the type and with the amount of coverage shown on the Exhibit, A which is incorporated in this Lease by reference. Lessee shall use an insurance company or companies acceptable to the Risk Manager. Lessee is in "default" for purposes of this Lease if Lessee fails to maintain such insurance if Lessee fails to cure such failure within five (5) days of receipt of notice of such failure from the City. (B) The Certificate of Insurance must be sent to the Risk Manager prior to occupancy of and operations at the Premises. The Certificate of Insurance must provide that the City will have thirty (30) days advance written notice of cancellation, intent to not renew, material change, or termination of any coverage required in this Lease. (C) Lessee shall provide, during the term of this Lease, copies of all insurance policies to the Risk Manager upon written request by the City Manager. (D) The Risk Manager shall retain the right to annually review the amount and types of insurance maintained by Lessee, to require increased coverage limits, if necessary in the interest of public health, safety, or welfare, and to decrease coverage, if so warranted. In the event of any necessary increase, Lessee shall receive thirty (30) days written notice prior to the effective date of the requirement to obtain increased coverage. (E) In the event alcoholic beverages are to be served or consumed on any Premises covered by this Lease, the Lessee shall additionally obtain or cause to be obtained alcoholic beverage liability insurance in the amount of one million dollars ($1,000,000.00) covering the event or time period when alcoholic beverages are to be served or consumed. (F) Lessee shall, prior to any addition or alteration to, in, on, or about the Premises, obtain prior clearance, in writing, from the Risk Manager that the proposed addition or alteration will not necessitate a change or modification in the existing insurance coverage maintained by Lessee. This clearance is in addition to the prior consent required by Section 21(A), as contained herein. Section 19. Indemnity. In consideration of allowing Lessee to use the Premises, Lessee ("Indemnitor") covenants to fully indemnify, save and hold harmless the City, its officers, agents, representatives, and employees (collectively, "Indemnitees") from and against any and all liability, loss, damages, claims, demands, suits, and causes of action of any nature whatsoever asserted against or recovered from City on account of injury or damage to person including, without limitation on the foregoing, premises defects, workers' compensation and death claims, or property loss or damage of any other kind whatsoever, to the extent any injury, damage, or loss maybe incident to, arise out of, be caused by, or 6e in any way connected with, either proximately or remotely, wholly or in part: (1) Performance by Lessee or Lessee's contractor or subcontractor pursuant to this Lease; (2) Lessee's or Lessee's contractor or subcontractor's use of the Premises and any and all activities associated therewith pursuant to this Lease; (3) the violation by Lessee, its officers, employees, agents, contractors, subcontractors, or representatives, of any law, rule, regulation, ordinance, or government order of any kind pertaining, directly or indirectly, to this Lease; (4) the exercise of rights under this Lease; or (5) an act or omission on the part of Lessee, its officers, employees, agents, subcontractors, contractors, or representatives, pertaining to this Lease, and including all expenses of litigation, court costs, and attorneys' fees, which arise, or are claimed to arise, out of or in connection with the asserted or recovered incident, except to the extent caused by the negligence or willful misconduct of the City. Lessee covenants and agrees that, if City is made a party to any litigation against Lessee or in any litigation commenced by any party, other than Lessee relating to this Lease, Lessee shall, upon receipt of reasonable notice regarding commencement of litigation, at its own expense, investigate all claims and demands, attend to their settlement or other disposition, defend City in all actions based thereon with legal counsel satisfactory to City, and pay all charges of attorneys and all other costs and expenses of any kind whatsoever arising from any said liability, injury, damage, loss, demand, claim or action. Section 20. Alterations. (A) Lessee shall not make any repairs, alterations, additions, or improvements to, in, on, or about said Premises, without the prior written consent of the City Director. Lessee must also obtain clearance from the Risk Manager. (B) All approved repairs, alterations, improvements, and additions made by the Lessee upon said Premises, although at his own expense, shall, if not removed by Lessee at any termination or cancellation hereof, become the property of the City in fee simple without any other action or process of law. Lessee agrees to be contractually and financially responsible for repairing any and all damage caused by such removal. If items are installed in such a manner as to become fixtures, such fixtures shall not be removed by Lessee upon termination and shall become the property of the City. (C) All repairs, alterations, improvements, or additions must be made in compliance with applicable Local, State, and Federal rules and regulations, including Americans with Disabilities Act. Section 21. Signs. (A) Lessee shall not exhibit, inscribe, paint, erect, or affix any signs, advertisements, notices, or other lettering ("Signs") at, on, or about the Premises, or any part thereof, without the Director's prior written approval. Lessee must comply with all sign ordinances and regulations prior to requesting Director's approval for sign. (B) City may require Lessee to remove, repaint, or repair any Signs allowed. If Lessee does not remove, repaint, or repair the Signs within ten (10) days of Director's written demand, City may do or cause the work to be done, and Lessee will pay City's costs within thirty (30) days of receipt of Director's invoice. If payment is not timely made, the City may terminate this Lease upon ten (10) days written notice to Lessee. Alternatively, City may elect to terminate this Lease after ten (10) days written notice to Lessee. Section 22. Sublease and Assignment. Lessee understands and agrees that Lessee shall not sublease the Premises or any part thereof without obtaining the prior written consent of the City Director. Lessee shall not, in whole or in part, assign or transfer directly or indirectly this Lease unless prior written approval has been obtained from the City Director. Section 23. Default. (A) The following constitute Events of Default under this Lease: (i) default in the payment of rent or other payments hereunder; (ii) failure to pay utilities before the due date; (iii) failure to maintain the Premises in good condition; (iv) abandonment of the Premises; (v) failure to keep, perform, and observe any other promises, covenants and conditions contained in this Lease. (B) Upon the occurrence of any Event of Default, the City shall give five days notice to Lessee to cure the default. If the default remains uncured, then the Lease terminates without further action of the City. Section 24. No debts. Lessee shall not incur any debts or obligations on the credit of the City during the term of this Lease. Section 25. Notice. (A) All notices, demands, requests or replies provided for or permitted under this Lease by either party must be in writing and must be delivered by one of the following methods: (I) by personal delivery; (ii) by deposit with the United States Postal Service as certified or registered mail, return receipt requested, postage prepaid; (iii) by deposit with an overnight express delivery service, for which service has been prepaid; or (iv) by fax transmission. (B) Notice deposited with the United States Postal Service in the manner described above will be deemed effective two (2) business days after deposit with the United States 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. Notice by fax transmission will be deemed effective upon transmission with proof of delivery. (C) All these communications must only be made to the following: IF TO CITY: City of Corpus Christi Park and Recreation Department P. O. Box 9277 Corpus Christi, Texas 78469-9277 Attn: Director of Park and Recreation Fax number: IF TO LESSEE: Omni Hotel 900 N. Shoreline Blvd. Attn: Corpus Christi, Texas 78401 Fax number(361) 886-3565 (D) Either party may change the address to which notice is sent by using a method set out above. Lessee shall notify the City of an address change within ten (10) days after the address is changed. Section 26. Nondiscrimination. Lessee covenants and agrees that it shall not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Premises, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. The City hereby reserves the right to take such action as the United States may direct to enforce this covenant. Section 27. Modifications. No changes or modifications to this Lease may be made, nor any provisions waived, unless the change or modification is made in writing and signed by persons authorized to sign agreements on behalf of each party. Section 28. Waiver. (A) The failure of either party to complain of any act or omission on the part of the other party, no matter how long the same may continue, shall not be deemed a waiver by said party of any of its rights hereunder. No waiver of any covenant or condition or of the breach of any covenant or condition of this Lease by either party at any time, express or implied, shall be taken to constitute a waiver of any subsequent breach of the covenant or condition nor shall justify or authorize the nonobservance on any other occasion of the same or any other covenant or condition hereof. If any action by the Lessee 9 requires the consent or approval of the City on one occasion, any consent or approval given on said occasion shall not be deemed a consent or approval of the same or any other action at any other occasion. (B) Any waiver or indulgence of Lessee's default of any provision of this Lease shall not be considered an estoppel against the City. It is expressly understood that, if at any time Lessee is in default in any of its conditions or covenants hereunder, the failure on the part of the City to promptly avail itself of said rights and remedies which the City may have shall not be considered a waiver on the part of the City, but City may at any time avail itself of said rights or remedies or elect to terminate this Lease on account of said default. Any waiver by the parties of a breach of any covenants, terms, obligations, or events of default shall not be construed to be a waiver of any subsequent breach, nor shall the failure to require full compliance with this Lease be construed as changing the terms of this Lease or estopping the parties from enforcing the terms of this Lease. Section 29. Force Majeure. No party to this Lease shall be liable for delays or failures in performance due to any cause beyond their control including, without limitation, any delays or failures in performance caused by strikes, lock outs, fires, acts of God or the public enemy, common carrier, severe inclement weather, riots or interference by civil or military authorities. These delays or failures to perform shall extend the period of performance until these exigencies have been removed. The Lessee shall inform the City in writing of proof of such force majeure within three (3) business days or otherwise waive this right as a defense. City has no obligation to repair or replace the Improvements damaged or destroyed. In the event the Premises or Improvements are damaged and determined by the Parks Director in her sole discretion to be unsuitable for continued use by Lessee, this Lease shall terminate immediately upon written notice to Lessee. Section 30. Surrender. Lessee acknowledges and understands that the lease of the Premises to Lessee is expressly conditioned on the understanding that the Premises must be surrendered, upon the expiration, termination, or cancellation of this Lease, in as good a condition as received, reasonable use and wear, acts of God, fire and flood damage or destruction where Lessee is without fault, excepted. Section 31. Enforcement Costs. In the event any legal action or proceeding is undertaken by the City to repossess the Premises, collect the lease payment(s) due hereunder, collect for any damages with regard to this Lease, to the Premises, or to in any way enforce the provisions of this Lease, Lessee agrees to pay all court costs and expenses and the sum as a court of competent jurisdiction may adjudge reasonable as attorneys' fees in said action or proceeding, or in the event of an appeal as allowed by an appellate court, if a judgment is rendered in favor of the City. Section 32. Publication Costs. Lessee shall pay for the cost of publishing the Lease description and related ordinance, as required by the City Charter, in the legal section of the local newspaper. Section 33. Interpretation. This Lease will be interpreted according to the Texas laws that govern the interpretation of contracts. Venue lies in Nueces County, Texas, where this Lease was entered into and will be performed. Section 34. Survival of Terms. Termination or expiration of this Lease for any reason shall not release either party from any liabilities or obligations set forth in this Lease that (a) the parties have expressly agreed shall survive any such termination or expiration, or (b) remain to be performed or by their nature would be intended to be applicable following any such termination or expiration. Section 35. Construction of Ambiguities. The parties expressly agree that they have each independently read and understood this Lease. Any ambiguities in this Lease shall not be construed against the drafter. 10 Section 36. Captions. The captions utilized in this Lease are for convenience only and do not in any way limit or amplify the terms or provisions hereof. Section 37. Entirety Ctause. This Lease and the incorporated and attached exhibits constitute the entire agreement between the City and Lessee for the purpose granted. All other agreements, promises, representations, and understandings, oral or otherwise, with reference to the subject matter hereof, 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 of the terms, conditions, promises, and covenants relating to Lessee's operations and the Premises to be used in the operations. Section 38. Appropriations. All of the City's obligations under this Lease are subject to annual appropriation of funds. If funds have not been appropriated through the City's annual budget process to fund the City's obligations hereunder, then this lease shall terminate upon thirty (30) days written notice to Lessee, or alternatively the City manager may execute an amendment to this lease to remove the unfunded obligation. Section 39. Severability. (A) If, for any reason, any section, paragraph, subdivision, clause, provision, phrase, or word of this Lease or the application hereof to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Lease, or the application of said term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected thereby, for it is the definite intent of the parties to this Lease that every section, paragraph, subdivision, clause, provision, phrase or word hereof be given full force and effect for its purpose. (B) To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Lease, then the remainder of this Lease is not affected thereby, and in lieu of each such illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to such illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid and enforceable, will be added to this Lease automatically. EXECUTED IN UPLICATE, each of which shall be considered an original, on the ~IY day of GUl , 2009. ATTEST: CITY OF CORPUS CHRISTI ~~ ~~ ~~~ Armando Chapa g R. Escobar City Secretary City Manager APPROVED AS TO LEGAL FORM this ~ ~ day of , 2009. By: oC~'~ Lisa Aguilar Assistant City Attorney for City Attorney LESSEE: TRT HOTEL COMPANY LLC QY L'OUNCIL Name: tM.'.~1~_.1 C-~.5~,,:k6. Title: A~.~ ~-.e~~~ ~ ~k y Date: a STATE OF TEXAS § COUNTY OF NUECES § AUTHUKItt~ This instrument was acknowledged before me on February a(,, 2009, by rlaa„..~ 6. SM:f~.j ALL{i..~=.~ P...h, of TRT Hotel Company LLC. ~ ~ €~.~°F c~ ~+~. 10-27.11 , Notary Public, State of xas Printe-~ .(/~1U' / Commission Expires /O-a7 - // ~z EXHIBIT A INSURANCE REQUIREMENTS LESSEE'S LIABILITY INSURANCE (A) Lessee must not commence work under this agreement until all insurance required has been obtained and such insurance has been approved by the City. Lessee must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. (B) Lessee must furnish to the City's Risk Manager or designee, 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 on the General liability policy, and a blanket waiver of subrogation is required on all applicable policies. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30-written day notice of cancellation, material Bodily Injury and Property Damage change, non-renewal is required on all Per occurrence aggregate certificates Commercial General Liability including: $1,000,000 Combined Single Limit 1. Commercial Form 2. Premises -Operations 3. Products/ Completed Operations Hazard 4. Contractual Liability 5. Broad Form Property Damage 6. Independent Contractors 7. Personalln~u Liquor Liability Coverage $1,000,000 Combined Single Limit Vehicle Liabilit -owned, non-owned or rented $1,000,000 Combined sin le Limit Which Complies with the Texas Workers' Worker's Compensation Compensation Act and Section II of this Exhibit Emplo ers' Liabilit $500,000/ $500,000 / $500,000 Property Insurance Lessee will be responsible for any and all damage to equipment used regardless if owned. Rented, leased or borrowed. (C) In the event of accidents of any kind, Lessee must furnish the Risk Manager with copies of all reports of any accidents within 10 days of the accident. II. ADDITIONAL REQUIREMENTS 13 (A) Lessee must obtain workers' compensation coverage through a licensed insurance company in accordance with Texas law. 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 amounts sufficient to assure that all workers' compensation obligations incurred will be promptly met. (B) Lessee's financial integrity is of interest to the City; therefore, Lessee shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Lessee's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- (VII). (C) The City shall be entitled, upon request and without expense, to receive copies of the policies, declarations page and all endorsements thereto as they apply to the limits required by the City. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Risk Management P.O. Box 9277 Corpus Christi, TX 78469-9277 (361) 826-4555- Fax # (D) Lessee agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: • Name the City and its officers, officials, employees, volunteers, and elected representatives as additional insured by endorsement, as respects operations and activities of, or on behalf of, the named insured performed under contract with the City, with the exception of the workers' compensation and professional liability polices; Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; • Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and Provide thirty (30) calendar days advance written notice directly to City of any suspension, cancellation, non-renewal or material change in coverage, and not less than ten (10) calendar days advance written notice for nonpayment of premium. (E) Within five (5) calendar days of a suspension, cancellation, or non-renewal of coverage, Lessee shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Lessee's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. (F) In addition to any other remedies the City may have upon Lessee's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Lessee to stop work hereunder, and/or withhold any payment(s) which become due to Lessee hereunder until Lessee demonstrates compliance with the requirements hereof. 14 (G) Nothing herein contained shall be construed as limiting in any way the extent to which Lessee may be held responsible for payments of damages to persons or property resulting from Lessee's or its subcontractors' performance of the work covered under this agreement. (H) It is agreed that Lessee's insurance shall be deemed primary and non-contributory with respect to any insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. (I) It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. 2008 Omni's McGee Beach lease agreement ins. req. 8-7-08 ep Risk Mgmt. 15 Exhibit B Product Selection Standards Rationale: The production, use and disposal of many recreation and concession products contribute significantly to the pollution of the air, water and soil and to the destruction of natural communities of plants and animals. Educated, conscientious product selection can mean the difference between an environment safe for all living things (including people) and a planet contaminated with toxic pollutants. Standards: The use of polystyrene products are prohibited. `All cups, bowls, plates, utensils and take-out containers must be made of starch based plastics. ` A recycling bin shall be placed next to all trash cans provided by the vendor. The recycling bin shall be equal to or larger than the size of the trash bin. Vendor shall contract with a waste management company to provide pick up and process contents of recycling bins on a regular basis. * When possible, vendor shall purchase products made of recycled material and which are recyclable. `All cleaning products and processes shall be environmentally sound.