HomeMy WebLinkAboutC2010-029 - 3/9/2010 - ApprovedPage 1 of 8
Tennis Pro Contract & Lease of AI Kruse Municipal Tennis Center
Susan Shelby Torrance
THE STATE OF TEXAS §
KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
This Tennis Pro Contract, ("Contract') and Lease of the AI Kruse Municipal Tennis Center
("Facility") is between the City of Corpus Christi, a Texas home rule municipal corporation
("City"), and Susan Shelby Torrance of Nueces County, Texas, ("Pro").
In consideration of the covenants herein, the City and Pro agree as follows:
1. Term. City contracts with Pro as Tennis Professional at the AI Kruse Municipal Tennis
Center subject to all of the terms of this service Contract. Further, City leases the Facility to Pro,
subject to the terms of this Contract. This Contract and Lease is for three (3) years, unless
sooner terminated arid extending from month to month upon the same terms and conditions as
set out herein until a new contract and lease are agreed upon. This Contract and Lease is
effective on final approval by the City Council.
2. Monthly Pro Fee. City shall pay Pro Three Thousand One Hundred and Sixty-Six Dollars
($3,166) per month payable monthly on the first business day of each calendar month during
the Lease, as the monthly tennis Pro fee for Pro's services provided hereunder. For any fee due
after fiscal year 2009-2010, the monthly pro fee is subject to appropriation by City Council in the
applicable fiscal year budget. If a monthly Pro fee of at least $3,166 is not appropriated during
the annual budget process, City shall terminate this Contract upon thirty (30) days notice to Pro.
3. Pro Responsibilities.
A. Compliance with Laws. Pro must operate AI Kruse Municipal Tennis Center (the "Facility")
in conformity with the laws of the State of Texas and the ordinances, rules and regulations of
the City of Corpus Christi.
B. Pro's Qualifications. Pro must be experienced in the management, supervision, and
operation of a tennis facility. The Pro must have and maintain a Class I rating from the United
States Professional Tennis Association. The Pro's primary duty is to manage and control the
administration and operation of the Facility. It is expressly understood that Pro is an
independent contractor and not a City employee and is not entitled to the benefits normally
accorded to City employees.
C. Pro Supervision of Facility. Pro is directly responsible for supervising the Facility, including
without limitation, all activities in the locker/restroom.
D. Facility Rules. Pro shall adequately publish and enforce all rules and regulations governing
the playing of tennis, and all other activities, as may be conducted at Facility.
E. Cash Handling. Pro must provide fidelity bonds for herself and any of Pro's employees who
handle cash or credit cards. These bonds must be provided to the Director of Park and
Recreation or designee ("Park Director") and must be good and sufficient fidelity bonds in the
sum of Five Thousand ($5,000) Dollars, written by a corporate surety duly licensed under Texas
2010-029
Ord. 028499
03/09/10 ~ N QE~+~
Torrance, Susan Shelby
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laws to write fidelity bonds. These bonds must be kept in effect for the entire term of this
Contract and any holdover period. These bonds must assure payment to the City of all City
Revenue collected by Pro and Pro's employees on behalf of the City and the prompt payment of
five (5%) percent of Pro Revenue, including Lesson Revenue, to which the City is entitled.
F. Background Investigation. Pro agrees that City will conduct a background investigation of
Pro and all of Pro's employee's at City's expense. A release authorizing the background
investigation must be executed by the Pro and Pro's employees. City shall terminate this
contract if the City finds a felony conviction, convictions for crime of moral turpitude, or
conviction for any drug offenses. Pro shall terminate any of Pro's employees for the same
causes.
G. Pro's Employees. Pro, at Pro's expense, will employ sufficient employees to assist Pro in
conducting lessons, operating the Pro Shop, and scheduling courts. All these employees will be
in the employ of Pro, and not employees of, do not have any contractual relationship with, and
are not entitled to any benefits from the City. Pro shall pay the salaries of all of Pro's employees.
All services under this Contract must be provided by or under the supervision of Susan Shelby
Torrance. All of Pro's employees must be fully qualified to perform all Contract services
performed by each of them. None of the services under this Contract may be subcontracted
without the prior written approval of the Park Director.
Pro is responsible for and must control the activities of Pro and Pro's employees at the Facility
and must take whatever action is necessary to insure that Pro and Pro's employees conduct
themselves in an orderly manner and in keeping with the conduct required of employees in
service organizations in general. Pro shall insure that Pro and Pro's employees do not
consume intoxicating substances at the Facility, or report to work under the influence of same.
Pro shall insure that Pro's conduct and language, and that of Pro's employees, is above
reproach, taking into consideration the Facility is viewed as a City facility, and that it caters to
families and youth with many children participating.
H. Taxes. Pro, at her expense, will pay all payroll taxes, F.I.C.A. taxes, and all other related
taxes prior to the past due date.
I. Programs.
1. Pro must maintain and promote a continuing program to attract citizens and tourists, to use
of the Facility, particularly weekday play, and must maintain rental tennis rackets for use by the
public. A schedule of hours of operation for the Facility must be posted at the Facility and filed
with the Park Director.
2. Pro shall promote the game of tennis through youth programs.
3. Pro must biannually, in January and August, submit to the Park Director a program of
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activities for the forthcoming reporting period identifying, at a minimum, leagues, lessons, youth
and adult programs, tournaments by dates and estimated number of participants and hours of
operation.
J. Court Fees. Pro will adequately publicize all City approved tennis fees.
K. Required Signage. Pro will provide suitable signs at the Facility Pro Shop advising the
public that the business activity is operated by Pro as an independent contractor and not
operated by City.
L. Nondiscrimination. Pro is responsible for the fair and just treatment of all Pro's employees.
Pro must insure that no employee or participant is discriminated against because of disability,
sex, race, color, creed, or national origin.
M. Dangerous Conditions. Pro must promptly notify the Park Director of all dangerous
conditions or special defects at the Facility. -Until City repairs or otherwise remedies the
dangerous conditions or special defect's Pro must not use, or allow to be used, any area of the
Facility which has dangerous conditions or special defects.
N. Alterations. Pro will make no alterations to the Facility without the Park Director's prior
written approval of Pro's proposed plans for alteration.
0. Public Courts. Since the AI Kruse Municipal Tennis Center is owned by the City for the
benefit of City residents, Pro must make a minimum of four (4) tennis courts available to the
public whenever the Pro or Pro's authorized individuals are giving, or available to give tennis
lessons, with the exception of tournaments.
P. Facility Maintenance. City is responsible for all Facility maintenance and major and minor
repairs at the Facility to the extent shown in Exhibit "2"; and in consideration thereof, it is agreed
that Pro must make no claim for any damages against the City for loss of income due to the
City's failure to make any repairs.
4. Consideration for Facility. As consideration for lease of the Facility, Pro must collect and
deposit all City Revenue daily in City's account; and Pro must collect Pro Revenue and Lesson
Revenue daily and deposit daily in City's account 5% of Pro Revenue and 5% of Lesson
Revenue, as set out in Section 5 below.
5. .Revenue.
A. City Revenue. "City Revenue" means all court fees, permit fees, locker fees, and other City
charges at the then current rate set by the Park Director in accordance with Sec. 36-3. Rental
Rates of the City Code of Ordinances. City Revenue does not include any Pro Revenue.
B. Pro Revenue. "Pro Revenue" means all gross revenue received from the Pro shop or for use
of the Facility, including but not limited to, tournaments, league play, merchandise sales, racket
rentals, tennis lessons (i.e., Lesson Revenue), racket stringing, racket repairs, food and drink
sales, excluding all applicable separately stated taxes and bulk merchandise sales to schools at
wholesale prices if Pro provides the Park Director with a copy of the sales receipt. To be
excluded from Pro Revenue, any other wholesale or bulk sale to anyone but a school, must be
approved in writing by the Park Director prior to the sale.
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C. Lesson Revenue. Pro has the exclusive right at AI Kruse Municipal Tennis Center to give, or
authorize, tennis lessons. "Lesson Revenue" means all revenue produced from giving or
authorizing tennis lessons, camps or other forms of teaching sessions. If any person receiving
tennis lessons does not have a tennis permit, Pro must charge a court fee for each lesson
given, which court fee will be deposited as City Revenue.
D. Payment of Revenue.
1. City Revenue. Pro must deposit, daily, all City Revenue, together with daily cash register
tapes and the daily report at the City's designated depository.
2. Pro and Lesson Revenue. As stated in Section 4, Pro must deposit in City's account City's
5% of Pro Revenue and 5% of Lesson Revenue daily beginning on the effective day of this
contract as part of the daily deposit.
E. Bonus Revenue. If City Revenue exceeds $25,000 in any City fiscal year (August 1 to July
31) City shall pay Pro 5 percent of all City Revenue in excess of $25,000 for the remainder of
that City Fiscal year, on or before the fifteenth (15th) day of the month following the month in
which the $25,000 in City Revenue was received, and by the 15th monthly thereafter through
the first month of the following fiscal year.
6. Exclusive Right. Pro is granted the exclusive right to operate a pro shop at AI Kruse
Municipal Tennis Center including the right to
A. Sell merchandise
B. Rent rackets, ball machines, buckets of balls
C. String rackets
D. Repair rackets
E. Operate a food and non-alcohol drink concession
During this contract, City will not grant to any other person or organization the right to sell at AI
Kruse Municipal Tennis Center any items available at the Pro Shop, or allow anyone else to
give paid tennis lessons except through or with the consent of the Pro.
7. Record Keeping. Pro must furnish to the City's Director of Finance, or designee, ("Finance
Director") a certified monthly statement of Pro Revenue on or before the tenth day of each
month during the Lease. The Finance Director will approve the statement form prior to
commencement of this Lease. The statement form may be altered at the Finance Director's
discretion.
Pro must keep accurate books of account of all Pro Revenue collected. The books of account
will be open for inspection, copying, or audit by City Manager, or designee, ("City Manager") at
all times. All books of account and backup documentation must be available to the Director for
review during City's business hours at the Facility. City's Director of Finance and Pro's designee
will approve the form for the daily report.
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All underlying documentation for Pro Revenue, Lesson Revenue, City Revenue, and Pro's
certified monthly statement, including cash register tapes, purchase orders, invoices, sales
receipts, counter information, and the like, must be preserved by Pro during the lease term and
for at least two years thereafter, including any holdover period. Accounting records, ledgers,
journals, and reports with regard to Pro Revenue, Lesson Revenue and City Revenue must be
retained for five (5) years after termination of this Contract. City may terminate this Lease for
failure to preserve the records or to provide them to City Manager upon request.
Pro must provide the Park Director copies of its quarterly sales tax reports for all sales at the
Facility within 30 days of Park Director's written request therefor. Failure to provide said copies
is cause to terminate this Lease.
8. Taxes. Pro must pay any and all assessments or taxes, however incurred, arising from the
use of the Facility, the sale of merchandise or services pursuant to this Contract, including
without limitation sales or use taxes, ad valorem taxes, and federal income taxes prior to the
taxes becoming past due.
9. Utilities. City, as owner of the Facility, will provide electrical, gas, water, and wastewater
service to the Facility. In managing the Facility, Pro must practice energy conservation efforts to
efficiently use water, electrical and natural gas resources.
10. Insurance.
A. General Liability. Pro shall secure and maintain a Broad Form comprehensive general
liability insurance policy to include but not limited to: Premises -Operations, Products -
Completed operations, contractual liability coverage with minimum limits of Five Hundred
Thousand Dollars ($500,000) combined single limit per occurrence for Bodily Injury and
Property Damage. The City of Corpus Christi shall be named as an additional Insured on the
policy. The comprehensive general liability policy carried by the Pro under this Contract is the
primary coverage in case of loss or damage related to Pro's operation of the Facility. A copy of
the policy shall be submitted to the Director for approval prior to commencement of this
Contract.
B. Worker's Compensation. Pro shall secure and maintain worker's compensation insurance;
which provides a waiver of subrogation in favor of the City of Corpus Christi.
C. Insurance Certificate. As evidence of the insurance coverage required by this Contract and
prior to execution of this Contract, the Pro shall furnish certificate(s) of insurance to the Director.
The Certificate(s) will specify parties who are additional insured and will indicate what
endorsements are included and what exclusions are removed.
D. Cancellation Notice. There shall not be any cancellation, material change, or intent not to
renew the insurance policies without thirty (30) days prior written notice to the Director.
11. Assignment. This Contract is a personal service contract and is not assignable.
12. Termination. The City Manager, may, after 45 days advance written notice and opportunity
to cure, terminate this Contract for a breach by Pro of the Contract if breach has not been cured;
however, the City Manager may immediately terminate this Contract if Pro's breach involves
misappropriation of City funds, failure to produce financial or accounting documentation as
required herein, or a serious or imminent danger to the public. Pro may terminate this Contract
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if the Pro provides the Park Director 45 days advance written notice. This Contract terminates
immediately upon the death of Susan Shelby Torrance.
13. City Responsibilities.
A. Ownership. City owns the AI Kruse Municipal Tennis Center facilities, all improvements,
and buildings located thereon; the furnishings and equipment for the locker room/restroom area,
as shown on Exhibit "1"attached hereto and made a part hereof for all purposes; and the office
equipment, including without limitation, a cash register and basic supplies, located in the Pro
Shop and/or office.
B. Telephone. City will pay for one telephone for local calls.
C. Security. City has installed security equipment, including sound and movement detectors, in
the pro shop and concession building. The Pro must pay the monthly bill for the security
services.
D. Facility Maintenance. City is responsible for all Facility maintenance and major and minor
repairs at the Facility to the extent shown in Exhibit " 2"; and in consideration thereof, it is
agreed that Pro must make no claim for any damages against the City for loss of income due to
the City's failure to make any repairs.
E. Janitorial. City will clean the Facility in accordance with Exhibit " 2" and will supply all
cleaning supplies.
F. Promotion of Facility. City shall continue its promotional activities for the Facility, including
brochures and listings in departmental literature.
14. Indemnity. Pro must fully indemnify, save and hold harmless
City, its officers, employees, and agents (hereinafter "the
Indemnitees") 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,
workers' compensation and death claims), or property loss or damage
of any kind whatsoever, which arise out of or are in any manner
connected with, or are claimed to arise out of or be in any way
connected with, tennis related activities undertaken pursuant to this
Tennis Pro Contract and Lease of A/ Kruse Municipal Tennis Center
or any operations or activities thereunder. Pro shall at its own
expense investigate all these claims and demands, attend to their
settlement or other disposition, defend all actions based thereon and
pay all charges of attorneys and all other costs and expenses of any
kind arising from the liability, damage, loss, claims, demand, and
actions.
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15. Notices. Notice may be given by fax, hand delivery, or certified mail, postage prepaid, and
is deemed received on the day faxed or hand delivered or on the third day after deposit if sent
certified mail. Notice must be sent as follows:
IF TO CITY:
City of Corpus Christi
Attention: Director Park & Recreation
P.O. Box 9277
Corpus Christi, Texas 78469-9277
FAX No: (361)826-3864
Phone No.: (361) 826-3461
I F TO PRO:
Susan Shelby Torrance
3205 Kennsington Court
Corpus Christi, Texas 78414
Phone No. (361) 994-9382
16. Amendments. Modifications to this Contract are not effective unless signed by a duly
authorized representative of all parties hereto. Modifications which do not change the essential
scope and purpose of the contract, specifically including without limitation the amount of the
monthly pro fee, may be approved on behalf of the City by the City Manager.
SIGNED this ~ day of ~~, 2010.
ATTEST:
d~~~~~
Armando Chapa
City Secretary
Approved this ~- day of ~' , 2010.
~~~
Lisa Aguil
Assistant City Attorney
TENNIS PRO, "Pro"
~~
Susan Shelby Torrance
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CITY~OF CORPUS CHRISTI
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g Escobar
ity Manager
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SECRETARY ~'J•
STATE OF TEXAS
COUNTY OF NUECES
This instrument was acknowledged before me on F2~Jrvo,~ U~, 2010, by
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Page 8 of 8
Notary Public, State of Texas
Printed Name:
Exhibit 1
Al Kruse Tennis Center Site Plan
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Page 1 of 1
EXHIBIT 2
DETAILED CONDITIONS FOR FACILITY MAINTENANCE
CITY OF CORPUS CHRISTI, TEXAS
AL Kruse Tennis Center
WITH
Susan Shelby Torrance
This Exhibit 2 contains detailed conditions for facility maintenance for AI Kruse Tennis
Center ("Facility") defined in, and is attached to and governed by, the CITY OF
CORPUS CHRISTI, TEXAS Tennis Pro Contract and Lease Agreement with Susan
Shelby Torrance("Pro").
1. City Responsibilities
1.1 Buildings:
Bathrooms/dressing rooms; clean and sanitize water closet, sinks, showers and
urinals daily and as needed; sweep and mop floors daily and as needed; strip
and wax floors quarterly; pick up litter daily and as needed; keep up with all
paper goods daily and as needed; clean windows weekly and as needed.
1.2 Grounds:
Litter pickup daily and as needed; bag and manage all trash cans as needed;
inspect fencing and lumite daily and make necessary repairs; fill holes and level
ruts in all areas; clean and remove graffiti; replace all domestic lighting (general
bulbs and fluorescent tubes); make general minor repairs to facilities including
plumbing; painting and park furniture; assist tennis center staff in replacing
tennis nets, center straps and bindings; paint restrooms and other areas when
needed (annually).
1.3 Gardening and landscaping:
All mowing, trimming, and clean up; watering and minor irrigation repairs;
pruning shrubs, trees and rose bushes; brush clean up; maintain all flowerbeds
(includes removing weeds, preparing and planting seasonal plants to enhance
the facilities; spray insecticide, herbicides, fungicides, weed killer and treat for
ants when needed.
1.4 Capital Improvements. City will fund capital improvements determined by the
City that are needed at its discretion.
1.5 Contact Person. For the Lease, the City's contact person is the Park Director.
H:\LEG-DIR\Lisa\2010 Park\041204DC.S.Torrance.Tennis.ProK&.Lease.EXHIBIT 2.doc