HomeMy WebLinkAbout1073 ResolutionRESOLUTION NO. 1073
A RESOLUTION OF THE CITY OF PASCO AUTHORIZING THE MAYOR
TO SIGN AN AMENDED COMMERCIAL CONCESSION AGREEMENT
BETWEEN THE CITY OF PASCO AND WATER WORLD MARINA, INC.
WHEREAS, the City Council of the City of Pasco has reviewed the
proposed contract between the City of Pasco and Water World Marina, Inc.,
and
WHEREAS, the City Council has found that said agreement is in the
best interests of the City of Pasco and wishes to enter into the the same,
NOW, THEREFORE,
THE CITY COUNCIC'OF THE CITY OF PASCO DOES RESOLVE AS FOLLOWS:
Section I. The Pasco City Mayor is hereby authorized and directed
to enter into the Agreement between the City of Pasco and Water World Marina,
Inc. for a term of ten (10) years, attached hereto and by this reference in-
corporated herein.
Section 2, This Resolution shall be in full force and effect. after
its passage as required by law.
1 March
PASSED by the City Counci1 and APPROVED this day of >P&VVt", 1977.
JO TIDRICK, Mayor
Attest:
Eve yn Wells, Deputy City Clerk
Approved as to form:
Patrick T. Roach, City Attorney
CITY OF
PASO
POST OFFICE BOX 293 1 PASCO, WASHINGTON 99301
February 24, 1977
TO: George Smith, City Manager �I
FROM: Richard 0. Erickson, Director of Parks & Recreation
Q`
RE: Boat Basin
Please find attached the Commercia]`�Concessionatre Agreement
for the Pasco Boat Basin with the changes as were discussed
at the 2/22/77 City Council meeting. Specific changes are
in Section XVI indicating that the City will pay to the
Concessionaire the monies and materials for the improvements
to the Concession building and the addition of Section XXII.
In addition you may note that Mr.. David Chambers, President
of Water World Marina, Inc., has acquired a new partner,
Mr. Vern Birdsell. It was a mutual agreement between
Mr. Chambers and his previous partner to dissolve their
partnership.
Please place this item on the March 1 City Council meeting.
COMMERCIAL CONCESSION AGREEMENT _
THIS ;�GREEMENT, ;Wade and entered into this 2nd days of February
of Pasco in the State of Washington,
1977, be and between the City and Water World Marina, Inc.,
hereinafter referred to as.the "City"
hereinafter referred to as the "Lessee".
WHEREAS, the City desires to offer the citimarinaf andco and
.the surrounding area a water oriented Park and a
WHEREAS, the park known as Boat Basin Park can be a viable part
of the City's Park & Recreation Department, and
WHEREAS, the operation and further development of the marina
concession will add to the public interest and enjoyment -of Boat
Basin Park and will provide the maximum practical use of this
portion of.said Park.
NOW, THEREFORE, in consideration of the covenants and agreements
herein contained and the terms and conditions hereof, the parties
agree to the following:
I.
The City grants to the Lessee the exclusive right to operate
a commercial marina concession within tattachedhe boundariesto d f the
thislty of
Pasco as described in Exhibit A
hereof,.as though set forth in full and
reference made a part
outlined on the attached map.
all be
erm
This Agreement to operate said conc dayess
of sFebruarry for a,t1977,
of ten (10) years commencing on the 2»d day
and ending on the ls� day of
February 198 7 .
III.
The ten year term of this Agreement shall be dividethree earstthree
fthee
periods. The first period shshalall leeoforhthelfollrst owing three years
do
agreement, the se p ll beshall be for the last four years
of the agreement and the third period
of the agreement.
Of two
The rental for said concession right shall beeriodsumThe rent
hundred dollars ($200.00) per month for the first p
for said concessionaire rights shall be, for the second period, the
greater of four hundred dollars ($400.00) or 10% of the net income
of the concessionaire at the location granted in this Concession
Agreement. The rent for said concessionaire right for the third
period shall be the greater of five hundred dollars ($500.00) or
10% of the net income of the concessionaire at the location granted
_.
in this Concession Agreement.
Rentals shall be due and payable to the City on or before the
first day of the month next succeeding the month of account, except
that the,monthly rental payment for December shall be:,paid by the
last day of business in said month.
All rental payments shall be paid monthly to the City provided,,
concessionaire shall make a quarterly determination of whether the
flat dollar rental rate per month as'defined above or 10% of net
income rental rate is the greater amount. If the quarterly.determin-
ation shows 10% of net income rental rate exceeds the.flat rental
rate, then.a quarterly adjustment shall be then paid to the City of
Pasco.
All remittances for rentals under this agreement shall be made
payable to the City.of Pasco.
IV
It is agreed that concessionaire shall have a first option
at the expiration of the terms of this Agreement to operate a
commercial marina concession at the location described within this
Agreement. The terms of said agreement shall be negotiated within
the last six months of the term of this Agreement. The Lessee shall
be permitted to build and construct such buildings and facilities
as may be needed to operate said concession. All construction and
location are required prior approval of the City and the U.S. Corps
of Engineers...
The Lessee shall comply with all Federal laws and regulations
of the State and the City wherein said demised premises are located,
with regard to construction, license, or permits to do business,.
and all other matters; and that the Lessee will further comply with
standards and recommendations of the State and local Health
Departments in all matters concerning health and sanitation.
W
The Lessee shall make available all records for inspection by
the City or the City's duly appointed representative upon request.
The Lessee shall prepare and furnish a detailed financial report to
the City by January 31st of each year. Said report shall include
but not be limited to the yearly expenditures for salaries,
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maintenance and upkeep, capital outlay, the gross revenue from the
marina concession and other revenues that may be received from
time to time from various sources. Concessionaire shall provide _
an audit by a certified public accountant at the end of each of
the three periods indicated in paragraph III above at concessionaire''s
expense. The City reserves the right to have such further audits
by a certified public accountant as the City's desire at the City's
expense, provided, if such audit reveals that.the City has not
received the amount of rental compensation based at 100 of the net
income as the City is entitled to under the terms of this Agreement,
then the concessionaire shall pay all costs of such audit in
addition to bringing the rental compensation current.,
VI.
The City shall not be liable for any damage or injury to any
person or property occurring at any time during the term hereof on
the demise premise. The Lessee at its own cost and expense, will
defend any suit brought against the City upon such above-mentioned
claim or claims and shall pay the judgment that may be recovered.
against the City in any such action and will otherwise hold the
City harmless from any claims or damages or injury caused by their
use of the premises. The Lessee agrees that they will at all times
during the term hereof maintain and pay for comprehensive general
liability insurance with a combined single limit of $500,000.00 for
bodily injury, death or property damage insuring both the City and•
the Lessee; the Lessee shall submit to the City a copy of said
insurance ,policy, showing that the policy is in force. This
paragraph is subject to renegotiation after five years from the date
of this Agreement.
It is the intent of the parties hereto that the Lessee shall
be legally considered as an independant contractor and that neither
he nor his employeesshall, under any circumstances, be considered
servants or agents of the City and that the City shall at no time
be legally responsible for any negligence on the part of said Lessee,
his servants or agents, resulting in either personal or property
damage of any individual, firm or corporation.
VII.
It is agreed that the concessionaire shall secure at his own
expense a bond in the sum of $10,000.00 to be paid to the City of
Pasco for any loss or damage occasioned to any person or property
or to the City of Pasco, by reason of any carelessness or negligence
on the part of said concessionaire.in the performance of or under
the terms of this contract, and shall indemnify and hold the City
of Pasco harmless from any damage or expense by reason of its
negligence or failure of performance as specified in this contract.
It is the intent of the parties under this section to.secure by
bond the faithful performance by concessionaire of the terms of the
contract.
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VIII.
The Lessee shall not sell or permit to be sold or to be
consummed upon said premises any intoxicating or alcholic beverages
[,.yF -s as are prohibited by municipal ordinance or State law, and shall
4� not permit any gambling at any time upon said premises and shall
not permit improper or immoral.conduct on the part of its employees
and shall not permit hawking or any other noise or disturbance
designed to attract attention or to solicit trade. This article
does not prohibit sale of alcholic beverages at concessionaire
building at Boat Basin, so long as such sale complies with all State
laws and regulations,.
IX.
The Lessee will, at its own expense, furnish and pay for its.
own heat, gas, water, lights, power, and all .other utilities without j
cost to the City.
The Lessee shall not permit garbage or other refuse to
accumulate or gather in or about the buildings or adjoining grounds.
except in suitable garbage receptacles. The Lessee shall be '
responsible for the removal and disposal of rubbish, trash, and
garbage accummulated on -said property on a regular schedule.
The Lessee shall be responsible for the upkeep and maintenance
of all roadways., parking areas, water lines, lawns, shorelines
and the entire.premises within the concession area as indicated on
the attached map marked Exhibit "A". The Lessee shall be responsible
for the control and/or elimination of pests, insects, plant diseases,
etc., within the concession area.
►go
The Lessee shall allow the Director of Parks &..Recreation or
such other persons as may be designated by the City access to the
premises during all concession operating hours, or in the event the
concession is not in operation, during those hours as established
by the City Council as regular Department working hours, for the
purpose of examining or insepcting said premises or for any other
purpose, not unduly affecting the operation of the Lessee's business.
XI.
It is agreed that the Director of .Parks & Recreation or such
persons as may be designated by the City shall supervise the terms
of this agreement.
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It is agreed that the time and .full prompt performance of all
the terms and conditions of this agreement is made the essence
hereof, and in the event Lessee fails to keep or perform any terms
required herein to be kept or. performed by them, the City shall
proceed as follows: The Director of Parks & Recreation shall give
notice to the Lessee of any violations of the duties and obligations
of the Lessee hereunder: If the Director of Parks & Recreation,
within a reasonable time, believes the particular, problemhas not
been corrected, he shall notify the City Manager. The City Manager
shall notify the Lessee, either at a meeting set up for that.
particular purpose or in writing, of the specific duties and
obligations which the Lessee has violated. If thereafter the
Lessee has not corrected such violations or conditions or if'
thereafter the Lessee commits the same or related violations or
allows the condition to re -occur, then, and in either of said events
the City upon 15 days written notice to the Lessee, shall have
the right to terminate this contract and all rights and privileges
of the Lessee hereunder. In the event the City shall terminate
the right -to enter the leased property and take immediate and sole
possession thereof, and bring suit for and collect all monies
required to be paid.to the City.
XII.
The Lessee shall not discriminate against any person or persons
because of race, creed, color or national origin in the conduct of
his operation hereunder. Lessee agrees to comply with Title VI of
the Civil Rights Act of 1964 (78 Stat. 231) and Department of Defense
Directive 5500.11 issued pursuant thereto and published in Part
300 of .Title 32, Code of Federal Regulations.
It is' agreed that the yearly rental rate collected from the
existing boat house moorage and from any future additional boat house
moorage, shall be negotiated in the same manner and at the same time
as provided in Section III above. The rate of the initial three
year period shall not exceed $150.00 per boathouse per year unless
prior written approval is granted by the City for a greater rate. It
is understood that the money shall be collected by and payable to the.
Lessee. In return for these monies, the Lessee shall provide year
round night and day security of the boat house area, as well as the
Lessee's own business interests and garbage control.
XIV.
It is_understood that the existing boat launching ramp is for
public use and the Lessee shall not limit or exclude anyone from
launching a boat from said facility.*
M11
XV.
Concessionaire shall provide 20 covered moorages not later
than April 30, 1978. Concessionaire shall provide an additional
20 moorages after receiving a $100.00 rental deposit for 15
additional moorage spaces as provided below. In order to determine -
the need for additional moorages over and above the original 20
covered moorage spaces, concessionaire shall advertise at least
three weeks in the Tri -City Herald and such other sources as
desired for persons seeking moorage space. Such advertisement
shall state the rental rate and other rental terms and shall require
$100.00 deposit for each moorage rental space. After 15 $100,.00
rental deposits are received, the concessionaire shall within four
months provide 20 additional moorage spaces over and above the first
20 covered moorage spaces described at the beginning of this
paragraph.
XVI.
The City plans to provide certain materials and monies for
improvements in its boat basin building. It is understood by the
City and concessionaire that any monies or supplies provided by
the City to be used for improvement of the boat basin building
owned by the Corps shall be solely used for improvement of said
facility. As far.as sufficient materials and monies are made
available, the concessionaire agrees in consideration for this
Agreement to build restrooms, paint the exterior of the building,
improve the building by bringing it up to meet all fire and
building codes. A list of all materials and labor and an accounting
of all expenditures shall be provided by the Concessionaire to the
Director of Parks and Recreation. The Concessionaire agrees not
to pay in excess of the prevailing wage for any labor performed.
XVII.
Concessionaire shall provide a gas dock not later than July 1,
1977., (provided that if the State does not give the necessary
permits or State allotment of fuels then this time requirement shall
be extended until such permits or allotments are received). Said
gas dock shall meet all local, State and Federal requirements and
laws, including all safety and enviornmental laws.
XVIII.
It is agreed that in the event this agreement is terminated by
.either party, any permanent capital improvements, accessions, or
fixtures added by the concessionaire shall not be removed. However,
movable improvements such as floating docks may be removed by the
concessionaire. It is further agreed that the City shall not,be
required to pay for or purchase any improvements made by the
concessionaire.
XIX.
It is agreed that Lessee shall fully comply with and is
subject to the terms and conditions of that contract between the.
Department of the Army and the City of Pasco, a copy of which is
attached hereto and by this reference incorporated herein.
XX.
It is agreed that this franchise shall not be transferred,
assigned or sold without prior written consent of the City.
XXI.
It is agreed that Concessionaire shall not become a tenant
and shall not have exclusive right to the premises until the City
of Pasco has entered into the Agreement with the Corps of Engineers
which is attached hereto and marked Exhibit "B".
XXII.
It is understood and.agreed that in the event the lease dated
, 1977, is terminated by the Corps of Engineers
or relinquished by the City of Pasco, this lease will be terminated
on or before the effective date of termination or relinquishment.
IN WITNESS WHEREOF, the parties hereto have set their hands
and seals this day of 1977.
APPROVED BY THE US ARMY CORPS OF ENGINEERS:
By:
ATTEST;,
Leo E. Olney, City Clerk
APPROVED:
Patrick T. �Roac�hC�iry Attorney
WATER WORLD MARINA, INC.
By:
David Chambers, President
By:
Vern Birdsell, Secretary
CITY OF�PASCO
By:
J Tidrick, Mayor