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HomeMy WebLinkAbout1082 ResolutionRESOLUTION NO. 1082 A RESOLUTION OF THE CITY OF PASCO AUTHORIZING THE MAYOR TO SIGN AN ADDENDUM TO THE COMMERCIAL CONCESSION AGREEMENT BETWEEN THE CITY OF PASCO AND WATER WORLD MARINA, INC. AND GUARANTEE OF PERFORMANCE AND INDEMNITY AGREEMENT. W H E R E A S , the City of Pa sco and Wa ter World Marina, Inc. have entered into a Concession Agreement, dated February 2, 1977, and WHEREAS , in order for Lessee to commence business at said location and still comply with the Pasco Municipal Code, it is necessary for Lessee to have certain restroom facilities for its employees, and W H E REAS , it will take approximately three months for Lessee to construct said restroom facilities within the building heretofore leased from the City, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO DOES RESOLVE AS FOLLOWS: Section 1. City of Pasco leases to Lessee, Water World Marina, Inc. , for a period of four months the restroom facility in Boat Basin Park, as described and in accordance with the attached Addendum . Section 2. The Pasco City Mayor is hereby authorized and directed to sign the attached Addendum and, also, Guarantee of Performance and Indemnity Agreement attached hereto and by this reference incorporated herein. Section 3. This Resolution shall be in full force and effect after its passage as required by law. PASSED by the City Council and APPROVED this 5 day of April, 1977. M ells, Deputy City Clerk Approved as to form: a trick T . Roac ,City Attorney J.C, Bai.lie, Mayor Pro -Tem ADDENDUM W H E R EA S , Lessee has entered into agreement dated February 2, 1977, (a copy of which is attached hereto and by this reference incorporated herein) providing for a lease of a certain portion of Pasco Boat Basin; and WHEREAS , in order for Lessee to commence business at said location 'and still comply with Pasco Municipal Code, it is necessary. for Lessee to have. certain restroom facilities for its employees, and WH E R EA S , -it will take approximately three months for Lessee to construct said restroom facilities within the building heretofore leased from the City, now, therefore, In consideration of the mutual benefits to be derived herefrom, the parties hereto agree as follows.: 1) City of Pasco leases to Lessee, Water World Marina, Inc. , for a period of four months the restroom facility in Boat Basin Park together with an easement 1.5 feet on either side of a line running from center of east side of said restroom facility,East to westerly boundary of property covered by February 2, 1977, lease. 2) Lessee agrees that said facility will remain open to the public. 3) Lessee agrees that upon completion of the bathroom in Boat Basin Building this agreement shall automatically terminate. Da ted this APPROVED: , day of April, 19 7 7 ., Patrick T. Roach, City Attorney ATTEST: Leo E. Olney, City Clerk .APPROVED: Corp of Engineers CITY OF PASCO [ JaTidrick, Mayor WWATER WORLD MARINA INC. Lessee WATER WORLD MARINA, INC. v Lessee FF • � ,.. .c. ,,. - r + ; Y r'.. a fx,. ,6,- .D' flet [:' !' <�° ' y r; r � . ✓m� 4. .•+1 �,^ t J �S• a ;, •�'_y.-i y n. '�''�' � + ia' �'"�J! '�a1v x S' • GUARANTEE OF PERFORMANCE AND INDEMNITY AGREEMENT THIS GUARANTEE OF PERFORMANCE AND INDEMNITY AGREEMENT is entered into this day of 1977, by and between THE CITY OF PASCO, hereinafter referred.to as the City, and DAVID H. CHAMBERS and HAZEL I. CHAMBERS, husband and wife, and VERN BIRDSELL and ADRIENE BIRDSELL, husband and wife, hereinafter referred to as guarantors, W I T N E S S E T H: Guarantors are the principal owners of the corporation with which the City has contracted as a concessionaire at the Pasco Boat Basin. As a term of said concessionaire agreement, con- cessionaire was to have given the City a bond to guarantee per- formance of said concessionaire 'agreement.' In lieu of said performance bond, the City has agreed to accept the guarantee and indemnity contained herein. In consideration of the mutual benefits.to be derived herefrom, the undersigned guarantors hereby jointly and severally guarantee the performance by the said Water World Marina, Inc. of all the terms and conditions of the said agreement to be performed by the said Water World Marina, Inc, thereunder, and the undersigned hereby jointly and severally undertake and agree to indemnify and hold the City and the City's successors and assigns harmless from and against any and all liability, loss, damage or expense, includin< attorney fees, which the City may incur or sustain by reason of the failure of said Water World Marina, Inc. fully to conform and comply with the terms and obligations of the said lease agreement between the boat basin concessionaires and the City. Guarantors further jointly and severally guarantee payment to the City of all sums due to the City under the terms of the lease agreement between the boat basin concessionaire and the City. It is agreed by and between the parties hereto that all guarantees and indemnity contained herein are limited to the total sum of Ten Thousand ($10,000.00) Dollars. It is further understood that the City entered•this Agreement in consideration for the representations contained in the financial statements of guarantors which are attached to this Agreement and by this reference incorporated herein. CAMPBELL, JOHNSTON & ROACH ATTORNEYS AT LAW POST OFFICE BOX 609 609 WEST CLARK STREET .PASCO, WASHINGTON 99301 1 2 3 4 5 6 7 t , 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year.first above written. David H. Chambers, Guarantor Hazel I. Chambers, Guarantor Vern Birdsell, Guarantor Adri.ene Birdsell, Guarantor THE CITY OF PASCO B — =— Y _ Tidrick, Mayor Approved as to Form: CAMPBELL, JOHNSTON & ROACH ATTORNEYS AT LAW POST OFFICE BOX 609 609 WEST CLARK STREET PASCO. WASHINGTON 99301 CITY OF 4QCO P�V.V POST OFFICE BOX 293 1 PASCO, WASHINGTON 99301 March 24, 1977 TO: George Smith, City Manager �t Q P FROM: Richard 0. Erickson, Director of Parks & Recreation 1' RE: Boat Basin Concession Agreement As you know there has been some difficulty with the concessionaire of the Boat Basin in obtaining a $10,000 bond as set forth in the concessionaire agreement. The problem is that it is difficult and expensive to obtain a bond as set forth by the wording. -used in the agreement in Section VII. The approximate cost would be $2,000- $2,500 per year. After reviewing this matter with Ed Ray of Dunning Ray Insurance and Pat Roach, City Attorney, it was agreed that the attached "Guarantee of Performance and Indemnity" should be added to the original concession agreement. I am also attaching a memo from Pat Roach pertaining to this subject. I have discussed this with the concessionaires' and they are in agreement. Also, as you know there is difficulty in the concessionaire obtain- ing a business license as the requirement of restrooms set forth in the city of Pasco building code is not met as yet. The materials for this restroom will all be arriving within eight weeks, and shortly completed thereafter. However, it is most imperative that the concessionaire not be delayed any longer as the months of April, May and June are good sales months. To satisfy the building code requirements we are proposing to lease the restroom in the Boat Basin Park to the concessionaire for a period of four months. After talking with Jim McCurry, Chief Building Inspector, this would comply with the code and a business license could be issued. I have attached an addendum prepared by Pat Roach for this purpose. Page 2 I have also checked with the Fire Department and they feel there would be no problem from a life safety standpoint. Please place this on the Council Workshop agenda for March 29, 1977. RESOLUTION 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 COUNCIL' OF THE CITY OF PASCO.DOES RESOLVE AS FOLLOWS: Section 1. 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 >P9U Va'r`y, 1977. Attest: Evelyn Wells, Deputy City Clerk Approved as to form: Patrick T. Roach, City Attorney JAN TIDRICK, Mayor COMMERCIAL CO14CESSION AGREEMENT _ �.1<�dc. and entered into this 2nd clay_ of Febr_ uar —, in the St�t� of onf 1977, be and between the City of Masco PJashingInc., hereinafter referred to as.the "City" and Water World Marna, hereinafter referred to as the "Lessee". of WHEREAS, the City desires ie tedfParkoferhandlzens almarina, andco 'and the surrounding area a water orn WHEREAS, the park known as Boat Basin Park can be a viable part . of the City's Park & Recreation Department, and operation and further development of the marina WHEREAS, the op ment-of Boat concession will add to the public interest and en oy vide the maximum practical use of this Basin Park and will pro portion of.said Park. in consideration of the covenants and agreements NOW, THEREFORE, parties herein contained and the terms and conditions hereof, the agree to the. -following: I. grants to the Lessee the exclusive right to operate The City the a commercial marina. concession ached boundaries achedheretoand bytthe Of Pasco as described in Exhibit reference made a part hereof,.as ll 'though set forth in full and outlined on the attached map. II. This Agreement to operate said2concession f shall y for a,t1977, of ten (10) years commencing on the y o 198 7. and ending on the 1st day of February _7 The ten year term of phis Agreement shall be divided into three periods. The first period shall beb�oforthe thefirst following three years e p ears agreement, the second period d period shall be for the last four y of the agreement and the third p of the agreement. The rental for said concession right shall be the sumThe two rent hundred dollars ($200.00) per month for the first pe riod. ..... _..��"�.�r.... x.yr....u7�....�"�'_�.`�"�...� _. ...5._ .....,. _... ^_,Wi'`'t•"' .. for said concessionaire rights shall be, for the second period, the s greater of four hundred dollars. 400.00antedlOn this hConcession e net me of the concessionaire at the locationg k Agreement. The rent for said concessiondr�aedol�arsf($500-00)iod g period shall be the greater of five hundred ranted l00 of the net income of the concessionaire at the location g in this Concession Agreement.. Rentals sre the hall be due and payable to the City oacooubtfoexcept Ren the month of first day of the month next msucceediDecember shall be,•paid by the that the monthly rental payment last day of business in said month. All rental payments shall to terly p aid monthly to the City provided..; sionaire shall make a quardetermination of whether the conces fined above or 10% of net flat dollar rental rate per month as dequarterlydetermin- income rental rate is the 10% of net incomeater rentalorate exceeds if the the flat f ation shows ustment.shall be then paid to the City o rate, then a quarterly adj 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 at thelllocais tionmdescr�bed within this operate a commercial marina concession Agreement. The terms of said agreement shall be negotiated within the last six months of the term of this Agreemengs andent. Lessee all facil ties be permitted to build and construct as may be needed to operate said cofsthe.Citylandn heuUtS. and location are required prior approval of Engineers. The Lessee shall comply with all Federal laws and regulations of the State and the City wherein said demised premises are located, license, or permits to do business, ess with regard to construction, with and all other matters; and that fttheLState and see llocal hHealth standards and recommendations o health and sanitation. Departments in all matters concerning V. The Lessee shall make available all recordtivoru�onprequestby Th pointed representative the City or the City's duly app The Lessee shall prepare and furnish a detailed financial report to City b January 31st of each year. Said report shall include the C y Y but not be limited to the yearly expenditures for salaries, -2- 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 E III above at concessionaire's the three periods indicated in paragraph expense. The City reserves the right to have such further audits 'byex 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 l00 of the net f income as the City is entitled to under the terms of this Agreement, then the concessionaire shah. pay all costs of such audit in , addition to bringing the rental compensation current.. . l 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 against the City upon such above-mentioned defend any suit brought claim or claims and shall pay the judgment that may be recovered tion and will otherwise hold the against the City in any such ac 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 employees shall, under any circumstances, be considered servants or agents of the City and that the City shall oats.nodtimssee, be legally responsible 'for -any negligence on the P ert his servants or agents, resulting in either personal or prop Y damage of any individual, firm or corporation. VII. It is agreed that the concessionaire shall secure at his own City Of expense a bond in the sum of $10,000.00 to be Pae�so° oreproperty Pasco for. any loss or damage occasioned to any p • 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 o'f 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. -3- _ t t d c , � _iSr. Y.% :;� _ ...Ci.......a. xx.v z-t.. .. ..:•:tro ... , '. - ..... . ,. ..+ .... .. lv —. .Ga '}, - - _ _ VIII. The Lessee shall not sell or permit to be sold or to be ` consummed upon said premises any intoxicating or alcholic beverages as are prohibited by municipal ordinance or State law, and shall 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 per hawking or any other noise or disturbance designed to attract attention or to solitatde. This ar concessionaireticle does not prohibit sale of alcholic suchbeverages State. - building at Boat Basin, so long as such sale complies with all State laws and regulations. IX. will, at its own expense, furnish and pay for its The Lessee power, and all other utilities without own heat, gas, water, lights, cost to the City. The Lessee shall not permit garbage or other refuse to rounds. accumulate or gather in or about the buildings or adjoining g except in suitable garbage recepdisposal ofeshall Lessee rubbish,trash�,eand .responsible for the removal and disposal 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 ndcated on and the entire, premises within the conTh�sLesseeeshalllbei responsible the attached map marked Exhibit "A". plant diseases, for the control and/or elimination of pests, insects, p etc., within the concession area. X. allow the Director of Parks &.Recreation or The Lessee shall . such other persons as may. be designated bhours,y the Coryincthe sevent hthe premises during all concession operating hours, hours as established concession is not in -operation, during r the by the City Council as regular Departmentorkingorhours, afofo other purpose of examining or insepcting said pr emisesfor purpose, not unduly affecting the operationof 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. -4- It is agreed that the time -and .full prompt performance of a11. � 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..problem'has 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. XIII 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 boat house 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 busine.s.s interests and garbage control. XIV. It isunderstood that the existing boat launching ramp is for nd ,the Lessee shall not limit or exclude anyone from public use a launching a boat from said facility. -5- XV. Concessionaire shall provide 20 covered moorages not later thanApril 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 improvementofthe 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 expendi.tures.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. -6- 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 P-asco has entered into the Agreement with the Corps of Engineers which is attached hereto qnd 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 977. APPROVED BY THE US ARMY CORPS OF ENGINEERS: By: ATTEST- , �i Leo E. Olney, City Clerk APPROVED: Patrick T. Roach, City Attorney WATER WORLD MARINA, INC. By: David Chambers, President By: Vern Birdsell, Secretary CITY OI'�PASCO�- J Tidrick, Mayor I