HomeMy WebLinkAboutConcession World - Softball Complex & Memorial PoolCITY OF PASCO
CONCESSION/LEASE AGREEMENT
Pasco Softball Complex & Memorial Pool
1. PARTIES. This Lease Agreement (Agreement) is made and entered into as of this
day of Fe, , 2015, by and between the City of Pasco, a municipal corporation
(City) and Phil Forzaglia, dIJa Concession World (Concessionaire).
2. TERM. This Agreement shall commence upon execution, and unless terminated for a
breach or as provided herein, shall continue in full force and effect through December 31, 2015.
If mutually agreed upon with the City, the term of this contract may be extended in one year
increments, for up to 4 additional years.
3. PREMISES. City hereby leases to Concessionaire and Concessionaire hereby leases
and takes from City those certain real properties
1) At the Pasco Softball Complex in the City of Pasco, County of Franklin, State of
Washington. The leased premises consists of approximately 570 square feet,
more or less in the Pasco Softball Complex office/restroom/concession building
(referred to as the "PSC Premises"), together with all improvements thereon and
appurtenances thereto, as shown in the attached Exhibit "A".
2) At Memorial Pool in the City of Pasco, County of Franklin, State of Washington.
The leased premises consists of approximately 150 square feet more or less
concession building located in the South West corner of the Memorial Pool
Complex, with access to water and electricity (referred to as the "Pool Premises"),
together with all improvements thereon and appurtenances thereto, as shown in
the attached Exhibit `B".
4. RENT. A $300 Agreement Signing Fee will be paid within 1 week of the date listed
above. Monthly rent shall then be payable to the City by the Concessionaire in the amount of
$266.71 plus leasehold excise tax of $33.29, for a total of $300.00 per month per premises (PSC
Premises & Pool Premises) according to the following operating seasons:
• PSC Premises: March — October
• Pool Premises: June - August
4.1 Monthly rent payments shall be payable on or before the 10th day of each month
of the Term. Rent shall be payable to City at the address shown below, or to such other address
as City may designate by written notice as provided herein, without demand and without
deduction, setoff or counterclaim.
City of Pasco
Attn: Brent Kubalek
PO Box 293
Pasco, WA 99301
4.2 Leasehold Tax. The rent specified by this Section 4 includes the leasehold excise
tax which is payable in accordance with Chapter 82.28A RCW (the "leasehold tax").
Concessionaire shall pay the rent to the City and City will forward to the State of Washington, as
required by law, that portion of the rent which is allocable to the leasehold tax.
4.3 Rental Deposit: The Concessionaire will pay a $100 rental deposit, due at time of
first months rent. This deposit will be held to the end of season and then returned. Any Report
late fees (See Section 6), etc will be charged against this deposit.
5. CONCESSION RIGHT. Concessionaire shall have the exclusive right during
scheduled events at both the PSC Premises and the Pool Premises, subject to payment of the
concession compensation and the provisions set forth herein, to sell food and non-alcoholic
beverages in the Premises.
5.1 Concession Equipment. Except as specifically provided by this agreement,
Concessionaire shall supply, at its own expense, all equipment, fixtures, supplies and staff and
other items required or necessary to provide concessions to patrons of the Premises.
5.2 Concessionaire is required to use adequate electrical equipment. If Concessionaire
supplies any electrical equipment that overloads the electrical system capacity in the Premises,
Concessionaire shall, at its own expense, (but only with prior consent of the City) make whatever
changes are necessary to meet the applicable electrical code.
5.3 If tenant declines to provide concession service to a non -softball event at the Pasco
Softball Complex, or at special events or rentals at Memorial Pool, the City may permit another
entity to sell concessions from portable concession stand brought into the Premises for such
purpose.
6. CONCESSION RIGHT COMPENSATION. Concessionaire shall pay City for the
exclusive food and beverage service concession at the Pasco Softball Complex and at Memorial
Pool, a percentage of Concessionaire's annual gross receipts to be paid, as applicable, with
monthly rent payments.
6.1 The percentage of gross receipts payable shall be according to the following schedule
for the 2015 calendar year: 0.00% of gross sales
6.2 Reports. Concessionaire shall provide to City with each monthly concession
payment, an itemization of its gross receipts for the month, listing separately food, beverage and
vending machine sales, and any other general product sales category conducted on the premises,
and year to date totals in each category and total gross sales. This report shall be submitted to the
Recreation Services Office located in Pasco City Hall, 525 N. 3' Ave., Pasco, WA 99301, no
later than the 10' day of each month. If Concessionaire fails to submit the report before the end
of the work day on the 10'° day of each month they will be charged a $20 late fee (This will be
deducted from the deposit, which will then have to be paid back up to the $100).
7. DEFINITION OF GROSS RECEIPTS. For the purposes of this agreement, the
term "gross receipts" shall mean the total sum of all sales made at or from the designated
premises, whether for cash or on credit, less the amount of any sales tax or other direct consumer
tax which may specifically be paid by the purchaser or customer at the time of purchase or
payment, and including but not limited to orders taken at the premises but filled elsewhere and
orders taken elsewhere but filled at the premises.
8. USE OF LEASED PREMISES. Concessionaire agrees that the leased premises
shall be used by the Concessionaire exclusively for food and non-alcoholic beverage service and
associated office use. Such use shall conform with applicable city ordinances and state and
federal laws. No other usage of the Premises shall be allowed unless prior written consent is
obtained from the Pasco City Manager which shall be granted or not granted at the absolute
discretion of the city. Concessionaire may not sublet any or all of the premises without prior
written approval from the Pasco City Manager.
9. DAYS AND TIME OF OPERATION. Concessionaire shall provide food and
beverage services from the designated premises as follows:
9.1 Pasco Softball Complex — Service shall be provided up to seven (7) days a week
and during the hours that the Softball Complex is open for scheduled play. Scheduled play shall
mean school, league and tournament play as authorized by the Recreation Services Division of
the City. The softball complex will normally be scheduled March through October.
Concessionaire may provide such services for additional times and hours at its discretion.
9.2 Memorial Pool — Service shall be provided seven (7) days a week and during the
hours that Memorial Pool is open for scheduled Open Swim session. For the 2015 swim season
Open Swim Sessions shall mean 1:00— 4:30pm and 6:30-8:30pm weekdays; 1:00-4:OOpm and
5:00-8:OOpm weekends or as otherwise established by the Recreation Services Division of the
City. Memorial Pool will normally be scheduled June through August. Concessionaire may
provide such services for additional times and hours at its discretion.
10. OTHER CONCESSIONAIRE RESPONSIBILITIES. In addition to providing the
concession services described above, Concessionaire shall provide for the following:
10.1 To lock and unlock the restroom facility at the softball complex for each day of
scheduled operation.
10.2 To assist in litter pick-up in the area surrounding the concessions building at each
site at the close of each day.
10.3 To negotiate with the City's selected soft drink vendor for the beverages it shall
offer for sale. Coca-Cola is the selected soft drink vendor through February 28, 2025.
10.4 To present its employees as neat, clean and professional with clothing or
identification which distinguishes them as employees of the Concessionaire.
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10.5 To provide for City's review and secure the City's approval of the products and
prices that it proposes to offer to patrons of the Premises. City's approval shall not be
unreasonably withheld.
11. CITY PROVIDED IMPROVEMENTS. City shall install at its sole expense, the
site improvements as listed on Exhibit `B", attached hereto.
12. CONCESSIONAIRE PROVIDED EQUIPMENT. Concessionaire shall provide,
at its sole expense, the equipment listed on Exhibit "C". Cash registers shall be sealed and so
designed as to show the customer the amount of the sale and to record accurately all the daily
and monthly total gross receipts. Such cash registers shall be available to City at any reasonable
time for inspection.
13. UTILITIES, REPAIRS AND MAINTENANCE.
13.1 City shall provide, at its own expense, water and sewer service and solid waste
disposal to the Premises. City shall also provide janitorial services for the adjacent restroom
facility at the Softball Complex. City shall also maintain and repair the Premises, except for
maintenance or repairs required as a result of Concessionaire's negligence. Concessionaire shall
give City access to the Premises at all reasonable times, without charge or diminution of rent, to
enable City to examine the same and to make such repairs, additions and alterations as City may
deem advisable or is required hereunder to accomplish.
13.2 Concessionaire shall pay, in addition to rent, $0.00 per month to City during the
months of March through September to offset a portion of the expense of electrical service for
the PSC Premises and restroom facility. Concessionaire shall pay, in addition to rent, $0_00 per
month to City during the months of June through August, to offset a portion of the expense of
electrical service for the Pool Premises. Concessionaire shall also provide for janitorial services
for both Premises, not including the restrooms at the PSC Premises.
14. CITY'S REPRESENTATIONS, WARRANTIES AND COVENANTS. City
hereby represents and warrants to Concessionaire that it has the full right, power and authority to
lease the Premises to Concessionaire. Except as specifically set forth herein, neither City nor its
agents have made any representations with respect to the Premises. No rights, easements, or
licenses are acquired by Concessionaire by implication or otherwise except as expressly set forth
in the provisions of this Agreement. The taking of possession of the leased property by the
Concessionaire shall be conclusive evidence that the Premises were in good condition at the time
possession was taken. CONCESSIONAIRE A CCEPTS THE PREMISES AS -IS.
15. QUIET ENJOYMENT. City agrees that so long as Concessionaire observes and
performs all of the agreements and performs all of the agreements and covenants required of it
hereunder, Concessionaire shall peaceably and quietly have, hold and enjoy the Premises for the
Term without any encumbrance, interference or hindrance by City, its agents or employees.
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16. TAXES. Concessionaire shall pay all taxes assessed against and levied upon
Concessionaire's trade fixtures, and all other personal property of Concessionaire contained in or
around the Premises.
17. INDEMNIFICATION / HOLD HARMLESS. Concessionaire shall defend,
indemnify, and hold harmless the City, its officers, officials, employees and volunteers from and
against any and all claims, suits, actions, or liabilities for injury or death of any person, or for
loss or damage to property, which arises out of Concessionaire's use of Premises, or from the
conduct of Concessionaire's business, or from any activity, work or thing done, permitted, or
suffered by Concessionaire in or about the Premises, except only such injury or damage as shall
have been occasioned by the sole negligence of the City.
18. INSURANCE. The Concessionaire shall procure and maintain for the duration of
the Agreement, insurance against claims for injuries to persons or damage to property which may
arise from or in connection with the Concessionaire's operation and use of the leased Premises.
18.1 Minimum Scope of Insurance. Concessionaire shall obtain insurance of the types
described below:
(a) Commercial General Liability insurance shall be written on Insurance Services Office
(ISO) occurrence form GC 00 01 and shall cover premises and contractual liability. The City
shall be named as insured on Concessionaire's Commercial General Liability insurance policy
using ISO Additional Insured Managers or Lessors of Premises Form CG 20 11 or a substitute
endorsement providing equivalent coverage.
(b) Property insurance shall be written on an all risk basis.
18.2 Minimum Amounts of Insurance. Lessee shall maintain the following insurance
limits:
(a) Commercial General Liability insurance shall be written with limits no less than
$1,000,000 each occurrence, $2,000,000 general aggregate.
(b) Property insurance shall be written covering the full value of Concessionaire's
property and improvements with no coinsurance provisions.
18.3 Other hisurance Provisions. The insurance policies are to contain, or be endorsed to
contain, the following provisions for Commercial General Liability insurance:
(a) The Concessionaire's insurance coverage shall be primary insurance with respect to
the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall
be excess of the Concessionaire's insurance and shall not contribute with it.
(b) The Concessionaire's insurance shall be endorsed to state that coverage shall not be
cancelled by either party, except after thirty (30) days prior written notice by certified mail,
return receipt requested, has been given to the City.
18.4 Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best rating of not less than A:VII.
18.5 Verification of Coverage. Concessionaire shall furnish the City with original
certificates and a copy of the mandatory endorsements, including but not necessarily limited to
the additional insured endorsement, evidencing the insurance requirements of the
Concessionaire.
18.6 Waiver of Subrogation. Concessionaire and City hereby release and discharge each
other from all claims, losses and liabilities arising from or caused by any hazard covered by
property insurance on or in connection with the Premises. This release shall apply only to the
extent that such claim, loss or liability is covered by insurance.
18.7 City's Property Insurance. City shall purchase and maintain during the term of the
Agreement, all-risk property insurance covering the Premises for their full replacement value
without any coinsurance provisions.
19. DAMAGE OR DESTRUCTION; CONDEMNATION. If the Premises are
damaged or destroyed in whole or in part; or if the Premises or a substantial portion thereof were
taken by condemnation or under the power of eminent domain, City may, at its option, elect to
terminate this tenancy.
20. SURRENDER AT EXPIRATION. Upon expiration of the Agreement term or
earlier termination on account of default, Concessionaire shall surrender the Premises in the
same condition as at the commencement of the Agreement, reasonable wear and tear expected.
21. DEFAULT. Concessionaire shall be in default of this Agreement if it fails to comply
with any term or condition or fulfill any obligation of the Agreement. In the event of a default,
this Agreement may be terminated at the option of City by written notice to Concessionaire.
Whether or not the Agreement is terminated by the election of Concessionaire or otherwise, City
shall be entitled to recover damages from Concessionaire and City may retake possession of the
Premises, and reserves any other remedy available to the City under the applicable law.
22. MISCELLANEOUS.
22.1 Environmental Compliance By Concessionaire. Concessionaire shall not cause or
permit any Hazardous Material to be brought upon, kept or used in or about the Premises.
22.2 Signs. Concessionaire shall not erect signage without City's prior written consent.
22.3 Non -waiver. Waiver by either party of strict performance of any provision of this
Agreement shall not be a waiver or of prejudice to the party's right to require strict performance
of the same provision or any other provision in the future.
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22.4 Notices. Any notice required or permitted under this Agreement shall be deemed to
have been given when actually delivered or 72 hours after deposited in the United States mail as
certified mail addressed to the address first given in this Agreement or to such other address as
may be specified from time to time by either of the parties in writing.
22.5 Time of Essence. Time is of the essence of the performance of each of the
obligations under this Agreement.
22.6 Recording of Agreement. This Agreement shall not be recorded.
22.7 Concessionaire shall observe reasonable Rules and Regulations established and
amended by City for the Premises from time to time upon 30 days advance, written notice from
City to Concessionaire. Concessionaire shall have a reasonable opportunity to comment on
proposed rules and regulations.
22.8 Assignment. Concessionaire shall not assign, transfer or grant to any third party the
right to occupy the Premises or to sell food or beverages as granted under this Agreement.
22.9 Alterations, hnprovements And Additions. Concessionaire shall make no
alterations, improvements or additions to the Premises without prior written approval of the City.
Concessionaire shall not add furniture or other items to the Premises, except for furnishings in
the interior of the Premises, which are reasonably necessary for Concessionaire to conduct its
permitted activities.
22.10 Compliance with Laws, Ordinances and Regulations. Concessionaire shall
comply with all laws, ordinances and regulations of any governmental agency or public authority
having jurisdiction over the Premises or Concessionaire's use thereof.
22.11 Responsible Party. Following is the name and phone number and email address of
the party which may be contacted in an emergency (24 hours per day; 7 days per week
availability):
Phone Number5DJ -251-7107 Email i
IN WITNESS WHEREOF, the parties hereto have executed or caused this instrument
to be executed as of the day and year first above written.
CIT O PASCO
Rick Terway,
A&CS Department Director
CONQCE�SSIONAIRE
Date: 2015 Date: IZ L;? 5 2015
STATE OF WASHINGTON
ss.
I certify that I know or have satisfactory evidence that )PAIV firZa As the person
who appeared before me, and said person acknowledged that he signed thi instrument and
acknowledged it to be his free and voluntary act for the uses and purposes mentioned in this
instrument.
Dated this 71) day of�, 2015.
STATE OF WASHINGTON
Signature of Notary
Print or stamp name of Notary
Notary Public for the State of
Washington, residing at �' C h r) -C W I C 1C
My appointment expires5�'?
ss.
b�RL�rmy A� lrtr A ' ixQ Twr
I certify that I know or have satisfactory evidence that & i the person who
appeared before me, `and said person acknowledged that he signed this instrument and
acknowledged it to be his flee and voluntary act for the uses and purposes mentioned in the
instrument. /,�,�_
Dated this��d'ay of 5.,
Signature of Notary
Print or stamp name of Notary
Notary Public for the State of
Wa a ton, residiJ2 at
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• PSC PREMISES
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EXHIBIT "A"
SITE DIAGRAMS/MAPS
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mcessions Building
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EXHIBIT "B"
SITE IMPROVEMENTS
A: PSC PREMISES
• No improvements scheduled for 2015
B. POOL PREMISES
• Construct Concessions Building in fence line in the SW comer of the Memorial Pool
Complex with service windows to the pool and to the park.
• Electricity
• Water
• Hand Sink
• Counters
• Shelving
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EXHIBIT "C"
EQUIPMENT PROVIDED BY CONCESSIONAIRE
A: PSC PREMISES
•
Microwave
•
Slushie Machine
•
Grill
•
Fountain Machine
•
Cheese Machine
•
Pretzel Oven
•
Pretzel Warmer
•
Soup Warmer
•
Hot Dog Warmer
•
Pizza Warmer
B. POOL PREMISES
•
Microwave
•
Slushie Machine
•
Grill
•
Fountain Machine
•
Cheese Machine
•
Pretzel Oven
•
Pretzel Warmer
•
Soup Warmer
•
Hot Dog Warmer
•
Pizza Warmer
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EXHIBIT "D"
CONCESSIONAIRE CONTACT LIST
1. Phil Forzaglia
8107 Quadra Dr.
Pasco, WA 99301
philforza@wnail.com
509-551-9407
2. Jennifer Johnson
1005 Colena St.
Prossor, WA 99350
Jenj5953@Qmail.com
707-483-0265
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