Loading...
HomeMy WebLinkAboutItem 05 - Hydro-Bike Concession AgreementITEM MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER41 MEETING DATE: JUNE 1, 2004 SUBJECT: HYDRO -BIKE CONCESSION AGREEMENT RECOMMENDATION: Staff recommends the City Council authorize the City Manager to enter into an agreement with Bohn Enterprises to provide for rental of human powered hydro -bikes at parks and campgrounds leased by the City from the Corps of Engineers FUNDING SOURCE: Bohn Enterprises shall pay the City of Grapevine a concession fee equal to 10% of the value of net revenues received by Bohn from rentals paid by customers for use of the Hydro -bike watercraft. Net revenues are defined as the value of gross revenues chargeable by Bohn less any discounts granted to the customer as incentives for inducing the customer to rent the watercraft. No other amounts are to be deducted from the calculation of net revenues. BACKGROUND: Staff was approached by Mick Bohn of Bohn Enterprises regarding the rental of human powered watercraft on Lake Grapevine for a trial period this summer. Bohn will provide all the craft, staff, security, and instructions to use the craft, to visitors to Meadowmere Park and Silver Lake Campground. Should the customer base at either of these two locations not be adequate to sustain business, the Agreement allows Bohn to shift any or all of the 10 watercraft between each location and to use the beach area at Trawick Pavilion. The Corps of Engineers and its marina concessionaire, Marinas International, support this venture. Bohn will staff the sites during regularly scheduled park hours of operation. Hydro -Bikes consists of two pontoons 10 feet in length. The bikes' locomotion is provided by the rider who sits on an upright bicycle seat with pedals. The typical speed of a Hydro - Bike is four to six miles per hour, with a top speed of approximately 10 miles per hour. Under the Corps watercraft accounting system a Hydro -Bike is counted the same as a boat. While the lake is considered to be at capacity by the Corps, these vessels are very low impact items. In addition, there is currently a credit from the Corps to the City for the parking spaces lost when the boat ramp was removed for the construction of the Gaylord Texan. DE May 27, 2004 (9:50AM) Hydro -Bikes Concession Agreement By and Between Bohn Enterprises .And The City of Grapevine, Texas This Agreement, by and between Mitchell D. Bohn, doing business as Bohn Enterprises ("Bohn"), whose address is 1604 Noble Way, Flower Mound, TX 75022, and The City of Grapevine, Texas, ("Grapevine"), located at 200 South Main Street, Grapevine, TX 76099, is entered into for the purposes and under terms and conditions as described hereunder, WHEREAS, Bohn operates a business engaged in the rental and sales of recreational watercraft, and WHEREAS, Bohn desires to rent such watercraft to the public on premises controlled by Grapevine, and WHEREAS, Grapevine wishes to enable its citizens and park visitors to engage in recreational activities while visiting its parks and campgrounds, ` NOW, THEREFORE, IN CONSIDERATION OF THE BENEFITS AND OBLIGATIONS PROVIDED FOR HEREIN, THE SUFFICIENCY OF WHICH IS HEREBY AFFIRMED, THE PARTIES HEREBY AGREE AS FOLLOWS: SECTION I. The City grants a non-exclusive license to Bohn Enterprises to operate a watercraft concession for the rental of human powered hydro bikes to visitors at City parks and campgrounds subject to the following terms and conditions. Bohn shall provide, at its sole cost and expense, all equipment and furniture required for Bohn's operations hereunder. Any supplies, materials and equipment needed to maintain, service and repair Bohn's watercraft, shall be provided by Bohn at Bohn's sole cost and expense. Bohn shall provide a sufficient number of employees to adequately service this operation and its patrons. Such employees shall be neatly attired and shall conduct themselves with courtesy toward all patrons of the concession. Bohn's employees whose conduct is discourteous or objectionable on any reasonable ground shall be disciplined, counseled, trained or removed by Bohn. The City reserves the right to monitor BOHN's employees' attitudes, appearance, courtesy, job knowledge and performance. In the event the CITY is dissatisfied with BOHN's adherence to this Article, the City shall so notify BOHN in writing. BOHN agrees to promptly take appropriate corrective action. Failure to satisfy City's complaints promptly, the CITY may terminate the contract. SECTION II: The parties to this Agreement shall comply with the existing Master Lease Agreement between the City of Grapevine and the U.S. Army Corps of Engineers originally signed September 30, 2002 and extended for six months on April 03, September 03, and April 04. This Agreement and each party hereto shall adhere to the provisions of the Master Lease Agreement. SECTION III: Term of Agreement. This Agreement shall be effective beginning on the date of its execution by both parties. It is contemplated by both parties that the concession operations shall begin on or after June 1, 2004 in Grapevine campgrounds and parks. SECTION IV: Consideration to Grapevine. It is agreed that Bohn shall pay Grapevine a "concession fee" equal to 10% of the value of net revenues received by Bohn from rentals paid by customers for use of the Hydro -bike watercraft. Net revenues are defined as the value of gross revenues chargeable by Bohn less any discounts granted to the customer as incentives for inducing the customer to rent the watercraft. No other amounts are to be deducted from the calculation of "net revenues." Both parties agree that net revenues shall approximate the amount of cash received by Bohn in the rental of watercraft to the public. Such concession fee described above shall be paid to Grapevine on a monthly basis within thirty (30) days from the end of the month. Both parties agree that Grapevine has a right to inspect and audit the records of the Grapevine rental concession operation of Bohn for the purposes of verifying the reasonableness and accuracy of such concession fees paid by Bohn to Grapevine. SECTION V: Location of concession operations. The parties agree that such watercraft rental concessions will be located in mutually agreeable Grapevine locations in Oak Grove Park's Trawick Pavilion Area, the Silver Lake Campground, Meadowmere Park, and other parks as mutually agreed by Bohn and Grapevine. It is agreed by both parties that each customer shall be required to wear a life vest. If the customer does not provide his/her own life vest, then they shall be required to rent a life vest provided by Bohn. Such fees collected for the rental of life vests shall be included in the computation of "net revenues" for purposes of calculating the concession fees and compensation to contracted "host" personnel who may be assisting in the operation of the concession. SECTION VI: Number of watercraft at each concession site. The parties agree that Bohn may vary the number of watercraft available at each site for rental to the public. Bohn shall attempt to balance the number of watercraft available for rental to the varying demand profiles of public use of the Grapevine campgrounds and parks. In so doing, Bohn shall, from time to time, inform the City's Parks and Recreation Department of the number of watercraft available for rental. Both parties agree that such communication can be verbal and would be generally on at least a monthly basis. Both parties agree that the minimum number of watercraft available for rental at Grapevine sites shall be 10, and that it is contemplated that the number of watercraft can vary from day to day at the discretion of Bohn provided the minimum number of boats is met. Both parties agree that Bohn shall have the right to provide a secure method of storage of the watercraft on the Grapevine sites during the period of this Agreement. It is agreed that any such secure facility or arrangement shall be temporary in nature, and shall be moveable and not permanently affixed to the Grapevine property. SECTION VII: Access to Grapevine Concession Sites. Both parties agree that Bohn and/or his designated personnel shall have access to the concession sites during the normal operating hours of the campgrounds and parks for public access as determined by Grapevine. It is further agreed that Bohn and/or his designated personnel shall not be required to pay campground or park "admission, access or day use fees" which are normally charged by Grapevine. The parties agree that the campground "hosts" contracted by Grapevine shall man the watercraft rental concessions. Compensation for such work shall consist of 5% of the gross revenues minus discounts given ("net revenues"), and shall be payable to the host personnel within a reasonable time after the monthly revenues are computed/tabulated by Bohn from the records prepared and deposits made for each concession during each month of operation. It is understood that these personnel shall be contractors and not employees of Bohn. SECTION VIII: Termination of the Agreement. It is agreed that the following events may allow either party to terminate the Agreement prior to its expiration: 1. Failure by Bohn to make monthly payment of the concession fees due Grapevine in a timely manner. 2. Notification to Grapevine by the Corps of Engineers Lewisville, TX office that such operations of the rental concession must cease. 3. Acts of God which render the operation of the rental concession to be infeasible. An example of such an act is damage incurred to a rental site caused by tornado, fire, or flood. SECTION IX: Principal contacts of each party. The principal contact person for Bohn shall be Mitchell D. Bohn. The principal contact person for Grapevine shall be Joe Moore, Assistant Director, Grapevine Parks & Recreation. P.O. Box 95104 Grapevine, Texas 76099, 817-410-3121 office, 817-410-3005 fax. SECTION X: Insurance Coverage. Bohn shall have a liability insurance policy in effect for $1,000,000, with Grapevine as a listed insured party under this policy. SECTION XI. INDEMNITY BOHN SHALL INDEMNIFY AND HOLD HARMLESS CITY, ITS OFFICIALS, OFFICERS, AGENTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLALNIS, LOSSES, DAMAGES, CAUSES OF ACTION, SUITS AND LIABILITY OF EVERY KIND, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS AND ATTORNEYS FEES FOR INJURY TO OR DEATH OF ANY PERSON, OR FOR DAMAGE TO ANY PROPERTY ARISING OUT OF OR IN CONNECTION WITH ANY SERVICES PROVIDED BY BOHN PURSUANT OR RELATED TO THIS AGREEMENT. SUCH INDEMNIFICATION SHALL APPLY WHERE THE CLAIMS, LOSSES, DAMAGES, CAUSES OF ACTION, SUITS, OR LIABILITY ARISE IN WHOLE OR PART FROM THE NEGLIGENCE OF BOHN OR CITY, THEIR OFFICERS, OFFICIALS, AGENTS AND EMPLOYEES. IT IS THE EXPRESS INTENTION OF THE PARTIES HERETO, BOTH BOHN AND CITY, THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION INCLUDES INDEMNITY BY BOHN TO INDEMNIFY AND PROTECT CITY FROM THE CONSEQUENCES OF CITY'S OWN NEGLIGENCE, WBETHER THAT NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF THE INJURY, DEATH OR DAMAGE. The provisions of this indemnification are solely for the benefit of the parties hereto and not intended to create or grant any rights, contractual or otherwise, to any other person or entity. Bohn further agrees to defend, at its own expense, and on behalf of City and in the name of City, any claim or litigation brought in connection with any such iniury, death, or damage. SECTION XII: Applicability of Agreement and Modification. The parties hereto agree that this agreement supercedes any and all previous discussions, proposals, and counterproposals made by and between the parties in arriving at the terms of this final, executed agreement. Furthermore, the parties agree that any changes to or modifications of this agreement must reference this agreement, must be in writing, and must be signed and dated by both parties hereto. The signatures which follow evidence the agreement outlined herein by and between Bohn and Grapevine, as described herein: Mitchell D. Bohn Dated: Dated: