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HomeMy WebLinkAboutItem 02 - Stand Up Paddle Board Concession Agreement ITEM MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: JUNE 1., 2010 SUBJECT: STAND UP PADDLE BOARD CONCESSION AGREEMENT RECOMMENDATION: Staff recommends the City Council authorize the City Manager or his designee to enter into an agreement with SUP NTX, LLC to provide for rental of Stand Up Paddle Boards at parks and campgrounds leased by the City from the Corps of Engineers. FUNDING SOURCE: SUP NTX, LLC shall pay the City of Grapevine a concession fee equal to 3% of the value of net revenues received by SUP NTX from rentals paid by customers for use of the Stand Up Paddle Boards. Net revenues are defined as the value of gross revenues chargeable by SUP NTX less any discounts granted to the customer as incentives for inducing the customer to rent the boards. No other amounts are to be deducted from the calculation of net revenues. BACKGROUND: Staff has been approached by Kevan and Penni Burt with SUP NTX, LLC to propose the rental of Stand Up Paddle Boards on Lake Grapevine for a trial period this summer. SUP NTX will provide all the boards, staff, security, and instructions to use the boards to visitors to Oak Grove Park. Support has been granted by Marina's International and the Corps of Engineers. SUP NTX will staff the sites during regularly scheduled park hours of operation. DE May 27, 2010(1 O:OOAM) Stand Up Paddle Concession Agreement By and Between SUP NTX, LLC And The City of Grapevine, Texas This Agreement, by and between Kevan and Penni Burt, doing business as SUP NTX, LLC ("SUP NTX, LLC"), whose address is 401 N. Carroll Ave. Southlake, Texas 76092, and The City of Grapevine, Texas, ("Grapevine"), located at 200 South Main Street, Grapevine, TX 76051, is entered into for the purposes and under terms and conditions as described hereunder, WHEREAS, SUP NTX, LLC operates a business engaged in the rental and sales of recreational stand up paddle boards, and WHEREAS, SUP NTX, LLC desires to rent such stand up paddle boards 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 SUP NTX, LLC to operate a watercraft concession for the rental of human powered stand up paddle boards to visitors at City parks and campgrounds subject to the following terms and conditions. SUP NTX, LLC shall provide, at its sole cost and expense, all equipment and furniture required for SUP NTX, LLC operations hereunder. Any supplies, materials and equipment needed to maintain, service and repair SUP NTX, LLC, stand up paddle boards shall be provided by SUP NTX, LLC at SUP NTX, LLC sole cost and expense. SUP NTX, LLC 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. SUP NTX, LLC employees whose conduct is discourteous or objectionable on any reasonable ground shall be disciplined, counseled, trained or removed by SUP NTX, LLC. The City reserves the right to monitor SUP NTX, LLC employees' attitudes, appearance, courtesy, job knowledge and performance. In the event the CITY is dissatisfied with SUP NTX, LLC adherence to this Article, the City shall so notify Sur NTX, LLC in writing. SUP NTX, LLC 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 August 24, 2004. 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 June 2, 2010 and terminates on November 30, 2010. SECTION IV: Consideration to Grapevine. It is agreed that SUP NTX, LLC shall pay Grapevine a "concession fee" equal to 3% of the value of net revenues received by SUP NTX, LLC from rentals paid by customers for use of the stand up paddle board. Net revenues are defined as the value of gross revenues chargeable by SUP NTX, LLC less any discounts granted to the customer as incentives for inducing the customer to rent the stand up paddle board. 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 SUP NTX, LLC in the rental of stand up paddle boards to the public. Such concession fee described above shall be paid to Grapevine on a monthly basis within ten (10) 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 SUP NTX, LLC for the purposes of verifying the reasonableness and accuracy of such concession fees paid by SUP NTX, LLC to Grapevine. SECTION V: Location of concession operations. The parties agree that such stand up paddle board rental concessions will be located in mutually agreeable Grapevine locations in Oak Grove Park's Trawick Pavilion Area, The Vineyards Campground, Meadowmere Park, and/or other parks as mutually agreed by SUP NTX, LLC and Grapevine. It is agreed by both parties that each customer 17 years and under, with the consent and presence, and authorization of a signed waiver from an adult shall be required to wear a life vest. SECTION VI: Number of stand up paddle boards at each concession site. The parties agree that SUP NTX, LLC may vary the number of stand up paddle boards available at each site for rental to the public. SUP NTX, LLC shall attempt to balance the number of stand up paddle boards available for rental to the varying demand profiles of public use of the Grapevine campgrounds and parks. In so doing, SUP NTX, LLC shall, from time to time, inform the City's Parks and Recreation Department of the number of stand up paddle boards 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 stand up paddle boards available for rental at Grapevine sites shall be 10, and that it is contemplated that the number of stand up paddle boards can vary from day to day at the discretion of SUP NTX, LLC provided the minimum number of stand up paddle boards is met. Both parties agree that SUP NTX, LLC shall have the right to provide a secure method of storage of the stand up paddle boards 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 SUP NTX, LLC 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 SUP NTX, LLC 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. 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 SUP NTX, LLC to make monthly payment of the concession fees due Grapevine in a timely manner. 2. Notification to Grapevine by the Corps of Engineers Grapevine, 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. 4. Either party may terminate, with or without cause, by giving the other party 30 days written notice. SECTION IX: Principal contacts of each party. The principal contact person for SUP NTX, LLC shall be Kevan Burt or Penni Burt. SUP NTX, LLC. 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. SUP NTX, LLC 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 SUP NTX; LLC SHALL INDEMNIFY AND HOLD HARMLESS CITY,ITS OFFICIALS OFFICERS AGENTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS LOSSES DAMAGES CAUSES OF ACTION SUITS AND LIABILITY OF EVERY KIND, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS AND ATTORNEYS FEES FOR iNt CRY TO OR DEATH OF ANY PERSON OR FOR DAMAGE TO ANY PROPERTY ARISING OUT OF OR IN CONNECTION WITH ANY SERVICES PROVIDED BY SUP NTX LLC 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 SUP NUN, LLC OR CITY THEIR OFFICERS, OFFICIALS,AGENTS AND EMPLOYEES. IT IS THE EXPRESS INTENTION OF THE PARTIES HERETO BOTH SUP NT LLC AND CITY THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION INCLUDES INDEMNITY BY SUP NTX LLC TO INDEMNIFY AND PROTECT CITY . FROM THE CONSEQUENCES OF CITY'S OWN NEGLIGENCE WHETHER THAT NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF THE INJURY DEATH.OR DAMAGE. The provisions of this indemu fication are solely for the benefit of the parties hereto and not intended to create or 2rant any rights, contractual or otherwise to any other person or entity. SUP NTX LLC further allrees to defend at its own expense, and on behalf of City and in the name of City, any claims or litigation broueht in connection with any such injury, death, or dama . 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 SUP NTX, LLC and Grapevine, as described herein: Kevan Burt Dated: Dated: Approved by Grapevine City Council