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HomeMy WebLinkAboutItem 12 - Segway Grapevine Concession Agreement CC ITEM #12 MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER5V_ MEETING DATE: J U NE 4, 2013 SUBJECT: SEGWAY GRAPEVINE CONCESSION AGREEMENT RECOMMENDATION: Staff recommends and requests authorization to enter into a one year concession agreement with Dass Group dba Segway Grapevine to operate Sa tours at Meadow mere Park. A copy of the agreement is attached for review. FUNDING: Revenue %vill be collected from Se-way Grapevine b-ased on 3®` of gr-e%rS rnVMn11,n_- received. BACKGROUND INFORMATION: as Group dba Segway Grapevine desires to operate a Se y touring company on City leased property at Meadowmere Park. Meadowmere Park was selected to separate the Segway tours from the City's hike and bike trail users. This concessionaire would bring another element of activity to Meadowmere Park and directly increase visitation and revenues for the Lake Parks system. Staff recommends authorization to enter into this one year agreement. DE CC ITEM #12 SEGWAY GRAPEVINE Concession Agreement By and Between SEGWAY GRAPEVINE And The City of Grapevine, Texas This Agreement, by and between Daniel Dase, doing business as SEGWAY Grapevine th ("SEGWAY Grapevine"), whose address is 2901 W 6 . Suite D, Fort Worth, Texas 76107, 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, SEGWAY GRAPEVINE operates a business engaged in the rental and sales of Segways, and WHEREAS, SEGWAY GRAPEVINE desires to rent such Segways 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 1. The City grants a non-exclusive license to SEGWAY GRAPEVINE to operate a Se ay Tour concession for the rental of human powered Segways to visitors at City parks and campgrounds subject to the following terms and conditions. SEGWAY GRAPEVINE shall provide, at its sole cost and expense, all equipment and furniture required for SEGWAY GRAPEVINE operations hereunder. Any supplies, materials and equipment needed to maintain service and repair SEGWAYS, shall be provided by SEGWAY GRAPEVINE at SEGWAY GRAPEVINE sole cost and expense. SEGWAY GRAPEVINE 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. SEGWAY GRAPEVINE employees whose conduct is discourteous or objectionable on any reasonable ground shall be disciplined, counseled, trained or removed by SEGWAY GRAPEVINE. SEGWAY GRAPEVINE shall require all users of Segways to wear an approved helmet while on a Se ay and under use of a Se ay owned by SEGWAY GRAPEVINE. CC ITEM #12 The City reserves the right to monitor SEGWAY GRAPEVINE employees' attitudes, appearance, courtesy,job knowledge and performance. in the event the CITY is dissatisfied with SEGWAY GRAPEVINE adherence to this Article, the City shall so notify SEGWAY GRAPEVINE in writing. SEGWAY GRAPEVINE agrees to promptly take appropriate corrective action. Failure to satisfy City's complaints promptly, then the CITY may terminate the contract. SECTION IT: 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 October 1, 2004. This Agreement and each party hereto shall adhere to the provisions of the Master Lease Agreement. SECTION ITT: Term of Agreement. This Agreement shall be effective beginning April 1, 2013 and terminates on April 1, 2014. SECTION I`V: Consideration to Grapevine. It is agreed that SEGWAY GRAPEVINE shall pay Grapevine a "concession fee" 3% by SEGWAY GRAPEVINE from rentals paid by customers for use of the Segways. Net revenues are defined as the value of gross revenues chargeable by SEGWAY GRAPEVINE less any discounts granted to the customer as incentives for inducing the customer to rent the Se ay.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 SEGWAY GRAPVTNE in the rental of Segways 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 SEGWAY GRAPEVINE for the purposes of verifying the reasonableness and accuracy of such concession fees paid by SEGWAY GRAPEVINE to Grapevine. SECTION V: Location of concession operations. The parties agree that such Se ay rental concessions will be located in mutually agreeable Grapevine locations in Meadowmere Park, and/or other parks as mutually agreed by SEGWAY GRAPEVINE and Grapevine. It is agreed by both parties that each customer must be 14 years of age or older. SECTION VI: Number of Segways at each concession site. The parties agree that SEGWAY GRAPEVINE may vary the number of Segways available at each site for rental to the public. SEGWAY GRAPEVINE shall attempt to balance the number of Segways available for rent to the varying demand profiles of public use of the Grapevine parks and campgrounds. In so doing, SEGWAY GRAPEVINE shall, from time to time, inform the City's Parks and Recreation Department of the number of Segways available for rent. Both parties agree that such communication can be verbal and would be generally on at least a monthly basis. CC ITEM #12 Both parties agree that the minimum number of Segways available for rental at Grapevine sites shall be 4, and that it is contemplated that the number of Segways can vary from day to day at the discretion of SEGWAY GRAPEVINE provided the minimum number of Segways.is met. Both parties agree that SEGWAY GRAPEVINE shall have the right to provide a secure method of storage of the Segways on the Grapevine sites during the period of this Agreement. It is agreed that any such secure facility or arrangement shall bet or 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 SEGWAY GRAPEVINE and/or his designated personnel shall have access to the concession sites during the normal operating hours of the parks and campgrounds for public access as determined by Grapevine. It is further agreed that SEGWAY GRAPEVINE and/or his designated personnel shall not be required to pay park or campground "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 e i t h e r party t o t erminate the Agreement prior to its expiration: 1. Failure by SEGNVAY GRAPENTINE 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 SEGWAY GRAPEVINE shall be Daniel ase, SEGWAY GRAPEVINE, 2901 W 6h St. Suite D, Fort Worth, Tx 76107, 817-205-2941, cell. 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. SEGWAY GRAPEVINE shall have a liability insurance policy in effect for $1,000,000, with Grapevine as a listed insured party under this policy. CC ITEM #12 SECTION I SEGWAY GRAPEVINE SHALL INDEMNIFY C AGENTS AGAINST ANY AND ALL CLAIMS, CAUSES ACTION, SUITS INCLUDING EX]PENSES OF LITIGATION,COURT COSTS INJURY TO OR DEATH OF ANY PERSON, OR FOR DAMAGE TO ANY PROPERTY ARISING OUT OF OR IN CONNECTION WITH ANY SERVICES RELATED PROVIDED BY SEGWAY GRAPEVINE PURSUANT OR TO THIS SUCH INDEMNIFICATION SHALL APPLY WHERE THE CLAIMS, LOSSES, DAMAGES, CAUSES OF ACTIO&SUITS, OR LIABILITY ARISE IN WHOLE OR PART ICI GRAPEVINE OR CITY, THEIR OFFICERS. OFFTCIALS, AGENTS AND EMPLOYEES. T IS THE EXPRESS_ INTENTION OF THE PARTIES SEGWAY GRAPEVINE AND CITY. THAT THE INDEMNITY SECTION IN THIS Y GRAPEVINE TO INDEMNIFY_ C T CITY FROM THE CONSEQUENCES CITY'S NEGLIGENCE OWN NEGLIGENCE, WHETHER THAT THE SOLE OR CONCURRING CAUSE OF THE IN&RY, DEATH DAMAGE. The vrovisions of 's indemnification are sol or e e i of e r "es hereto and not intended to create o rant an rights, contractual or othe ie any other rso ore " furthM a ees to ee its own expenseLand on e alf of CiAy City. any c " or ' ' ai brought connection wit any such i ,or damage. SECTION I: Applicability of Agreement and Modification. The parties hereto agree at this agreement sup cedes any and all previous discussions, proposals, and counterproposals made by and between the parties in arriving at the terms of this final, executed agreement. F ore, the parties agree that any changes to or modifications of s 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 SEGWAY GRAPEVINE Grapevine, as described herein: Daniel Dase City of Grapevine Dated: ate :