Fort Walton Beach Council agenda — 08-27-13--regular — reading text

capping its total liability, regardless of the Contractors utility usage. 2. 1. 2. The Contractor will have the authority to change membership and daily fees, whereas currently the City has that responsibility. 2. 1. 3. The Contractor will not be required to provide an annual audit for the City' s review. The Contractor will need to provide an annual Federal Tax Return, as well as Sales & Use Tax Returns. The City does not require an audit, as these reports provide all of the information that the City needs. 2. 1. 4. The Contractor will be authorized to set Complex Hours ( tire previous contract set specific hours for the Complex). Hours of operation will need to be in line with other Recreation Facilities. 2. 2. During the discussion on June 11, 2013, there was mention of only a one ( 1) year contract. And, there is an opportunity for the City to explore future development of the property through the City' s real estate broker, NBI Properties, Inc. Page I of 2  F°. = 15. 1 2. 3. A one ( 1) year contract would allow for the continued operation of the Tennis Center while the City explores options for the property. There will also be additional one ( 1) year options for renewal included in the revised contract to allow City Council to evaluate the agreement on an annual basis. 3. FINANCIAL INFORMATION: 3. 1. The City would pay the Contractor monthly compensation in the amount of $2, 333, which includes $ I0K for utility fees. 3. 2. Because this contract only covers the day -to -day operation of the Tennis Center Complex, the City will continue to be responsible for the pest control services, ground maintenance, fencing, netting, repairs to HVAC and electrical fixtures, building maintenance to include repairs to the roof, windows, doors, restrooms and painting requirements, and storm preparations for the building and Complex. 4. RECOMMENDATION: 4. 1. Staff respectfully requests City Council authorization for the City Manager to execute the proposed agreement between Erik Stenberg and the City of Fort Walton Beach to continue to manage the operation of the Municipal Tennis Center for a period of one ( 1) year from October 1, 2013 through September 30, 2014. ATTACHMENTS: 2013 Tennis Center Contract - Strikethrough / Underline ( PDF) 2013 Tennis- Center Contract -CLEAN ( PDF) 2013 Tennis Center Contract - Final Version ( PDF) 2013 Tennis Center Contract -With Mark -ups ( PDT) SIGNATURE BLOCK: Jeff Peters Skipped 08/ 21/ 2013 435 PM Carole Jones Completed 08/ 21/ 2013 4:35 PM Finance Completed 08/ 21/ 2013 4: 36 PM City Attorney Skipped 08/ 21/ 2013 4: 38 PM Carole Jones Completed 08/ 21/ 2013 4: 38 PM City Manager Completed 08/ 21/ 2013 4: 40 PM City Council Pending Page 2 of 2  TENNIS CENTER CONTRACTOR AGREEMENT between CITY OF FORT WALTON BEACH, FLORIDA and 7 SWEDISH AMERICAN CONNECTION, INC 8 9 THIS AGREEMENT, made and entered into by and between the CITY OF FORT 10 WALTON BEACH, a municipal corporation of the State of Florida, 107 Miracle Strip Parkway, 11 Fort Walton Beach, FL 32548, " City," and SWEDISH AMERICAN CONNECTION, INC., Mr. 12 Erik Stenberg, owner, 808 Dawn Lane, Destin, FL 32541, " Contractor." 13 14 SECTION 1: PREMISES & GRANT OF EXCLUSIVE RIGHT TO OPERATE 15 16 A. Description of Complex 17 The City owns the Municipal Tennis Center, ( " Complex "), located at 41 West Audrey 18 Drive NW and more particularly described in Exhibit A attached and incorporated into this 19 agreement by reference. 20 21 B. Grant of Exclusive Use of Complex 22 In consideration of the covenants, conditions, agreements and stipulations provided in this 23 agreement, the City grants to Contractor the exclusive right to administer and operate the Tennis 24 Center at the Complex, and to sell related equipment, food and drink at the Complex. 25 26 C. Permitted Use of Complex 27 Contractor shall not use the Complex for any unlawful purpose and shall comply with all 28 laws and permitting requirements, as amended, applicable to the Complex or the business 29 conducted at the Complex. Contractor shall not use the Complex for or permit the operation of 30 any offensive nuisance or anything against public policy, or operate it in any way that will injure 31 or disturb the reputation of the City. 32 33 D. Safety Measures at Complex 34 Contractor shall take appropriate precautions to prevent fire at the Complex, maintaining 35 necessary fire detection devices and extinguishing equipment at all limes. 36 37 E. Maintenance of Complex 38 Contractor acknowledges that the Complex is in good condition. Contractor shall keep 39 the Complex in a clean and sanitary condition at all times. 40 1. Contractor shall store all trash in appropriate containers provided by the City. 41 2. Contractor shall provide janitorial services for the Complex building and pick up 42 litter throughout the Complex on a daily basis during the entire term of this agreement. 43 3. Contractor shall maintain all equipment in good working condition at all times, at 44 Contractor's own expense, for the operation of the Complex. 45 4. Contractor shall be responsible for replacing, with the exception of reasonable 46 wear and tear, any equipment of the City that becomes missing, damaged beyond repair, or too  15. 1. a 47 unsanitary for use. 48 5. Contractor shall replace all equipment that Contractor is required to provide under 49 this agreement if it becomes unfit for use. 50 6. The City agrees to maintain the Complex and assign park staff to maintain the 51 grounds. 52 53 F. Improvements 54 No changes, alterations or improvements will be made to the Complex without obtaining 55 the prior written consent of the City prior to starring any alteration, improvement, or addition. If 56 alterations or additions are made, they shall be made at the sole expense of Contractor, who shall 57 agree to hold the City harmless for such additions or alterations. 58 59 G. Partial Destruction of or Damage to Complex 60 City shall not be responsible for any profits lost by Contractor due to partial destruction of 61 the Complex. If at any time during the term of this Agreement the Complex is damaged by fire, 62 act of nature or other causes to the extent that continued use of the Complex is not feasible, 63 Contractor may, on written notice to the City delivered within thirty ( 30) days after the damage 64 has occurred, terminate this Agreement without liability of Contractor to the City except for the 65 payment of fees accrued to the date of such termination. If Contractor does not elect to terminate 66 this Agreement, City may, with due diligence, restore the Complex to operational conditions. 67 However, City shall not be obligated under this provision to expend on such restoration more 68 than the proceeds of any insurance received by it on account of such damage. 69 70 H. Right of Access 71 The City shall have access to the Complex, and to each part thereof, at any time for the 72 purpose of inspection. The City shall have access to the Complex, and to each part thereof at any 73 time. The City reserves the right to utilize the property surrounding the Tennis Complex and 74 parking lot for other recreational purposes. 75 76 SECTION 2: TERM AND COMMENCEMENT DATE 77 A. The term of this Agreement shall be for a period of one ( 1) year, commencing on 78 the first of October 2013, and ending at midnight on the 30th day of September 30 , 2014 with an 79 option of three ( 3) additional one ( 1) year periods upon a mutual agreement between the City and 80 the Contractor. 81 82 83 SECTION 3: FINANCIAL OBLIGATIONS 84 A. Compensation, Revenues, Expenses 85 The City and Contractor agree to the following compensation, revenue sharing and 86 expense payments. 87 I. The City shall pay Contractor $ 2, 333 per month on the last Friday of each month 88 of this agreement, provided Contractor is not in default of the terms of this agreement. 89 2. The Contractor is responsible for all utilities including heat, water, cooling, 90 electricity, sewer, and solid waste collection services. All utility services are to be in the name of 91 the contractor. v. Aeket pg, g2 ; 92 3. Additionally, the City shall be responsible for pest control services, grounds 93 maintenance, fencing, landscaping, netting, repairs to HVAC and electrical fixtures, building 94 maintenance to include repairs to the roof, windows, doors, restrooms and painting requirements, 95 and storm preparations for the building and Complex. 96 4. Contractor shall otherwise be responsible for building maintenance and cleaning 97 including supplies & equipment), interior cleaning ( including carpet), repairs to ball machine 98 and ice machine, general office supplies and equipment, tournament and league supplies, tennis 99 balls, all program expenses, staff / employee uniforms, daily litter pick -up throughout the 100 Complex, and daily refastening of windscreens as required. 101 5. Contractor shall pay to the City an annual payment equal to 50% of gross 102 revenues for membership fees, daily court fees for walk -ins, daily court fees for lessons, daily 103 court fees for tournaments and league fees over a base revenue of $50,000. 104 6. Contractor shall pay this annual payment, if applicable, within thirty ( 30) days of 105 the anniversary date of the execution of this agreement. 106 107 108 B. Accounting 109 I. Contractor shall provide to the City a monthly status report relating to 110 expenditures, the number of participants and revenues generated from all activities held at the 111 Complex. 112 2. Contractor shall maintain such bookkeeping and accounting methods of collection 113 of moneys as shall permit the City to accurately compute the gross revenue of Contractor. 114 3. Maintain during the term of this agreement all books of account, reports and 115 records used in this operation as are necessary to document the activities pursuant to this 116 agreement. 117 4. Contractor shall provide to the a copy of its Federal tax return filed with the 118 Internal Revenue Service, as well as any and all Sales & Use Tax Returns filed with the