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

of reasonable 48 wear and tear, any equipment of the City that becomes missing, damaged beyond repair, or too 49 unsanitary for use. 50 5. Contractor shall replace all equipment that Contractor is required to provide under 51 this agreement if it becomes unfit for use. 52 6. The City agrees to maintain the Complex and assign park staff to maintain the 53 grounds. 54 55 F. Improvements 56 57 No changes, alterations or improvements will be made to the Complex without obtaining the prior written consent of the City prior to starting any alteration, improvement, or addition. If 58 alterations or additions are made, they shall be made at the sole expense of Contractor, who shall 59 agree to hold the City harmless for such additions or alterations. 60 61 G. Partial Destruction of or Damage to Complex 62 City shall not be responsible for any profits lost by Contractor due to partial destruction of 63 the Complex. If at any time during the term of this Agreement the Complex is damaged by fire, 64 act of nature or other causes to the extent that continued use of the Complex is not feasible, 65 Contractor may, on written notice to the City delivered within thirty ( 30) days after the damage 66 has occurred, terminate this Agreement without liability of Contractor to the City except for the 67 payment of fees accrued to the date of such termination. If Contractor does not elect to terminate 68 this Agreement, City may, with due diligence, restore the Complex to operational conditions. 69 However, City shall not be obligated under this provision to expend on such restoration more 70 than the proceeds of any insurance received by it on account of such damage. 71 72 H. Right of Access 73 74 The City shall have access to the Complex, and to each part thereof, at any time for the 75 purpose of inspection. The City shall have access to the Complex, and to each part thereof at any time. The City reserves the right to utilize the property surrounding the Tennis Complex and 76 parking lot for other recreational purposes. 77 78 SECTION 2: TERM AND COMMENCEMENT DATE 79 A. The term of this Agreement shall be for a period of one ( 1) vear thFee' y@a::, 80 81 epte: r' eF 2013^ 3. commencing on the first of October 2013, and ending at midnight on the 30t 82 with an option of an additional three r,,. 3) yea, 83 84 85 86 SECTION 3: FINANCIAL OBLIGATIONS 87 A. Compensation, Revenues, Expenses 88 The City and Contractor agree to the following compensation, revenue sharing and 89 expense payments. 90 1. The City shall pay Contractor $ 1, 500 121L per month on the last Friday of each 91 month of this agreement, provided Contractor is not in default of the terms of this agreement. 102  i5.t.b 92 2. The Gity shall Pay up $ 10, 000 ........ r. r all .. h.._ ges f F heat, --....ter, - cooling, 93 electricity, sewer and solid sprviee . The Contractor is responsible for all 94 utilities includine heat, water, cooline electricity, sewer, and solid waste collection services. All 95 utility services are to be in the name of the contractor. 96 3. Additionally, the City shall be responsible for _ oWipmoo"° t,_ "° n° , pest - control 97 services, grounds maintenance, fencing, landscaping, netting, repairs to HVAC and electrical 98 fixtures, building maintenance to include repairs to the roof, windows, doors, restrooms and 99 painting requirements, and storm preparations for the building and Complex. 100 4. . 101 102 of the anniversary date of the ., xee . of this ageeeffieRt. 103 5. Contractor shall otherwise be responsible for building maintenance and cleaning 104 including supplies & equipment), interior cleaning ( including carpet), repairs to ball machine 105 and ice machine, general office supplies and equipment, tournament and league supplies, tennis 106 balls, all program expenses, staff / employee uniforms, daily litter pick -up throughout the 107 Complex, and daily refastening of windscreens as required. 108 6. Contractor shall pay to the City an annual payment equal to 50% of gross 109 revenues for membership fees, daily court fees for walk -ins, daily court fees for lessons, daily 110 court fees for tournaments and league fees over a base revenue of $50, 000. 7. Contractor shall pay this annual payment, if applicable, within thirty ( 30) days of 112 the anniversary date of the execution of this agreement. 113 8. Pie City Fese:: es- the -fight to establish ship -fees and daily 114 oM4 fees fer thp, id, p of the GBtopleii faEilities. Sueh fees shall be iHe8Fp9Fa. eEl inte the City' s r..,. .... l... d 115 116 9. if the City of the a tM feps of seetign A abe a the base 117 50,000 will inefease l3F8P8Fti8flHIly- IIS 119 B. . Accounting 120 I. Contractor shall provide to the City a monthly status report relating to 121 exoenditu the number of participants and revenues generated from all activities held at the 122 Complex. 123 2. Contractor shall maintain such bookkeeping and accounting methods of collection 124 of moneys as shall permit the City to accurately compute the gross revenue of Contractor. 125 3. Maintain during the term of this agreement all books of account, reports and 126 records used in this operation as are necessary to document the activities pursuant to this 127 agreement. 128 4. Contractor shall provide to the City an e__ al _ Air of the revenues recewed by 129 130 and shall inrlude - schedule C of Contractor's tax return. a copy of its Federal tax return filed 131 with the Internal Revenue Service. as well as any and all Sales & Use Tax Returns filed with the 132 Florida Department of Revenue 133 Th........ .. 134 5. r .. d'... h.. l 1.. submitted to the Cit. by N . 1< 135 136 137 ketPg. 103  15. t.b 138 The Sales & Use tax return should be submitted to the City on a monthly basis, no later than 1 st 139 day of the month following the filing. 140 6. The City reserves the right to examine all books and records of Contractor at any 141 time during the two ( 2) year period following the termination of this Agreement. 142 143 144 SECTION 4: TAXES AND LICENSES 145 146 A. Real Property or Intangible Taxes 147 Although the Complex real property is owned by the City, a municipality, and as such, is 148 exempt from ad valorem real property taxation, this Agreement may create a possessory interest 149 or security interest for Contractor that could be subject to real property or intangible taxation. 150 Should this occur, Contractor agrees to pay such real property taxes prior to delinquency, except 151 in the case of contest of such taxation made in good faith. Contractor has the right to contest the 152 validity or amount of real property or intangible taxes by means of appropriate proceedings 153 diligently pursued at Contractor' s sole expense. Contractor agrees that, upon final determination 154 of liability, it will promptly pay the amount of taxes found owing, along with any interest, 155 penalties or cost that may result from Contractor's contest. The City will cooperate with 156 Contractor in any such contest of the validity or amount of real property or intangible taxes, 157 provided the City is not required to pay any sums to Contractor or any third party as a result of 0e N 158 such cooperation. 159 160 B. Other Taxes 161 Contractor will pay all taxes, license fees or other governmental charges, ( including but 162 not limited to commercial personal property taxes, sales and use taxes, resort taxes, etc.) assessed 163 or imposed on the personal property of Contractor located at the Complex or upon the business 164 operations of Contractor conducted at the Complex, or upon the personal property of the City 165 used by Contractor at the Complex. 166 167 168 SECTION 5: OPERATIONS & GENERAL REGULATIONS AND POLICIES 169 170 A. Hours of Operation 171 1. Contractor shall operate the Complex in conjunction with all other Recreation n 172 Facilities. - week - - - 9. 00 PF de. Man 173 5pm Saturday e nn e m nnn .. c .. de. I o_ nn. m n oT The City m stablish di ffe..em 174 175 -_ ,._. _ the Fight tO E18_ an the f6ll8M4ftg u.lid.. . 441RHIESgiNrifig Pa)', ChAstmas Ile. an 176 New Year' s Day. Contractor shall notify the Recreation and Cultural Services Director of its 177 intention to close in the event of inclement weather. 178 179 B. Opel :tip -ef c r.,• : °° 1880 611 items sod shall be of high quality, and the se a S ided shall be RnElered 181 courteously and efficiently. The City reserves the Fight prohibit ..the ...le of m items that it 182 deems al eet onable, and the Gify shall liffe the fight tO Bidet the ifflPFOYeffiefit Of the qthdit- Of 183  15.1. b 184 185 C. Employees 186 1. Contractor will be responsible for all salary expenses and insurance for assistants 187 or employees hired by Contractor to work during hours the Complex is open to the public. 188 2. All employees of Contractor shall be neatly dressed at all times. Employees shall 189 conduct themselves courteously in their relations to the public. 190 3. Contractor ma), subjeet te the approval of the City, grant FedWed RtAS t8 191 nd.... t.. d ..... 1.._ . L:.... 192 a .: A a O,._ ' 193 CaistsaetaF d.. the C t. Ad...'..'. 194 Reeessafy ta sRPUFP background checks on all employees w, aF! iiHg at 195 the T......:.. c ..: 1'.. 196