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Home My WebLink About38-Purchasing . . Cltt OF. SAN BERNARDIWo - REQUM FOR COUNCIL AC':'?ON From: Dean R. Meech Purchasing Agent Purchasing Ill'''. - A'~: 1986 JUN -5 AM 9' 20 Concession Stand - Nunez Park Dept: Parks. Recreation & Community Services Date: May 30. 1986 BID SPEC: F-86-18 Synopsis of Previous Council action: None Recommended motion: Adopt Resolution Dean R. Meech Contact person: Dean R. Meech. Purchasing Agent Phone: 5085 Supporting data attached: Yes Ward: #1 FUNDING REQUIREMENTS: Amount: 15% Source: Gross Sales Receipts Finance: IJ. "',J(. .L Council Notes: (~~, CI+:t OF SAN BERNARD~O - REQUQT FOR COUNCIL AC'rlON STAFF REPORT BID SPEC: F-B6-1B The proposed contract is for lease agreement for concession rights at Nunez Park. At the request of the Parks, Recreation and Community Services Department appropriate specifications were prepared, published and furnished to area suppliers. The following is a summary of bids received. VENDOR t1ARGARET LOPEZ RAI NES DELI GHT CANTEEN FOOD & VENDING SVC. (PROPOSE TO PAY CITY) TOTAL BID 15% NO BID NO BID Fifteen bidders were solicited. Only three vendors responded. Reasons given for rw BID were "NOT INTERESTED AT THIS TIME" and "LOW VOLUME". In view of the fact no other vendors were interested in the project and this vendor does have the ability and permits and has met concession stand operation requirements, it is therefore recommended by both the Parks, Recreation and community Services Supervisor and Purchasing Agent that the bid of Margaret Lopez be accepted for contract. 75-0264 c r.'." """ '-' -', __oJ '-" 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH MARGARET LOPEZ RELATING TO THE 3 OPERATION OF A CONCESSION FACILITY AT NUNEZ PARK. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF 5 SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The Mayor of the City of San Bernardino is hereby 7 authorized and directed to execute on behalf of said City an 8 agreement with Margaret Lopez relating to the operation of a 9 concession facility at Nunez Park, a copy of which is attached 10 hereto, marked Exhibit "A" and incorporated herein by reference as 11 fully as though set forth at length. 12 I HEREBY CERTIFY that the foregoing resolution was duly 13 adopted by the Mayor and Common Council of the City of San 14 Bernardino at a meeting thereof, held on 15 the day of , 1986, by the following vote, 16 to wit: 17 18 AYES: Council Members 19 NAYS: 20 ABSENT: 21 22 23 24 of 25 City Clerk The foregoing resolution is hereby approved this day , 1986. Mayor of the City of San Bernardino 26 Approved as to form: 271 ,- 7:/<C<" </,;:', pJ 28 City 'Attorney c 1',-, ....... "". '-' ... ,) 1 2 3 4 A G R E E MEN T --------- (Operation of Concession Facility - Nunez Park) THIS AGREEMENT is made and entered into this day of , 1986, between the CITY OF SAN BERNARDINO, a 5 municipal corporation, referred to as "City", and MARGARET LOPEZ, 6 an individual, 1690 West Walnut Street, San Bernardino, California 7 92410, referred to as "Licensee". 8 City and Licensee agree as follows: 9 1. Licensee shall operate the concession facility located at 10 Nunez Park, 1700 West Fifth Street, San Bernardino, California, 11 commencing upon the effective date of this agreement, and 12 continuing for a period of three years thereafter, and shall pay 13 to City fifteen percent of the gross sales receipts from the 14 refreshment concession stand and refreshment services, monthly, on 15 or before the tenth day of the month following the calendar month 16 for which concession fees are payable. 17 2. The specifications and provisions of Specification No. F- 18 86-18 relating to the concession facility at Nunez Park are 19 attached hereto, marked Exhibit "A" and incorporated herein by 20 reference as fully as though set forth at length. The parties 21 hereto agree that each shall be bound by each and all of the 22 specifications set forth herein. 23 3. This agreement shall be effective as of the date set 24 forth above, that date being the date on which the last of the 25 required signatures has been affixed hereto. 26 IN WITNESS WHEREOF, the parties have executed this agreement 27 on the day and year first above written. 28 . . . . . . . . . . L /"""" v "'-"", ....~, ,_,J ....,.;. 1 ATTEST: 2 3 City Clerk 4 5 6 7 Approved as to form: 8 CITY OF SAN BERNARDINO By Mayor MARGARET LOPEZ By 9 ' . 1 .. ': ., ,. J" 1./' _.t. ./ /..,<,., City Attorney 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -2- c "' -.... v ...,eJ ~ AS A CONDITION PRECEDENT TO SUBMITTING AND THE SUBMISSION OF A BID PURSUANT TO THIS SPECIFICATION SHALL BE EVIDENCED THAT THE BIDDER DID, IN FACT, FULFILL THIS OBLIGATION. 1. Ll CENSEE: THE SUCCESSFUL PROPOS~R SHALL BE LICENSEE; LICENSEE SHALL BE GRANTED THE RIGHT AND PRIVILEGE TO OPERATE AND MAINTAIN A CONCESSION STAND FOR THE SALE OF REFRESHMENTS AT NUNEZ PARK THIS RIGHT IS EXCLUSIVE UNLESS OTHERWise STATED HEReIN. SPECIFICALLY, LICENSEE SHALL: PAY FOR AND OBTAIN ALL LICENSES AND PERMITS NECESSARY FOR THE OPERATIONS GRANTED; COMPLY WITH ALL STATE, COUNTY OR CITY LAWS OR ORDINANCES PERTAINING TO THE OPERATION OF A FOOD CONCESSION; AND GENERALLY PROVIDE REFRESHMENT SERVICES AS NEEDED. 2. PREMISES: THE PREMISES TO BE LICENSED INCLUDE THE CONCESSION STA~D AND SPECTATOR AREAS OF NUNEZ PARK LICENSEE SHALL 8E PERMITTED TO USE VENDORS IN THE SPECTATOR SEATING AREAS. 3. OPERATING RESPONSIBILITIES: IN THE EVENT LICENSEE FAILS TO PERFORM THE ACTIONS NECESSARY TO COMPLY WITH THESE PROVISIONS, THE CITY MAY IMMEDIATELY EXERCISE OPTION UNDER DEFAULT PROVISIONS (ITEM 9) OF THIS DOCUMENT. A. CLEANLINESS: LICENSEE SHALL KEEP THE LICENSED PREMISES AND ALL THE SPECTATOR AREAS CLEAN:AT ALL TIMES. NO OFFENSIVE REFUSE MATTER, ANY SUBSTANCE CONSTITUTING AN UNNECESSARY, UNREASONABLE FIRE HAZARD (OR MATERIAL DETRIMENTAL TO THE PUBLIC HEALTH AND SAFETY) SHALL BE PERMITTED OR REMAIN THEREON, AND LICENSEE SHALL PREVENT ANY SUCH MATTEF OR MATERIAL FROM BEING OR ACCUMULATING UPON .SAID PREMISES, AND SHALL IMMEDIATELY CLEAN THE SPECTATOR AREAS:OF ALL:. DEBRIS CAUSED BY EXER- CISING CONCESSION RIGHTS. B. CONDUCT: LICENSEE SHALL AT ALL TIMES CONDUCT HIS BUSINESS IN A QUIET AND ORDERLY MANNER TO THE SATISFACTION OF THE CITY. C. DISORDERLY PERSONS: LICENSEE SHALL USE HIS BEST EFFORTS TO PER- MIT NO INTOXICATED PERSON OR PERSONS, PROFANE OR INDECENT LANGUAGE, OR BOISTEROUS OR LOUD CONDUCT IN OR ABOUT THE PREMISES AND WILL CALL UPON THE AID OF PEACE OFFICERS TO ASSIST IN MAINTAINING PEACE- FUL CONDITIONS. LICENSEE SHALL NOT KNOWINGLY PERMIT THE USE OR POSSESSION OF NARCOTICS ON THE PREMISES. D. Et'IPLOY~ES: LICENSEE SHALL "ROVIDE SUCH EHPLOYEES AS MAY IlE RE- QUIRED TO RENDER COURTEOUS SERVICE TO THE PUIlLIC. EXHIBIT A c' 1'''' ........' '.:) .J E. MERCHANDISE: SOFT DRINKS SHALL BE DISPENSED IN PAPER CUPS ONLY, RATHER THAN ANY TYPE OF BOTTLe OR CAN. ALL MERCHANDISE II~- CLUDING BUT NOT LIMITED TO FOOD, DRINKS, BEVERAGES, CONFECTIONS, REFRESHMENTS, ETC., SOLD OR KEPT FOR SALE BY LICENSEE SHALL CONFORM TO ALL FEDERAL, STATE AND MUNICIPAL LAWS" ORDINANCES AND REGULATIONS IN EVERY RESPECT. THE HANDLING OF ALL EDIBLE MERCHANDISE IS SUB- JECT TO COUNTY, STATE AND LOCAL SANITATION REQUIREMENTS. THE SALE OF BEER, WINE OR OTHER INTOXICATING LIQUORS WILL NOT BE PERMITTED UNLESS AUTHORIZED UNDER THE TERMS AND CONDITIONS OF ORDINANCE D155~ OF THE CITY OF SAN BERNARDINO. F. HOURS/DAYS OF OPERATI.Q!i: LICENSEE SHALL KEEP THE CONCESSIOtl OPEN DURING SUCH HOURS AS REQUIRED BY THE CITY TO ADEQUATELY SERVE PUDLIC DEMAND. GENERALLY, nlls WILL MEAN DURING ALL SCHEDULED USES OF NUNEZ PARK ------------- ANY DEVIATION OF SUCH OPERATION SHALL BE SUBJECT TO THE PRIOR APPROVAL OF THE CITY IN WRITING. G. EQUIPMENT, FURNISHINGS AND EXPENDABLES: ANY ADDITIONAL EQUIPMENT AND FURNISHINGS REQUIRED FOR SAID CONCESSION SHALL BE PURCHASED AND INSTALLED BY THE LICENSEE AT HIS OWN EXPENSE. LICENSEE SHALL PURCHASE ALL EXPENDABLES AT ms OWN EXPENSE, SAID EXPENDABLES TO REMAIN HIS PERSONAL PROPERTY. UPON TERMINATION OF THIS AGREEMENT, LICENSEE SHALL HAVE THE RIGHT TO REMOVE HIS EQUIPMENT AND FURNISHINGS, EXCLUDING IMPROVEMENTS, FROM THE PRE~\ISES AND SHALL BE ALLOWED A PERIOD OF THIRTY (30) DAYS TO MAKE SUCH REMOVAL; AND IF NOT REMOVED WITHIN THAT PERIOD, SAID EQUIPMENT, FURNISHINGS AND EXPENDABLES SHALL BE AND BECOME THE PROPERTY OF THE CITY. H. . MAINTENANCE OF EQUIPME!f[: LICENSEE SHALL PROVIDE ALL MAINTENANCE, REPAIR AND SERVICE REQUIRED ON ALL EQUIPMENT USED IN THE CONCESSION, WHETHER LICENSEE OR CITY OWNED. INSOFAR AS SANITATION AND APPEARANCE OF THE CONCESSION ARE INVOLVED, THE CITY ~~Y DIRECT LICENSEE TO PERFORM NECESSARY REPAIRS AND MAINTENANCE TO LICENSEE-OWNED EQUIP- MENT. NO EQUIPMENT PROVIDED BY CITY SHALL BE REMOVED OR REPLACED BY LICENSEE WITHOUT THE PRIOR WRITTEN CONSENT OF THE CITY; AND IF CONSENT IS SECURED, SUCH REMOVAL AND/OR REPLACEMENT MAY BE AT THE EXPENSE OF T~E LICENSEE. THE CITY MAY DIRECT THAT CERTAIN MAINTE- NANCE OR REPAIRS TO CITY-OWNED AND INSTALLED EQUIPMENT BE PERFOR~\ED WHERE SUCH WORK IS NECESSARY TO PROTECT THE PREMISES OR TO PR~VIDE A CLEAN, ATTRACTIVE AND WELL-MAINTAINED PREMISES. THE CITY WILL BEAR THE EXPENSE, WHEN THE WORK PERFORMED IS ON PREMISES OWNED AIm OPERATED BY THE CITY. J. PERSONAL ATTENTION: THE CONCESSION MANAGER IS THE PERSON ~11T11 WHOM THE CITY MAY DEAL ON A DAILY BASIS REGARDING THE SUBJECT COtI- CESSION. CITY PREFERS THAT THE CONCESSION MANAGER BE THE LlCEllSEE HIMSELF (IF LICENSEE IS AN INDIVIDUAL), ONE OF THE PARTNERS (IF LICENSEE IS A PARTNERSHIP) OR AN OFFICER OF THE CORPORATION elF LICENSEE IS A CORPORATION). ANY OTHER PERSON SELECTED BY LICENSEE AS CONCESSION ~~NAGER SHALL BE SKILLED IN HANAGEt-IENT OF BUSIIJESSES S nil LAR TO THE LICENSED CONCESS ION. THE CONCESS I ON ~'oANAGER SIIALL DEVOTE SUFFICIENT TIME AND ATTENTION TO THE OPERATION OF THE CWl- CESSION AND SHALL PROMOTE, INCREASE AND DEVELOP THE DU~ItlESS ANO RENDER EVCRY POSSIBLE SERVICE AND CONVENIENCE TO THE PUBLIC. , '- C Q IF HE IS NOT HIMSELF HIE LICENSEE, THE CONCESSIOl'l MANAGER SHALL BE FULLY ACQUAINTED WITH LICENSEE'S OPERATIONS AND CONTRACT OBLIGATIONS, AND AUTHORIZED BY LICENSEE TO ACT IN HIS BEHALF AND FULFILL HIS OBLIGATIONS IN THE DAY-TO-DAY OPERATION OF THE SUBJECT CONCESSION. ^'\ -" K. SIGNS AND ADVERTISEMENTS: NO SIGNS OF ANY KIND SHALL BE DISPLAYED UNLESS SO APPROVED BY THE CITY, WHO MAY REQUIRE REMOVAL OR OR REFUR- BISHMENT OF ANY SIGN PREVIOUSLY APPROVED. LICENSEE SHALL NOT PERIHT VENDORS TO DISPLAY WARES INSIDE OR OUTSIDE THE BUILDING OR ON SAID PROPERTY UNLESS WRITTEN PERMISSION IS SECURED FROM THE CITY, AND SUCH PERMISSION SHALL BE SUBJECT TO REVOCATION AT ANY TIME. IN EACH FACIL- ITY LICENSED HEREUNDER, A SIGN SHALL BE POSTED IN A PROMINENT PLACE STATING THAT THE CONCESSION IS OPERATED UNDER AN AGREEMENT ISSUED BY THE CITY. L. TAXES: LICENSEE SHALL PAY ALL TAXES AS REQUIRED BY ANY LAW, STATUTE OR ORDINANCE. M. USE OF AREA: LICENSEE SHALL NOT INTERFERE WITH THE PUBLIC'S ENJOY- MENT AND USE OF THE LICENSED PREMISES OR SURROUNDING PUBLIC PROPERTY FOR THE PURPOSES FOR WHICH THEY WERE INTENDED. HE SHALL NOT USE THE LICENSED PREMISES FOR ANY PURPOSE.WHICH IS NOT ESSENTIAL TO THE LICENSED OPERATIONS. HE SHALL NOT RENT, .SELL, LEASE OR OFFER ANY SPACE FOR STORING OF ANY ARTICLE OR ARTICLES WHATSOEVER WITHIN OR ON THE LlCEtlSED PREMISES OTHER TI-lAN HIS OWN EQUIPMENT WITHOUT THE ~IRITTEN CONSENT OF THE CITY. N. UTILITIES: LICENSEE SHALL PAY ALL CHARGES FOR TELEPHONE, ELECTRI- CAL AND GAS UTILITY SERVICES NECESSARY TO CARRY ON THE LICENSED CON- CESSION BUILDING OPERATIONS. THE TELEPHONE NUMBER SHALL BE PLACED IN THE NAME OF THE FACILITY AND SHALL NOT BE TRANSFERABLE TO ANY OTHER LOCATION. CITY SHALL SUPPLY WATER AND WILL BILL THE LICENSEE fOR THE ELECTRICAL AND GAS UTILITY SERVICES ON A MONTHLY BASIS. O. VENDING ~IACIHNES: LICNESEE SHALL FIRST RECEIVE ~IRITTEN APPROVAL FROM THE CITY BEFORE INSTALLING OR PERMITTING VENDING ~IACHINES TO BE INSTALLED. P. ACCIDENTS: LICENSEE SHALL COOPERATE FULLY WITH CITY IN THE INVESTI- GATION OF ACCIDENTS OCCURRING ON THE LICENSED PREMISES. IN THE EVENT OF INJURY TO A PATRON. OR CUSTOMER, LICENSEE SHALL ENSURE THAT THE I N- . JURED PERSON RECEIVES PROMPT AND QUALIFIED MEDICAL ATTENTION, AND AS SOON AS POSSIBLE THEREAFTER, HE SHALL SUBMIT A CITY "NON-EMPLOYEE ACCIDENT OR ILLNESS REPORT". LICENSEE SHALL NOTIFY THE CITY Of ANY HAZARDOUS CONDITION WHICH COULD LEAD TO INJURY. Q. WORK MUST BE SAFE: IT SHALL BE THE LICENSEE'S RESPONSIBILITY TO INSURE THAT ALL MATERIALS, EQUIPMENT AND WORK OPERATIONS ARE IN CON- FORMITY WITH CAL-OSHA STANDARDZ AND THAT ALL NECESSARY PRECAUTIONS ARE UNDERTAKEN AT ALL WORK AREAS WHICH MAY CONSTITUTE A HAZARD TO PROPERTY ANDIOR LIFE. 1. THE LICENSEE AGREES TO SAVE FROM HARM AND TO PROTECT THE CITY, ITS ELECTIVE AND APPOINTIVE OOARDS, COMMISSIONS, OFfiCERS, AGENTS AND EMPLOYEES FROM EVERY CLAII~ OR DEI~AND WHI CH MAY BE 11M'," BY REASON OF: 3 . / . \...... ~ '-' o , ) 2. ANY INJURY TO PERSONS OR PROPERTY SUSTAINED BY THE LIC- ENSEE OR BY ANY PERSON, FIRM OR CORPORATION EMPLOYED DIRECTLY OR INDIRECTLY BY HIM UPON OR IN CONNECTION WITH HIS WORK, HOW- EVER CAUSED. 3. ANY INJURY TO PERSON OR PROPERTY SUSTAINED BY ANY PERSON, FIRM OR CORPORATION, CAUSED BY ANY ACT, NEGLECT, DEFAULT, OR OMISSION OF THE LICENSEE "OR OF ANY PERSON, FIRM OR CORPOR- ATION, DIRECTLY OR INDIRECTLY EMPLOYED BY HIM UPON OR IN CON- NECTION WITH HIS \-IORK WHETHER THE SAID INJURY OR DAMAGE OCCURS UPON OR ADJACENT TO THE WORK. HIE LICENSEE AT HIS OWN COST, EXPENSE AND RISK SHALL DEFEND ANY AND ALL ACTIONS, SUITS, OR OTHER LEGAL PROCEEDINGS THAT MAY BE BROUGHT OR INSTITUTED AGr~lll~T THE CITY ON ANY SUCH CLAIM OR DE~~ND, AND PAY OR SATISFY THE JUDGMENT THAT MAY BE RENDERED AGAINST THE CITY IN ANY SUCH ACTION, SUIT OR LEGAL PROCEEDINGS OR RESULT:THEREOF. 1+. TERM: THE TERM OF THE LICENSE AGREEMENT SHALL BEGIN UPON THE EXECUTION OF THE AGREEMENT BY THE PARTIES AND SHALL EXP IRE THREE (3) YEARS THERE- AFTER (UNLESS PREVIOUSLY TERMINATED IN ACCORDANCE WITH OTHER PROVISIONS OF THE LICENSE AGREEMENT). 5. RENTAL: MONTHLY RENTAL SHALL BE A PERCENTAGE OF THE GROSS SALES RECEIPTS OR A GUARANTEED AMOUNT OFFERED BY LICENSEE, WHICHEVER IS GREATER. THE CATEGORIES, AS INDICATED ON THE PROPOSAL FORM, ARE: EITHER RECEIPTS FROM ALL CONCESSION SALES OR A MONTHLY RENTAL RATE. SPECIAL ATTENTION SHOULD BE PAID TO THE DEFINITION OF GROSS SALES RECEIPTS SET OUT THERE- IN. THE LICENSEE SHALL PAY TO THE CITY ON A QUARTERLY BASIS A CON- SIDERATION PURSUANT TO THIS AGREEMENT FOR THE OPERATION DURING THE PRECEDING QUARTER. IF SAID CONSIDERATION IS BASED ON THE GROSS SALES RECEIPTS, THE TERM GROSS SALES RECEIPTS IS DEFINED TO MEAN THE TOTAL AMOUNT OF THE SALE PRICE OF ALL SALES, OR THE TOTAL CHARGED OR RECEIVED FOR THE PERFORMANCE OF ANY ACT OR SERVICE (WHETHER SUCH ACT OR SERVICE IS DONE AS A PART OF OR IN CONNECTION WITH THE SALE OF GOODS, WARES,'MERCHANDISE OR NOT), FOR WHICH A CHARGE, IS MADE OR CREDIT IS ALLOWED, INCLUDING ALL RECEIPTS, CASH, CREDITS"AND PROPERTY OF ANY KINO OR NATURE. . IN THE CASE OF VENDING MACHINES, GROSS SALES RECEIPTS SHALL BE A TOTAL AMOUNT TAKEN BY THE VENDING MACHINES AFTER SALES AND EXCISE TAXES. LICENSEE SHALL TRANSMIT WITH HIS RENTAL PAYMENT A MONTHLY GROSS SALES RECEIPTS AND RENT REPORT. THE CITY SHALL PROVIDE A FORM FOR THIS PUR- POSE. THE COMPLETED FORM SHALL INCLUDE A STATEMENT OF THE G~OSS SALES RECEIPTS BY SOURCE OF SALES, AND SUC~I OTHER INFORMATION AS THE CITY MAY PROPERLY REQUIRE. THE RENTAL PAYMENT SHALL BE ADDRESSED TO: DIRECTOR OF FINANCE CITY HALL 300 NORTH "D" STREET SAN BERNARDINO, CA. 921+18 IN TilE: eVE:NT LIcetlSCE: FAILS TO SUDt1IT IllS RENTAL rAVMENT BY TilE: DATC IT A ~ o ~ :> PERCENT (2\) OF iHE AMOUNT DUE WILL THEREOF SAID RENT REMAINS UNPAID. CITY FOR ADDITIONAL ACCOUNTING AND IS DUE, AN ADDITIONAL PAYMENT OF TWO BE CHARGED FOR EACH MONTH OR FRACTION THIS CHARGE IS INTENDED TO COMPENSATE ADMINISTRATIVE COSTS. 6. IMPROVEMENTS: AS SET OUT IN THE SPECIFICATIONS FOR TIlE SUBJECT CONCESSION. NO II.\PROVE- MENTS MAY BE MADE BY LICENSEE UNLESS SPECIFICALLY AUTHORIZED BY THIS AGREEMENT OR PERMIT. HOWEVER, CITY SHALL HAVE THE RIGHT TO AUTHOR lZE LICENSEE TO MAKE ADDITIONAL IMPROVEMENTS, AND THE CITY MAY AUTHORIZE LICENSEE TO MAKE MINOR IMPROVEMENTS, INCLUDING UTILITY CHANGES ~IHEN THEY DEEM SUCH IMPROVEMENTS TO BE IN CITY'S BEST INTEREST. IN ADDITION, CITY MAY, FROM TIM~ TO TIME, MAKE CERTAIN IMPROVEMENTS WHICH IT DEEMS TO BE ADVANTAGEOUS OR NECESSARY FOR THE PROTECTION ~F PUBLIC PROPERTY. UNLESS SPECIFIED IN THIS AGREEMENT OR IN SUBSEQUENT AUTHORIZATION, IMPROVEMENTS MADE AT THE SOLE COST AND EXPENSE OF LICENSEE ARE WITHOUT REDUCTION IN RENTALS OR ANY OTHER FINANCIAL COMPENSATJON BY THE CITY. 7. LIABILITY: LICENSEE ~IALL FILE WITH THE CITY, UPON EXECUTION OF THIS LICENSE AGREE- MENT BY LICENSS, TWO COPIES OF A POLICY OF PUBLIC LIABILITY AND PROPERTY DAMAGE INSURANCE IN THE FOLLOWING AMOUNTS: A. ONE HUNDRED TlIOUSAND DOLLARS 000,000) BODILY INJURY EACH PERSON. B. THREE HUNDRED THOUSAND DOLLARS ($300,000) BODILY INJURY EACH OCCURRENCE. C. nIENTY-FIVE THOUSAND DOLLARS ($25,000) PROPERTY DAMAGE; AND WHICH MEETS THE FOLLOWING REOUIREMENTS: 1. NO DEDUCTIBLE CLAUSE IS PERMITTED. '2. THERE IS TO BE NO AGGREGATE AMOUNT.. 3. PROVIDES COVERAGE FOR "ALL OPERATIONS OF THE INSURED CONDUCTED ON CITY PROPERTY," AND CONTAINS A DESCRIPTION OF THE WORK PERFORMED BY THE INSURED; (THIS MAY REQUIRE POLICY (IES) COVERING PREMISES OCCUPIED, PRODUCTS SOLD, AMUSEMENT LIABILITY OR AUTOMOBILES USED). 4. ALL SIGNATURES MUST BE HANDWRITTEN ON ANY POLICY CERTI- FICATE, OR ENDORSEMENT: RUBBER STAMP SIGNATURES ARE NOT ACCEPTABLE. 5. THE CITY OF SAN BERNARDINO SHALL DE HAl-lEE> AS AN ADDITIONAL INSURED AS RESPECTS ALL OPERATIONS OF THE INSURED. 6. SAID POLICY SHALL CONTAIN A CANCELLATION CLAUSE READItlG II: SUBSTANCE AS THE fOLLOWING APPROVED NOTICE; "IT IS AGRECD 5 c' - \.,..I 0 THAT THIS POLICY SHALL NOT BE CANCELLED OR THE AMOUNTS OF COVERAGE PROVIDED HEREIN REDUCED UNTIL THIRTY (30) DAYS AFTER THE CITY SHALL HAVE EVIDENCED BY RETURN RECEIPT OF REGISTERED MAIL." ... ","; 7. NO POLICY SHALL BE ACCEPTABLE UNLESS FIRST APPROVED BY THE CITY. ' n. FAITHFUL PERFORMANCE BOND: THE LICENSEE SHALL FURNISH A FAITHFUL PERFORMANCE BOND OR CERTIFIED CHECK TO THE CITY OF SAN BERNARDINO IN THE AMOUNT OF $500 WHICI'! SHALL BE suu- .JECT TO THE APPROVAL OF THE CITY OF SAN BERNARDINO AND SAID oOND SHALL BE IN ACCORDANCE WITH ORDINANCE 1821, SE~TION 2400, AND THE CORPORATION ISSUING SAID BOND SHALL HAVE A RATING IN BEST'S INSURANCE GUIDE OF "A" OR HIGHER. 9. DEFAULT AND CANCELLATION: IN THE EVENT THAT LICENSEE SHALL DEFAULT IN HIE PERFORMANCE OR FULFI LL- MENT OF ANY COVENANT OR CONDITION HEREIN CONTAINED, NEGLECTS OR REFUSES TO PAY THE CONSIDERATION OR ANY PART THEREOF WITHIN THIRTY (30) DAYS AFTER THE SAME IS DUE, THEN CITY MAY, AT ITS OPTION WITHOUT NOTICE OR DEMAND UPON LICENSEE OR UPON ANY PERSON CLAIMING BY, THROUGH OR UNDER LICENSEE, IMMEDIAT!;LY CANCEL AND TERMINATE THIS AGREE~\ENT AND TERMIHATE EACH AND EVERY RIGHT OF LICENSEE AND SUCH PERSON, IN WHICH EVENT THE PREHlSES SHALL REVERT TO CITY, TOGEHIER WITH ANY AND ALL IMPROVEMENTS PLACED THEREON AND THE CITY MAY THEREUPON ENTER INTO AND UPON THE LEI,Sr:D PREMISES AND REPOSSESS THE SAME AND EXPEL LICENSEE AND ANY EMPLOYEE, AGENT OR OTHER REPRESENTATIVE OF THE LICENSEE. THE RIGHTS AND REI~EDIES OF THE CITY, AS HEREINABOVE SET FORTH, ARE CUMULATIVE AND SHALL IN UO WAY DE 'DEEMED TO LIMIT ANY OF THE OTHER PROVISIONS OF THIS LEASE OR OTHERWISE TO DENY TO THE CITY ANY RIGHT OR REMEDY AT LAW OR IN EQUITY WHICH THE CITY MAY HAVE OR ASSERT AGAINST LICENSEE UNDER ANY LAW IN EFFECT AT THE DATE HEREOF OR WHICH loIAY HERE/lFTER BE ENACTED OR BECOr-IE EFFECTIVE; IT BEING THE INTENT HEREOF THAT THE RIG~ITS AND REMEDIES OF THE CITY, AS HEREINABOVE SET FORTH, SHALL SUPPLEMENT AND IlE IN ADDITION TO AND IN AID OF THE OTHER PROVISIONS,OF THIS LEASE AND OF ANY RIGHT IN ADDITION TO THE ABOVE CONSIDERATIONS.- THIS LEASE MAY BE TERM- INATED BY MUTUAL CONSENT BY GIVING A THIRTY (30) DAY WRITTEN NOTICE. 10'. ASSIGNMENT. SUBLEASE: LICENSEE SHALL NOT ASSIGN THIS LEASE OR ANY INTEREST THEREIN OR SUBLET THE LEASED PRE~IlSES, OR ANY PART THEREOF, OR ANY RIGHT OR PRIVILEGE APPURTENANT TO IT, OR ALLOW ANY PERSON OTHER THAN LICENSEE ANO HIS AGENTS AND EHPlOYEES TO OCCUpy OR USE THE PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF THE CITY. ANY UNAUTHORIZED ASSIGNMENT OR SUBLEASE SHALL BE VOID, AND SHALL TERMINATE THIS LEASE ATHIE CITY'S OPTION. 11. OUS BlESS RECORDS: LICENSEE SHALL BE REQUIRED TO I~AINTAIN A METHOD OF ACCOUNTING Of nlE RECEIPTS AND DISBURSEMENTS IN CONNECTION VIITH TilE SUB.JCCT CONCCSS ION \-IHICIl SIIALl CORRECTLY ArlO ACCURATELY ReFLECT TilE cr-oss SALES RECEIPTS ,."", " ......., "-" AND DISBURSEMENTS RECEIVED OR CONCESSION. i -...-; ,<.,I MADE BY LICENSEE FRON THE OPERATIOIl Jl.tJ() THE I",ETHOD OF ACCOUNTING, I NCLUD I NG BANK ACCOUNTS, ES TAB LI SHED FOR THE SUBJECT CONCESSION SHALL BE SEPARATE FROM THE ACCOUNTING SYSTEM USED FOR ANY OTHER BUSINESS OPERATED BY LICENSEE OR FOR RECORDING LICENSEE'S PERSONAL FINANCIAL AFFAIRS. SUCH METHOD SHALL INCLUDE THE KEEPING OF . THE FOLLOWING DOCUMENTS: 1. REGULAR BOOKS OF ACCOUNTING, SUCH AS GENERAL LEDGERS. 2. JOURNALS INCLUDING ANY SUPPORTING AND UNDERLYING STATEr'\(:.IITS, ETC. 3. STATE AND FEDERAL ItICOME TAX RETURNS AND SALES TAX RETUR~IS AND CHECKS AND OTHER DOCUMENTS PROVIDING' PAYNENT OF SU~\S SHOHN. It. CASH REGISTER TAPES OR RECEIPTS (DAILY TAPES OF RECEIPTS SHALL NOT BE SEPARATED AND SHALL BE RETAINED ON CONTINUOUS ROLLS, SO THAT FROM DAY TO DAY THE SALES CAN BE IDENTIFIED). 5. ANY OTHER ACCOUNTING RECORDS THAT THE CITY, AT ITS DISCRETION DEEMS NECESSARY FOR PROPER REPORTING OF RECEIPTS. ALL DOCU~IENTS, BOOKS AND ACCOUNTING RECORDS SttALL BE OPEN FOR INSPEC- TION Ar~D REINSPECTION AT ANY REASONABLE TIME DURING THE TERM OF THE LICENSE AGREEMENT OR PERMIT AND FOR A REASONABLE PERIOD, NOT TO EXCEE[;; ONE YEAR, THEREAFTER. IN ADDITION, CITY MAY FRO'" TIt"E TO TnlE CONDUer. AN AUDIT AND REAUDIT OF THE BOOKS AND BUSINESS CONDUCTED BY LICENSEE AND OBSERVE THE OPERATION SO THAT ACCURACY OF THE ABOVE RECORDS CAN BE CONF I RMED. I F THE REPORT OF GROSS SALES MADE BY LI CENSEE TO THE CITY SHALL BE FOUND TO BE LESS .THAN THE AMOUNT OF GROSS SALES, DISCLOSED BY SUCH AUDIT AND OBSERVATION, LICENSEE SHALL PAY THE CITY WITHIN THIRTY (30) DAYS AFTER BILLING ANY ADDITIONAL RENTALS DISCLOSED BY SUCH AUDIT. IF 0 I SCREPANCY EXCEEDS TWO PERCENT (2\) AND NO REASONABLE EXPLANATION IS GIVEN FOR SUCH DISCREPENCY, LICENSEE SHALL Jl.LSO PAY THE COST OF THE AUDIT. LICENSEE SHALL TRANSMIT A PROFIT AND LOSS STATEMENT AND A BALANCE SHEET FOR THE LICENSED OPERATiONS, PREPARED IN A FORM ACCEPTABLE TO THE CITY \/ITHIN SIXTY (&0) DAYS OF THE CLOSE OF EACH OF:LICENSEE'S FISCAL OR CALENDAR YEARS DURING THE TERM OF THE LICENSE AGREEMENT. THE PROFIT AND LOSS STATEMENT SHALL SET FORTH AN EXPENSE ACCOUNT ENTITLED "COM- PENSATION TO OFFICERS" OR AN ACCOUNT HAVING SOME SIMILAR TITLE. THE AMOUNT SHOWN OPPOSITE THIS ITEM SHALL INCLUDE ALL SALARIES OR OTHER COM- PENSATION FOR SERVICES DERIVED FROM THE LICENSED OPERATION BY LICENSEE, MEMBERS OF HIS FAMILY, OFFICERS OF THE LICENSEE'S CORPORATION, DIRECTORS, SHAREHOLDERS, ANY INDIVIDUAL OWNING STOCK INDIRECTLY AND OTHER PERSONS EMPLOYED BY LICENSEE TO MANAGE TtIE OPERATI ONS OR SUPERVI SE Ll CENSEE I S EMPLOYEES. THESE SALARIES OR OTHER COMPENSATION SHALL NOT BE INDICATED IN ANY OTHER EXPENSE CATEGORY. ALL INFORNATION OBTAINeD IN COlmCCTlON WITII CITY'S ltlSrECTlONS OF recorDS OR AUDITS SHALL DE RECEIVED AND 1-lAINTAINED IN CONFIDENCE AND SIIALL rIOT BE DISCLOSED TO ANYONE NOT DIRECTLY CONNECTED l'lITH THE OFFICIAL BUS\l~[SS OF THE CI TY. B!:.FORE BECINNING OPERATIONS, L1CENS[E SHALL CONTACT TilE FINANCE DEPARTMENT TO ARRANCE r-OR OTIIER SPECIFIC AccourHHlG RECORDS 7 r~ ~, '" ('" '- ,n,\ '-' :J AND PROCEDURES. 12. REGULATIONS. INSPECTION AND DIRECTIVES: A. LAW AND ORDINANCES: LICENSEE SHALL CONDUCT HIS BUSINESS IN ACCORDANCE WITH ALL LAWS, ORDINANCES, RULES AND REGULATIONS APPLICABLE TO SUCH BUSINESS AS SET FORTH BY THE CITY, COUNTY, STATE AND FEDERAL GOVERNMENT. B. RIGHT OF INSPECTION: AUTHORIZED 'CITY REPRESENTATIVES, AGENTS AND EMPLOYEES SHALL HAVE TtIE RIGHT TO ENTER UPON THE LICENSED PREMISES AT ANY AND ALL REASONABLE TIME FOR THE PURPOSE OF INSPECTION AND OBSERVATION OF LICENSEE'S OPERATIONS. SAID INSPECTIONS MAY BE MADE BY PERSONS IDENTIFIED,TO LICENSEE AS CITY HIPLOYEES, SUPERVI SORS, ETC. INSPECTIONS loIAY BE MADE FOR THE PURPOSE SET FORTH BELOW; HOWEVER, THE ENUMERATIONS BELOW SHALL NOT BE cmlSTRUED TO LIMIT THE CITY'S RIGHT OF INSPECTION FOR ANY PURPOSE INCIDENTAL TO THE RIGHTS OF THE CITY: 1. TO DETERMINE IF Tt-IE TERMS AND CONDITIONS OF THE AGREEMENT ARE BEING COMPLIED' WITH. 2. TO OBSERVE TRANSACTIONS BETWEEN LICENSEE AND PATRONS W ORDER TO EVALUATE THE COURTESY EXTENDED TO AND METHOD OF DEALING ~IITH HIE PUBLIC, THE PERFORMANCE AND CALIBER OF LICENSEE'S ENPLOYEES. AND THE METHODS FOR RECORDING RECEIPTS. THE INFORMATION OBTAINED ON THESE INSPECTIONS WILL BE USED TO EVALUATE LICENSEE IN ORDER TO PROVIDE A BASIS FOR AN ACTION BY THE CITY FOR THE RENEWAL OR DENIAL OF RENEWAL OF THE CONCESSIONS. 13. LICENSEE SIiALL QUIT AND SURRENDER POSSESSION OF SAID PREMISES TO THE CITY IN AS GOOD AND USEABLE A CONDITION, SUBJECT TO NORMAL ~IEAR AND TEAR, ACCEPTABLE TO THE CITY, AS HIE SA"'E WERE IN AT THE Tlt1E 01' THE FIRST OCCUPATION THEREOF BY LICENSEE. lLI. BID FORMS AND INS TRUC TI ONS: A. PROPOSAL INSTRUCTIONS: PROPOSALS SHALL BE MADE ON THE PROPOSAL FORM PRUVIDED AND SHALL CONFORM TO THE REQUIREMENTS SET fORTH IN THE SPECIfICATIONS. FAIL- URE Tu COMPLETE ANY PORTION OF THE PROPOSAL FORM SHALL BE A OASIS FOR REJECTION Of THE PROPOSAL. -NO TELEGRAPHIC PROPOSALS OR TELE- GRAPHIC MODIFICATION OF A PROPOSAL WILL BE CONSIDERED. IF THE PROPOSAL IS MADE BY AN INDIVIDUAL, IT SHALL BE SIGNED I'I1TIi FULL NAME OF PROPOSER AND HIS ADDRESS SHALL DE GIVEN. IF IT IS MADE BY A PARTNERSHIP, IT SHALL BE SIGNED I-IITH THE PARTNERSHIP NAI~E BY ONE OF THE PARTNERS AND THE fULL NAME AND ADDRESS OF EACH PARTNCR SHALL BE GIVEN. IF IT IS MADE BY A JOINT VENTURE, IT SHALL OE SIGNED WITH THE FULL NAME AND ADDRESS OF EACH 11EMDER THEREOF. IF IT IS MADE BY A CORPORATION, IT SHALL BE SICHED OY TilE PRESIDENT AND SECRnARY IN nm CO!U'OR/\TE NAME AND TilE CORPORATE SEAL SIIALL liE AFfIXCD !fl THE 8 C PLACE INDICATED. NO WITH THESE SIGNATURE 1"'...... '-' PROPOSAL WILL REQUlREMENTS. :.;) BE CONSIDERED, UNLESS IT COMPLIES :) AS PART OF THE PROPOSAL FORM, THE PROPOSER MUST INCLUDE A SCHEDULE OF EXPERIENCE, A STATEMENT OF PERSONAL HISTORY, A SCHEDULE OF EQUIP- NENT AND A SCHEDULE OF PROPOSED INVENTORY. ADDITIONAL SHEETS I-lAY BE ATTACHED AS REQUIRED. IF THE PROPOSAL IS SUBNITTED BY A PARTNERSHIP OR JOINT VENTURE, TIlE STATENENT OF PERSONAL HISTORY WI LL BE COMPLETED BY EACH MEI~BER THERE- OF. IF THE PROPOSAL IS SUBMITTED BY A CORPORATION, THE STATEMENT WILL BE COMPLETED BY ALL OFFICERS OF THE CORPORATION. THE STATEMENT REGARDING PERSONAL HISTORY MUST INCLUDE CREDIT REFERENCES. IF THE PROPOSER IS A PARTNERSHIP OR JOINT VENTURE, INDIVIDUAL STATE- NENTS MUST BE SUBMITTED FOR EACH MEMBER THEREOf. AS PART OF THE PRO- POSAL FORM, THE PROPOSER MUST ALSO INCLUDE A STATEMENT Of CONCESSION EXPERIENCE B. PROPOSAL CHECK: EACH PROPOSER SHALL SUBMIT WITH THE PROPOSAL FORI-' A CHECK, CERTIFIED BY A BANK IN THE CITY OF SAN BERNARDINO AND PAYAOLE TO THE ORDER OF SAID CITY AS A GUARANTEE THAT THE PROPOSER WILL ENTER INTO A LICENSE AGREEMENT, IF IT IS AWARDED TO HIM. HIE AMOUNT OF SAID CHECK SHALL BE $25 AND NO PROPOSAL WILL BE CONSIDERED, UNLESS IT IS ACCOMPANIED BY SUCH CHECK. ALL CHECKS ACCOMPANYING REJECTED PROPOSALS WILL BE RETURNED. THE CHECK ACCOMPANYING THE SELECTED PROPOSAL WILL DE RETUR~ED If THE SUCCESSFUL PROPOSER: I. ENTERS INTO AN AGREEMENT WITHIN TEN (10) DAYS AfTER IT IS fORWARDED TO HIM FOR EXECUTION; AND, 2. PROVIDES A fAITHFUL PERFORMANCE BOND,. A CERTIFIED CHECK, OR A CASH DEPOSIT IN THE AMOUNT,OF $500 WITHIN TEN (10) DAYS AfTER THE AGREEMENT IS EXECUTED OY THE CITY. (THE fAITHfUL PERFORMANCE BOND SHOULD NOT BE OBTAINED UNTIL THE PROPOSER IS NOTIfIED THAT HIS PROPOSAL HAS BEEN SELECTED). If THE SUCCESSfUL PROPOSER DOES NOT MEET THE ABOVE.REQUIREMENTS, THE SUM GUARANTEED BY HIS CHECK SHALL BE AVAILABLE TO REIMBURSE THE CITY fOR ANY COSTS OCCASIONED BY REASON Of NON-COMPLIANCE. IF HE DOES MEET THE REQUIREMENTS, HIS CHECK WILL BE RETURNED WITHIN fIFTEEN (15) DAYS OF COMPLIANCE. 3. NOTICE OF COLLUSION OR SHAM: EACH PROPOSAL MUST NOT BE A SHAM OR COLLUSIVE, OR MADE IN THE IN- TEREST OR ON BEHALF OF ANY PERrON NOT THEREIN NAMED. 9