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HomeMy WebLinkAboutContract n.r✓ CAG-14-084 (AN of 2014—2024 GENE COULON MEMORIAL BEACH PARK CONCESSION AGREEMENT THIS AGREEMENT ("Agreement") is made as of the 7 day of MaZ4, 2014, (the "Effective Date"), by and between the City of Renton, referred to as "Renton" (which shall include City of Renton employees and/or representatives), a noncharter code city under RCW 35A, and a municipal corporation under the laws of the State of Washington, and Ivar's Inc. (Ivar's, Kidd Valley, Snack Bar) hereinafter referred to as "Concessionaire." Renton and Concessionaire may at times be collectively referred to as the "Parties". A. GRANT OF CONCESSION: CONCESSION PREMISES 1. By this Agreement, Renton grants to Concessionaire, for and upon this Agreement's conditions and provisions, the exclusive concession, right and privilege to manage and operate the food and beverage concession facilities at GENE COULON MEMORIAL BEACH PARK, as depicted on Exhibits A, B, C, D and E, which are attached to this Agreement and incorporated by reference. The specified concession areas include: a. The Snack Bar is located within the Bath House, adjacent to the swimming area. The Snack Bar area is 12% x 21 feet (260 sq. ft.), and includes a serving counter, a water closet, lavatory, and three-basin sink with cabinets. b. Kidd Valley Restaurant shares a structure with public restrooms. It is adjacent to the central courtyard and picnic gallery. The facility includes the following elements: entry foyer (205 square feet), serving area (180 square feet including a service counter with under-counter cabinets), dining area (670 square feet), outside dining area (800 square feet including eight (8) tables with benches), kitchen (210 square feet), storage room (120 square feet including sink and metal shelving), and storage area with water closet. The dumpster compactor is located approximately 75 feet east of the Kidd Valley Restaurant. C. lvar's Restaurant is located on a major pier structure in the vicinity of the finger piers and waterwalk. The facility has a total enclosed floor area of 1,973 square feet and an additional roof overhang area of 1,500 square feet, which includes an exterior dining area of 910 square feet. A combination of 2-to-4 person tables seats a total of 44 people in an interior dining area of 800 square feet. The public ordering area of 170 square feet is adjacent to the serving area of 180 square feet. The kitchen area of 560 square feet includes an employee restroom, storage, scullery, food preparation, and a walk-in freezer. 2. All concession facilities and/or grounds shall be referred to as "Concession Premises." W.r+ CAG-14-084 ot%ark 2014—2024 GENE COULON MEMORIAL BEACH PARK CONCESSION AGREEMENT THIS AGREEMENT ("Agreement") is made as of the 7 day of MaZ4, 2014, (the "Effective Date"), by and between the City of Renton, referred to as "Renton" (which shall include City of Renton employees and/or representatives), a noncharter code city under RCW 35A, and a municipal corporation under the laws of the State of Washington, and Ivar's Inc. (Ivar's, Kidd Valley, Snack Bar) hereinafter referred to as "Concessionaire." Renton and Concessionaire may at times be collectively referred to as the "Parties". A. GRANT OF CONCESSION: CONCESSION PREMISES 1. By this Agreement, Renton grants to Concessionaire, for and upon this Agreement's conditions and provisions, the exclusive concession, right and privilege to manage and operate the food and beverage concession facilities at GENE COULON MEMORIAL BEACH PARK, as depicted on Exhibits A, B, C, D and E, which are attached to this Agreement and incorporated by reference. The specified concession areas include: a. The Snack Bar is located within the Bath House, adjacent to the swimming area. The Snack Bar area is 12% x 21 feet (260 sq. ft.), and includes a serving counter, a water closet, lavatory, and three-basin sink with cabinets. b. Kidd Valley Restaurant shares a structure with public restrooms. It is adjacent to the central courtyard and picnic gallery. The facility includes the following elements: entry foyer (205 square feet), serving area (180 square feet including a service counter with under-counter cabinets), dining area (670 square feet), outside dining area (800 square feet including eight (8) tables with benches), kitchen (210 square feet), storage room (120 square feet including sink and metal shelving), and storage area with water closet. The dumpster compactor is located approximately 75 feet east of the Kidd Valley Restaurant. C. Ivar's Restaurant is located on a major pier structure in the vicinity of the finger piers and waterwalk. The facility has a total enclosed floor area of 1,973 square feet and an additional roof overhang area of 1,500 square feet, which includes an exterior dining area of 910 square feet. A combination of 2-to-4 person tables seats a total of 44 people in an interior dining area of 800 square feet. The public ordering area of 170 square feet is adjacent to the serving area of 180 square feet. The kitchen area of 560 square feet includes an employee restroom, storage, scullery, food preparation, and a walk-in freezer. 2. All concession facilities and/or grounds shall be referred to as "Concession Premises." B. TERM This Agreement shall be for a period of ten (10) years and subsequently may be renewed, after review by and approval of both parties, for an additional 5-year period. C. CONSIDERATION 1. The Parties mutually and voluntarily agree that the concession rights and privileges for the term specified in section B are given in exchange for Concessionaire's agreement to the following: a. Concessionaire will provide certain services to the public under the terms of this Agreement. b. Concessionaire's payment to Renton will be based on a fluctuating percentage of net receipts. The term "net" shall mean the value preceding or accruing from the sale of goods, food, services and business transactions of every kind occurring on the Concession Premises without any deductions for cost of products sold, material used, labor or other expenses whatsoever paid or accrued. It excludes monies collected for Washington state sales taxes from the purchaser of food, goods, and services. The Parties agree that the following shall not be included in Concessionaire's net sales for purposes of calculating percentage rental: 1. Goods returned to sources including shippers and manufacturers, or transferred to another store owned or affiliated with Concessionaire; 2. Receipts from public telephones or vending machines installed solely for use by Concessionaire's employees; 3. Sales taxes, consumers' excise taxes, gross receipts' taxes and other similar taxes now or hereafter imposed on the sale of merchandise or services; 4. Uncollected accounts in an amount not to exceed two percent (2%) of gross sales and written off by Concessionaire as bad debt for income tax purposes; 5. Sums and credit received in settlement of claims for loss of or damage to merchandise; 6. Sales to employees in accordance with Concessionaire's standard employee discount and free meals to employees pursuant to Concessionaire's employee benefit plan; 7. Gift certificates or like vouchers, until such time as the same shall have been converted into a sale by redemption at the Premises; and 8. Fees paid to third-party credit card companies, provided such exclusion shall not exceed three percent (3%) of Concessionaire's gross sales per annum. C. Concessionaire will pay Renton an annualized rent of $110,000 and 12% of net sales above $1.1 million; however, in any calendar year that Concessionaire builds, or expands the Concession Premises grill, plans for which are attached and fully incorporated into this Agreement by reference as Exhibit D, the maximum total rent 2 'err✓ .woo shall not exceed the previous year's total sales portion of rent so that Concessionaire may recover some of their capital investment costs for planned improvements. In subsequent years the provisions of this section shall resume. D. PAYMENT 1. Concessionaire shall record all funds that are received in a cash register containing a tape, or other electronic record, which records and identifies the date and amount of each transaction. Monthly recap reports shall be submitted to the Finance Department on a monthly basis along with a written statement detailing gross and net receipts signed by Concessionaire. These reports will detail each operation, specifically, Ivar's, Kidd Valley and the Snack Bar at Gene Coulon Memorial Park. 2. Concessionaire shall make payment of rents to Renton for each calendar month of operation, said payment due and payable no later than the tenth (10th) of the following month, accompanied by the above described Statement of Gross Receipts. All payments or reports to Renton shall be paid or delivered to 1055 S. Grady Way, Renton, Washington 98055. 3. If any payment specified in this Agreement is not paid to Renton within ten (10) calendar days after the date specified, a late charge often percent (10%) of the payment due and unpaid shall be added to the payment as a penalty and the total sum shall become immediately due and payable. Any amount remaining unpaid by the first day of the month following the due date for payment (i.e., approximately twenty (20) calendar days late) shall bear interest at one percent (1%) per month. E. OPERATION AND SERVICES 1. Facilities: Concessionaire shall operate and manage the Concession Premises in accordance with the following requirements: a. Ivar's/Kidd Valley Restaurant: Operate a quality major restaurant/snack bar facility targeted towards families, nearby workers, and visitors to the park. The facility should offer a varied menu, including light meals as well as snacks and beverages. b. Snack Bar: Operate a snack bar offering the usual snacks (pre-packaged sandwiches, chips, candy and soft drinks) plus more nutritious items. At least one meal- type item (hamburgers, hot dogs, etc.) should be offered. 2. Hours: Concessionaire shall keep the Concession Premises operational and open to the public the minimum hours listed below. a. Ivar's/Kidd Valley Restaurant: 10:30 a.m. —8:00 p.m.—October 1 through April 30 of the following year. 10:30 a.m. —9:00 p.m. — May 1 through May 31 of the same year. 10:30 a.m. —9:30 p.m. —June 1 through Labor Day of the same year. 10:30 a.m. — 9:00 p.m. —The day after Labor Day through September 30 of the same year. b. Snack Bar: June 15 through Labor Day Weekend, seven (7) days a week; 3 %W *0/ designated hours of beach operation/weather permitting or additional hours approved by the Park Board. Snack Bar trash will be deposited in their dumpster by Snack Bar employees on a daily basis. C. Carts: 11:00 a.m. to 6:00 p.m. — June through August of the same year, weather permitting. 3. Products: a. All food products used on the Concession Premises shall meet the following minimum requirements. Food used must be United States Department of Agriculture ("USDA") inspected or approved as follows: 1. Fish and poultry shall be of a quality equivalent to a number "1" grade cod or halibut. 2. Dairy products shall meet top USDA requirements. 3. Beef shall be of a "choice" grade and shall be used as 100% beef only; additives shall not be used as extenders. 4. Canned food products shall carry the "fancy" label. 5. All products with a shelf life indicated by code shall not be used outside the code period unless properly preserved prior to that period ending. 6. At no time shall any meat product be used on a day other than the day upon which it was cooked. 7. At no time shall any "refrozen product" be used on the Concession Premises. 8. Concessionaire shall ensure that all products are stored in properly working refrigeration units, heat units, and dry storage units. b. The following shall be excluded from Concessionaire's operation: 1. Cigarette sales. 2. Non-food products unless approved by Renton. 3. Alcoholic beverages unless approved by Renton. 4. Vending machines unless approved by Renton. 5. Video games or gambling devices unless approved by the Board. 4. Menus and Pricing: Concessionaire's menus shall be subject to approval with respect to design, artwork and wording, items offered for sale thereon, portions, sizes, and prices. Seafood, beef, and poultry will be dominant menu items consisting of entrees such as fish and chips, salmon, clam chowder, hamburgers, and chicken-burgers. Items will not be removed from the menu without Renton's prior approval. Concessionaire and its employees shall not make or permit any misrepresentation as to kind, quality, weight, or price of food, beverages, or merchandise offered for sale. Concessionaire and its employees shall not sell any food, beverage, or merchandise at prices different from prices displayed or advertised or at any price greater than that approved in writing by Renton. The location of points of sale, methods of sale, and prices charged for commodities sold or business transacted under the provisions of this Agreement at all times 4 shall be subject to the supervision, direction and approval of Renton or its representatives. A copy of the then current concession price schedule also shall be displayed at all times on the Concession Premises, where directed by Renton through its representative(s), in such a manner so as to be easily viewed by the public. Concessionaire shall strictly adhere to the established price as set forth in the then Current Price Schedule. Concessionaire''s failure to do so shall be grounds for immediate termination of this Agreement. 5. Concessionaire's Staff: An experienced on-site manager shall be selected and designated as the Concessionaire's authorized representative who shall oversee all concession operations on the Concession Premises and transmit and receive communications to and from Renton. A designated Ivar's Inc. employee shall meet quarterly with a representative of Renton to discuss operational concerns. Concessionaire shall employ competent, courteous and efficient staff in numbers to adequately serve its patrons. All Concessionaire staff members shall, while on duty, be equipped with any apparatus or clothing that may be required by law, ordinance or regulation. Concessionaire staff will be encouraged not to smoke within the vicinity of Ivar's, Kidd Valley, or the snack bar. Employees shall wear uniforms. In all aspects of employment, appearance, professional level, training, and operation, Concessionaire shall, at a minimum, meet standards and requirements as set forth in the proposal submitted to Renton and attached to this Agreement as Exhibit E. 6. Deliveries:Deliveries to the Concession Premises shall be made in early morning hours or late afternoon hours to minimize the impact on park operations and pedestrian traffic. y-Rerrtn=r• its representative. All promotions must be coordinated with Renton's�mmwwy—Services Department. Annually, on January 15,Twenty Thousand Doll ($-20,-M.00) shall be given by Concessionaire to Renton to be distributed tbreugh e ark Board toward special events and activities. Any move y t e end of the fiscal year will be donated to an agreed upon er6R4 P o e i Safi pliHblc aclo L3 y 8. Sienaee: All graphics placed upon or affixed to any of the Concession Premises shall be subject to the prior written approval of Renton or its representative and shall not include product or commercial advertising or the use of stock menu boards. Concessionaire will follow all City sign codes, including A-frame signs. Concessionaire shall submit detailed plans and secure any needed permits/approvals for all exterior and interior signs. In all cases, signage shall be consistent in size, color, lettering, and theme to regular park signage and specifications. F. CAPITAL IMPROVEMENTS/REMODELING 1. Concessionaire shall, prior to commencing any alterations, improvements or 5 vrI construction, submit to Renton in writing, plans for alterations, improvements, and construction along with a breakdown of costs for such improvements. 2. All plans submitted are subject to Renton's approval prior to commencement of any alterations, improvements, or construction. Renton agrees to promptly review said plans, and if the alterations, improvements, and construction are acceptable, to promptly approve the same, and the plans as approved shall be attached and incorporated into to an executed copy of this Agreement. 3. All work performed shall be done to the satisfaction of Renton and shall be carried out in a manner that minimizes impact upon the use, of the park by the public. Concessionaire shall meet all code requirements, and obtain and provide to Renton all required permits, prior to commencing any construction on the Concession Premises. 4. Renton may enter the Concession Premises and inspect any capital improvement work at any time to insure that such work is in accordance with the plans approved by Renton. In the event any such work is not according to the Renton approved plans, Renton shall send a Notice of Noncompliance to Concessionaire. If Concessionaire fails to make corrections within twenty (20) calendar days after Concessionaire's receipt of such Notice of Noncompliance, Renton may make whatever corrections are necessary to bring such work into compliance with the approved plans, at Concessionaire's sole expense. Renton's failure to object to or correct unapproved work shall not be a waiver of any right or remedy. 5. Prior to commencement of any construction work, Concessionaire shall provide payment and performance bonds (or other mutually agreed upon acceptable means of security), in Renton City Attorney approved forms, payable to Renton in full and just value of such capital improvements, conditioned that all provisions of this Concession Agreement relating to capital improvements shall be faithfully performed by Concessionaire, or the surety, if required. 6. Concessionaire shall furnish Renton with a complete set of reproducible 22x34 Mylar drawings reflecting the final "as-built" condition of all capital improvements within thirty (30) calendar days after completion of the construction. Concessionaire shall furnish to Renton copies of all operating manuals, equipment brochures,.paint schedules, and material brochures for such improvements. 7. Concessionaire will use recycled products whenever reasonable. 8. All permitted alterations, improvements, and construction shall become the property of Renton upon termination or expiration of this Agreement and shall be installed solely at Concessionaire's expense unless Renton expressly agrees in writing to contribute toward the costs thereof. Any unpermitted alteration, improvement or construction shall be repaired in full and to the satisfaction of Renton, at Concessionaire's sole expense. Failure to repair shall result in Concessionaire being responsible for the removal of the unpermitted 6 ' alteration, improvement or construction, the cost to put something useful in its place, and an inconvenience fee of two percent (2%) of the value of the entire property. 9. Concessionaire, at its sole expense, has proposed and submitted plans to Renton for the physical expansion of the Fish Bar to include a seasonal grilling area. Subject to reasonable modification and approval by the Washington State Conservation and Recreation Office, the expansion would be approximately 300 square feet of additional space appended to the kitchen area of the Fish Bar. This expansion would include a new cement floor, covered by tiles; new walls; roll up garage door(s) that match the existing Fish Bar; and a new natural gas grill, new refrigeration, and cleaning facilities. 10. Concessionaire, at its sole expense, shall be responsible for repainting the stores; installing new exterior signs at Kidd Valley, subject to Renton approval; installing new equipment (including, but not limited to, refrigerators and fryers) when needed; and resealing the grout and tile floor at Kidd Valley. G. UTILITIES Concessionaire shall pay for the following utilities: 1. Electrical power used in the restaurant(s) including the restroom portion of the building; 2. Electrical power, water and sewer service for the snack bar; 3. Garbage collection associated with the concession operation; and 4. A private telephone to serve the food concession. H. TAXES- FEES Concessionaire shall timely pay all fees, charges, and costs arising out of the use and occupancy of the Concession Premises including, but not limited to, charges imposed for governmental inspections or examinations, license and excise fees, taxes on Concession Premises personal property and the leasehold interest created by this Agreement. I. CUSTODIAL MAINTENANCE OF CONCESSION PREMISES Concessionaire shall, at no expense to Renton, at all times: 1. Keep the Concession Premises and adjacent courtyard and picnic gallery in a very neat, clean, safe and sanitary condition; 2. Keep the glass of all windows and doors clean and presentable; 3. Furnish all cleaning supplies, materials and equipment needed to operate the Concession Premises in the manner prescribed in this Agreement; and 4. Provide all necessary janitorial service to adequately maintain the Concession Premises on the frequency schedule attached, which by this reference fully is incorporated into this Agreement as Exhibit E. Concessionaire will clean tables and chairs within the direct parameters of each restaurant on at least a daily basis and as needed. The picnic gallery will be checked daily for trays and other restaurant-related debris. 7 Renton, through its representative, shall conduct periodic inspections of the buildings and grounds and shall notify Concessionaire in writing to make changes in maintenance methods or to make immediate repairs to areas affected by unacceptable maintenance methods. Concessionaire shall make changes or repairs as reasonably directed by Renton staff. Concessionaire is required to contract with a qualified pest control company to control the rodent population around the restaurant and below the decks. Concessionaire may provide for janitorial services by contract with a third-party, which shall be subject to this Agreement and the prior written approval of Renton. Concessionaire will provide all preventive and normal maintenance and upkeep on HVAC equipment, including grease filtering and regular grease removal from fryer hood systems. Concessionaire shall be responsible for all plumbing fixtures and repairs including but not limited to, hot water heaters, drain maintenance, and any upgrades needed by current codes; e.g., grease traps. Concessionaire shall provide all maintenance on restaurant doors and door hardware including locks. J. EQUALITY OF TREATMENT Concessionaire shall conduct its business in a manner that ensures fair, equal and non- discriminatory treatment at all times in all respects to all persons without regard to race, color, religion, sex, sexual orientation, marital status, age or national origin. No person shall be refused service, be shown discriminatory treatment, or be denied any privilege, use of facilities, or participation in activities on the Concession Premises based on: race, color, religion, sex, sexual orientation, marital status, age, or national origin. Failure to comply with any of the terms of this provision shall be material breach of this Agreement. K. NON-DISCRIMINATION Concessionaire shall comply with all applicable federal or state statutes and all applicable municipal laws, ordinances, rules and regulations regarding non-discrimination in employment, the provision of services to the public in a non-discriminatory manner, and affirmative action, including but not limited to the provisions of the City of Renton Fair Practices Policy as attached and fully incorporated by reference into this Agreement. Concessionaire shall comply with all provisions of the Americans with Disabilities Act (ADA). Concessionaire is solely responsible for any structural changes required by the ADA. L. ALL-RISK INSURANCE AND ALL-RISK LIABILITY INSURANCE The Concessionaire shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property, which may arise from or in connection with the Concessionaire's operation and use of the Concession Premises. 1. Concessionaire's Insurance. Concessionaire shall secure and maintain the following insurance policies, and shall not cancel or suspend the insurance policies identified below, except after twenty (20) calendar day's prior written notice by certified-mail 8 to the City of Renton: a. Commercial General Liability Insurance: Commercial general liability insurance in the minimum amounts of $1,000,000 for each occurrence/$2,000,000 aggregate throughout the duration of this Agreement. b. Workers' Compensation: Workers' compensation coverage, as required by the RCW 51, Industrial Insurance laws of the State of Washington. c. Renton as an Additional-Insured: It is agreed that on Concessionaire's commercial general liability policy, the City of Renton will be named as an Additional-Insured on a primary and non-contributory basis. Any coverage maintained by the City of Renton is solely for the coverage and benefit of Renton, and its elected officials, officers, agents, employees, representatives and volunteers. d. Verification of Coverage: Subject to Renton's review and acceptance, a certificate of insurance showing the proper endorsements, shall be delivered to Renton before executing the work of this Agreement. 2. Review of Policy: Upon request, the Concessionaire shall give Renton a full copy of the insurance policy for its records and for the Renton City Attorney's or Risk Manager's review. The policy limits may be reviewed and the value reassessed annually. 3. Termination: Notwithstanding any other provision of this Agreement, the failure of the Concessionaire to comply with the above provisions of this section shall subject this Agreement to immediate termination without notice to any person in order to protect the public interest. M. INDEMNIFICATION/HOLD HARMLESS Concessionaire agrees and covenants to hold and save Renton, its elected officials, officers, agents, representatives, employees and volunteers harmless and to promptly indemnify same from and against any and all claims, actions, damages, illegal conduct/violations of Laws, liability of every type and nature including all costs and legal expenses incurred by reason of any of Concessionaire's occupancy and use of the Premises, and related duties or work arising under or in connection with this Agreement, including loss of life, personal injury and/or damage to property arising from or out of any occurrence, omission or activity upon, on or about the premises worked upon or in any way relating to this Agreement. This hold harmless and indemnification provision shall likewise apply for or on account of any patented or unpatented invention, process, article or appliance manufactured for use in the performance of the Agreement, unless otherwise specifically provided for in this Agreement. The Concessionaire agrees to name Renton as an Additional-Insured on a noncontributory primary basis. In the event Renton shall, without fault on its part, be made a party to any litigation commenced by or against Concessionaire, then Concessionaire shall 9 proceed and hold Renton harmless and he shall pay all costs, expenses and reasonable attorney's fees incurred or paid by Renton in connection with such litigation. Furthermore, Concessionaire agrees to pay all costs, expenses and reasonable attorneys' fees that Renton may incur or pay in the enforcement of any of the covenants, provisions and agreements. Nothing in this Agreement shall require the Concessionaire to indemnify Renton against and hold harmless Renton, from claims, demands or suits based solely upon the conduct of Renton, its elected officials, officers, and employees and provided further that if claims or suits are caused by or result from the concurrent negligence of (a) the Concessionaire's agents or employees and (b) Renton, its elected officials, officers, and employees, and involves those actions covered by RCW 4.24.115, (Validity of agreement to indemnify against liability for negligence relative to construction, alteration, improvement, etc., of structure or improvement attached to real estate or relative to a motor carrier transportation contract), this indemnity provision with respect to claims or suits based upon such concurrent negligence shall be valid and enforceable only to the extent of the Concessionaire's negligence or the negligence of the Concessionaire's agents or employees. Should a court of competent jurisdiction determine that this agreement is subject to RCW 4.24.115, (Validity of agreement to indemnify against liability for negligence relative to construction, alteration, improvement, etc., of structure or improvement attached to real estate or relative to a motor carrier transportation contract) then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Concessionaire and Renton, its elected officials, officers, employees, agents, representatives and volunteers, the Concessionaire's liability under this Agreement shall be only to the extent of the Concessionaire's negligence. It is further specifically and expressly understood that the indemnification provided herein constitute the Concessionaire's waiver of immunity under RCW 51, the Industrial Insurance Act, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the Parties. The provisions of this section shall survive the expiration or termination of this Agreement. N. WAIVER OF SUBROGATION Concessionaire and Renton hereby release and discharge the other from all claims, losses and liabilities arising from or caused by any hazard covered by property insurance on or in connection with the Concession Premises or said building. This release applies only to the extent that such claim, loss or liability is covered by insurance. O. STANDARDS Concessionaire recognizes that, although it is operating its facilities as an independent operator for profit, Renton is organized and exists for the purpose of maintaining park and recreation facilities for the use and enjoyment of the general public. Concessionaire, its owners, principals, agents, employees and volunteers shall devote their efforts toward 10 rendering courteous service to the public as though they were employees of Renton, with a view of adding to the enjoyment of the patrons of this city-owned recreational facility. Concessionaire shall operate and conduct the facilities on the Concession Premises in a business-like manner, and will not permit any acts or conduct on the part of the Concessionaire's owners, principals, agents, employees and volunteers that would be detrimental to Renton's operation of the Gene Coulon Memorial Beach Park. P. CONTINUOUS OPERATION Concessionaire shall keep the Concession Premises open and use them to transact business with the public daily during hours listed in section E.2 of this Agreement. Subject to the prior written approval of Renton, Concessionaire may close the Concession Premises or any portion thereof for a reasonable period for repairs or remodeling, for taking inventory, or to accommodate the construction by Renton of public improvements, provided that a written notice of such impending closure is posted in a conspicuous place on the Concession Premises for at least one (1) week immediately prior to the closure date. Concessionaire may close the Concession Premises or any portion thereof in an emergency without the approval of Renton. Renton reserves and retains the right to close Concessionaire's operation for its convenience upon written notice of not less than seven (7) business days and to close the Concession Premises or any portion thereof immediately in case of an emergency. Q. COMPLIANCE WITH LAWS Concessionaire shall comply with all applicable federal, state and/or municipal laws, rules and regulations. R. UNUSABILITY Either party may terminate this Concession Agreement in the event that the Concession Premises or a substantial portion thereof are rendered unusable by fire, flood, earthquake, act of war or other extraordinary casualty destroying or damaging the Concession Premises by notice given the other party within thirty (30) calendar days after such conditions are discovered. Neither party shall be required to restore or reconstruct the Concession Premises. During any period of Concession Premises use subsequent to said thirty (30) calendar days, the annual payment payable under section C thereof shall be reduced by the ratio that the area rendered unusable by such extraordinary casualty and not reconstructed or repaired bears to the total area of the Concession Premises. S. SURRENDER OF PREMISES AND REMOVAL OF CONCESSIONAIRE'S PROPERTY 1. Upon termination or expiration of this Agreement, Concessionaire shall surrender the Concession Premises to Renton and promptly surrender and deliver to Renton all keys it may have to any and all parts of the Concession Premises. 2. The Concession Premises shall be surrendered to Renton in as good a condition as at the date of execution of this Agreement, except for the effects of reasonable wear and tear, alterations, and repairs made with concurrence of Renton, and property damage by fire 11 N011 *400 and other perils insured in contracts or policies of all risk insurance. 3. Prior to the expiration of this Agreement, Concessionaire shall remove from the Concession Premises, at its sole expense, all fixtures, equipment, furnishings, and other personal property owned and placed in or on the Concession Premises by Concessionaire. 4. If after termination or expiration of this Agreement, Concessionaire has not removed its property and fixtures within the time allowed, Renton may, but need not, remove said personal property and hold it for the owners, or place the same in storage, all at the expense and risk of the owners, and Concessionaire shall reimburse Renton for any expense incurred by Renton in connection with such removal and storage. Renton shall have the right to sell such stored property, without notice to Concessionaire, after it has been stored for a period of thirty (30) calendar days or more; the proceeds of such sale to be applied first to the cost of sale, second to the payment of charges for storage, and third to the payment of any other amounts which may then be due from Concessionaire to Renton, and the balance, if any, shall be given if requested to Concessionaire. T. LIENS AND ENCUMBRANCES Concessionaire shall have or allow any liens or encumbrances on the Concession Premises. At Renton's request, Concessionaire shall furnish Renton written proof of payment of any item which would or might constitute the basis for such a lien on the Concession Premises if not paid. U. ENTRY Renton's representative(s) may enter the Concession Premises during normal operating hours for the purpose of inspecting or repairing the same except in the case of emergency, but this right shall impose no obligation upon Renton to make inspections to ascertain the condition of the Concession Premises in addition to Renton's responsibility to conduct annual inspections. V. ACCESS TO BOOKS AND RECORDS; CASH REGISTERS Renton's representative(s), during business hours, shall have the right to examine and inspect the books and records of Concessionaire related to or connected with the business conducted upon the Concession Premises to determine compliance with this Agreement's provisions. Concessionaire shall record all sales in a type of cash register that contains a tape that records and identifies the date, type of sale, and the amount of each transaction; that is equipped with a cumulative, non-alterable accounting control mechanism; and that is subject to approval by Renton's Finance Department. Concessionaire shall also submit quarterly operating reports, which will detail sales, cost of sales, wages/benefits, operating expenses, administrative expenses, internal corporate payments, and depreciation/amortization. W. DEFAULT OF FAILURE OF CONSIDERATION Renton may terminate this Agreement and take immediate possession of the Concession Premises in the event that Concessionaire failed to perform any of the covenants or conditions of this Agreement and such default or deficiency in performance was not remedied 12 • A $100.00 fine for third violation and each future violation. Concessionaire may appeal any penalty to the Community Services Administrator or designee, whose decision shall be final. THUS, the Parties voluntarily and mutually agree that this Agreement shall take effect on the Effective Date provided above after being signed by the Parties' authorized representatives. CITY OF RENTON IVAR'S INC. By: LUL, By: , C Denis Law, Mayo Insert Name), P sident C6 C. 00Ae_ q4 1 �201`f Date: f Date: A....... �n,3 Attest: By: (Insert Name), Secretary-Treasurer By: ..Jas n Deputy City Clerk Date: August_, 2013 Attest: B • - _ Lawrence J. Warren, City Attorney 14 rf1' by Concessionaire within thirty (30) calendar days after receiving notice in writing stating the nature of the default or deficiency and Renton's intention to terminate if not corrected. X. ASSIGNMENT OF AGREEMENT Concessionaire shall not assign or transfer this Concession Agreement or otherwise convey any right, privilege or interest granted by this Agreement or any part of the Concession Premises without Renton's prior written consent. This Agreement any right, privilege, or interest therein or thereunder shall not be transferable by operation of law, by any process, or by any court proceedings. Y. DNR AGREEMENT The Parties agree and understand that in order for Renton to contract with, permit, or allow Concessionaire to use space on, above or over the state waters, Renton must enter into and/or remain in an agreement ("DNR Agreement") with the State of Washington which permits Renton to use, or grant the right to use space on, above or over state waters. As a result, if Renton agrees to permit an assignment of this Concession Agreement, the sublease or assignment must provide that the terms of the DNR Agreement controls if the sublease or assignment has terms that conflict with the DNR Agreement; the sublease or assignment must terminate if the DNR Agreement terminates for any reason; the subtenant or assignee must receive and acknowledge receipt of a copy of the DNR Agreement; and a sublease or assignment agreement must provide that there is no privity of contract between the subtenant or assignee and the State of Washington. Finally, as it relates to the aquatic land use rental rates for nonwater-depen dent uses, consistent with WAC 332-30-125, Aquatic land use rentals for water-dependent uses, and related sections, Renton shall collect the nonwater-dependent use sublease fees from Concessionaire and forward those monies to the State of Washington, with the rates to be determined by the "inflation rate" as defined in RCW 79.104.060(7). Z. MODIFICATION The parties reserve the right to amend this Agreement as may be mutually agreed. No amendment shall be effective unless signed by each parties authorized representatives. AA. PENALTY SECTION There shall be a penalty for violation of this Agreement concerning the following: • Cleanliness of premises • Cleanliness and presentability of staff • Experience of staff • Signage • Repair of premises • Failure to provide complete monthly financial information For each violation within a six-month period, the following penalties shall apply: • Written warning for first violation with reasonable time frame for corrective action. • A$50.00 fine for second violation. 13 `r+l' STATE OF WASHINGTON ) )ss COUNTY OF KING ) C* On this -7—day of+-Mrrr-+, 2014 before me personally appeared to me known to be the Ivar's Inc., corporation that executed the foregoing instrument, and acknowledged that they signed the same as their free and voluntary act and deed, for the uses and purposes mentioned in the Agreement. WITNESS my hand aNd official seal the day and year in thi certific ,N lg� u is fiiten. r State of Washington Notary Public in and for the State of My Commission Expires Washington, residing at _r ,� rr -- November 01 , 2017 �?�k`� �G TH TY OF RENTON Denis Law Mayor f the City of Renton //"'/Jo�al Ja on A. th, Deputy City Clerk STATE OF WASHINGTON ) )ss COUNTY OF KING ) On this _ day of IVIT- cfT,2014, before me personally appeared City of Renton Mayor Denis Law, City of Renton, who executed the foregoing instrument for the uses and purposes mentioned in the Agreement, and on oath stated that he was authorized to execute said instrument. rl l WIT IyESS y ha an o 'cial seal the day and year in this certificate first above written. Notary P blic ' and for th tat of f rY ,���y��}�IA.F{ Washington, residing at `� > ,� C)•"ISSIO&F•.0 a NOTARk'0ey.7 k A �•.. y: cn (JBLIC w '27-AN.-.7 A•�'?,� . . . %. H U � t. Jill Exhibit A CONCESSION AGREEMENT—EXHIBIT A en 'I J i fi tom.. '71 f '• I i II �I NvAWOO Exhibit B i ,;�,�a ,. may,• � _ •�, ^SA ;� A .,t��1 + •'F� �i/r'f_•jljw�'... ter.� .��.�w��'••'s•�� t f�� � • 1 i 1 LO) m L it Q m m @ Y !� > Q � � V1 W Y Exhibit C i COD 0 P° -A n- ' I G' I . I I :z m ­V rZ IN V Fes° :. ..::� �� ; . .1. •�• iii Exhibit D i 1 i i i i mxmoji U Grill Expansion HI.PNI.4 H:1A Ion-n:nm Roane Iw6v9LetaT !�4A0.+Ba / I \ / \ Nil a ♦1 \ . I I I I 1 \I 1 O I 1 , I I I 1 ' 1 I I 1 / ♦I 1 1 3i , 1 1 , 1 1 , I I , 1 I I I ♦ ��I) 1 1 I � ' , I I , 1 I 1 I 1 1 I I 1 ' O ' • 1 .r-o• I I I I I , I I I 1 1 I n-r , Yro- 1 Y-C I 1 1 I 1 I a I 1 •. 1 II L.'Y1� J , 1 I I . 1 Proposed Grill Addition I I , I 1 1 1 I , , I I I - I 1 1 1 I 1 PH D I S'w � OVUTARORORS G RSLELEA%PFPONSOIOND O N A GINTE RORREFRESH '�] BCRA PflITON.WASNYWT0I.91955 � y4 on.naxc�M x.,wn-�:soyx Fwwns i.wuxm.ou.x K ummx F E \\ ... \�\ o III I' IT II II ' 1 I Vii_ -------- ---------- I = I a li — II �— iu �..__ L -J I� i ICI ' I I, I / I I r �Y. i�'' Id I�I iill�l c R(y a F s 9 8' PROJECT F g 0 OUTDOORGRILLEXPANSION AND INTERIOR REFRESH BAR BCRA C �,A !°�� IVAR'S SEAFOOD �'� xsNroN.wasRlrvmon xeow � �� 'rrr� Exhibit E ----------•- ---•--- • --•--• *4000 CONCESSION AGREEME wo„ EXHIBIT E Daily Maintenance 1. Empty all trash cans and place in compactor. Maintain area around compactor. 2. No smoking. 3. Wash all tables and benches inside and outside of building. 4. Wash all sinks. 5. Filter all fryers or change oil. 6. Replace burned-out light bulbs. 7. Sweep all cobwebs inside and out. 8. Deck scrub door entrances. 9. Clean all fingerprints off windows. I 10. Wash all cooking dishes. 11. Deck scrub cooking area and mop. I 13. Clean all tables and sweep and mop nightly. 14. Refill all towel and soap dispensers. 15. Spot clean walls of all food. 16. Wash all window ledges. 17. Clean toilet and sweep and mop. i 18. Properly store cleaning supplies. 19. Spot wipe all chrome. 20. Sanitize ice cream and chowder pot. i 21. Mop new outside door mats. 22. All counters washed with hot bleach water. 23. Outside areas swept daily. 24. All towels washed out with hot bleach water. 25. Every other day,towels taken to Laundromat and wash with degreaser and bleach. 26. Transport spent grease in a spill-proof, leak-proof container. I CONCESSION AGREEME •EXHIBIT E con't ,. Weeklv Maintenance 1. Remove all products from walk-in and mop with bleach and hot water. 2. Remove all products from reach-in and wash all racks. 3. Remove all products from freezer and wipe out 4. Remove vents over fryers and wipe out 5. Wipe all chrome in fryer area with degreaser. 6. Wash inside of garbage cans in the lobby. 7. Wash table legs in lobby. 8. Inside and outside windows washed by professional window cleaner. 9. In the summer, pressure wash outside area around store on a bi-weekly basis. In the winter, pressure wash every other month or when necessary. 10. Clean grease trap and drain. 11. . Replace floor mats with clean ones. 12. Dust/clean all paneled walls, using Murphy's Oil Soap wood cleaner. Compactor Cleaning 1. Wheels wiped daily of all grease. i 2. Any garbage that falls from cart will be cleaned. 3. Area around compactor will be clean at all times. 4. .Cardboard will be stacked neatly inside compactor gates, beside compactor. Monthlv Maintenance 1. Perform high dusting such as upper walls, ventilator grills, piping, door and window casings, and other surfaces not done on a more frequent basis. I 2. Use a damp cloth or dusting rag and clean the interior and outer surfaces of all lights. 3. Clean dust from vents inside of walk-in and reach-in coolers. j 4. Clean grease residue from the roof of restaurants. i I I I