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R92-65RESOLUTION NO. R92-~,9~ A RESOLUTION OF THE CITY COMMISSION OF THE CiTY OF BOYNTON BEACH, FLORIDA, AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT FOR THE SNACK BAR CONCESSION AT OCEANFRONT PARK BETWEEN THE CITY OF BOYNTON BEACH AND PARTNERS PLUS, INC.; AND PROVIDING AN EFFECTIVE DATE. WHERE~S~ the City Commission of the City of Boynton Beach, upon the recommendation of its Recreation Department staff, has determined it to be in the best interest of the citizens and residents of the City of Boynton Beach to execute a Lease Agreement between the City of Boynton Beach and Partners Plus, Inc.~ for the snack bar concession at Oceanfront Park; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA THAT: Section 1. The Mayor and City Clerk are hereby direc'ted to execute the Lease Agreement between the City of Boynton Beach and Partners Plus, Inc., for the snack bar concession at Oceanfront Park, according to the recommendation of the City's Recreation Department; and Section 2. This Resolution shall take immediately upon passage. PASSED AND ADOPTED this ~- . day of May, 1992. effect CITY OF BOYNTON BEACH, FLORIDA kTTEST: ( d6f~orate - seal )~- Oc~ean front. Con ~/29/92 commissioher Co,mis s~ ~r May, FLORIDA, hereinafter referred to PLUS, INC., hereinafter "TENANT/CONCESSIONAIRE". THIS AGREEMENT, made and entered into this __. day of 1992, by and between the CITY OF BOYNTON BEACH, as "CITY", and PARTNERS referred to as 1. -Contract Objectives The CITY shall grant to the TENANT/CONCESSIONAIRE, as an independent contractor, the exclusive right and the TENANT/iCONCESSIONAIRE shall accept from the CITY the exclusive right to operate within the des~,gnated City facility (hereinafter "PREMISES"): A. Concessions in order to provide food and beverage services for the daily use of residents and visitors to the Boynton Beach Municipal Beach Park. The TENANT/CONCESSIONAIRE agrees to sell on the co~cession site food and beverages as all~wed by the Town of Ocean Ridge variance (see Attachment) granted to the City of Boynton Beach for the exclusive use by residents and visitors to the Boynton Beach Municipal Beach. 2. Leasehold Premises City agrees to lease to Tenant a portion of the designated City facility located at the Boynton Beach Municipal Park and more particularly described or depicted on Exhibit "A"> 3. Term of Lease This lease agreement shall be in force for a period of three (3) years effective June 1, 1992, unless sooner terminated as otherwise provided in Section 8. Termination, with an option to renew for a period of two (2) years if mutually agreed upon by both the CITY and the TENANT/CONCESSION- AIRE and subject to any agreed upon updated conditions in this lease agreement. 4. Compensation ae The TENANT/CONCESSIONAIRE agrees to pay the CITY a sum of Five Hundred Dollars ($500.00) per month, plus sales tax for the period of time indicated in Section 2. Term of Contract. Said payment shall be made on or before the 1st day of each and every month. In addition, the TENANT/CONCESSIONAIRE agrees to pay the CITY ten (10%) percent of the amount of gross sales and receipts plus sales tax, in excess of Forty Thousand Dollars ($40,000.00) based on annual computation. Gross sales and receipts shall be defined as sales for cash or on credit, less applicable sales tax and added gratuities for all direct and indirect sales by the TENANT/CONCESSIONAIRE. 5. Risk Management A. The-TENANT/CONCES$IONAIREagrees to indemnify and save harmless the ~CITY from all suits, claims, and actions of any kind or nature on the part its and operation under B. shall secure and 5 lease the ($500, Liability in the Three Hundred )0,000.00) per Dollars .per occurrence. the full insurable involved in the Both policies shall additional insured ~oduct Liability and Damage. 3e Workers COmpensation Insurance in full compl %he State of Florida Wo Ce Fire, Theft, in a TENANT/ own install contain and be tnd-Extended Coverage ~amount to insure such loss to its suppliers which all elect to place or SUch a policy shall trion clause 5ement shall All ~ shall be issued by insurance to do business in the S having a Best's policy- ng of A or better and a Best's fil ~ of AA+ of better. Ail contain an endorsement p of the City of days prior written notice i material alteration or policies. All policies to the Department of Risk less than ten (10) days of the term of this lease ~ ~. General ConditionS. ae The TENANT/CONCESSIONAIRE shall be open ~or operation seven .(7) 'd~ys per week with the followin¢ 18:00 A.M. to 5:00 P.M. with the hours to include 9:00 A.M. to'6:00 P.M, i This schedule will be strictly adhered~to -unless permission to close is granted by the Chief City Official on duty at the beach during the time in question. Expanded hours are at the discretion of the TENANT/CONCESSIONAIRE. Total available hours are subject to regulations of the City of Ocean Ridge. Fe Exact times of opening and closing may have seasonal variations if approved by the City Manager. However, hours must be consistent and strictly adhered to. The TENANT/CONCESSIONAIRE will be responsible for prompt and full payment of all utility bills related to the TENANT/CONCESSIONAIRE'S operation. These utilities include but are not limited to electric service, water and sewer.service, sanitation and gas. Performance Bend (wAIVED) Assignment. The TENANT/CONCESSIONAIRE will not assign or transfer its rights and privileges granted under this lease agreement, either in whole or in part, without first obtaining the written consent of the City Manager. Destruction of Premises. In the event that the concession site is destroyed or damaged by fire or other casualty so as to render it untenable, the lease agreement shall be suspended until such time as the premises are rendered again tenable. It the CITY elects not to render the premises tenable again, it shall notify the TENANT/CONCESSIONAIRE and, upon f~rnishing such notice, this lease agreement shall be terminated. Temporary Improvements to Facility. The TENANT/~ONCESSIONAIRE shall have the right to improwe the facilities in a proper and pleasing decor, subject to the approval of the C~t¥ Manager. T~e TENANT/CONCESSIONAIRE, at his or her own expense, may install a security alarm system upon approval from the City. All such improvements shall meet all applicable codes and Shall be of a temporary nature, and shall be paid for, erected and removed by the TENANT/CONCESSIONAIRE at the termination of this lease agreement. Exclusivity. The CITY shall not operate any additional competing concessions at the Boynton Beach Municipal Beach Park or at any additional adjacent property acquired by the CITY without the TENANT/CONCESSIONAIRE'S approval and without the TENANT/CONCESSION- AIRE having first option as to additional operations. The CITY reserves the right as themselves or any0rganization granted powers as their agent to sell food and beverages for special community event programs of short duration (one to three days). ~aiver of~Damages. The TENANT/CONCESSIONAIRE hereby expressly waives any and all claims for compensation for any and all damage sustained~ by reason of any defect, deficiency, or impairment of the water supply system, drainage or heating systems, steam pipes or electrical wires leading to the concession areas, or by reason of any loss resulting from failure of any water supply, heat or current which may occur from time to time from any cause, or for any loss resulting from water; for any loss, damage3 or claim resulting from the cancellation, interruption~ or termination by the CITY for any reason of any event~scheduled for public or pr~vateattendance at the concession site; and the-'TENANT/CONCESSIONAIRE hereby expressly releases andUdischarges the CITY and its from and all demands, claims, actions arising The ' does the or any of t~eft, water, or any other je Supplies. The Shall arrange for the '~lSed b~ it at the and in a manner so ; do'not create congestion or an ~ with the regular operation and maintenance of the site. Signs· advertising ther such material IONAIRE shall be the City Manager. of of Clause. The not discriminate r applicant for in the performance · with respect to his or privileges directly or because of national origin, status. M. ion. at~o~ney~: The fre connection with any t Of the Contract, the itled to recover ng reasonable shall make every in keeping the area litter. Financial Operations A. The TENANT/C©NCESSIONAIRE shall pay promptly al~ license fees of whatever )te to this operation, and take current all licenses, municipal or federal, required for the conduct . ~siness, and further, shall not permit any of said taxes, excise or become delinquent. The times compens~ in~ ~ c compens~ operation f any lieh to ~r ~ upon or re, said further shall at all adequate workmens' with an authorized ing the payment of engaged in the concession. The shall not permit lman's or any other the property ~ any part or parcel work or labor furnished by any said concession or property or said concession herein granted. The TENANT/CONCESSIONAIRE hall make available, upon request, d~'plicate receipts or other satisfactory evidence showing the prompt payment of the social security, unemployment compensation and all taxes and fees above referred to, and showing that the said workmens' compensation insurance and all required, licenses are in good standing. The TENANT/cONCESSIONAIRE shall make available; icate receipts or other sat: evidence showing the prompt of the social security, unemployment and.all taxes and fees above to, and showing that the said compensation insurance and all standing. The promptly when due obligations incurred in wi operation of the concession and shall not~ ~rmit same to become delinquent and suffer no lien, execution or adjudication l~n in any way impair of the City under this Agreement. Accounting to the City. The .TENANT/CONCESSIONAIRE shall keep a true and accurate account of all monies received thro~gh~the.operation of the accession herein granted and shall, on or before the 20th day Of each month of the Agreement, render and deliver to the City an itemized statement showing all monies so received during the calendar month immediately preceding. Methods of accounting, cash recording devices, books, record equipment and any necessary procedure for determining gross receipts shall be mutually agreed upon and ~hall be implemented at the TENANTtCONCESSIONAIRE'S expense. Audit. The TENANT/CONCESSIONAIRE shall keep ~rue and complete records and accounts of all gross receipts and business transacted, including daily bank deposits, and semi-annually furnish a true and accurate Statement for the preceding six months of all such =eceipts and business transacted during such preceding six months (showing the authorized deductions or exclusions in computing the amount of such gross receipts and business transactions), which statement shall be certified by an authorized representative of the TENANT/CONCESSIONAIRE to be correct. The TENANT/CONCESSIONAIRE agrees to establish and maintain a system of bookkeeping and fiscal year accounting satisfactory to the CITY'S auditor and to gi~e the CITY access during reasonable hours to such books and records. The TENANT/CONCESSIONAIRE agrees that it will keep and preserve for at least three (3) years all sales slips cash register tapes, sales books, cash deposit receipts, bank books, or duplicate deposit slips, and other evidence of gross receipts and business transacted for such period. The CITY'S auditor and the City Manager and their respective authorized representatives shall have the right at any time and from time to time to audit all of the books of account, bank statements, documents, records, returns, papers, and files of the TENANT/CONCESSIONAIRE relating to gross business transacted, and the request by either, shaIl.~mak~ matters available for such examination rat the corporate of the TENANT/CONCESSIONAIRE. tO 2. If lea ) for the for such be understated by ~1%), the o the CITY The CITY"S right to any the for any to, and be terminated by ~ after delivery ach termination and te=mination. ,, at the option of immediately if the Lll become insolvent assignment for the be convicted of a similar gross agreement for of the term, present which are party to be cause notice shall other party, and a time shall be given ~ions. not corrected time, then this be terminated for living thirty (30) st this cai TE~T The acc~ period the termS, lease on the ~ENANT/CONCESSIONAIRE :ITY charges or fees with the terms of the CITY may this lease upon five (5) notice to the is cancelled or , or if the CITY its operations, the shall pay to the ~then due from the to the CITY. due the CITY for any a default of any of conditions of this be deemed a waiver No waiver or default by the CITY of any of the terms, covenants or conditions hereof to be performed, kept and observed by the TENANT/CONCESSIONAiRE shall be construed to be or act as a waiver of any subsequent default of any of the terms, covenants and conditions herein contained to be performed, kept and observed by the TENANT/CONCESSIONAIRE~ Fe Delivery After Termination. The TENANT/CONCESSIONAIRE will deliver the premises and any permanent improvements and attached accessories to the CITY at the termination of the lease agreement in as good condition and state of repair as when received, except for ordinary wear and tear or loss or damage caused by an act of God. Removal on Termination. On the date of termination hereof, or in case of the relationship created by the lease agreement prior thereto, on written notice, the TENANT/CONCESSIONAIRE shall have the right to remove from said premises all personal property, fixtures and equipment not a part of the real estate, installed by it and title to which it retains subject, however, to any valid lien or claim which the CITY may have for unpaid fees, provided also, that if said removal causes any damage to the premises, said TENANT/CONCESSIONAIRE will repair the same in a proper and satisfactory manner at its own expenses. The provision of this paragraph shall not apply %o the personal property to which the CITY has a right to use and purchase pursuant to this lease agreement. IN WITNESS WHEREOF, the parties hereto have set their hands and seals this day of , 1992. Witnesses: FOR THE TENANT/CONCESSIONAIRE Witnesses: THE CITY OF BOYNTON BEACH, FLORIDA Mayor, Arline Weiner Approved as to Form: STATE OF FLORIDA ) lSS: COUNTY OF PALM BEACH ) City Attorney Personally appeared before me duly authorized to administer oaths, ARLINE WEINER, Mayor of the City of Boynton Beach, to me known to be the person described herein and who executed the foregoing instrument and she duly acknowledged before me that she executed the same. My Commission Expires: Notary Public STATE OF FLORIDA COUNTY OF PALM BEACH P rsonali~ he alu!5 ) )ss: ) before 'me duly authorized to known to be the foregoing me that he lic 8 vZ. LEGAL c. i (19 cc : Rec 1/ Fin RECREATION & PARK MEMORANDUM #92-144 /e-tve 44A/24 t- / /y TO: 16« Stott-Killer, City ll� G%�7� FROM: Charles C. Frederick, Director of Recreation & Parks cC- SUBJECT: Oceanfront Park: Snack Bar Concession Lease Renewal DATE: April 20, 1992 HISTORY The lease agreement for the snack bar expires on May 14, 1992. This lease was for five (5) years from an effective date of May 14th, 1987 between the City and Mr. Anthony Amodo. On August 6, 1987, the City Commission approved an assignment of lease to Lyse Stecko, President of Partners Plus, Inc., subject to the terms and conditions of the City's lease agreement with Mr. Amodo. This assignment of lease is still in effect. The rent schedule for this five (5) year lease required a monthly rent payment of $250 increasing $25 each year of the five (5) year period (currently $350), plus 4% of gross sales in excess of Sixty Thousand Dollars ($60,000) based on annual computation. The current lease includes an option to renew for a period of five (5) years if mutually agreed upon by both parties and subject to any agreed upon, up -dated conditions in the lease agreement. ANALYSIS Two (2) meetings were held with Lyse Stecko to negotiate the option to renew the lease. The following changes in the lease agreement are acceptable to Lyse Stecko, president and owner of Partners Plus, Inc. A. Section 2 Term of Contract 1. Renew the current lease for a period of three (3) years with an option to renew for two (2) additional years. The three (3) year lease is more advantageous to the City and allows for more timely adjustments to lease conditions. B. Section 3 A & B Compensation 1. The rent schedule shall be Five Hundred ($500) per month plus sales tax for each of the three (3) years J. Scott Miller, City Manager Page -2- April 20, 1992 plus ten percent (10 %) of the amount of gross sales, plus sales tax in excess of Forty Thousand Dollars ($40,000) based on an annual computation. This adjustment provides the City with a higher, guaranteed rent income than in past lease agreements and the percentage of gross sales allows the City to share in the Concessionaires success in a more equitable manner. C. Section F Temporary Improvements to Facility The concessionaire, at his or her own expense, may install a security alarm system upon approval from the City. The concessionaire has agreed to install a security system with a direct line into the Ocean Ridge Police Department. The installation cost for the system is approximatley Five Hundred Dollars ($500). D. Section 6, B Financial Operations, Accounts and Payments to the City The concessionaire shall make the applicable monthly rent payment on or before the first day of each month. The condition provides for the rent to be paid in advance, rather than in arrears as allowed in the current lease. E. Effective Day of Lease The lease shall take effect on June 1, 1992, for a period of three (3) years, expiring on May 31, 1995. This shall provide the concessionaire with simpler accounting records rather than monthly pro - rating as the lease expires on May 14, 1992. It is necessary for the Commission to extend the current lease agreement for the period of May 15, 1992 through May 31, 1992. RECOMMENDATION The current concessionaire, Lyse Stecko, President and Owner of Partners Plus, Inc., has performed very satisfactorily in accordance with all terms and conditions of the lease agreement over the past five (5) years. J. Scott Miller, City Manager Page -3- April 20, 1992 It is my recommendation that the lease agreement be renewed based on the changes as stated in Items A,B,C,D, and E in the analysis section of this memorandum, and the City attorney prepare the necessary resolution and new lease agreement for review and consideration by the Mayor and City Commission at the May 5, 1992, Commission meeting. CCF:cm xc: James Cherof Olivia McLean -Cox • RESOLUTION NO. R92- A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT FOR THE SNACK BAR CONCESSION AT OCEANFRONT PARK BETWEEN THE CITY OF BOYNTON BEACH AND PARTNERS PLUS, INC.; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Boynton Beach, upon the recommendation of its Recreation Department staff, has determined it to be in the best interest of the !citizens and residents of the City of Boynton Beach to execute a Lease Agreement between the City of Boynton Beach and Partners Plus, Inc., for the snack bar concession at Oceanfront Park; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF C THE CITY OF BOYNTON BEACH, FLORIDA THAT: Section 1. The Mayor and City Clerk are hereby i directed to execute the Lease Agreement between the City of Boynton Beach and Partners Plus, Inc., for the snack bar concession at Oceanfront Park, according to the recommendation of the City's Recreation Department; and Section 2. This Resolution shall take effect immediately upon passage. PASSED AND ADOPTED this day of May, 1992. CITY OF BOYNTON BEACH, FLORIDA Mayor Vice Mayor Commissioner Commissioner Commissioner (ATTEST: City Clerk (Corporate Seal) 'Oceanfront.Con 4/29/92 • • TOWN OF OCEAN RIDGE Attachment One 6450 NORTH OCEAN BOULEVARD OCEAN RIDGE, FLORIDA 33435 COMMISSION THOMAS E. L ,WOCEA,y., VERA J. XL t'..\ E MANG1 JON L. 3HUOWCH 3 y FRED ROS MAYOR. CHAIRMAN OT COMMISSION CZ) -=- TELEPHONE. 77 JOSEPH J. DE CANOE TOWN MANAGER /:' JJ'NN 1983 January 6, 1983 r '1Iir7 - 1 L :;r Peter Cheney, City Manager •7 City of Boynton Beach 120 N. E. Second Avenue Boynton Beach, F1. 33435 Dear Mr. Cheney: This is to confirm that at the public hearing held by 010 $oard of Adjustment this date, consideration was given to your r_ 4uest for a variance from the provisions of Section 26- 31(E)(4) t o Permit the relocation of the concession stand at the Boynton p "plic Beach to another site on the property. The Board of Adjustment voted unanimously that a variar : be grante permit the relocation of the concession stand from it'r r =esent sit to the location shown on Master Plan Drawing of the prOt ed Boyntc Beach Park dated October 7, 1980 subject to all the prr ,, 'ions of t existing variance granted on December 13, 1968 with t) following exceptions: Condition A shall be eliminated since it is not I� °sently within the jurisdiction of the Board of Adjustmr Condition B shall be amended to show the concesr " stand will not be permitted in operation prior to 10 :(' or after 6 :00 P.M. The current conditions attached to the granting of the '=lance today are as follows: • Attachment One Pac Peter Cheney, City Manager page 2 . City of Boynton Beach January 6, 1983 1. Hours of operation of the snack bar will be the same as those of lifeguards patrolling the beach area but in no event shall it be in operation prior to 10:00 A.M. or after 6:00 P.M. 2. There shall be no frying permitted on the premises of the snack bar nor any onions cooked on the premises. • 3. There shall be no services except at the counter of the snack bar; no "take out ", drive in, or table service. 4. There shall be no telephone orders accepted. 5. There shall be no deliveries of food or drink from the snack bar. 6. There shall be no more than two tables available for the use of patrons. 7. There shall be no music, loud speaker system, juke boxes furnished or used by the snack bar. 8. There shall be no dancing or loitering permitted around the snack bar. . 9. Only the following foods and beverages may be served: Hot dogs (not fried) Hamburgers (not fried) Condiments for above Condiments for above Prepackaged sandwiches Prepackaged bakery goods Prepackaged potato chips, Ice cream, Ice cream bars, peanuts, etc. and other dairy product Candy Soft drinks, coffee & tea The expense associated with the variance application was $137.24. applying the $75.00 deposit, there remains a balance due of $62.. detailed list of those expenses is available on request. Very truly yours, ,.. PL-4 Z :,"%L , ,/L bi-,. A.•L Dorothy Xr•ehr, Chairman board of Adjustment EXHIBIT "A" The concession building, located on the central boardwalk within Oceanfront Park, is a wooden structure of approximately 260 square feet. The structure is designated as the "Snack Bar ", and is owned by the City of Boynton Beach, Florida and operated for the selling of food and beverages for beach patrons. ASSIGILITIT OF LEASE R)R VALUE DECEIVED, the undersigned hereby assigns all their rights, Concession title and interest in and to that certain 6&- tIbtl =Lease dated May 19, 1987 and filed for record in Official Record Book , Page , Public Records of Palm Beach (bunty, Florida, pertaining to: Lease between City of Boynton Beach, Florida and ANTHONY AMODEO for Snack Bar Concession at the Beach belonging to City of Boynton Beach. In presence of: /r- i ! c f� /, � !-1 71-c rLef -- (seal) tness Anthony /4modeo : . . (Seal) Witness STATE OF FLORIDA cx1UT'IY OF PAM 131J►O I 1 1U IIEBY C1,IfTIFY that on this 6th day of August , 1987 before e personally appeared ANTHONY N AMODEO me who executed the foregoing instrument, and he acknowledged that he executed the same for the purposes therein expressed. Y 1'INISS my hand and seal this 6th d o f August , 19 87 Notary I ublic 2/25/91 6iy Oaninission Expires AC1.712"1'ANCE 'The undersigned Assignee(s) hereby accept(s) the terms and provisions of the above and foregoing Lease and agree to abide by and canply with all responsibilities on the part of the Lessee(s). PARTNER PLUS, INC. L� - dace of: - ' • , By: / (seal) tness Ly e Stecko, President -_, Wi tness , , , , • 1 ♦ 1 ! t, , , • 1„ • , I , • 1,, 1 ,l•( F I "+oUA :!.3-06? • 13c KPH (]L4 ?, LEASE AGREEMENT ADDENDUM GRANT, OF CONSENT a The City Manager grants consent to accept the assignment of rights and privileges granted in this lease to r) �� E .� . t /q rioR,(1 (• 1 1k , tir - () (.A who, in turn, recognizes the lease as the proper and legally binding instrument between themselves and the City as applied to operation of the concession at the Boynton Beach Municipal Beach and 0; - \ Of02 - 1 3 IuS 1- ►tip` hereby agree to abide by all conditions and schedules set forth in the lease agreement in consideration for this - grant of consent. City Manager Lessee - , _ Lessee j " STATE OF FLORIDA ) ss. COUNTY OF PALM BEACH ) WITNESS my hand and official seal this ` , day of August, 1987. Ndtar Public A01/,;;. Notary Public, State of Rorida My Commission Expires Sept. 18. 1987 r �.� `` CITY OF BOYNTON BEACH LEASE AGREEMENT This lease agreement made and entered into by and between the City of Boynton Beach, Florida, a municipal corporation, hereinafter referred to as the "CITY ", and /kNCO _' ) ' AlA - Y 'DC= C= , hereinafter referred to as the "CONCESSIONAIRE ". 1. Contract Objectives The CITY shall grant to the CONCESSIONAIRE, as an independent contractor, the exclusive right and the CONCESSIONAIRE shall accept from the CITY the exclusive right to operate within the designated City facility: A. Concessions in order to provide food and beverage services for the daily use of residents and visitors to the Boynton Beach Municipal Beach Park. B. The CONCESSIONAIRE agrees to sell on the concession site food and beverages as allowed by the Town of Ocean Ridge variance (see Attachment One) granted to the City of Boynton Beach for the exclusive use by residents and visitors to the Boynton Beach Municipal Beach. 2. Term of Contract This lease agreement shall be in force for a period of five (5) years from the date of signing unless sooner terminated as otherwise provided in Section 7 - Termination, with an option to renew for a period of five (5) year(s) if mutually agreed upon by both the CITY and the CONCESSIONAIRE and subject to any agreed upon updated conditions in this lease agreement. 3. Compensation A. The CONCESSIONAIRE agrees to pay the CITY a sum of eighteen thousand dollars ($18,000.00) for the period of time indicated in Section 2 Term of Contract (excluding renewal clause) to be paid in monthly increments per the attached scale, equivalent to three hundred dollars ($300) per month. B. In addition, the CONCESSIONAIRE agrees to pay the CITY four percent (4 %) of the amount of gross sales and receipts in excess of sixty thousand dollars ($60,000) based on an annual computation. Gross sales and receipts shall be defined as sales for cash or on credit, less applicable sales tax and added gratuities for all direct and indirect sales by the CONCESSIONAIRE. 4. Risk Management A. The CONCESSIONAIRE agrees to indemnify and save harmless the CITY from all suits, claims, damages, and actions of any kind or nature arising directly or indirectly on the part of the CONCESSIONAIRE, its agents, servants, employees, contractors and suppliers, arising out of its operation under this lease agreement. B. The CONCESSIONAIRE shall secure and maintain for the duration of this lease the following insurance coverage. 1. Comprehensive General Liability in the minimum amounts of three hundred thousand dollars ($300,000) per person and five hundred thousand dollars ($500,000) per occurrence. 2. Property Damage to the full insurable value of all property involved in the lease agreement. Both policies shall name the CITY as an additional -1- insured and shall include Product Liability and Contractual Liability coverage. 3. Workers Compensation Insurance in full compliance with the State of Florida Workers Compensation Law. C. Fire, Theft, Vandalism and Extended Coverage in a suffficient amount to insure CONCESSIONAIRE for such loss to its own equipment and that of its suppliers which CONCESSIONAIRE shall elect to place or install on the pre- mises. Such a policy shall contain standard waiver of subrogation clause and a certificate of such endorsement shall be furnished to the CITY. D. All policies of insurance shall be issued by insurance companies licensed to do business in the State and having a Best's policy - holder's rating of A or better and a Best's financial rating of AA+ or better. All policies shall contain an endorsement providing the Purchasing Agent of the City of Boynton Beach thirty (30) days prior written notice in advance of any material alteration or cancellation of said policies. All policies of shall be submitted to the Purchasing Agent not less than ten (10) days prior to the commencement of the term of this lease agreement. 5. General Conditions A. The CONCESSIONAIRE shall be open for operation seven (7) , days per week with the following schedule: 10:00 AM to 5:00 PM with the option to expand hours to include 9:00 AM to 6:00 PM. This schedule will be strictly adhered to unless permission to close is granted by the Chief City Official on duty at the beach during the time in question. Expanded hours are at the discretion of the CONCESSIONAIRE. Total available hours are subject to ` regulations of the City of Ocean Ridge. Exact times of opening and closing may have seasonal variations if approved by the City Manager. However, hours must be consistant and strictly adhered to. , B. The CONCESSIONAIRE will be responsible for prompt and full payment of all utility bills related to the CONCESSIONAIRE'S operation. These utilities include but are not limited to electric service, water and sewer ser- vice, sanitation, and gas. C. Performance Bond - A performance bond or cash deposit in the amount of [WAIVED] will be required of the CONCESSIONAIRE prior to the signing of the lease agreement. Said bond or deposit shall be conditioned upon the CONCESSIONAIRE'S faithful performance of all things herein required of him. D. Assignment - The CONCESSIONAIRE will not assign or transfer its rights and privileges granted under this lease agreement, either in whole or in part, without first obtaining the written consent of the City Manager. 1 E. Destruction of Premises - In the event that the concession site is destroyed or damaged by fire or other casualty so as to render it untenable, the lease agreement shall be suspended until such time as the premises are rendered again tenable. If the CITY elects not to render the pre- mises tenable again, it shall notify the CONCESSIONAIRE and, upon furnishing such notice, this lease agreement shall be terminated. F. Temporary Improvements to Facility - The CONCESSIONAIRE shall have the right to improve the facilities in a proper and pleasing decor, subject to the approval of he City Manager. All such improvements shall meet all applicable codes and shall be of a temporary nature, and shall be -2- paid for, erected and removed by the CONCESSIONAIRE at the termination of this lease agreement. G. Biannual Review - After six months of signing of the original agreement and every six months thereafter until this lease agreement is terminated as provided, both parties are to meet to review the operation of the concession and "fine tune" the operation to the satisfaction of both parties. At that meeting subjects discussed will include, but will not be limited to, quality of food and service, prices of food, beverage and tobacco products, cleanliness of concession site, reaction of patrons to the operation, the quality of the CONCESSIONAIRE'S employees, and the hours of operation. H. Exclusivity - The CITY shall not operate any additional competing concessions at the Boynton Beach Municipal Beach Park or at any additional adjacent property acquired by the CITY without the CONCESSIONAIRE'S approval and without the CONCESSIONAIRE having first option as to additional operations. The City reserves the right as themselves or any organization granted power as their agent to sell food and beverages for special community event programs of short duration (one to three days). I. Waiver of Damages - The CONCESSIONAIRE hereby expressly waives any and all claims for compensation for any and all damage sustained by reason of any defect, deficiency, or impairment of the water supply system, drainage or heating systems, steam pipes or electrical wires leading to the concession areas, or by reason of any loss resulting from failure of any water supply, heat or current which may occur from time to time from any cause, or for any loss resulting from water; for any loss, damage or claim resulting from the cancellation, interruption, or termination by the CITY for any reason of any event scheduled for public or private attendance at the concession site; and the CONCESSIONAIRE hereby expressly releases and discharges the CITY and its agents from any and all demands, claims, action and causes of actions arising from any of the causes aforesaid. The CONCESSIONAIRE shall and hereby does release the CITY from all liability for the loss or damage of merchandise, goods, equipment or any other property of whatsoever kind of the CONCESSIONAIRE or any of his suppliers caused by fire, theft, water, storm, windstorm, vandalism, or any other causes whatsoever. J. Delivery of Supplies - The CONCESSIONAIRE shall arrange for the delivery of supplies used by it at the concession site at times and in a manner so that such deliveries do not create congestion or an undue interference with the regular operation and maintenance of the site. K. Advertising Materials - Signs, advertising materials, posters and other such material used by the CONCESSIONAIRE shall be subject to the approval of the City Manager. L. Antidiscrimination Clause - The CONCESSIONAIRE shall not discriminate against any employee or applicant for employment to be employed in the performance of this lease agreement, with respect to his hire, tenure, term, condition or privileges of employment or any matter directly or indirectly related to employment, because of race, color, religion, national origin, ancestry, sex, age or handicap status. M. Litigation - In connection with any litigation arising out of the Contract, the prevailing party shall be entitled to recover all costs incurred, including reasonable attorney's fees. 0. The CONCESSIONAIRE shall make every effort to assist the CITY in keeping the area free from debris and litter. -3- 6. Financial Operations A. The CONCESSIONAIRE shall pay promptly all taxes, excise or license fees of whatever nature, applicable to this opera- tion, and take out and keep current all licenses, munici- pal, state or federal, required for the conduct of the business, and further, shall not permit any of said taxes, excise or license fees to become delinquent. The CONCESSIONAIRE further shall at all times maintain ade- quate workmens' compensation insurance with an authorized insurance company, insuring the payment of compensation to all employees engaged in the operation of said concession. The CONCESSIONAIRE also shall not permit any mechanic's or materialman's or any other lien to be imposed upon the property hereinabove described or any part or parcel thereof by reason of any work or labor performed, or materials furnished by any mechanic or materialman to said concession or upon or regarding said property or said con- cession herein granted. The CONCESSIONAIRE shall make available, upon request, duplicate receipts or other satisfactory evidence showing the prompt payment of the social security, unemployment compensation and all taxes and fees above referred to, and showing that the said workmens' compensation insurance and all required licenses are in good standing. The CONCESSIONAIRE shall pay promptly when due all bills, debts and obligations incurred in connection with the operation of the con- cession and shall not permit same to become delinquent and suffer no lien, mortgage, judgment, execution or adjudica- tion in bankruptcy which will in any way impair the rights of the City under this Agreement. B. Accounts and Payment to the City - The CONCESSIONAIRE shall keep a true and accurate account of all monies received through the operation of the concession herein granted and shall, on or before the twentieth day of each month of the Agreement, render and deliver to the City an itemized statement showing all monies so received during the calendar month immediately preceding. Attached to the statement shall be the applicable payment due to the City, which shall be on a monthly basis. Methods of accounting, cash recording devices, books, record equipment and any necessary procedure for determining gross receipts shall be mutually agreed upon and shall be implemented at the CONCESSIONAIRE'S expense. C. Audit - The CONCESSIONAIRE shall keep true and complete records and accounts of all gross receipts and business transacted, including daily bank deposits, and semi- annually furnish a true and accurate statement for the preceding six months of all such receipts and business transacted during such preceding six months (showing the authorized deductions or exclusions in computing the amount of such gross receipts and business transactions), which statement shall be certified by an authorized repre- sentative of the CONCESSIONAIRE to be correct. The CONCESSIONAIRE agrees to establish and maintain a system of bookkeeping and fiscal year accounting satisfactory to the CITY'S auditor and to give the CITY access during reasonable hours to such books and records. The CONCESSIONAIRE agrees that it will keep and preserve for at least three (3) years all sales slips, cash register tapes, sales books, cash deposit receipts, bank books, or duplicate deposit slips, and other evidence of gross receipts and business transacted for such period. The CITY'S auditor and the City Manager and their respective authorized representatives shall have the right at any time and from time to time to audit all of the books of account, bank statements, documents, records, returns, papers, and files of the CONCESSIONAIRE relating to gross -4- receipts and business transacted, and the CONCESSIONAIRE on request by either, shall make all such matters available for such examination at the corporate headquar- ters of the CONCESSIONAIRE. If the CITY shall make or have such an audit made for any year and the gross receipts and business transacted show by the CONCESSIONAIRE'S statement for such year should be found to be understated by more than one percent (1 %), the CONCESSIONAIRE shall pay to the CITY the cost of such audit. The CITY'S right to have such an audit made with respect to any year shall expire three (3) years after the CONCESSIONAIRE'S statement for any year shall have been delivered to, and accepted by, the CITY. 7. Termination A. This lease agreement may be terminated by either party days after delivery of written notice of such ter- mination and reason(s) for lease termination. B. This lease agreement may, at the option of the CITY, be terminated immediately if the CONCESSIONAIRE shall become insolvent or bankrupt, make an assignment for the benefit of creditors or be convicted of a crime or any other similar gross mispriority. C. A termination of the lease agreement for reasons other than expiration of the term, shall be effected as follows: 1. If conditions are present which are considered by either party to be cause for termination, written notice shall be provided to the other party, and a sufficient period of time shall be given to correct the conditions. 2. If the conditions are not corrected within a reason- able period of time, then this lease agreement may be terminated for such conditions by giving thirty (30) days written notice. 3. In the event the CONCESSIONAIRE fails to pay the CITY charges or fees strictly in accordance with the terms of this lease agreement, the CITY may cancel and terminate this lease agreement at any time upon five (5) day's written notice to the CONCESSIONAIRE. 4. If this lease agreement is cancelled or terminated by the CITY, or if the CITY shall discontinue its opera- tions, the CONCESSIONAIRE shall pay to the CITY all sums then due from the CONCESSIONAIRE to the CITY. D. The acceptance of monies due the CITY for any period or periods after a default of any of the terms, convenants, or conditions of this lease agreement shall not be deemed a waiver on the part of the CITY. E. No waiver or default by the CITY of any of the terms, covenants or conditions hereof to be performed, kept and observed by the CONCESSIONAIRE shall be construed to be or act as a waiver of any subsequent default of any of the terms, covenants and conditions herein contained to be performed, kept and observed by the CONCESSIONAIRE. F. Delivery After Termination - The CONCESSIONAIRE will deliver the premises and any permanent improvements and attached accessories to the CITY at the termination of the lease agreement in as good condition and state of repair as when received, except for ordinary wear and tear or loss or damage caused by an act of God. -5- G. Removal on Termination - On the date of termination hereof, or in case of the termination of the relationship created by the lease agreement prior thereto, on written notice, the CONCESSIONAIRE shall have the right to remove from said premises all personal property, fixtures and equipment not a part of the real estate, installed by it and title to which it retains, subject, however, to any valid lien or claim which the CITY may have for unpaid fees, provided, also, that if said removal causes any damage to the premises, said CONCESSIONAIRE will repair the same in a proper and satisfactory manner at its own expense. The provisions of this paragraph shall not apply to the personal property to which the CITY has a right to use and purchase pursuant to this lease agreement IN WITNESS WHEREOF, the parties hereto have set their hands and seals this /94 day of `y71ezy , 1987. FOR THE CONCESSIONAIRE WITNESSES: } 2 1 /7 1 , J 1:1-14 Y / 5 4Z.e .-- 44/ — FOR THE CITY OF BOYNTON BEACH WITNESSES: l�N irp -77 ( jl� Q4°Ceftd4 Mayor A•• , -d as to form: CI y Attorney ATTEST: y lerk City Seal -6- BOYNTON BEACH MUNICIPAL BEACH PARK PAYMENT SCALE YEAR MONTHLY PAYMENT TOTAL 1987 -1988 $250.00 $3,000.00 1988 -1989 $275.00 $3,300.00 1989 -1990 $300.00 $3,600.00 1990 -1991 $325.00 $3,900.00 1991 -1992 $350.00 $4,200.00 AVERAGE YEARS MONTHLY PAYMENT TOTAL 5 Years $300.00 $18,000.00