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HomeMy WebLinkAbout4654 Contract Number 4654 Vendor SCOTT ALEXANDER'S GOLF SHOP INC Sub�ect Food & Beverage Department Parks File Class LEG 12-1 Begin Date 1/1/2007 End Date 3/31/2011 Review Date 4/15/2011 Vault Date Comments Amendment 12/09 Amendment 1/11/2011 AMENDMENT TO FOOD AND BEVERAGE AGREEMENT WHEREAS, on September 13, 2007, the C�ty of Bremerton, a mumc�pal corporation of the State of Washmgton, "C�ry" and Scott Alexander's Golf Shop, Inc , a Washmgton corporahon, "Contractor° entered mto and Agreement to provide profess�onal restaurant and other food and beverage management and serv�ces at the City of Bremerton Gold Mountam Golf Club wrth a termmation date of December 31, 2009, and WHEREAS, on December 29, 2009, the C�ty of Bremerton, a mumcipal corporat�on of the State of Washmgton, "C�ty" and Scott Alexander's Golf Shop, lnc , a Washmgton corporahon, "Contractor" entered mto an Amendment to the Agreement to provide professional restaurant and other food and beverage management and sernces at the C�ty of Bremerton Gold Mountam Golf Club extendmg the term of the Agreement through December 3 l, 2010, and WHEREAS, the parties desve to amend the Agreement to extend the term through March 31, 2011, NOW THEREFORE, for mutual cons�deration, C�ty and Contractor agree as follows Sect�on 3 of the Agreement entrtled "TERM" �s hereby amended to extend the termmat�on date of the Food and Beverage Agreement to March 31, 2011 All other terms of the Agreement not spec�fically amended herem shall remam m full force and effect CITY OF BREMERTON SCOTT ALEXANDER'S GOLF SHOP, INC � � , Mayor By SCOTT ALEXANDER Its � �-1 � 1 I DATE � I � DATE By ARYL MATH Its DATE �I� � � � ATTEST ( o7i , Carol Etgen, C ty Clerk APPROVED AS TO FORM R ER LUBO ICH, City Attorney R�LegalU.egal�F�les\Curtent Achve Fdes\Gold Moun�am\Food an verage Agreement Amendment (2010) doc Amendment to Food qnd Beverage Agreemen� � �rrnMErrr To FOOD AND BEVERAGE AGREEIv�NT WHEREAS, on September 13, 2007, the City of Bremerton, a mumc�pal corporahon of the State of Washmgton, "C�ty" and Scott Ale:ander's Golf Shop, Inc., a Washmgton corporatwn, "ContracWr" entered mto and Ageement to prov�de professional restaurant and other food and beverage management and services at the C�ty of Bremerton Gold Mountam Golf Club, and WHEREAS, the term of the Food and Beverege Agreement commenced on January 1, 2007 and shall termmate on December 31, 2009, and WHEREAS, the perties des�re to amend the Agreement to extend the term through December 31, 2010, NOW THEREFORE, for mutual cons�derat�on, City and Conuacwr agree es follows 1} Sectlon 3 of the Agreemant ent�Hed "TERM" �s hereby amended M extend the tertnmation date of the Food and Beverage Agreement to December 31, 2010 Z) Secdon 7 of tho Agrcement enhtled "COMPEN3ATIOIV" is hereby amended to read as follows A, Contractor shall cor pensate City for use of the Prem�ses for food and bevera�e be eeenryensete�-feFSernces as follows � � . � , > > . , , , 1 Comcensatlon Contractor shall oav City the sum of s�x nercent (6%) of revenuos recerved from all food and beveraite salas. net of sales tax. m eucess of one mJbon dollars j$1.000.000.00). 2 �nal reconciliaHoa Final recona6ation and payment for each year will ba made by January 31" of the followmg year . 6�. Restaorant Closare — For Conditlons and Repair The restaurant shall remam open unless the golf courses and related facdrties are closed pursuant to Sechon 7(D) and (E) of the Golf Management Agreement or the Clubhouse is closed as a result of causes beyond the control, fault, or negl�gence of the parties Such causes may mclude, without I�mdahon, acts of God or publ�c enemy; acts � of the federal, state, or local govemmeats, fires, floods, ep�demics, voicamc eruptions, quarandne Aneertdn�ent m Food and BevangtAgrcenratf restncUons, strikes, fre�ght embargces, court orders, end unusualiy severe weather or other condrt�on that � causes all or a portion of the Golf Club fac�lit�es to be closed for eutended penods of time Should euher the C�ry or the Contractor fail W perfortn because of a cause descnbed m th�s subsecpon, the Ciry and tho Contractor shall maka a mutually acceptable rev�s�on m the SCOPE OF SERV[CES and COMPENSATION provided for m this Contract, mcludmg tecmmat�on of the Agament if the Premises is dcemed unusable by the C�ry as a result of ma�or damage or destruct�on and the City elects not to rebwld the same In the avent that C�ty determmes that rt is necessary to close all or a port�on of the Clubhousa due to regular mamtenance, repav, caprtal �mprovements, mclemeet weather, or s�m�lar condrtion, the C�ty shall coordmate such closmg wrth the Contractor pnor w actual closmg Contractor shall comply wrth the Dtrector's dec�swn to close all or part of the Clubhouse at no cost W the C�ty In the event of closurc of all or a port�on of the Prem�ses as set forth m th�s subsect�on, Contractor shall not be enUtled to any compensatwn pursuant w th�s sect�on, Sect�on 7, whethar fixed fee or percentage fee, however, when feasible, the City and Contractor shall revise the SCOPE OF SERVICES and COMPENSATION as notal above for partial closure of the Prem�ses, unless th�s agreement �s termmated pursuant to Sectwn 14 (F) The City shali mcur no habdrty to Contractor for lost revenue or other addmonal compensation as a result of any closure of ali or a port�on of the Prem�ses as set forth m this subsect�on All other tarms of the Agreement not spec�fically amended herem shall remam m full force and effect � CITY OF BREMERTON SCOTT ALEXANDER'S GOLF SHOP, INC � � � �.,�_ Mayor By SCOTT ALEXANDER Its DATE /�7�D DATE By ARYL MAT Its DATE O % ATTEST � Carol Etgen, �ry C erk APP TO FORM R ER LUBOVICH, City Atto l R�I.egaN.egdlFda�Curtrnt Acuve FilalGold Mountam�Food and Beverage Ag�eemmt Amendmrnt (2009) doc Anrendmenf w Food ard BeverogtAgrct�aU � , , ;� �='� � � t � � r ,`� ..�,. °-�`� ��- _ � FOOD AND BEVERAGE AGREEMENT THIS AGREEMENT made and entered mto on the date fully executed by and between the CITY OF BREMERTON, a mwucipal corporation of the State of Waslungton, heremafter refened to as "City," and SCOTT ALEXANDER'S GOLF SHOP, INC , a Waskungton Corporarion, heremafter referred to as "Contractor," to provide professional restaurant and other food and beverage management and services pursuant to t}us Agreement, at the City of Bremerton Gold Mountain Golf Club WHEREAS, the City is the owner of Gold Mountaui Golf Club, wluch ownerslup includes the land upon wh�ch said golf complex is Iocated, the buildtngs and otfier improvements wluch aze a part thereof, and WHEREAS, the Gold Mountam Golf Club consists of two 18 hole golf courses, the Olympic and the Cascade course, ("Golf Courses" or "Courses"), a dnvmg range, and the clubhouse contaimng a Pro Shop, restaurant, meetmg rooms and the Olympic room, ("Clubhouse") and other related facihhes and structures, collechvely also referred to herein as ("Golf Club") WHEREAS, the C�ty prev�ously entered uito an agreement with Scott Alexander and Daryl Matheny, Contractor's pnncipals ("Pnnc�pals"), for food, beverage, and golf management and related services at the Gold Mountazn Golf Club, mcludmg, but not lumted to, food and ' beverage service, management of the Cascade and Olympic golf courses and dnvmg range, and for providmg Professional Golf Associahon ("PGA'� professional golf services and lessons to the facikty, and WHEREAS, the agreement between the City and Contractor for these services expued December 31, 2006 wluch has twice been extended by amendments to sazd agreement pending negohahon of a new agreement, and WHEREAS, the extensions were executed with the understandmg that new terms may be negohated for a new agreement beglnnuig with the yeaz 2007, and WHEREAS, the C�ty desues to enter mto a new agreement wrth Contractor for food and beverage services enhtled "Food and Beverage AgreemenY' with terms effechve Januazy 1, 2007 and supersedmg the terms of the extended agreement, and WHEREAS, the Parhes hereto have sunultaneously executed a separate agreement entrtled "Golf Management Agreement" relahng to the management of the Cascade and Olympic golf courses and dnvtng range and Pro Shop and for pmvidmg professional golf sernces and lessons to the Gold Mountam Golf Club, and WHEREAS, the Parties hereto have also sunultaneously executed a document enritled � "Lease AgeemenY' relatmg to the lease to the Contractor of a certazn portion of the Gold Food & Beverage Agreement Page 1 of 16 � Mountam Golf Club ("Lease'� for operation of a Pro Shop, dnvmg range and Contractor's pnvate cart rental busmess, NOW, THEREFORE, m considerahon of the mutual covenants contamed herem, the parhes agree as follows SECTION 1 PURPOSE AND ADMINISTRATION A The purpose of tlus Agreement �s to estabhsh a management servtces agreement whereby contractor will provide food and beverage management and related serv►ces at City- owned golf facihGes Ttus Agreement is not a lease, nor does it create a leasehold mterest other than sumlar property mterest m Contractor to the City's facilihes B Contractor will be responsible for performuig all work and/or sernces descnbed herem The Conh�actor's performance will be momtored and reviewed by the City of Bremerton Duector of Pazks and Recreahon, or lus or her designee, (heremafter "Duector") Contractor shall report duectly to the Duector Reports and data requued to be provided by the Contractor shall be delivered to the Duector Queshons of the Contractor regazdmg mterpretat�on of the terms, prov�sions and requirements of tlus Agreement shall be addressed to the Director for response SECTION 2 PREMISES The facihhes of the Golf Club to be provided food and beverage � sernces by the Contractor pursuant to ttus agreement mclude the Golf Courses and the Clubhouse and related facihhes, heremafter ("Premises") SECTION 3. TERM. Pursuant to IItS Revenue Procedure 97-13, the term of tlus Agreement shall be three (3) yeazs commencmg on January 1, 2007 ("Commencement Date'� and shall termmate on December 31, 2009, unless termmated eazher m accordance with Secrion 14 SECTION 4 SCOPE OF SERVICES A General Serv�ces 1 The Contractor's respons�b�l�hes mclude providu�g food and beverage sernce on the Premises mcludmg cart service on the Golf Courses and restaurant sernce �n the Clubhouse Unless otherw�se noted, food and beverage sernce mcludes the restaurant and a11 other food and beverage sales and sernce at the Golf Club B Spec�Tic Services In providmg the general servtces descnbed above, Contractor shall provide not less than the followmg spec�fic services 1 Restaurant, Food and Beverage Service a The Contractor will be responsible, and assume all costs and expenses, for the operahon, management, and superviston of all food and beverage service operarions on the Premises as proposed by Contractor and approved by City, including but not lunited to, restaurant, vendwg maclunes and prov�dmg catenng for special events at the Golf � Club Contractor shall be responsible for the furcuskung of adequate stock of food and beverage supphes at its cost and expense Food & Beverage Agreement Page 2 of 16 -> b The Contractor shall be responsible for lurmg, trammg and managuig sufficient employees to adequately staff the restaurant and lounge Conh�actor shall provide high cal�ber quality staff properly cerUfied and permitted to prov�de food and alcohol service as requued by state law c The Contractor shall apply and prepaze the apphcahon and shall assume respons�btltty for all costs and expenses of the applicat►on for an apphcable I�quor license The Contractor shall abide by state requirements regazdmg use of alcohol at the Golf Club The City shall execute any reasonable, appropnate documents as owner of the Golf Club that may be req�ured m con�unchon with such apphcahon d The Contractor shall be responsible for obtauung all necessary licenses and pernuts for the operahon of a restaurant and lounge 2 Restaurant ManagemenL a The Contractor shall manage the restaurant and lounge at the Clubhouse for the City The C�ty shall provide the furniture, fixtures and equipment ("FF&E") currently located m the Clubhouse, provided, that the Conh is providmg, and will replace as needed, the FF&E listed m Ea�h�bit A attached hereto and by reference mcorporated herem b The Contractor shall provide muntenance and repair services for all lutchen apphances and fixtures, restaurant furmture, all FF&E witivn the restaurant, Contractor owned tools and eqwpment, and all Contractor leased equipment Replacement of C�ty owned eqmpment shall be m the sole discrehon of the City and the C�ty shall arrange for equipment replacement m accordance with avulable fundmg c Contractor shall provide adequate nohce and signage at all pomts ` of entry to the restaurant as well as the front entrance to the Clubhouse des�gnahng that the J restaurant is open or closed for busmess Contractor shall adequately staff and pmvide prompt sernce for customers to the restaurant 3 Attend Meehngs Contractor agrees to be avazlable to attend regulaz and special meetwgs of the Golf Complex Boazd, Pazks and Recreahon Commission and C�ty Council, and shall be prepazed to discuss issues and ideas of mterest to the Contractor and City C Prfcmg of Sernces 1 Food and beverage menus and pnces shall be approved by the Duector SECTION 5 OTHER DUTI�S AND RESPONSIBILITIES A Personnel The Contractor shall provide competent personnel necessary for such operahons and shall trazn and supernse ihem in theu work and shall pay them for theu sernces at the Contractor's sole cost and expense Contractor shall supervise, direct and trazn staff to perform dut�es and meet requirements for sales and services wluch aze, m the opmion of the City and Contractor, necessary Contractor shall provide an on-gomg staff trazmng program w�th emphasis on customer trauung B Credit Rahng Contractor shall mau�tam a good credit ratmg m all commercial transachons so as not to discredit the reputahon or name of the City of Bremerton l Food & Beverage Agreement Page 3 of 16 � C Quarterly Revtew Contractor and City shall meet on a quarterly schedule, or as otherwise as mutually agreed, to evaluate operahons at the Golf Club and the performance of the parties pursuant to tivs agreement and to make mutually ageeable changes SECTION 6 OPERATING POLICIES AND PROCEDURES The Contractor will A Operate the restaurant pursuant to the rules and regulahons established by the City Council and the Director B Expel unruly persons or those under the mfluence of mtoxicants from the Premises under Contractor's control C Not foster nor pemut any �Ilegal achvity witlun the restaurant under Contractor's control D Answer and handle all complaznts and shall supernse a publ�c relahons program In dealuig with the pubhc, Contractor will not speak towazd City pohcies or dec�sions m a derogatory manner Contractor shall explam and support city pohc�es to staff and the golfing pubhc E Not use the Premises for ancillary, revenue-producmg acUvities or soc�al achvihes, unless expressly authonzed by the City The pazhes aclmowledge that Contractor � conducts certazn pnvate busmess operahons pursuant to the L,ease executed w�th the C�ty for operahon of a Pro Shop, dnvmg range and Contractor's pnvate cart rental busmess and fiuther that Contractor subcontracts lessons at the Golf Club F Provide service to meet pubhc demand and shall keep the restaurant open each day that the golf courses aze open for play, and at other reasonable hours as prescnbed by the City, except Thanksgivwg and Chnshnas, at Contractors ophon, days the Greens Supertntendent closes the course due to mclement weather and except when closed as set forth in Sechon 7(C) SECTION 7 COMPENSATION A. Contractor shall be compensated for sernces as follows 1 Food and Beverage Sales a Fixed Fee Contractor shall be pa�d the annual sum of one m:lkon dollars ($1,000,000 00) The compensahon shall be pazd m weekly mstallments Each weekly payment will be m an amount equal to the gross food and beverage revenue, net of sales tax for the week, unhl gross revenues, net of sales tax, reach one m:ll:on dollars ($1,000,000 00) b Percentage Fee In addihon, throughout the term of tlus contract, Contractor shall be pazd mnety four percent (94%) of revenues received from all food and beverage sales, net of sales tax, m excess of one mtlhon dollars ($1,000,000 00) but m no event shall tivs percentage fee exceed the fixed fee m any given yeaz set forth in Sechon 7(A)(i)(a) � above Food & Beverage Agreement Page 4 of 16 2 �nal reconciliahon Final reconciliahon and payment for each yeaz will � be made by January 31 of the followmg yeaz B W�thholdmg of Payments to Contractor In the event the Contractor is 60 days or later m payment of lease payments associated with the Lease, City may withhold and apply all momes due to Contractor from City under tlus Agreement to offset any such amounts due to City from Con�actor under said Lease C Restaurant Closure — For Cond�hons and Repa�r The restaurant shall remam open unless the golf courses and related facihUes aze closed pursuant to Sechon 7(D) and (E) of the Golf Management Agreement or the Clubhouse is closed as a result of causes beyond the control, fault, or neghgence of the parties Such causes may mclude, without lumtat�on, acts of God or pubhc enemy, acts of the federal, state, or local governments, fires, floods, epidemics, volcazuc eruphons, quaranhne restnchons, stnkes, &eight embargoes, court orders, and unusually severe weather or other condihon that causes all or a porhon of the Golf Club facihhes to be closed for extended penods of hme Should either the City or the Contractor fatl to perform because of a cause descnbed in tivs subsect�on, the City and the Contractor shall make a mutually acceptable revision m the SCOPE OF SERVICES and COMPENSATION provided for m tivs Contract, mcludmg temunat�on of the Agreement �f the Prevuses is deemed unusable by the City as a result of ma�or damage or destruchon and the City elects not to rebuild the same In the event that City detemunes that rt�s necessary to close all or a portion of the Clubhouse due to regulaz muntenance, repau, capital improvements, mclement weather, or � similaz cond�hon, the C�ty shall coordmate such closmg with the Contractor pnor to actual closmg Contractor shall comply wrth the Duector's decision to close all or part of the Clubhouse at no cost to the City In the event of closure of all or a portion of the Premises as set forth m tlus subsechon, Contractor shall not be enhtled to any compensahon pursuant to ttus sechon, Secuon 7, whether fixed fee or percentage fee, however, when feasible, the City and Contractor shall revise the SCOPE OF SERVICES and COMPENSATION as noted above for partial closure of the Premises, unless tivs agreement is termmated pursuant to Sechon 14 (F) The City shall mcur no habihty to Contractor for lost revenue or other addihonal compensahon as a result of any closure of all or a pomon of the Premises as set forth m ttus subsechon SECTION 8 CITY RESPONSIBILITIES - UTILITTES All electnc power, water, sewer, gas/propane, street ut�l�ty, gazbage and telephone service related to ttus agreement shall be pazd by the City If upon review the City determmes that act�on is needed to address excessrve consumphon, Contractor w�ll promptly respond and take appropnate achon to remedy the excessive consumption Each party shall pay mtemet and web page costs and expenses related to theu duhes and responsibihhes under ttus Agreement, unless otherw�se agreed SECTION 9 CAPITAL IMPROVEMENTS AND FIXTURES Contractor shall not make any alterahons, add�rions or improvements m the Gold Mountazn Golf Club, �ncludmg the restaurant, v�nthout first obta�mng the consent of C�ty m wntmg, wluch consent can be withheld � at C�ty's sole discrehon All alterahons, addihons and unprovements, shall be at the sole cost Food & Beverage Agreement Page 5 of 16 � and expense of Contractor, and shall remazn m and be surrendered wtth the Clubhouse as a part thereof at the termmahon of t}us Agreement except for those improvements and fixtures suppl�ed by the Contractor wtuch at the tune of this Agreement aze idenhfied on the attached Exh�b�t A If Contractor performs work with the consent of C�ty, as provided above, Contractor agrees to comply wrth all laws, ordmances, rules and regulahons of the City and any other authonzed pubhc authonty Contractor fiuther agrees that workmanstvp w�il be of a reasonable commercial quahty, m color schemes m accordance wrth current builduig, standards, and free of inechazucs hens Contractor further agees to save City free and harmless from damage, loss or expense ansmg out of such work SECTION 10 COLLECTION OF FEES, FINANCIAL REPORTING, AUBITING AND TAXES Pursuant to the Golf Club Revenue Bond resolutrons, the City irrevocably pledged gross revenues from the Golf Club as secunty for bond repayment Thetefore, all gross revenues from any sowce shall first be deposrted m the C�ty's bank account and disbursed pursuant to tlus Agreement A. Pomt of Sale System C�ty shall be responsib(e for purchasu►g, sethng up and mawta�ng a pomt of sale system through wluch all transacnons at the Golf Club wtll be processed 1 C�ty's Responsibil►hes The City shall provtde a caskueru►g system for use by the Contractor City shall provide uuhal trammg on the operahons of the casluenng system All subsequent traullng of Contractor's staff shall be the responsibthty of the \ Contractor The City shall also be responsible for maintenance of network, wumg, software, and J eqwpment The City will provide repau parts as needed for eqmpment 2 Contractor's ResponsibiLt�es Contractor shall be responsible for any addihonal hazdwaze, user l�censes, and software that Contractor chooses to u�stall The Contractor shall also be responsible for operaring supplies such as receipt paper, toner, and labels Contractor shall provide addrtional formal tramu►g for Contractor's employees after mitral tra�mng sessions have been performed by the City New casluer employees and office managers must have suitable knowledge of the Golf cash�enng system m order to perform theu duhes m an efficient and accurate manner Ttus trauung may be provided by Contractor personnel 3 Mod�ficaUons Any other changes, addihons, or mod�ficahons appl�cable to the City owned caslveruig system would need mutual agreement as to payment responsibility B Rece�phng Contractor and/or subcontractor shall collect for, and on behalf of, the Crty all gross revenue, mcluduig but not lunited to food and beverage sales, non-sufficient fund check retum fees, and all other fees at the Golf Club m stnct accordance with the schedule of fees estabhshed by the C�ty, unless other mstrucrions are given m wnhng to the Contractor Nettmg of transactions is prokubrted All revenue collected from transact�ons under ttus agreement must be processed through the Pomt of Sale System and deposrted as provided m subsecdon 10(C) All food sernce gross revenue, mcludtng from toumaments, group funchons and special package offenngs, must be recorded, collected, and deposrted m a manner wtuch wtll dispense a dated receipt to be given to each customer / Food & Beverage Agreement Page 6 of 16 � C Depos�ts All deposrts must be prepazed m a hmely manner defined as %z hour ahead of scheduled pick-up and composihon of deposit shall remaui mtact and a cleaz audit tratl mamtazned The City wtil provtde and pay for counet serv�ce Any delays causmg addffional "premise chazges" will be paid by Contractor All deposrts will be made mto a smgle account established for the Golf Club Settlements and appropnate d�sbursements will be made from tlus account Contractor shall be responsible for any loss or theft of City funds wtule the same are ui �ts possession or control Contractor shall provide City wrth a fidelrty bond and a performance bond as requued in tlus Agreement Contractor and any subcontractor shall comply with accounhng procedures as may be requued by the City to comply with state laws, regulahons and audit review reqwrements D Reports Contractor shall provide to the City da�ly reports of food and beverage sales achvity and receipts tn a format to be provided by the Duector and Fmance Officer, and shall structure theu accounhng system m a method sahsfactory and acceptable to the City The reports will be forwazded to the Director and must be received by the 2nd busmess day followmg the day of act�vity, excludmg Fndays, Saturdays and Sundays which will be due on Tuesdays The reports must agree with the correspondmg deposrt for the day In addihon, the Contractor shall submit a copy of rts prev�ous yeaz's operahng statement by March 31 to demonstrate Contractor's financial abihty to mamtam operahons under ttus Agreement E Aud►ts All revenue and fees collected at the Golf Club aze City revenues and sub�ect to audit by the State Audrtor, City Intemal Audrtor, or City lured Cerhfied Pubhc Accountants Contractor shall pernut the City, from tune to hme as the City deems necessary, � through rts designated representahves, to mspect and audrt m Bremerton, Waslvngton, at any reasonable hme, all pertment books and records of Contractor and any other person or enhty that has performed work m connechon with or related to Contractor's sernces under tlus Agreement to venfy the accuracy of accountmg records and shall suppty the City with, or shall pernut the Crty to make a copy of any books and records and any porhon thereof, upon the C�ty's request Contractor shall ensure that such mspecuon, audrt and copyu�g nght of the Crty is a condihon of any contract, agreement or other arrangement under wluch any other person or enhty is permitted to perform work u► conn�t�on w�th or related to Contractor's sernces under tlus Agreement The Contractor shall take immediate correcttve act�on on all pnor, current or future mternal control weaknesses as d�rected by the City � F Taxes Pursuant to the City's bond resoluhons on the Golf Club fac�htaes, the Contractor will remrt to the City all gross revenues collected Sales tax from Contractor's achvihes remitted to the City will be held by the City and will be returned to the Contractor weekly or as othenvise agreed City shall retam and remrt sales taxes on revenues from food and beverage sales As an mdependent contractor, the Contractor acknowledges that it is responsible for payment of any local, state, state busmess and occupahon tax, or federai taxes or fees v�nth respect to the Contractor's busmess, mcludmg sales tax, for its activ�hes The Contractor shall pay any and all apphcable taxes when due G Cred�t Card Costs and Fees Contractor shall be responsible for all cred�t cazd costs and related fees mcurred for food and beverage serv�ce pursuant to tkus agreement � Food & BeverageAgreement Page 7 of 16 SECTION 11 MAIN'I'ENANCE OF RECORDS The Contractor shall keep and mauitau� on _ � a current basis all books and records, includmg the operahng accounts, to support its management and operat�ons of the Prei►uses under tkvs Agreement The City or �ts authonzed representaUve shall have the authonty to uispect, audit, and copy, upon reasonable nohce and from tune to tune, any records of the Contractor regazding rts bilhngs, payments or work under tkus Agreement Contractor shall retam these records for mspect�on, audrt, and copyuig for at least three (3) yeazs from the date of complehon or ternunahon oF tlus Agreement, or as otherwise requued by the Waslungton Secretary of State General Records Retenhon Schedule for all Local Govemment Agencies m Wastungton State Conhactor shall, at all tunes, provide the City w�th all records for the pnor three (3) years that relate to the financial matters of the facilmes managed by Contractor under ttus Agreement SECTION 12 AUDIT OF PAYMENTS The City, e�ther duectly or through a destgnated representat�ve, may audrt the records of the Contractor at any tune dunng the three (3) yeaz penod established by Sechon 11, MAINTENANCE OF RECORDS If an audit discloses that payments to the Contractor under Sechon 7, COMPENSATION, were m excess of the amount to wluch the Contractor was enhtled, or that the payments to the City were less than the amount to wluch the City was enhtled, then Contractor shall repay the amount of the excess or deficiency to the City If an audit discloses that payments to the C:ty under Sectaon 7, COMPENSATION, were m excess of the amount to wtuch the City was enhtled, or that payments to the Conhactor were less than the amount to wlvch the Contractor was ent�tled, then the City shall repay the amount of the excess or deficiency to the Contractor � SECTION 13 ASSIGNMENT Contractor shall not etther voluntanly or by operahon of law ass�gn, transfer, mortgage, pledge, hypothecate, or encumber ttus contract or any mterest therem and shall not subcontract the obhgahons under tkus Agreement, or any part thereof, or allow any person (employees, agents, servants, and mvrtees of Contractor excepted) to use the Golf Club Facihhes, or any porhon thereof, wrthout the pnor wntten consent of the C�ty Any such assignment, subcontrachng or use wtthout comphance w�th the terms of ttus pazagraph shall be vo�d and shall conshtute a default under the terms of tlus Contract If Contractor is a corporahon, any transfer of ttus Contract from Contractor by merger, consohdahon, or hquidahon, or any change m the ownerslup or power to vote m a ma�onty of the outstandu�g vohng stock of Contractor shall conshtute an assignment for purposes of tivs paragraph Any consent to one ass�gnment, subcontrachng, or use by any other person shall not be deemed to be a consent to any subsequent assignment, subcontrachng, or use by another person Consent to any such ass�gnment, subcontractmg or use shall m no way reheve Contractor of any Lability under tlus Agreement Assignment by Contractor to a financial uvshtuuon holdmg a secunty mterest m ttus Agreement shall not be considered to be a violahon of the consent reqmrements of tkus Agreement Consent for any subsequent assigiunents by sazd financ�al u�shtut�on will not be unreasonably withheld, however, any ass�gnee must have expenence and be knowledgeable in golf and food and beverage operahons SECTION 14 TERMINATION Th�s Contract w�ll temunate upon the happenuig of any of the following events � A Upon rts normal termuiatton if not renewed Food & Beverage Agreement Page 8 of 16 J B Upon termmahon of the Lease and/or Golf Management Agreement C Upon the death of both of Contractor's Pnncipals D By mutual wntten agreement E Breach of tlus Agreement as set forth m Sechon 15 below F Ma�or damage or destruchon o£ the golf Club property, structures or eqwpment that ts the sub�ect of tlus Agreement, when the City dec�des not to rebuild, and that damage or destruchon will prevent Contractor from substanhally perfornung theu obligahon under tlus Agreement SECTION 15 SREACH A In the event that erther party ciauns that the other is m a substanrial breach of any of the provisions of Uus Contract, norice of the breach shall be subnutted to the party alleged to be m breach and the party m breach shall have thirty (30) days from receipt of the not�ce withm w}uch to correct any act�vity or conduct clatmed by the other to have conshtuted a substanhal breach of tlus Contract The nohce shall idenhfy the nature of the breach and the contract provisions violated � B In the event that the pazty m breach shall fazl to correct the acUvity clazmed to conshtute a substanhal breach of tlus Contract withu► thuty days of receipt of the nohce of breach, the party claimuig breach may 1 Issue a nohce of ternunahon, and/or 2 Seek �udictal remedy or specific performance, and/or 3 Pursue any other remedy ava�lable at law or equity C The Contractor is sub�ect to immediate temvnabon upon wntten nohce by City if 1 Contractor violates any fiduciary duty to the City by nusappropnatmg or not properly accounhng for or mishandlmg City funds as detemuned by the City or Washmgton State Auditor, or 2 Contractor vacates or abandons the Golf Club facihhes under Contractor's responsibilrty D Upon rece�pt of nohce of temvnahon by Contractor, wtuch is issued by the City, the City shall have the nght to 1 Enter and take possession of the facihhes, and/or 2 Bnng suit for and collect all fees and portions of gross revenue or any other mocues requued to be pazd to the City wtuch shall have accrued to the tune of ternunahon of the Contractor's nghts � E Upon wntten not�ce of termmahon by the City, Contractor will have tlurty (30) days to vacate the Premises unless the City elects to take immediate possession as set forth m Food & Beverage Agreement Page 9 of 16 � paragraph D above Termmarion shall be affected by sernng a Nohce of Termmahon by cerhfied mail (return receipt requested) or by personal delivery upon the Contractor setting forth the manner m which the Contractor is m default F Neither the C�ty nor the Contractor shall have breached ttus Contract by reason of the closmg of all or a pomon of the golf course facihhes as set forkh in Sechon 7(C)) G Examples of a breach by the Contractor wtuch warrants termmahon, if not cured, shall mclude but not be hnuted to 1 Misappropnat�on or rrushandluig of C�ty funds 2 Contractor makes any general ass�gnment or general arrangement for the benefit of creditors or the filmg by or agaznst Contractor of a pehhon to have Contractor adjudicated as bankrupt, or a pehhon for reorgaruzahon or arrangement under any law relatmg to banlauptcy (unless, m the case of a pehhon filed agaznst Contractor, the same is dismissed wrttun sixty (60) days or the appomtment of a trustee or a receiver to take possession of substantially all of Contractor's assets located at the Premises or of Contractor's mterest m tlus Agreement, where possession is not restored to Contractor v�ntivn tturty (30) days or the attaclunent, execuhon, or other �udicial seizure of substanrially all of Contractor's assets located at the Premises or of Contractor's interest m ttus Agreement where such seizure is not dischazged wtthm thirty (30) days 3 Contractor assigns all or part of its mterest m t}us Agreement wrthout pnor wntten consent of the City pursuant to Sechon 13 � 4 Nonpayment of outstandmg current habihhes wrtlum m�ety (90) days and fazlure to pay Federal, State, and local taxes and l�cense fees when due 5 Contmwng mattenhon or neglect of duhes 6 Conv►chon of a felony or convichon of a non-felony cnme of d�shonesty, theR or deceit of either of the Pnncipals SECTION 16 PURCHASE OF CONTRACTORS MERCHANDISE In the event the City takes over management of the Golf Club facihhes, after expuahon of Uus Agreement or eazher termmahon by the City, Contractor reserves the nght, tf tt so elects at tts d�scret�on, to have the City purchase the Contractor's food and beverage merchand�se and moveable fwiuslungs ident�fied m Eahibit A at Conh�actor's cost less depreciahon mutually agreed upon If there �s no agreement, tivs amount shall be estabhshed by a mutually agreed upon mdependent apprazser The City shall make payment wrthm 90 days of expirarion or ternvnahon, less any momes owmg to the City under the terms of Uus Agreement, the Golf Management Agreement or under the terms of the Lease The City may, at its dtscrehon, replace any of the rtems m Exh�bit A, ui wluch case, the replaced rtems will belong to the Ctty and not be sub�ect to purchase by the City as provided herem SECTION 17 INDEPENDENT CONTRACTOR A The Contractor is engaged as an mdependent contractor and will be responsible for any federal, state, and local taxes and fees appl�cable to payments hereunder � Food & Beverage Agreement Page 10 of 16 B The Contractor, rts subcontractors, and theu employees, are not employees of the � City and aze not elig�ble for any benefits through ihe City, ►ncludmg w�thout hmrtahon federal social secunty, health benefits, workers' compensahon, unemployment compensatton, and retuement benefits C The parhes agree and aclmowledge that the Contractor is an mdependent contractor and not the agent or employee of the City of Bremerton, and that no habihty shall attach to the Crty as a result of the acts or otrussions of the Contractor, rts agents or employees D The Contractor shall be respons�ble for w�thholdmg and paymg all payroll taxes for any person hued by them to perform the duries they aze requued to perform under the terms of tlus Agreement They aze also responsible for all taxes owed to any govemmental agency as a result of the momes paid to them under We terms of ttus Agreement SECTION 18 INDEMNIFICATION, INSURANCE, BOND A Indemmficahou 1 Contractor agrees to defend, mdemmfy and save hazmless the City, rts appomted and elected officers, employees and volunteers, from and agauvct any and all habthty, loss, cost, damage and expenses, mcludu�g costs and attomey fees m defense thereof because of achons, clazms or lawsutts for damages resulhng from personal or bod�ly m�ury, includmg death at any tune resultmg there from, sustazned or alleged to have been sustamed by any person or � persons and on account of damage to property, ansmg or alleged to have ansen duectly or indirectly out of or m consequence of or the performance of ttus Agreement, whether such m�unes to persons or damage to pmperty is due to the willful or neghgent acts or oirussions of Contractor, the�r subcontractors or agents Tlus provision shall be mapphcable to the extent the City is �udicially found solely neghgent for such damage or m�ury 2 Should a court of competent �unsdiction deternune that Uus Agreement is sub�ect to RCW 4 24 115, then, m the event of habihty for damages ansmg out of bodily m�ury to persons or damages to property caused by or resulhng from the concurrent negLgence of the Contractor and the City, ds officers, officials, employees and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's neghgence B Insurance Reqairements 1 The Contractor shall procure and ma�ntam for the durahon of tlus Agreement, msurance agaznst clauns for ui�unes to persons or damage to property w}uch may anse from, or m connection with, the performance of the work hereunder by the Contractor, its agents, representarives, employees or subcontractors 2 The Contractor shall pmvide a Certef:cate of Insurance evidencmg a Automob:[e L�abtlety Insurance with no less than $1,000,000 combined smgle hmrt per accident for bodily m�ury and property damage, and b Commerc:al General Leab:l:ry Insurance wntten on an occurrence bases with limrts no less than $1,000,000 combined smgle limit per occurrence and $2,000,000 aggregate for personal m�ury, bodily m�ury, and property damage Coverage shall mclude but � not be lumted to blanket contractual, pmducts/completed operahons, broad form property damage, hquor Uabihty, and employer's l�abil�ty Food & Beverage Agreement Page 11 of 16 � 3 Any payment of deduchble or self msured retent�on shall be the sole responsibil�ty of the Contractor 4 The City, mcludmg its offic�als, employees, and volunteers, shall be named as an addihonal msured on the insurance pohcy, with respect to work performed by, or on behalf of, the Contractor and a copy of the endorsement nammg the City as add�honal msured, approved by the Crty's Risk Manager, shall be attached to the Cert�cate oflnsurance 5 The Contractor's uLSUrance shall contazn a clause statmg that coverage shall apply sepazately to each msured agaznst whom claim ts made or stut �s brought, except w�th respect to the lumts of the msurer's l�abil�ty 6 The Contractor's insurance shall be the pnmary and non-contnbuhng msurance wrth respect to the C�ty's msurance and the City shall be g�ven tluriy (30) days pnor wntten nohce of any cancellahon, suspens�on or matenal change m coverage 7 Acceptabihty of Insurers Insurance is to be placed v�nth an tnsurer w�th a Bests' rahng of no less than A XIII, or w�th an msurer acceptable to the City 8 Subcontractors Contractor shall mclude all subcontractors as msureds under its pohcies or shall fumish separate cerhficates for each subconh�actor All coverage for subcontractors shall be sub�ect to all of the reqwrements stated herem C Bond The Contractor shall conrinuously mazntaw at its expense an employee dishonesty bond coveru�g collechon of fees on the Premises for the benefit of the C�ty The bond shall be m an amount not tess than SEVENTY-FIVE THOUSAND AND NO/100 DOLT.ARC ($75,000 00) The Contractor must add�honally provide broad form money and secunhes coverage both mside and outside the Premises m an amount not less than FIVE THOUSAND � AND NO/100 DOLLARS ($5,000 00) D Proof of Insurance Proof of the above requuements must be prov�ded to the City upon execut�on of this Agreement The pol�cies required herem shall prov�de not less than thuty (30) days pnor wntten notice to the Ctty of any cancellahon, expuahon, modificanon, or reduchon m coverage or l�abiltty lu►uts SECTION 19 SUBCONTRACTING T'he Contractor shall not subcontract rts work under tivs Agreement, m whole or in part, without the wntten approval of the City The City reserves the nght to review and approve any subcontracts pnor to execuuon to ensure comphance with the provis�ons of tivs Agreement The Contractor shall reqwre any approved subcontractor to agree, as to the porhon subcontracted, to comply with all terms and condihons as specified m tius Agreement Notwithstandmg City appmval of a subcontractor, the Contractor shall remazn obl�gated for full performance hereunder, and the Ctty shall mcur no obhgahon other than ►ts obhgahons to We Conhactor hereunder Any subcontracts approved by the City shall be sub�ect to and shall not egtend any r�ghts granted beyond those set forth m th�s Agreement to Contractor Contractor agrees that �f subcontractors are employed m the performance of ttus Agreement, Contractor and its subcontractors are sub�ect to the requuements of the State of Waslungton, Workers' Compensahon Laws SECTION 20 CONDITION OF PREMISES The Contractor has u�spected and exanuned � the Prem�ses and all fac�littes and fixtures thereon and accepts the same m�ts present condihon The Contractor shall not make any alterations, changes, or add�hons to any fixriues or equipment Food & Beverage Agreement Page 12 of 16 owned by the City without the wntten consent of the Duector The Contractor shall not commit, U pernut, or allow any nuisance, waste, or m�ury m, upon, or to the golf course, or to pernut the use of the golf course for any illegal or immoral purpose SECTION 21. NOTICE Any norice provided for under ttus Agreement shall be sut�icient if m wntmg and dehvered personally to the followmg addressee or deposited m the Umted States Mail, postage prepazd, certified mail, retum rece�pt requested, addressed as follows, or to such other address as the receivmg party hereafter shall specify m wnt�ng City Dvector of Pazks and Recreahon City of Bremerton 345 6th Street, Suite 600 Bremerton, Wastungton 98337 Contractor SECTION 22 PAYMENTS TO VENDORS A1VD SUBCONTRACTORS The Contractor shall pay hmely all supphers, lessors, and contractors providmg services, maYenals or equipment for carrymg out rts obhgahons under tlus Agreement The Contractor shall not take or fazl to take any achon m a manner that causes the City ot any matenals that the Contractor provides � hereunder to be sub�ect to any claim or hen of any person without the City's pnor wntten consent SECTION 23 BUSINESS LICENSE Contractor shall obtun a City of Bremerton busmess license as requtred by Chapter 5 02 of the Bremerton City Code pnor to begmm�g work under tlus Agreement SECTION 24 CONFIDENTIALITY OF RECORDS The City will, to the extent allowed by law, keep all of Contractor's and subcontractor's financial cost mformaUon confidenhai, uniess requued to disclose the informarion as a result of the Wastungton Pubhc Records Disclosure law, Ch 42 56 RCW or by court order SECTION 25 PRIOR CONTRACT EXTENSIONS SUPERSEDED AND TERMINAT'ED The pnor agreement between the City and Contractor for these sernces had an expuahon date of December 31, 2006 wluch has tw�ce been extended penduig negohahon of tivs agreement The extensions were executed with the understandmg that new ternis may be negohated for a new agreement begmnmg wrth the yeaz 2007 Accordmgly, tlus Agreement supersedes the terms and cond�hons of the fourth amendment extenduig the 2006 agreement executed on January 18, 2007 and the fifth amendment extendmg the 2006 agreement executed on or about Apnl 2, 2007 to the extent ttus Agreement is mconsistent w�th the pnor agreement and amendments and upon execuhon of tlus Agreement, sazd agreement and amendments shall � ternunate Foad & Beverage Agreement Page 13 of 16 J SECTION 26 OTHER A. Costs aud Attorney Fees If, by reason of any default or breach on the part of e�ther pariy m the performance of any of the prov�sions of ttus Agreement, a legal achon is mstrtuted, the losmg party agees to pay all reasonable costs and attomey fees m connechon therewrth It is agreed that the venue of any legal achon brought under the terms of ttus Agreement shall be m K.itsap County B Consttvchon Ttvs Agreement shall be construed m accordance with the laws of the State of Waslungton The provisions of tlus Agreement have been negohated by the parties, and when mterprehng the provisions of tlus Agreement, there shall be no presumphon of draftsmanstup for or agamst e�ther party C Severability The mvalidity or unenforceabihty of any provision hereof shall m no way affect the validity or enforceabihty of any other provision D Warver Failure to msist upon stnct comphance with any terms, covenants or conditaons of tlus Agreement shall not be deemed a wazver of such, nor shall any waaver or rehnqu�shment of such nght or power at any hme be taken to be a wazver of any other breach The C�ty and the Contractor shall not be deemed to have waived any breach of ttus Agreement by the other party except by an express waiver m wntuig An express wntten waiver as to one breach shall not be deemed a wazver of any other breach not expressly idenhfied, even though � the other breach is of the same nature as that wazved E Amendment The City and the Contractor may amend t3us Agreement at any hme only by wntten amendment executed by the Ctty and the Contractor The City and the Contractor agree that ttus Agreement shall be amended at any hme if, m the opimon of bond counsel to the City, such amendment ts necessary to preserve the tax exempt status of mterest on obhgahons of the City issued to finance the Golf Club F Enhre Agreement Tlus Agreement contazns the entue agreement between the parties with regards to the sub�ect matter set forth hereu► There are no other representahons with regazds to the sub�ect matter, either orally or m wntmg From January 1, 2007 unhl execution of tlus agreement, tlus agreement supersedes the pnor agreement between the Crty and Contractor for these services wluch had an expuahon date of December 31, 2006 and wluch has twice been extended by amendments on January 18, 2007 and on or about Apn12, 2007 penduig negohahon of a new agreement Upon and followmg the execuhon of [tus Agreement, thts agreement w�ll replace the pnor agreement m rts ent�rety G Nondiscnaunahon. Conh�actor shall not d�scnmmate m employment or sernces to the pubhc on the basis of race, color, nahonal ongm, sex, religion, age, mantal status, physical, mental or sensory dtsabihty except m an employment act�on based on a bona fide occuparional qual�fication � Food & Beverage Agreement Page 14 of 16 � H L�ens The Conh�actor agrees that rt shall pay, or cause to be paid, all costs and expenses for work done and matenals dehvered to the Premises and shall keep the Prenuses free and clear of all liens for work performed thereon I Remedies Rights under tlus Agreement ue cumulative, the fa�lure to exerc�se on any occas�on any nght shall not operate to fodeit such nght on another occasion T'he use of one remedy shall not be taken to exclude or waive the nght to use another J Washmgton law and Forum Tlus Agreement shall be construed accordmg to the law of the State of Wastvngton Any hhgahon between the City and the Contractor ansmg � under tlus Agreement or out of work performed under ttus Agreement shall occur, if m the state courts, m the I{itsap County Court havmg �unsdictaon thereof, and if m the federal courts, m the Umted States Distnct Court for the Westem Distnct of Was}ungton CIT'Y O B TON SCOTT ALEXANDER'S GOLF SHOP, INC � "�"'r� CARY BOZEMAN, Mayor By S OTT ALEXANDER Its ����� DATE � lo� - G� DATE I'L � � � By .4x Its DATE 7 �o D / ATTEST �1�i1� � Paula Johnston, ity ` y C Clerk o APPROVED AS TO FORM RO ER LUBO ICH, City Attomey R\LegalV.egal�Files\Current Achve Files\Gold Mountai everege Agreemen[ FINAL doc � Food & BeverageAgreement Page15of16 , � EXHIBIT A Food and BeveraQe Moveable Furmshmes Meat shcer Soup wazmer 1 Sernce baz Silverwaze service for 400 6 dozen Salt & pepper Glassware for 300 (coffee, water, champagne, wme) 2 dozen Coffee thermoses Bus tubs Table skutmg 13 4 dozen Plashc pitchers 2 Desks P O S system 3 Coat racks Dish racks Sheet pans Pot & pans Hotel pans Misc small tools Qmsmart, Burr mixer, spats tongs � Menu covers 8 wood lughchatrs Box hght (pmxuna) Portable Screen 8'x 10' Sernngplatters lO lg - Chafers (11) Banquet Plates 300 B&B plates 450 Baskets misc 15 Vacuums 3 Copier E studio 45 Fax mactune Office�et v40 2 Computers wrth momtors and pnnters 6 O�ce desks _ Butane burners 2 Safes Speed racks 3 P A system & speakers Cordless microphone system Pressure washer Rug shampooer Bus tray 20 � Dish mac}une Food & Beverage Agreement Page 16 of 16 Contract Number: 4654 Vendor: SCOTT ALEXANDER'S GOLF SHOP INC Subject: Food & Beverage Department: Parks File Class: LEG 12-1 Begin Date: O1/O1/2007 End Date: 12/31/2010 Review Date: 09/O1/2010 Vault Date: Comments: Amendment 12/09 i I AMENDMENT TO FOOD AND BEVERAGE AGREEMENT WHEREAS, on September 13, 2007, the City of Bremerton, a municipal corporation of the State of Washington, "City" and Scott Alexander's Golf Shop, Inc., a Washington corporation, "Contractor" entered into and Agreement to provide professional restaurant and other food and beverage management and services at the City of Bremerton Gold Mountain Golf Club; and WHEREAS, the term of the Food and Beverage Agreement commenced on January 1, 2007 and shall terminate on December 31, 2009; and WHEREAS, the parties desire to amend the Agreement to extend the term through December 31, 2010; NOW THEREFORE, for mutual consideration, City and Contractor agree as follows: 1) Section 3 of the Agreement entitled "TERM" is hereby amended to extend the termination date of the Food and Beverage Agreement to December 31, 2010. 2) Section 7 of the Agreement entitled "COMPENSATION" is hereby amended to read as follows: A. Contractor shall compensate City for use of the Premises for food and bevera�e be se��ec�-€e�services as follows: � . �-�l�@ � �. �.,.:....,*.,. . w_ ....:a *t,_ _-----�� -°--- ,.� ,.--- ..,.;n;.,,� � . . .• •• r..-_ > > • . > > > > > > • D �., .a.7: rl,«.,...'L,.,..t _+l.e +o...,, ,�.4' +L.:� ..t...,..* �—Te�eee�ge �e�--�—�t�e�, .... .,. � ..... .............. 0 � > > > • a+i. �'., a c e: e+ � ..��. ;., co,.+;,.,, � i n u t�t,.� ,.�.,,.,o 1 Com�ensation. Contractor shall pav City the sum of six percent (6%1 of revenues received from all food and beverage sales net of sales tax in excess of one million dollars �$1,000,00O.00Z 2. Final reconciliation. Final reconciliation and payment for each year will be made by January 31 S` of the following year. n�:i ,.�a...,. ,.c �..., ie9�s�-tez^at-F&��efi'. r., �t,o 0 0�< <t,e r�.,.,..,,.+,... �� �n a..�,� ,._ .,.. ...,..�.»....,. .,., ..»�., ., � EB. Restaurant Closure — For Conditions and Repair. The restaurant shall remain open unless the golf courses and related facilities are closed pursuant to Section 7(D) and (E) of the Golf Management Agreement or the Clubhouse is closed as a result of causes beyond the control, fault, or negligence of the parties. Such causes may include, without limitation, acts of God or public enemy; acts of the federal, state, or local governments; fires; floods; epidemics; volcanic eruptions; quarantine Amendment to Food and Beverage Agreement restrictions; strikes; freight embargoes; court orders; and unusually severe weather or other condition that causes all or a portion of the Golf Club facilities to be closed for extended periods of time. Should either the City or the Contractor fail to perform because of a cause described in this subsection, the City and the Contractor shall make a mutually acceptable revision in the SCOPE OF SERVICES and COMPENSATION provided for in this Contract, including termination of the Agreement if the Premises is deemed unusable by the City as a result of major damage or destruction and the City elects not to rebuild the same. In the event that City determines that it is necessary to close all or a portion of the Clubhouse due to regular maintenance, repair, capital improvements, inclement weather, or similar condition, the City shall coordinate such closing with the Contractor prior to actual closing. Contractor shall comply with the Director's decision to close all or part of the Clubhouse at no cost to the City. In the event of closure of all or a portion of the Premises as set forth in this subsection, Contractor shall not be entitled to any compensation pursuant to this section, Section 7, whether fixed fee or percentage fee, however, when feasible, the City and Contractor shall revise the SCOPE OF SERVICES and COMPENSATION as noted above for partial closure of the Premises, unless this agreement is terminated pursuant to Section 14 (F). The City shall incur no liability to Contractor for lost revenue or other additional compensation as a result of any closure of all or a portion of the Premises as set forth in this subsection. All other terms of the Agreement not specifically amended herein shall remain in full force and effect. CITY OF BREMERTON SCOTT ALEXANDER'S GOLF SHOP, INC. � ___�� ..� �����,.--�— , Mayor By: SCOTT ALEXANDER Its: DATE: �� (� DATE: By: ARYL MAT Its: DATE: (/ F/ / ATTEST• � i' , Carol Etgen, ity Clerk APPR S TO FORM: t J.–=. " _-_ ---- � R ER LUBOVICH, City Atto � R:�L,egalU.egal�Files\Current Active Files\Gold Mountain�F'ood and Beverage Agreement Amendment (2009).doc Amendment to Food and Beverage Agreement Contract Number: Vendor: Subject: Department: .File Class: Begin Date: End Date: Review Date: Vault Date: Comments: 4654 SCOTT ALEXANDER'S GOLF SHOP INC Food & Beverage Parks LEG 12-1 01/01/2007 12/31/2009 09/01/2009 FOOD AND BEVERAGE AGREEMENT THIS AGREEMENT made and entered into on the date fully executed by and between the CITY OF BREMERTON, a municipal corporation of the State of Washington, hereinafter referred to as "City," and SCOTT ALEXANDER'S GOLF SHOP, INC., a Washington Corporation, hereinafter referred to as "Contractor," to provide professional restaurant and other food and beverage management and services pursuant to this Agreement, at the City of Bremerton Gold Mountain Golf Club. WHEREAS, the City is the owner of Gold Mountain Golf Club, which ownership includes the land upon which said golf complex is located, the buildings and other improvements which are a part thereof; and WHEREAS, the Gold Mountain Golf Club consists of two 18 hole golf courses, the Olympic and the Cascade course, ("Golf Courses" or "Courses"), a driving range, and the clubhouse containing a Pro Shop, restaurant, meeting rooms and the Olympic room, ("Clubhouse") and other related facilities and structures, collectively also referred to herein as ("Golf Club") WHEREAS, the City previously entered into an agreement with Scott Alexander and Daryl Matheny, Contractor's principals ("Principals"), for food, beverage, and golf management and related services at the Gold Mountain Golf Club; including, but not limited to, food and beverage service, management of the Cascade and Olympic golf courses and driving range, and for providing Professional Golf Association ("PGA") professional golf services and lessons to the facility; and WHEREAS, the agreement between the City and Contractor for these services expired December 31, 2006 which has twice been extended by amendments to said agreement pending negotiation of a new agreement; and WHEREAS, the extensions were executed with the understanding that new terms may be negotiated for a new agreement beginning with the year 2007; and WHEREAS, the City desires to enter into a new agreement with Contractor for food and beverage services entitled "Food and Beverage Agreement" with terms effective January 1, 2007 and superseding the terms of the extended agreement; and WHEREAS, the Parties hereto have simultaneously executed a separate agreement entitled "Golf Management Agreement" relating to the management of the Cascade and Olympic golf courses and driving range and Pro Shop and for providing professional golf services and lessons to the Gold Mountain Golf Club; and WHEREAS, the Parties hereto have also simultaneously executed a document entitled "Lease Agreement" relating to the lease to the Contractor of a certain portion of the Gold Food & Beverage Agreement Page 1 of 16 Mountain Golf Club ("Lease") for operation of a Pro Shop, driving range and Contractor's private cart rental business; NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows: SECTION 1. PURPOSE AND ADMINISTRATION. A. The purpose of this Agreement is to establish a management services agreement whereby contractor will provide food and beverage management and related services at City- owned golf facilities. This Agreement is not a lease, nor does it create a leasehold interest other than similar property interest in Contractor to the City's facilities. B. Contractor will be responsible for performing all work and/or services described herein. The Contractor's performance will be monitored and reviewed by the City of Bremerton Director of Parks and Recreation, or his or her designee, (hereinafter "Director"). Contractor shall report directly to the Director. Reports and data required to be provided by the Contractor shall be delivered to the Director. Questions of the Contractor regarding interpretation of the terms, provisions and requirements of this Agreement shall be addressed to the Director for response. SECTION 2. PREMISES. The facilities of the Golf Club to be provided food and beverage services by the Contractor pursuant to this agreement include the Golf Courses and the Clubhouse and related facilities, hereinafter ("Premises"). SECTION 3. TERM. Pursuant to IRS Revenue Procedure 97-13, the term ofthis Agreement shall be three (3) years commencing on January 1, 2007 ("Commencement Date") and shall terminate on December 31, 2009, unless terminated earlier in accordance with Section 14. SECTION 4. SCOPE OF SERVICES. A. General Services. 1. The Contractor's responsibilities include providing food and beverage service on the Premises including cart service on the Golf Courses and restaurant service in the Clubhouse. Unless otherwise noted, food and beverage service includes the restaurant and all other food and beverage sales and service at the Golf Club. B. Specific Services. In providing the general services described above, Contractor shall provide not less than the following specific services: 1. Restaurant, Food and Beverage Service. a. The Contractor will be responsible, and assume all costs and expenses, for the operation, management, and supervision of all food and beverage service operations on the Premises as proposed by Contractor and approved by City, including but not limited to, restaurant, vending machines and providing catering for special events at the Golf Club. Contractor shall be responsible for the furnishing of adequate stock of food and beverage supplies at its cost and expense. Food & Beverage Agreement Page 2 of 16 b. The Contractor shall be responsible for hiring, training and managing sufficient employees to adequately staff the restaurant and lounge. Contractor shall provide high caliber quality staff properly certified and permitted to provide food and alcohol service as required by state law. c. The Contractor shall apply and prepare the application and shall assume responsibility for all costs and expenses of the application for an applicable liquor license. The Contractor shall abide by state requirements regarding use of alcohol at the Golf Club. The City shall execute any reasonable, appropriate documents as owner of the Golf Club that may be required in conjunction with such application. d. The Contractor shall be responsible for obtaining all necessary licenses and permits for the operation of a restaurant and lounge. 2. Restaurant Management. a. The Contractor shall manage the restaurant and lounge at the Clubhouse for the City. The City shall provide the furniture, fixtures and equipment ("FF&E") currently located in the Clubhouse; provided, that the Contractor is providing, and will replace as needed, the FF&E listed in Exhibit A attached hereto and by reference incorporated herein. b. The Contractor shall provide maintenance and repair services for all kitchen appliances and fixtures, restaurant furniture, all FF &E within the restaurant, Contractor owned tools and equipment, and all Contractor leased equipment. Replacement of City owned equipment shall be in the sole discretion of the City and the City shall arrange for equipment replacement in accordance with available funding. c. Contractor shall provide adequate notice and signage at all points of entry to the restaurant as well as the front entrance to the Clubhouse designating that the restaurant is open or closed for business. Contractor shall adequately staff and provide prompt service for customers to the restaurant. 3. Attend Meetings. Contractor agrees to be available to attend regular and special meetings of the Golf Complex Board, Parks and Recreation Commission and City Council, and shall be prepared to discuss issues and ideas of interest to the Contractor and City. C. Pricing of Services. 1. Food and beverage menus and prices shall be approved by the Director. SECTION 5. OTHER DUTIES AND RESPONSIBILITIES. A. Personnel. The Contractor shall provide competent personnel necessary for such operations and shall train and supervise them in their work and shall pay them for their services at the Contractor's sole cost and expense. Contractor shall supervise, direct and train staff to perform duties and meet requirements for sales and services which are, in the opinion of the City and Contractor, necessary. Contractor shall provide an on-going staff training program with emphasis on customer training. B. Credit Rating. Contractor shall maintain a good credit rating in all commercial transactions so as not to discredit the reputation or name of the City of Bremerton. Food & Beverage Agreement Page 3 of 16 C. Quarterly Review. Contractor and City shall meet on a quarterly schedule, or as otherwise as mutually agreed, to evaluate operations at the Golf Club and the performance of the parties pursuant to this agreement and to make mutually agreeable changes. SECTION 6. OPERATING POLICIES AND PROCEDURES. The Contractor will: A. Operate the restaurant pursuant to the rules and regulations established by the City Council and the Director. B. Expel unruly persons or those under the influence of intoxicants from the Premises under Contractor's control. C. Not foster nor permit any illegal activity within the restaurant under Contractor's control. D. Answer and handle all complaints and shall supervise a public relations program. In dealing with the public, Contractor will not speak toward City policies or decisions in a derogatory manner. Contractor shall explain and support city policies to staff and the golfing public. E. Not use the Premises for ancillary, revenue-producing activities or social activities, unless expressly authorized by the City. The parties acknowledge that Contractor conducts certain private business operations pursuant to the Lease executed with the City for operation of a Pro Shop, driving range and Contractor's private cart rental business and further that Contractor subcontracts lessons at the Golf Club. F. Provide service to meet public demand and shall keep the restaurant open each day that the golf courses are open for play, and at other reasonable hours as prescribed by the City, except Thanksgiving and Christmas, at Contractors option, days the Greens Superintendent closes the course due to inclement weather and except when closed as set forth in Section 7(C). . SECTION 7. COMPENSATION. A. Contractor shall be compensated for services as follows: 1. Food and Beverage Sales. a. Fixed Fee. Contractor shall be paid the annual sum of one million dollars ($1,000,000.00). The compensation shall be paid in weekly installments. Each weekly payment will be in an amount equal to the gross food and beverage revenue, net of sales tax for the week, until gross revenues, net of sales tax, reach one million dollars ($1,000,000.00). b. Percentage Fee. In addition, throughout the term of this contract, Contractor shall be paid ninety four percent (94%) of revenues received from all food and beverage sales, net of sales tax, in excess of one million dollars ($1,000,000.00) but in no event shall this percentage fee exceed the fixed fee in any given year set forth in Section 7 (A)(1)(a) above. Food & Beverage Agreement Page 4 of 16 2. Final reconciliation. Final reconciliation and payment for each year will be made by January 31 sl of the following year. B. Withholding of Payments to Contractor. In the event the Contractor is 60 days or later in payment of lease payments associated with the Lease, City may withhold and apply all monies due to Contractor from City under this Agreement to offset any such amounts due to City from Contractor under said Lease. C.. Restaurant Closure - For Conditions and Repair. The restaurant shall remain open unless the golf courses and related facilities are closed pursuant to Section 7(D) and (E) of the Golf Management Agreement or the Clubhouse is closed as a result of causes beyond the control, fault, or negligence of the parlies. Such causes may include, without limitation, acts of God or public enemy; acts of the federal, state, or local governments; fires; floods; epidemics; volcanic eruptions; quarantine restrictions; strikes; freight embargoes; court orders; and unusually severe weather or other condition that causes all or a portion of the Golf Club facilities to be closed for extended periods of time. Should either the City or the Contractor fail to perform because of a cause described in this subsection, the City and the Contractor shall make a mutually acceptable revision in the SCOPE OF SERVICES and COMPENSATION provided for in this Contract, including termination of the Agreement if the Premises is deemed unusable by the City as a result of major damage or destruction and the City elects not to rebuild the same. In the event that City determines that it is necessary to close all or a portion of the Clubhouse due to regular maintenance, repair, capital improvements, inclement weather, or similar condition, the City shall coordinate such closing with the Contractor prior to actual closing. Contractor shall comply with the Director's decision to close all or part of the Clubhouse at no cost to the City. In the event of closure of all or a portion of the Premises as set forth in this subsection, Contractor shall not be entitled to any compensation pursuant to this section, Section 7, whether fixed fee or percentage fee, however, when feasible, the City and Contractor shall revise the SCOPE OF SERVICES and COMPENSATION as noted above for partial closure of the Premises, unless this agreement is terminated pursuant to Section 14 (F). The City shall incur no liability to Contractor for lost revenue or other additional compensation as a result of any closure of all or a portion of the Premises as set forth in this subsection. SECTION 8. CITY RESPONSIBILITIES - UTILITIES. All electric power, water, sewer, gas/propane, street utility, garbage and telephone service related to this agreement shall be paid by the City. If upon review the City determines that action is needed to address excessive consumption, Contractor will promptly respond and take appropriate action to remedy the excessive consumption. Each party shall pay internet and web page costs and expenses related to their duties and responsibilities under this Agreement, unless otherwise agreed. SECTION 9. CAPITAL IMPROVEMENTS AND FIXTURES. Contractor shall not make any alterations, additions or improvements in the Gold Mountain Golf Club, including the restaurant, without first obtaining the consent of City in writing, which consent can be withheld at City's sole discretion. All alterations, additions and improvements, shall be at the sole cost Food & Beverage Agreement Page 5 of 16 and expense of Contractor, and shall remain in and be surrendered with the Clubhouse as a part thereof at the termination of this Agreement except for those improvements and fixtures supplied by the Contractor which at the time of this Agreement are identified on the attached Exhibit A. If Contractor performs work with the consent of City, as provided above, Contractor agrees to comply with all laws, ordinances, rules and regulations of the City and any other authorized public authority. Contractor further agrees that workmanship will be of a reasonable commercial quality, in color schemes in accordance with current building, standards, and free of mechanics liens. Contractor further agrees to save City free and harmless from damage, loss or expense arising out of such work. SECTION 10. COLLECTION OF FEES, FINANCIAL REPORTING, AUDITING AND TAXES. Pursuant to the Golf Club Revenue Bond resolutions, the City irrevocably pledged gross revenues from the Golf Club as security for bond repayment. Therefore, all gross revenues from any source shall first be deposited in the City's bank account and disbursed pursuant to this Agreement. A. Point of Sale System. City shall be responsible for purchasing, setting up and maintaining a point of sale system through which all transactions at the Golf Club will be processed. 1. City's Responsibilities. The City shall provide a cashiering system for use by the Contractor. City shall provide initial training on the operations of the cashiering system. All subsequent training of Contractor's staff shall be the responsibility of the Contractor. The City shall also be responsible for maintenance of network, wiring, software, and equipment. The City will provide repair parts as needed for equipment. 2. Contractor's Responsibilities. Contractor shall be responsible for any additional hardware, user licenses, and software that Contractor chooses to install. The Contractor shall also be responsible for operating supplies such as receipt paper, toner, and labels. Contractor shall provide additional formal training for Contractor's employees after initial training sessions have been performed by the City. New cashier employees and office managers must have suitable knowledge of the Golf cashiering system in order to perform their duties in an efficient and accurate manner. This training may be provided by Contractor personnel. 3. Modifications. Any other changes, additions, or modifications applicable to the City owned cashiering system would need mutual agreement as to payment responsibility. B. Receipting. Contractor and/or subcontractor shall collect for, and on behalf of, the City all gross revenue, including but not limited to food and beverage sales, non-sufficient fund check return fees, and all other fees at the Golf Club in strict accordance with the schedule of fees established by the City, unless other instructions are given in writing to the Contractor. Netting of transactions is prohibited. All revenue collected from transactions under this agreement must be processed through the Point of Sale System and deposited as provided in subsection lO(C). All food service gross revenue, including from tournaments, group functions and special package offerings, must be recorded, collected, and deposited in a manner which will dispense a dated receipt to be given to each customer. Food & Beverage Agreement Page 6 of 16 C. Deposits. All deposits must be prepared in a timely manner defined as Yz hour ahead of scheduled pick-up and composition of deposit shall remain intact and a clear audit trail maintained. The City will provide and pay for courier service. Any delays causing additional "premise charges" will be paid by Contractor. All deposits will be made into a single account established for the Golf Club. Settlements and appropriate disbursements will be made from this account. Contractor shall be responsible for any loss or theft of City funds while the same are in its possession or control. Contractor shall provide City with a fidelity bond and a performance bond as required in this Agreement. Contractor and any subcontractor shall comply with accounting procedures as may be required by the City to comply with state laws, regulations and audit review requirements. D. Reports. Contractor shall provide to the City daily reports of food and beverage sales activity and receipts in a format to be provided by the Director and Finance Officer, and shall structure their accounting system in a method satisfactory and acceptable to the City. The reports will be forwarded to the Director and must be received by the 2nd business day following the day of activity, excluding Fridays, Saturdays and Sundays which will be due on Tuesdays. The reports must agree with the corresponding deposit for the day. In addition, the Contractor shall submit a copy of its previous year's operating statement by March 31st to demonstrate Contractor's financial ability to maintain operations under this Agreement. E. Audits. All revenue and fees collected at the Golf Club are City revenues and subject to audit by the State Auditor, City Internal Auditor, or City hired Certified Public Accountants. Contractor shall permit the City, from time to time as the City deems necessary, through its designated representatives, to inspect and audit in Bremerton, Washington, at any reasonable time, all pertinent books and records of Contractor and any other person or entity that has performed work in connection with or related to Contractor's services under this Agreement to verify the accuracy of accounting records and shall supply the City with, or shall permit the City to make a copy of any books and records and any portion thereof, upon the City's request. Contractor shall ensure that such inspection, audit and copying right of the City is a condition of any contract, agreement or other arrangement under which any other person or entity is permitted to perform work in connection with or related to Contractor's services under this Agreement. The Contractor shall take immediate corrective action on all prior, current or future internal control weaknesses as directed by the City. F. Taxes. Pursuant to the City's bond resolutions on the Golf Club facilities, the Contractor will remit to the City all gross revenues collected. Sales tax from Contractor's activities remitted to the City will be held by the City and will be returned to the Contractor weekly or as otherwise agreed. City shall retain and remit sales taxes on revenues from food and beverage sales. As an independent contractor, the Contractor acknowledges that it is responsible for payment of any local, state, state business and occupation tax, or federal taxes or fees with respect to the Contractor's business, including sales tax, for its activities. The Contractor shall pay any and all applicable taxes when due. G. Credit Card Costs and Fees. Contractor shall be responsible for all credit card costs and related fees incurred for food and beverage service pursuant to this agreement. Food & Beverage Agreement Page 7 of 16 SECTION 11. MAINTENANCE OF RECORDS. The Contractor shall keep and maintain on a current basis all books and records, including the operating accounts, to support its management and operations of the Premises under this Agreement. The City or its authorized representative shall have the authority to inspect, audit, and copy, upon reasonable notice and from time to time, any records of the Contractor regarding its billings, payments or work under this Agreement. Contractor shall retain these records for inspection, audit, and copying for at least three (3) years from the date of completion or termination of this Agreement, or as otherwise required by the Washington Secretary of State General Records Retention Schedule for all Local Government Agencies in Washington State. Contractor shall, at all times, provide the City with all records for the prior three (3) years that relate to the financial matters of the facilities managed by Contractor under this Agreement. SECTION 12. AUDIT OF PAYMENTS. The City, either directly or through a designated representative, may audit the records of the Contractor at any time during the three (3) year period established by Section 11, MAINTENANCE OF RECORDS. If an audit discloses that payments to the Contractor under Section 7, COMPENSATION, were in excess of the amount to which the Contractor was entitled, or that the payments to the City were less than the amount to which the City was entitled, then Contractor shall repay the amount of the excess or deficiency to the City. If an audit discloses that payments to the City under Section 7, COMPENSATION, were in excess of the amount to which the City was entitled, or that payments to the Contractor were less than the amount to which the Contractor was entitled, then the City shall repay the amount of the excess or deficiency to the Contractor. SECTION 13. ASSIGNMENT. Contractor shall not either voluntarily or by operation of law assign, transfer, mortgage, pledge, hypothecate, or encumber this contract or any interest therein and shall not subcontract the obligations under this Agreement, or any part thereof, or allow any person (employees, agents, servants, and invitees of Contractor excepted) to use the Golf Club Facilities, or any portion thereof, without the prior written consent of the City. Any such assignment, subcontracting or use without compliance with the terms of this paragraph shall be void and shall constitute a default under the terms of this Contract. If Contractor is a corporation, any transfer of this Contract from Contractor by merger, consolidation, or liquidation, or any change in the ownership or power to vote in a majority of the outstanding voting stock of Contractor shall constitute an assignment for purposes of this paragraph. Any consent to one assignment, subcontracting, or use by any other person shall not be deemed to be a consent to any subsequent assignment, subcontracting, or use by another person. Consent to any such assignment, subcontracting or use shall in no way relieve Contractor of any liability under this Agreement. Assignment by Contractor to a financial institution holding a security interest in this Agreement shall not be considered to be a violation of the consent requirements of this Agreement. Consent for any subsequent assignments by said financial institution will not be unreasonably withheld; however, any assignee must have experience and be knowledgeable in golf and food and beverage operations. SECTION 14. TERMINATION. This Contract will terminate upon the happening of any of the following events: A. Upon its normal termination if not renewed. Food & Beverage Agreement Page 8 of 16 B. Upon termination of the Lease and/or Golf Management Agreement. C. Upon the death of both of Contractor's Principals. D. By mutual written agreement. E. Breach of this Agreement as set forth in Section 15 below. F. Major damage or destruction of the golf Club property, structures or equipment that is the subject of this Agreement, when the City decides not to rebuild, and that damage or destruction will prevent Contractor from substantially performing their obligation under this Agreement. SECTION 15. BREACH. A. In the event that either party claims that the other is in a substantial breach of any of the provisions of this Contract, notice of the breach shall be submitted to the party alleged to be in breach and the party in breach shall have thirty (30) days from receipt of the notice within which to correct any activity or conduct claimed by the other to have constituted a substantial breach of this Contract. The notice shall identify the nature of the breach and the contract provisions violated. B. In the event that the party in breach shall fail to correct the activity claimed to constitute a substantial breach of this Contract within thirty days of receipt of the notice of breach, the party claiming breach may: 1. Issue a notice oftermination; and/or 2. Seek judicial remedy or specific performance; and/or 3. Pursue any other remedy available at law or equity. C. The Contractor is subject to immediate termination upon written notice by City if: 1. Contractor violates any fiduciary duty to the City by misappropriating or not properly accounting for or mishandling City funds as determined by the City or Washington State Auditor; or 2. Contractor vacates or abandons the Golf Club facilities under Contractor's responsibility. D. Upon receipt of notice of termination by Contractor, which is issued by the City, the City shall have the right to: 1. Enter and take possession of the facilities; and/or 2. Bring suit for and collect all fees and portions of gross revenue or any other monies required to be paid to the City which shall have accrued to the time of termination of the Contractor's rights. E. Upon written notice of termination by the City, Contractor will have thirty (30) days to vacate the Premises unless the City elects to take immediate possession as set forth in Food & Beverage Agreement Page 9 of 16 paragraph D above. Termination shall be affected by serving a Notice of Termination by certified mail (return receipt requested) or by personal delivery upon the Contractor setting forth the manner in which the Contractor is in default. F. Neither the City nor the Contractor shall have breached this Contract by reason of the closing of all or a portion of the golf course facilities as set forth in Section 7(C)). G. Examples of a breach by the Contractor which warrants termination, if not cured, shall include but not be limited to: 1. Misappropriation or mishandling of City funds. 2. Contractor makes any general assignment or general arrangement for the benefit of creditors or the filing by or against Contractor of a petition to have Contractor adjudicated as bankrupt, or a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Contractor, the same is dismissed within sixty (60) days or the appointment of a trustee or a receiver to take possession of substantially all of Contractor's assets located at the Premises or of Contractor's interest in this Agreement, where possession is not restored to Contractor within thirty (30) days or the attachment, execution, or other judicial seizure of substantially all of Contractor's assets located at the Premises or of Contractor's interest in this Agreement where such seizure is not discharged within thirty (30) days. 3. Contractor assigns all or part of its interest in this Agreement without prior written consent of the City pursuant to Section 13. 4. Nonpayment of outstanding current liabilities within ninety (90) days and failure to pay Federal, State, and local taxes and license fees when due. 5. Continuing inattention or neglect of duties. 6. Conviction of a felony or conviction of a non- felony crime of dishonesty, theft or deceit of either of the Principals. SECTION 16. PURCHASE OF CONTRACTORS MERCHANDISE. In the event the City takes over management of the Golf Club facilities, after expiration of this Agreement or earlier termination by the City, Contractor reserves the right, if it so elects at its discretion, to have the City purchase the Contractor's food and beverage merchandise and moveable furnishings identified in Exhibit A at Contractor's cost less depreciation mutually agreed upon. If there is no agreement, this amount shall be established by a mutually agreed upon independent appraiser. The City shall make payment within 90 days of expiration or termination, less any monies owing to the City under the terms of this Agreement, the Golf Management Agreement or under the terms of the Lease. The City may, at its discretion, replace any of the items in Exhibit A, in which case, the replaced items will belong to the City and not be subject to purchase by the City as provided herein. SECTION 17. INDEPENDENT CONTRACTOR. A. The Contractor is engaged as an independent contractor and will be responsible for any federal, state, and local taxes and fees applicable to payments hereunder. Food & Beverage Agreement Page 10 of 16 B. The Contractor, its subcontractors, and their employees, are not employees of the City and are not eligible for any benefits through the City, including without limitation federal social security, health benefits, workers' compensation, unemployment compensation, and retirement benefits. C. The parties agree and acknowledge that the Contractor is an independent contractor and not the agent or employee of the City of Bremerton, and that no liability shall attach to the City as a result of the acts or omissions of the Contractor, its agents or employees. . D. The Contractor shall be responsible for withholding and paying all payroll taxes for any person hired by them to perform the duties they are required to perform under the terms of this Agreement. They are also responsible for all taxes owed to any governmental agency as a result of the monies paid to them under the terms of this Agreement. SECTION 18. INDEMNIFICATION, INSURANCE, BOND. A. Indemnification. 1. Contractor agrees to defend, indemnify and save harmless the City, its appointed and elected officers, employees and volunteers, from and against any and all liability, loss, cost, damage and expenses, including costs and attorney fees in defense thereof because of actions, claims or lawsuits for damages resulting from personal or bodily injury, including death at any time resulting there from, sustained or alleged to have been sustained by any person or persons and on account of damage to property, arising or alleged to have arisen directly or indirectly out of or in consequence of or the performance of this Agreement, whether such injuries to persons or damage to property is due to the willful or negligent acts or omissions of Contractor, their subcontractors or agents. This provision shall be inapplicable to the extent the City is judicially found solely negligent for such damage or injury. 2. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event ofliability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. B. Insurance Requirements. 1. The Contractor shall procure and maintain for the duration of this Agreement, insurance against claims for injuries to persons or damage to property which may arise from, or in connection with, the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. 2. The Contractor shall provide a Certificate of Insurance evidencing: a. Automobile Liability Insurance with no less than $1,000,000 combined single limit per accident for bodily injury and property damage; and b. Commercial General Liability Insurance written on an occurrence bases with limits no less than $1,000,000 combined single limit per occurrence and $2,000,000 aggregate for personal injury, bodily injury, and property damage. Coverage shall include but not be limited to: blanket contractual; products/completed operations; broad form property damage; liquor liability, and employer's liability. Food & Beverage Agreement Page 11 of 16 3. Any payment of deductible or self insured retention shall be the sole. responsibility of the Contractor. 4. The City, including its officials, employees, and volunteers, shall be named as an additional insured on the insurance policy, with respect to work performed by, or on behalf of, the Contractor and a copy of the endorsement naming the City as additional insured, approved by the City's Risk Manager, shall be attached to the Certificate afInsurance. 5. The Contractor's insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 6. The Contractor's insurance shall be the primary and non-contributing insurance with respect to the City's insurance and the City shall be given thirty (30) days prior written notice of any cancellation, suspension or material change in coverage. 7. Acceptability of Insurers. Insurance is to be placed with an insurer with a Bests' rating of no less than A:XIII, or with an insurer acceptable to the City. 8. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein. C. Bond. The Contractor shall continuously maintain at its expense an employee dishonesty bond covering collection of fees on the Premises for the benefit of the City. The bond shall be in an amount not less than SEVENTY-FIVE THOUSAND AND NO/lOO DOLLARS ($75,000.00). The Contractor must additionally provide broad form money and securities coverage both inside and outside the Premises in an amount not less than FIVE THOUSAND AND NOIlOO DOLLARS ($5,000.00). D. Proof of Insurance. Proof of the above requirements must be provided to the City upon execution of this Agreement. The policies required herein shall provide not less than thirty (30) days prior written notice to the City of any cancellation, expiration, modification, or reduction in coverage or liability limits. SECTION 19. SUBCONTRACTING. The Contractor shall not subcontract its work under this Agreement, in whole or in part, without the written approval of the City. The City reserves the right to review and approve any subcontracts prior to execution to ensure compliance with the provisions of this Agreement. The Contractor shall require any approved subcontractor to agree, as to the portion subcontracted, to comply with all terms and conditions as specified in this Agreement. Notwithstanding City approval of a subcontractor, the Contractor shall remain obligated for full performance hereunder, and the City shall incur no obligation other than its obligations to the Contractor hereunder. Any subcontracts approved by the City shall be subject to and shall not extend any rights granted beyond those set forth in this Agreement to Contractor. Contractor agrees that if subcontractors are employed in the performance of this Agreement, Contractor and its subcontractors are subject to the requirements of the State of Washington, Workers' Compensation Laws. SECTION 20. CONDITION OF PREMISES. The Contractor has inspected and examined the Premises and all facilities and fixtures thereon and accepts the same in its present condition. The Contractor shall not make any alterations, changes, or additions to any fixtures or equipment Food & Beverage Agreement Page 12 of 16 owned by the City without the written consent of the Director. The Contractor shall not commit, permit, or allow any nuisance, waste, or injury in, upon, or to the golf course, or to permit the use of the golf course for any illegal or immoral purpose. SECTION 21. NOTICE. Any notice provided for under this Agreement shall be sufficient ifin writing and delivered personally to the following addressee or deposited in the United States Mail, postage prepaid, certified mail, return receipt requested, addressed as follows, or to such other address as the receiving party hereafter shall specify in writing: City: Director of Parks and Recreation City of Bremerton 345 6th Street, Suite 600 Bremerton, Washington 98337 Contractor: SECTION 22. PAYMENTS TO VENDORS AND SUBCONTRACTORS. The Contractor shall pay timely all suppliers, lessors, and contractors providing services, materials or equipment for carrying out its obligations under this Agreement. The Contractor shall not take or fail to take any action in a manner that causes the City or any materials that the Contractor provides hereunder to be subject to any claim or lien of any person without the City's prior written consent. SECTION 23. BUSINESS LICENSE. Contractor shall obtain a City of Bremerton business license as required by Chapter 5.02 of the Bremerton City Code prior to beginning work under this Agreement. SECTION 24. CONFIDENTIALITY OF RECORDS. The City will, to the extent allowed by law, keep all of Contractor's and subcontractor's financial cost information confidential, unless required to disclose the information as a result of the Washington Public Records Disclosure law, Ch. 42.56 RCW or by court order. SECTION 25. PRIOR CONTRACT EXTENSIONS SUPERSEDED AND TERMINATED. The prior agreement between the City and Contractor for these services had an expiration date of December 31, 2006 which has twice been extended pending negotiation of this agreement. The extensions were executed with the understanding that new terms may be negotiated for a new agreement beginning with the year 2007. Accordingly, this Agreement supersedes the terms and conditions of the fourth amendment extending the 2006 agreement executed on January 18, 2007 and the fifth amendment extending the 2006 agreement executed on or about April 2, 2007 to the extent this Agreement is inconsistent with the prior agreement and amendments and upon execution of this Agreement, said agreement and amendments shall terminate. Food & Beverage Agreement Page 13 of 16 SECTION 26. OTHER A. Costs and Attorney Fees: If, by reason of any default or breach on the part of either party in the performance of any of the provisions of this Agreement, a legal action is instituted, the losing party agrees to pay all reasonable costs and attorney fees in connection therewith. It is agreed that the venue of any legal action brought under the terms of this Agreement shall be in Kitsap County. B. Construction. This Agreement shall be construed in accordance with the laws of the State of Washington. The provisions of this Agreement have been negotiated by the parties, and when interpreting the provisions of this Agreement, there shall be no presumption of draftsmanship for or against either party. C. Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision. D. Waiver. Failure to insist upon strict compliance with any terms, covenants or conditions of this Agreement shall not be deemed a waiver of such, nor shall any waiver or relinquishment of such right or power at any time be taken to be a waiver of any other breach. The City and the Contractor shall not be deemed to have waived any breach of this Agreement by the other party except by an express waiver in writing. An express written waiver as to one breach shall not be deemed a waiver of any other breach not expressly identified, even though the other breach is of the same nature as that waived. E. Amendment. The City and the Contractor may amend this Agreement at any time only by written amendment executed by the City and the Contractor. The City and the Contractor agree that this Agreement shall be amended at any time if, in the opinion of bond counsel to the City, such amendment is necessary to preserve the tax exempt status of interest on obligations of the City issued to finance the Golf Club. F. Entire Agreement. This Agreement contains the entire agreement between the parties with regards to the subject matter set forth herein. There are no other representations with regards to the subject matter, either orally or in writing. From January 1, 2007 until execution of this agreement, this agreement supersedes the prior agreement between the City and Contractor for these services which had an expiration date of December 31, 2006 and which has twice been extended by amendments on January 18,2007 and on or about April2, 2007 pending negotiation of a new agreement. Upon and following the execution of this Agreement, this agreement will replace the prior agreement in its entirety. G. Nondiscrimination. Contractor shall not discriminate in employment or services to the public on the basis of race, color, national origin, sex, religion, age, marital status, physical, mental or sensory disability except in an employment action based on a bona fide occupational qualification. Food & Beverage Agreement Page 14 of 16 H. Liens. The Contractor agrees that it shall pay, or cause to be paid, all costs and expenses for work done and materials delivered to the Premises and shall keep the Premises free and clear of all liens for work performed thereon. I. Remedies. Rights under this Agreement are cumulative; the failure to exercise on any occasion any right shall not operate to forfeit such right on another occasion. The use of one remedy shall not be taken to exclude or waive the right to use another. J. Washington law and Forum. This Agreement shall be construed according to the law of the State of Washington. Any litigation between the City and the Contractor arising under this Agreement or out of work performed under this Agreement shall occur, if in the state courts, in the Kitsap County Court having jurisdiction thereof, and if in the federal courts, in the United States District Court for the Western District of Washington. ~B CARY BOZEMAN, Mayor SCOTT ALEXANDER'S GOLF SHOP, INC. ,L:J-~~ By: S~OTT ALEXANDER Its: \,(lES\D&".Jl DATE: 9- /~- 07 DATE: ATTEST: CkJ.~~)~~-';t J? Paula Johnston, ity Clerk '1J APPROVED AS TO FORM: Beverage Agreement - FINAL.doc Food & Beverage Agreement Page 15 of 16 EXHIBIT A Food and Beveraee Moveable Furnishines Meat slicer Soup warmer 1 Service bar Silverware service for 400 6 dozen Salt & pepper Glassware for 300 (coffee, water, champagne, wine) 2 dozen Coffee thermoses Bus tubs Table skirting 13 4 dozen Plastic pitchers 2 Desks P.O.S. system 3 Coat racks Dish racks Sheet pans Pot & pans Hotel pans Misc. small tools: Quisinart, Burr mixer, spats tongs Menu covers 8 wood highchairs Box light (proxima) Portable Screen 8'x 10' Serving platters 10 19 Chafers (11) Banquet Plates 300 B&B plates 450 Baskets misc. 15 Vacuums 3 Copier E studio 45 Fax machine Office jet v40 2 Computers with monitors and printers 6 Office desks Butane burners 2 Safes Speed racks 3 P.A. system & speakers Cordless microphone system Pressure washer Rug shampooer Bus tray 20 Dish machine Food & Beverage Agreement Page 16 of 16