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HomeMy WebLinkAbout5460 - - BREMERTON John Hanson Bremerton Historic Ships 300 Washington Beach Avenue Bremerton,WA 98337 October 25,2024 Letter of Agreement Extension of License Agreement Between City of Bremerton and Bremerton Historic Ships Dear Mr.Hanson, The Purpose of this Letter of Agreement is to acknowledge reciept of the Bremerton Historic Ship's request for a 5 year extension as available under section 2.2 of the Concessionaire agreement. This letters serves to document that the City has received request for the Option to Extend under section 2.2 of the agreement and recognizes that the new term of the agreement is through December 31,2029,but that no other condition or term of the agreement is modified. Sincerely, �rZ2�G!z Jane Melinda Monroe Contracts Administrator Enclosure: Concession Agreement between the City of Bremerton and Bremerton Historic Ships Association Cc: Kylie Finnell, City Attorney Tim Barker,Director of Parks and Recreation Legal Finance 1345 6th Street Ste 100,Bremerton,WA 98337*Phone(360)473-5306*Fax(360)473-5200 Working fir and with our residents to establish Bremerton as Puget Sound's most beautiful and livable waterfront city? Contract Number: Vendor: Subject: Department: File Class: Begin Date: End Date: Review Date: Vau1t Date: 5460 BREMERTON HISTORIC SHIPS ASSOCIATION Concession Agreement Parks LEG 12-1 1/1/2015 12/31/2024 Comments: CONCESSION AGREEMENT BETWEEN THE CITY OF BREMERTON AND BREMERTON HISTORIC SHIPS ASSOCIATION This Concession Agreement is entered into between the CITY OF BREMERTON, a Washington Municipal Corporation ("CITY") and the BREMERTON HISTORIC SHIPS ASSOCIATION, a Washington Nonprofit Corporation ("CONCESSIONAIRE") on the date fully executed below refened to hereinafter as ("Agreement"). WHEREAS, the CITY is owner of the property commonly known as the Louis Mentor Boardwalk ("Boardwalk"), and WHEREAS, CONCESSIONAIRE has constructed a building of approximately 1574 square feet to provide tourist related concession services including a gift shop on the Boardwalk, and WHEREAS, the parties desire to enter into a concession agreement to memorialize the terms of use of the Boardwalk relating to the gift shop building, and NOW, THEREFORE, the parties agree as follows: ARTICLE 1. CONCESSION 1.1 Concession of Pa�emises. 1.1.1 Premises Described. CITY hereby grants a surface and use concession to CONCESSIONAIRE of approximately 3,976 square feet of surface area located on the Boardwalk (said surface area hereinafter referred to as "Concession Area"). This concession is granted for the maintenance and operation of a permanent structure of approximately 1574 square feet, including rooflines, ("Gift Shop") as well as for related fixtures and appurtenances, including the gang plank for access to USS Turner Joy, for the purpose of providing tourist related concession services including a gift shop related to the USS Turner Joy (hereinafter referred to as "Improvements"). The Concession Area and Improvements (collectively referred to as "Premises") are further described in Exhibit A, attached hereto and incorporated by this reference. Securing areas adjacent to the permanent structure with fencing or other means may be performed upon approval of the CITY pursuant to Article 4.1.3 below. Use of areas adjacent to the permanent structure may be allowed only upon approval of the CITY at the CITY's sole discretion. The common address of the Premises is 300 Washington Beach Bremerton WA, 98337. 1.1.2 Interest Defined. lt is understood and agreed that Concession Area is not leased to the CONCESSIONAIRE, and that CONCESSIONAIRE is a licensee only. CONCESSIONAIRE'S interest in the Premises does not include a leasehold or an ownership interest in the Boardwalk or a leasehold or fee interest in or ownership of real property upon Bremerton Historic Ships Association — Concession Agreement which the Premises are located. CONCESSIONAIRE's interest in this Agreement is subject to the CITY's right to maintain the Boardwalk in the tidelands upon which it is located. Should the CITY lose its right to maintain the Boardwalk in the tidelands, then this Agreement shall automatically terminate. The parties agree that any and all current or future development and construction of Improvements on the Concession Area are owned by CONCESSIONAIRE subject to the CITY's right, title and interest at the expiration or termination of this Agreement pursuant to Article 2.4. 1.1.3 Right of Entry by CONCESSIONAIRE. In addition to the Concession Area described above, the CITY grants CONCESSIONAIRE a right of entry for ingress and egress to and from the public right-of-way (Second Avenue) over and upon the Boardwalk to access the Premises. CONCESSIONAIRE's use of the rights of entry granted herein shall not be used in a manner inconsistent with or interfere with the CITY's use of the property. CONCESSIONAIRE shall not install any structures or other improvements on the rights of entry without the CITY's prior written approval. Such approval shall be at the CITY's sole discretion. The rights of entry shall terminate upon the expiration or termination of this Agreement. 1.2 Possession, Quiet Enjoyment & Covenants. Except as noted herein and as provided in Article 3.1.1 and Article 4 herein, the CONCESSIONAIRE shall be entitled to exclusive possession of the Premises. CONCESSIONAIRE shall peaceably and quietly have, hold, and enjoy the Premises at all times during the full term of this Agreement. The Boardwalk being a public access area, CONCESSIONAIRE shall have non-exclusive possession and use to that portion of the Boardwalk area of the Concession Area outside the Gift Shop as provided in Article 4.1.3. ARTICLE 2. TERM OF AGREEMENT 2.1 Term. The term of this Agreement shall be ten (10) years, commencing January 1, 2015, the Effective Date of this Agreement and ending December 31, 2024, unless terminated sooner under the terms of this Concession. 2.2 Option to Extend. CONCESSIONAIRE shall have the option of extending this concession for up to two (2) additional five (5) year terms upon delivering written notice to the CITY sixty (60) days prior to the expiration of the term. 2.3 Right to Terminate Early. If CONCESSIONAIRE exercises its option to extend the concession under Article 2.2, the parties shall have the following additional rights under this agreement during the extended term. Either party shall have the right to terminate the concession at any time during the concession option term upon giving the other party one (1) year prior written notice of termination. This concession may also be terminated pursuant to Article 5. 2.4 Improvements - Expiration or Termination of Agreement. Unless otherwise mutually agreed to by the Parties, upon the expiration of the term(s) of this Agreement or upon the termination of this Agreement, other than as a result of condemnation proceedings, the then 2 Bremerton Historic Ships Association — Concession Agreement existing Improvements on the Concession Area will become the property of and owned by the CITY and the CITY shall have all right, title and interest in the same. ARTICLE 3. CONSIDERATION 3.1. Consideration for Concession. 3.1.1 Consideration. As consideration for the ground and use concession granted by the CITY to the CONCESSIONAIRE by Article 1 herein, the CONCESSIONAIRE shall maintain and operate the USS Turner Joy and the Premises as a tourist facility open to the public at reasonable times and to maintain meeting rooms on a reservation basis for groups, organizations, and businesses. 3.1.2 Leasehold Excise Tax. Pursuant to RC W 82.29A.020(1) and RC W 84.36.060(1)(a), this concession does not fall within the definition of a leasehold interest for the purpose of a leasehold tax and therefore is not subject to a leasehold tax. ARTICLE 4. USE & OPERATION OF PREMISES 4.1 Use of Premises. 4.1.1 Gift Shop. The CONCESSIONAIRE will use and occupy the Premises throughout the full term of this Agreement for the purpose of providing tourist related concession services including a gift shop related to the USS Turner Joy. 4.1.2 Security and Nuisance During Use. The CONCESSIONAIRE shall take reasonable precautions in securing the Premises during the full term of this Agreement. The CONCESSIONAIRE shall use the Premises for no unlawful purposes and shall not use or occupy the Premises in any manner, which would constitute a public nuisance or violate State or CITY laws. 4.1.3 Security Gate and Public Access. CONCESSIONAIRE may install a fence and gate or similar structure on the Boardwalk at or near the entrance of the Concession Area. The design, location and method of installation shall require the CITY's prior approval. Recognizing that the Boardwalk is a public access area, the gate shall be open during normal business hours, except holidays and other days, or portions thereof, as approved by the CITY, to allow full general public access on the Boardwalk area of the Concession Area outside the Gift Shop, both inside and outside the gated area. 4.1.4 Use by the CITY. The CITY shall have the right to use part of the Concession Area outside of the area of the Gift Shop for public events such as the Blackberry Festival and other public purposes to the extent such use does not significantly interfere with the CONCESSIONAIRE's use of the Premises. 4.2 Entry by CITY. CITY may enter the Premises (excepting the CONCESSIONAIRE's building) at all times to inspect and perform structural work on the boardwalk as required Bremerton Historic Ships Association — Concession Agreement pursuant to Section 4.4.1 below, perform maintenance of the utilities located thereon, and to restrict access as necessary to perform this work; provide other services required hereunder; and post notices of CONCESSIONAIRE's noncompliance with the provisions of this concession, all without being deemed a constructive eviction. Any person or persons who may have an interest in the purpose of CITY's visit may accompany the CITY. CITY has the right to use any and all means that CITY deems proper to open doors and gates in an emergency in order to obtain entry to the Premises. Except in the case of an emergency, if the CITY deems it necessary to enter the CONCESSIONAIRE's building, the CITY shall give the CONCESSIONAIRE at least twenty- four (24) hour notice of such entry and the CITY further agrees that such entry will be at such time as is mutually a�neeable to the Parties. 4.3 Health Inspections. CONCESSIONAIRE shall not knowingly commit or willfully permit to be committed any act or thing contrary to the rules and regulations prescribed by the local board of health, or which shall be contrary to the laws, rules or regulations of any federal, state or municipal authority. CONCESSIONAIRE shall allow the Bremerton-Kitsap County Health Department to make regular and ordinary inspections of the Premises as said health department may deem proper. 4.4 Mainten�nce, Repair, & Improvements 4.4.1 Maintenance. CONCESSIONAIRE shall, at its sole cost and expense, clean and maintain the Premises, and make repairs, restorations, and replacements to the Premises, including without limitation the heating, ventilating, air conditioning, mechanical, electrical, and plumbing systems, structural roof, walls, and foundations, roof coverings, sprinkling and irrigation systems, playing surfaces and the fixtures, and appurtenances to the Premises as and when needed to preserve them in "first class" condition and repair (less normal wear from use) throughout the full term. CONCESSIONAIRE shall paint the exterior of the buildings (except the metal) with such frequency as may be required to maintain their good, clean appearance. All such repairs, restorations, and replacements will be in quality and workmanship at least equal to the original work or installations. If CONCESSIONAIRE fails to make such repairs, restorations, or replacements, CITY may, but is not required to, enter the Premises and make them at the expense of CONCESSIONAIRE and such expense will be paid by CONCESSIONAIRE within fifteen (l 5) days after delivery of a statement for such expense. Nothing in Article 4.4 of this Agreement or its related subsections shall be construed to obligate the CONCESSIONAIRE to maintain that portion of the premises identified as the Boardwalk except as provided herein. CONCESSIONAIRE's obligations as it relates to that portion of the Premises identified as the Boardwalk shall be limited to cleaning the surface of the Boardwalk and maintenance of CONCESSIONAIRE's improvements situated thereon. The CITY shall remain obligated to maintain the overall integrity of the Boardwalk including any and all major structural repairs. 4.4.2 Surface Area Maintenance. At its sole cost and expense, CONCESSIONAIRE shall maintain any walkway or other public areas on the Premises in good and presentable condition during the full term of this Agreement, shall be responsible for correcting any unsafe conditions caused by the CONCESSIONAIRE, and shall be responsible for the removal of ice and snow from the walkways and other public areas on the Boardwalk situated within the Concession Area. 4 Bremerton Historic Ships Association — Concession Agreement 4.4.3 Janatorial Services. At its sole cost and expense, CONCESSIONAIRE shall keep the Premises clean, and shall provide sufficient janitorial services to maintain a tidy appearance on and about the Premises. 4.4.4 Repair of Damage. In the event any damage or injury shall occur to the Premises of any kind or nature whatsoever, CONCESSIONAIRE shall promptly cause said damage or injury to be fully repaired at CONCESSIONAIRE's own cost and expense. In the event CONCESSIONAIRE fails to accomplish such repairs within fifteen (15) days of receipt of written notice by the CITY, then in that event CITY may, but is not required to, enter the Premises and accomplish such repairs and bill CONCESSIONAIRE who will pay the bill within fifteen (l 5) days after delivery of a statement for such expense. 4.4.5 I�provements. The CONCESSIONAIRE shall be solely responsible for providing adequate funding for any alterations or improvements as provided in this Agreement and such alterations or improvements shall be made without cost to the CITY. 4.4.6 Alterations of Premises after Construction. CONCESSIONAIRE shall not make any material alteration to that portion of the Premises identified as the Boardwalk, or to any part of the Premises that would have a structural impact to or the use of the Boardwalk, without the CITY's prior written consent. 4.5 Signs. CONCESSIONAIRE may place and maintain signs upon the Premises in accordance with applicable sign and zoning codes of the CITY. 4.6 Utilities. 4.6.1 Utility Services aad Expense. The CONCESSIONAIRE will pay for all water, gas, garbage, sewage, electricity, telephone, and other utilities and communications services used by CONCESSIONAIRE on the Premises, whether or not such services are billed directly to CONCESSIONAIRE. CONCESSIONAIRE will also procure, or cause to be procured, without cost to the CITY, any and all necessary permits, licenses, or other authorizations required for the lawful and proper installation and maintenance upon the Premises of utility appurtenances and appliances for use in supplying such utilities and services to and upon the Premises. The CITY, upon request of CONCESSIONAIRE, and at the sole expense and liability of the CONCESSIONAIRE, will join with CONCESSIONAIRE in any application required for obtaining or continuing any such services, provided that such services do not violate any other applicable provision of this Agreement. The CITY shall not be held liable for any injury, loss, or damage caused by or resulting from any interruption or failure of utility services due to any cause whatsoever, except the CITY's sole negligence. CONCESSIONAIRE shall not be entitled to any offset, reduction, or return of consideration as a result of any interruption or failure of services. 4.6Z Trash & Garbage. The CONCESSIONAIRE shall place all trash and garbage into such areas and containers as are designed and intended to accommodate the trash and garbage generated within or on the Premises. The CONCESSIONAIRE shall not allow trash and/or garbage to accumulate such that a nuisance or health hazazd results. Bremerton Historic Ships Association — Concession Agreement 4.7 Hazardous Substances. 4.7.1 Definition. As used herein, the term "Hazardous Substance" means any hazardous, toxic, or dangerous substance, waste, or material, which is or becomes regulated under any federal, state, or local statute, ordinance, rule, regulation, or other law now or hereafter in affect pertaining to environmental protection, contamination, or cleanup. 4.7.2 Information. CONCESSIONAIRE shall keep upon the Premises, in a location accessible to CITY, on request during normal business hours, copies of all reports regarding hazardous or toxic materials in the Premises that CONCESSIONAIRE has provided to any governmental agency in the previous quarter. CONCESSIONAIRE shall, upon request and at CONCESSIONAIRE's expense, provide CITY with a copy of any such report as to which CITY request a copy. In the event of any accident, spill, or other incident involving hazardous or toxic matter that CONCESSIONAIRE is required to report to any governmental agency, CONCESSIONAIRE shall immediately report the same to the CITY and supply CITY with all information and reports with respect to the same, together with CONCESSIONAIRE's clean-up or remediation plan and schedule. If such clean-up or remediation plan is not acceptable to CITY in CITY's sole discretion, CITY may so notify CONCESSIONAIRE and, upon 48 hours prior written notice (or without notice if so required by an emergency) may enter on the Premises to conduct the clean-up or remediation and charge CONCESSIONAIRE the costs thereof. All information described herein shall be provided to CITY regardless of any claim by CONCESSIONAIRE that it is confidential or privileged, provided that the CITY shall not publish or disclose the information to any third party except as pursuant to Chapter 42.56 RCW or as otherwise required by law. 4.7.3 Indemnification. CONCESSIONAIRE agrees to hold harmless, protect, indemnify, and defend CITY from and against any damage, loss, claim, or liability, including attorney's fees and costs, resulting from CONCESSIONAIRE's use, disposal, transportation, generation, and/or sale of any Hazardous Substances. This indemnity will survive the termination of this Agreement, whether by expiration of the term or otherwise. 4.8 Risk of Loss. All personal property of any kind or description whatsoever on or within the Premises shall be at the CONCESSIONAIRE's sole risk, and CITY shall not be liable for any damage done to, or loss of, such personal property. 4.9 No Liens. It is mutually understood and agreed that the CONCESSIONAIRE shall have no authority, express or implied, to create or place or to allow to be created or placed any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind, the interest of the CITY in the Premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with CONCESSIONAIRE, including those who may furnish materials or perform labor for any construction or repairs, and each such claim shall affect and each such lien shall attach to, if at all, only the right and interest granted to CONCESSIONAIRE by this Agreement. If any such liens are filed, CITY may, without waiving its rights and remedies for breach, and without releasing CONCESSIONAIRE from its obligations hereunder, require CONCESSIONAIRE to post security in form and amount reasonably satisfactory to CITY or cause such liens to be released by any means CITY deems proper, including payment in 6 BremeMon Historic Ships Association — Concession Agreement satisfaction of the claim giving rise to the lien. CONCESSIONAIRE shall pay to CITY upon demand any sum paid by CITY to remove the liens. Further, CONCESSIONAIRE agrees that it will save and hold the CITY harmless from any and all loss, cost, or expenses based on or arising out of the asserted claims or liens against this Agreement or against the right, title, and interest of the CITY in the Premises or under the terms of this Agreement, including reasonable attorney's fees and costs incurred by CITY in removing such liens, and in enforcing this paragraph. ARTICLE 5. TERM�NATION 5.1 Failure to Perform 5.1.1 Obligation to Perform. Nothing herein shall imply any duty upon CITY to do any work, which under any provision of this concession CONCESSIONAIRE may be required to perform, and the performance thereof by CITY shall not constitute a waiver of CONCESSIONAIRE's default. 5.1.2 Payments to Other Parties. Except as otherwise expressly provided hereunder, all obligations of the CONCESSIONAIRE under this Agreement shall be performed by CONCESSIONAIRE at CONCESSIONAIRE's sole cost and expense. If CONCESSIONAIRE fails to pay any sum of money owed to any party other than CITY for which CONCESSIONAIRE is liable hereunder, or if CONCESSIONAIRE fails to perform any other act on its part to be performed hereunder, and such failure continues for ten (10) days after notice thereof by CITY, CITY may, without waiving or releasing CONCESSIONAIRE from its obligations, make any such payrnent or perform any such other act to be made or performed by CONCESSIONAIRE. CONCESSIONAIRE shall pay CITY, on demand, all sums so paid by CITY and all necessary incidental costs, together with interest thereon at the lesser of 1'/Z percent per month or the maximum rate permissible by law, from the date of such payment by CITY. 5.2 Default. This Agreement and the concession granted herein may be terminated for default as follows: 5.2.1 CITY's Default. CITY will not be in default unless CITY fails to perform an obligation within thirty (30) days after notice by CONCESSIONAIRE, which notice must specify the alleged breach; provided that if the nature of CITY's obligation is such that more than thirty (30) days are reasonably required for cure, then CITY will not be in default if CITY commences to cure within thirty (30) days of CONCESSIONAIRE's notice and thereafter diligently pursues completion and completes performance within a reasonable time. 5.2.2. CONCESSIONAIRE's Default. The occurrence of any one or more of the following events constitutes a default under this Agreement by CONCESSIONAIRE: (1) CONCESSIONAIRE shall be in default of the performance of any covenants, conditions, or provisions of this Agreement where such failure continues for a period of thirty (30) days after written notice is given by CITY provided that if the nature of CONCESSIONAIRE's obligations is such that more than thirty (30) days are reasonably required for cure, CONCESSIONAIRE will not be in default if CONCESSIONAIRE 7 Bremerton Historic Ships Association — Concession Agreement commences to cure within thirty (30) days of CITY's notice and thereafter diligently pursues completion and completes performance within a reasonable time; or (2) CONCESSIONAIRE shall be adjudged bankrupt, make a general assignment for the benefit of creditors, or take the benefit of any insolvency act, or if a permanent receiver and trustee in bankruptcy shall be appointed for CONCESSIONAIRE's estate and such appointment is not vacated within thirty (30) days; or (3) Except for regularly scheduled maintenance of the Premises or other work requiring the Premises to be closed, Premises becomes vacant or deserted for a period of thirty (30) days; or (4) If this Agreement is assigned or the Premises is concessioned by CONCESSIONAIRE other than in accordance with the terms of Article 7.4. l; or (5) CONCESSIONAIRE fails to make any payment when due, or fails to make any other payment required hereunder when due. The CITY may terminate this Agreement when such default continues for a period of thirty (30) days after written notice is given by CITY, provided that if the nature of CONCESSIONAIRE's obligations is such that more than thirty (30) days are reasonably required for cure, CONCESSIONAIRE will not be in default if CONCESSIONAIRE commences to cure within thirty (30) days of CITY's notice and thereafter diligently pursues completion and completes performance within a reasonable time. Upon a default, the CITY may terminate this Agreement and remove CONCESSIONAIRE by summary proceedings or otherwise. ' 5.2.3 Default for Other Cause. This Agreement may be immediately terminated for other cause by a party if the other party substantially fails to perform its obligations under this Agreement, through no fault of the terminating party, and the non-performing party does not commence correction of the failure of performance within thirty (30) days of the terminating party's sending notice to the non-performing party. 5.3 Remedies are Cumulative. Remedies under this Agreement are cumulative; the failure to exercise on any occasion any right shall not operate to forfeit such remedy. 5.4 Destruction of Premises & Use of Insurance Proceeds. Unless otherwise mutually agreed by the parties, in the event the Premises are destroyed or damaged by fire, earthquake, or other casualty, then CONCESSIONAIRE shall proceed to rebuild and restore the Premises, or such part thereof, as may be destroyed or damaged as aforesaid. In the event of any loss covered by the insurance policies described and required pursuant to Article 6.1.1 herein, unless this Agreement shall be terminated as provided herein, the proceeds of such insurance policies shall be used by CONCESSIONAIRE first to rebuild and restore the Premises and replace the improvements, fixtures, and equipment, which may be destroyed or damaged by such casualty. This Article shall not apply to that portion of the Premises identified as the Boardwalk. 5.5 Duties upon Termination. Upon termination of this Agreement, and unless otherwise arranged, CONCESSIONAIRE shall remove from the Premises all its personal property, goods, and effects. In the event that the CONCESSIONAIRE fails to perform this duty at termination, the CITY may cause such removal to be made and said personal property, goods, and effects to be stored, the cost and expense to be paid by the CONCESSIONAIRE. It is mutually understood Bremerton Historic Ships Association — Concession Agreement and agreed that the Boazdwalk is the property of the CITY and that all improvements to said property shall revert to the CITY at the termination of this Agreement. 5.6 Eminent Domain. The following rules shall govern the rights and duties of the parties in the event of interference with the possession of the Premises by CONCESSIONAIRE by right of eminent domain or private purchase in lieu thereof. 5.6.1 Rigbts of Termination. If the whole of the Premises shall be taken for any public or quasi-public use under any statute or by right of eminent domain, or by private purchase in lieu thereof, then this Agreement shall automatically terminate as of the date that title shall be taken. If more than twenty-five percent (25%) of the Premises shall be so taken and if the taking renders the remainder thereof unusable for the purposes for which the Premises were concessioned, then CITY and CONCESSIONAIRE shall each have the right to terminate this Agreement on thirty (30) days notice to the other given within ninety (90) days after the date of such taking. Provided, however, that if the CITY is exercising its rights of eminent domain during the initial term, a fair value shall be placed on this Agreement and the Premises with the compensation thereof awarded solely to CONCESSIONAIRE. 5.6.2 Compensation. The compensation awarded or paid upon such a total or partial taking of the Premises and/or this Agreement shall belong to and be apportioned between the CITY and CONCESSIONAIRE in accordance with their respective interests as determined by a court of competent jurisdiction. Additionally, CONCESSIONAIRE may prosecute any claim directly against the condemning authority for the costs of removal of the goodwill, stock, trade fixtures, furniture and other personal property belonging to CONCESSIONAIRE. CITY shall have no claim to condemnation proceeds that are attributable to CONCESSIONAIRE's interest in the Premises, nor shall CONCESSIONAIRE have any interest in CITY's condemnation proceeds, if any. 5.7 Interes4 Limited. CONCESSIONAIRE's interest in this Agreement is subject to the CITY's right to maintain the Boardwalk in the tidelands upon which it is located. Should the CITY lose its right to maintain the Boardwalk in the tidelands, then this Agreement shall automatically terminate. ARTICLE 6. INSURANCE AND INDEMNIFICATION 6.1 Insurance. 6.1.1 Fire & Casualty Insurance. The CONCESSIONAIRE agrees that, at all times during the full term of this Agreement and at its own expense, CONCESSIONAIRE shall, at its sole cost and expense, maintain in full force and effect adequate fire, and other casualty coverage covering the Premises and its contents, including all personal property, fixtures, improvements. Such policy shall include a replacement cost endorsement. CONCESSIONAIRE shall obtain and file with the CITY's Risk Manager a Certificate of Insurance evidencing such coverage. All such insurancc coverage shall include a ten-day cancellation notice to CONCESSIONAIRE and the CITY. Adequacy of coverage is defined as insurance sufficient to restore the Premises to its pre- 9 Bremerton Historic Ships Association — Concession Agreement casualty condition. The CONCESSIONAIRE shall not be required to insure that portion of the Premises identified as the Boardwalk. 6.1.2 LiabiGty Insurance. Prior to the commencement date of this Agreement, CONCESSIONAIRE, at its own expense shall obtain and file with the CITY's Risk Manager a Certificate of Insurance evidencing general comprehensive liability insurance coverage ("CGL") providing coverage of at least $1,000,000 per occunence for bodily injury and $500,000 per occurrence for property damage. This Certificate of Insurance shall be subject to approval by the CITY's Risk Manager as to company, terms and coverage, and said approval shall not be unreasonably withheld. The CGL shall name the CITY as an additional insured and must fully protect the CITY from any and all claims and risks and losses in connection with any activities or omissions by the CONCESSIONAIRE by virtue of this Agreement. The CGL policy shall remain in full force and effect at the CONCESSIONAIRE's sole expense for liability, for property damage or personal injury that may occur in connection with activities or omissions by the CONCESSIONAIRE, and provide coverage for the full term of this Agreement. CONCESSIONAIRE shall notify the CITY's Risk Manager immediately of any cancellation, lapse, reduction or modification of such insurance. Failure to provide such notice shall be deemed to be a breach of the terms of this Agreement. 6.1.3 Release and Waiver of Subrogation. Any policy of insurance carried by CONCESSIONAIRE pursuant to any obligation under this Agreement, shall, to the extent available, contain a waiver of subrogation clause on the part of the insurer. Such waiver shall apply to damages to adjacent property. Notwithstanding any other provision of this Agreement, neither CITY nor CONCESSIONAIRE shall be liable to the other party or to any insurance company (by subrogation or otherwise) insuring the other party for any loss or damage to any building, structure or tangible personal property of the other occurring in or about the Premises or the Boardwalk, even though such loss or damage might have been occasioned by the negligence of such party, its agents or employees, if such loss or damage is covered by insurance issued by an insurance carrier authorized or licensed by the Insurance Commissioner of the State of Washington to issue lines of insurance, benefiting the party suffering such loss or damage or was required under the terms of this Agreement to be covered by insurance by the party covering the loss. 6.2 Hold Harmless, Indemnification, & Industrial Insurance. 6.2.1 Hold Harmless & Indemnification. Each party hereto agrees to be responsible and assumes liability for its own wrongful or negligent acts or omissions, or those of its officers, agents, or employees to the fullest extent required by law. Each party agrees to save, indemnify, defend, or hold the other party harmless against all liability, loss, damages, and expenses, including costs and attorney's fees, resulting from actions, claims and lawsuits arising or alleged to have arisen, in whole or in part, out of or in consequence of the acts or failures to act of the other party, its employees, its subcontractors, its agents, or its assigns, which arise in any way out of the performance of this Agreement. In the case of negligence of both the CITY and the CONCESSIONAIRE, any damages allowed shall be levied in proportion to the percentage of negligence attributable to each party, and each party shall have the right to seek contribution from the other party in proportion to the percentage of negligence attributable to the other party. 10 Bremerton Historic Ships Association — Concession Agreement Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or dama�es to property caused by or resulting from the concurrent negligence of CONCESSIONAIRE and the CITY, its officers, officials, employees, and volunteers, the CONCESSIONAIRE's liability hereunder shall be only to the extent of the CONCESSIONAIRE's negligence. 6.2.2 Industrial Insurance. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONCESSIONAIRE'S WANER OF IMMUNITY UNDER INDUSTRIAL 1NSURANCE, TITLE 51, RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. This waiver has been mutually negotiated by the parties. The provisions of this Article shall survive the expiration or termination of this Agreement. ARTICLE 7. GENERAL CONDITIONS 7.1 Relationship of Parties. 7.1.1 CONCESSIONAIRE - Independent Contractor Status. The parties intend that an independent relationship shall be created by this Agreement. Nothing contained herein shall create the relationship of principal and agent or of partnership or of joint venture between the parties hereto, and neither the method of computation of consideration nor any other provision contained herein shall be deemed to create any relationship between the parties hereto other than the relationship of CITY as granting a ground and use concession to the CONCESSIONAIRE. CONCESSIONAIRE has the experience, ability, and resources to develop and operate a gift shop and related activities and is performing independent functions and responsibilities within its field of expertise. CONCESSIONAIRE and its personnel are independent contractors and not employees of the CITY. No agent, employee, servant, or representative of the CONCESSIONAIRE shall be deemed to be an employee, agent, servant or representative of the CITY. CONCESSIONAIRE and its personnel have no authority to bind the CITY or to control the CITY's employees. As an independent contractor, CONCESSIONAIRE is responsible for its own management. The CITY's administration and enforcement of this Agreement shall not be deemed an exercise of managerial control over CONCESSIONAIRE or its personnel. 7.1.2 No Third Party Rights Created. It is mutually understood and agreed that this Agreement is solely for the benefit of the parties hereto and gives no right to any other party. 7.1.3 No Joint Venture/Partnership. It is mutually understood and agreed that no joint venture or partnership formed as a result of this Agreement. 7.2 Notices. Except as provided in Article 5 herein, any notice required or permitted hereunder must be in writing and will be effective upon the earlier of personal delivery or three (3) days after being mailed by certified mail, return receipt requested, addressed to CONCESSIONAIRE or to CITY at the address for that party designated herein. Either party may specify a different address for notice purposes by written notice to the other, except that CITY may in any event use 11 Bremerton Historic Sl:ips Association — Concession Agreement the Premises as CONCESSIONAIRE's address for notice purposes. All notices shall be delivered to the following addresses: City of Bremerton Attn: Director of Parks and Recreation 680 Lebo Boulevard Bremerton, WA 98310 Telephone: 360-473-5305 Bremerton Historic Ships Association Attn: Director 300 Washington Beach Bremerton, WA 98337 Telephone: 360-792-2457 7.3 Permits, Licenses, Taxes, & Fees. 7.3.1 Permits, Licenses, & Other pocuments. The CONCESSIONAIRE shall possess a current Bremerton Business License and shall obtain all regulatory licenses and permits, including all construction and building permits, necessary to fulfill CONCESSIONAIRE's obligations under this Agreement at CONCESSIONAIRE's sole expense. Each party agrees to execute such additional or other documents as may be required to fully implement the intent of this Agreement. 7.3.2 Taxes & Fees. As an independent contractor, the CONCESSIONAIRE shall be solely responsible for all taxes, fees and charges incurred, including but not limited to license fees, business and occupation taxes, workers' compensation and unemployment benefits, all federal, state, regional, county and local taxes and fees, including leasehold excise tax pursuant Chapter 82.29A RCW, if applicable, ad valorem taxes, taxes imposed on personal property, all other assessments for improvements or benefits which are assessed on the Premises, income taxes, property taxes, permit fees, operating fees, surcharges of any kind that apply to any and all persons, facilities, property, income, equipment, materials, supplies or activities related to the CONCESSIONAIRE's obligations under this Agreement. 7.4 Miscellaneous. 7.4.1 Successors & Assigns. The CITY and CONCESSIONAIRE each agree to be bound to the other party in respect to all covenants, agreements, and obligations contained in this contract. Neither party shall assign the contract in part or as a whole, without the written consent of the other. The CITY acknowledges that the CONCESSIONAIRE shall be authorized to sub- CONCESSION areas within the Premises to food and beverage purveyors, equipment sales, and similar supporting concessions. When requested, approval by the CITY of an assignment shall not be unreasonably withheld. In the event of an assignment, subcontracting, or delegation of duties, the CONCESSIONAIRE shall remain responsible for the full and faithful performance of this Agreement and the assignee, subcontractor, or other obligor shall also become responsible to the CITY for the satisfactory performance of the services, facilities, or equipment assumed. The CITY may condition approval upon the delivery by the assignee or other obligor of its covenant to the CITY to fully and faithfully complete the requirements or responsibility undertaken under this Agreement. Except as otherwise provided herein, all of the covenants, conditions, and provisions of this Agreement are binding upon and inure to the benefit of the parties and their respective heirs, personal representatives, successors, and assigns. 12 Bremerton Historic Ships Assuciation — Concession Agreement 7.4.2 Bankruptcy. Parties agree that if the CONCESSIONAIRE is adjudged bankrupt, either voluntarily or involuntarily, then this Agreement, at the option of the CITY, may be terminated effective on the day and at the time the bankruptcy petition is filed. 7.4.3 Co�pliance with Laws. The CONCESSIONAIRE, its officers, employees, and agents shall comply with applicable federal, state, county, and local laws, statutes, rules, regulations, and ordinances, in performing its obligations under this Agreement. Such compliance shall include abiding by all applicable federal, state and local policies to ensure equal employment opportunity based on ability and fitness to all persons regardless of race, creed, color, national origin, religion, sex, sexual orientation, physical handicaps or age. The CONCESSIONAIRE shall comply with applicable laws pertaining to employment practices and employee treatment. Conditions of the Federal Occupational Safety and Health Act of 1970 (OSHA), the Washington Industrial Safety and Health Act of 1973 (WISHA), and standards and regulations issued under these Acts must be complied with. The CONCESSIONAIRE agrees to indemnify and hold harmless the CITY from all damages assessed for the CONCESSIONAIRE's failure to comply with the Acts and Standards issued thereunder. The CONCESSIONAIRE is also responsible for meeting all pertinent local, state and federal health and environmental regulations and standards applying to any operation in the performance of this Agreement. 7.4.4 Nondiscri�►ination. Parties shall not discriminate in employment or services to the public on the basis race, color, national origin, sex, religion, age, marital status, disability, or sexual orientation, except for employment actions based on bona fide occupational qualification. 7.4.5 Choice of Law & Venue. This Agreement shall be interpreted according to the laws of the State of Washington. Any judicial action to resolve disputes arising out of this Agreement shall be brought in Kitsap County Superior Court. 7.4.6 Costs & Attorneys' Fees. In the event of litigation to enforce any of the terms or provisions herein, each party shall pay all its own costs and attorney's fees. 7.4.7 Approvals and Modification. The administration of this Agreement and any approvals required by the CITY as provided in this Agreement shall be by the Mayor or his/her designee. This Agreement may only be modified by written instrument approved by the City Council and signed by both parties. 7.4.8 Change in Law/Renegotiation. The parties agree that changes in federal, state or local laws or regulations that materially modify the terms and conditions of the Agreement and result in a detrimental change in circumstances or a material hardship for either party in performing this Agreement may be the subject of a request by a requesting party to renegotiate this Agreement or negotiate Agreement amendments and the responding party agrees to renegotiate fairly with the requesting party. 7.4.9 Force Majeure. Provided that all other requirements of this Agreement are met, any party shall not be deemed to be in default and shall not be liable for failure to perform under this Agreement if that party's performance is prevented or delayed by acts of God including landslides, lightning, forest fires, storms, floods, freezing and earthquakes, civil disturbances, 13 Bremerton Histo�ic Ships Association — Concession Agreement acts of the public enemy, wars, blockades, public riots, breakage, explosions, accident to machinery, equipment or materials, unavailability of required materials, governmental restraint or other causes, whether of the kind enumerated or otherwise, which are not reasonably within the control of that obligated party ("Force Majeure"). If as a result of a Force Majeure event, an obligated party is unable wholly or partially to meet its obligations under this Agreement, it shall give the other party promptly written notice of the Force Majeure event, describing it in reasonable detail. The obligated party's obligations under this Agreement shall be suspended, but only with respect to the particular component of obligations affected by the Force Majeure and only for the period during which the Force Majeure exists. 7.4.10 Waiver. Failure to enforce any provision of this Agreement shall not be deemed a waiver of that provision. No waiver of any right or obligation of either party hereto shall be effective unless in writing, specifying such waiver, executed by the party against whom such waiver is sought to be enforced. Waiver of any right or power arising out of this Agreement shall not be deemed waiver of any other right or power. 7.4.11 Severability. Should any part of this Agreement be found void, illegal, or unenforceable, the balance of the Agreement shall remain in full force and effect. 7.4.12 Entire Agreement. This Agreement and its attached Exhibit constitutes the entire agreement between the parties, and the parties acknowledge that there are no other agreements, written or oral, that have not been set forth in the text of this Agreement. 7.4.13 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, this Agreement has been entered into between the City of Bremerton and Bremerton Historic Ships Association on the date fully executed below. CITY OF BREMERTON By: � �-- Patty Lent, ayor BREMERTON HISTORIC SHIPS ASSOCIATION By: ' John � son, President Date �� l � �l � 3 Date �� Zo i .S� (Notary Acknowledgement on next page) 14 Bremerton Historic Ships Association — Concession Agreement STATE OF WASHINGTON COUNTY OF KITSAP ) ) ss. ) On this 1\�� day of (1r��,�� , 2015, before me personally appeared JOHN HANSON, to me known to be the President of BREMERTON HISTORIC SHIPS ASSOCIATION, a Washington non-profit corporation, that executed the within and foregoing instrument and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute and in fact executed said instrument on behalf of the corporation. Given under my hand this �\� day of � A , 20l 5. �`� `v ' •' v �"Y ���s_ • �� \ �gION Etp�R � � 6` • � �°+ TAR '' • tL �`�� � y; Z y e �nt Name �.� � �• p�g��G : Notary Public in and fo e •. . s� 9 . 15 .�� • ,�2 State of Washington residin at \ � • • � ,� •.. �OF WP�'�� My Commission expires 1�5 11'� STATE OF WASHINGTON COUNTY OF KITSAP ) ) ss. ) On this /J� � day of �C�? [� I , 2015, before me personally appeared PATTY LENT, to me known to be the Mayor of the CITY OF BREMERTON, a Washington municipal corporation, that executed the within and foregoing instrument and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on oath stated that she was authorized to execute and in fact executed said instrument on behalf of the municipal corporation. Given under my hand and official seal this ��P�:S�V� ��:v: �•'I � � �pTARy '� � � . :� PUgI\G ; . � g . �IA��•': �� i Roger A. Lubovich, � day of , 2015. � Type/Print Name Notary Public in and for the State of Washington residing at� n�/� My Commission expires g9- I$• 1 �'i ST: / � Shannon Corin, City Clerk R:\Legal\Legal\Files\Current Active Files\Bremerton liistoric Ships Association\Concession Agreemen�3 2015 - Final doc IS Bremerton Historic Ships �4ssociation — Concession Agreement Exhibit "A" Turner Joy Concession Boundary Upon the Bremerton Boardwalk Boundary description: A portion of Tax Lot#242401-2-007-2008 SEC.24,TWN 24 N, R 1 E,WM.situated in Kitsap County. A portion of the State Lease Agreement Description#22-080016.This portion is upon the north end of the Boardwalk and described as follows; The North most 54.5 feet and West boundary is offset 16.7 feet from the west edge of the Bremerton Boardwalk. Building Area = 1,574 Sq. FT.Concession Boundary Area = 3,976 Sq. Ft. N Line Bremerton Boardwalk Concession BoundaryArea Building Fence i Fence w/Gate r ' 16co" cESSIO,E10 I' i / NDARYAREA Vv CONCESSSI GIFT GIFT SHOP 0-1 0 f i Y Q B MAAE ro RINIA m j CoLu