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COMMITTEE OF THE WHOLE Packet - 4/9/2019CITY OF MUSKEGO COMMITTEE OF THE WHOLE AGENDA 04/09/2019 5:40 PM Muskego City Hall, W182 S8200 Racine Avenue CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL STATEMENT OF PUBLIC NOTICE APPROVAL OF AGENDA APPROVAL OF MINUTES March 26, 2019 NEW BUSINESS Review RFP and P3 For-Profit Use of Public Parks Memo GFOA Supporting Documents RFP Currently Used by the City RFP Fitchburg for Private For-Profit Use RFP Example For-Private Use P3 Agreement COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW ADJOURNMENT The Committee of the Whole may possibly reconvene immediately following the Common Council meeting of the same date to continue work on agenda items. NOTICE IT IS POSSIBLE THAT MEMBERS OF AND POSSIBLY A QUORUM OF MEMBERS OF OTHER GOVERNMENTAL BODIES OF THE MUNICIPALITY MAY BE IN ATTENDANCE AT THE ABOVE-STATED MEETING TO GATHER INFORMATION; NO ACTION WILL BE TAKEN BY ANY GOVERNMENTAL BODY AT THE ABOVE-STATED MEETING OTHER THAN THE GOVERNMENTAL BODY SPECIFICALLY REFERRED TO ABOVE IN THIS NOTICE. ALSO, UPON REASONABLE NOTICE, EFFORTS WILL BE MADE TO ACCOMMODATE THE NEEDS OF DISABLED INDIVIDUALS THROUGH APPROPRIATE AIDS AND SERVICES. FOR ADDITIONAL INFORMATION OR TO REQUEST THIS SERVICE, CONTACT MUSKEGO CITY HALL, (262) 679-4100. Packet Page 1 Unapproved CITY OF MUSKEGO COMMITTEE OF THE WHOLE MINUTES March 26, 2019 5:30 PM City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Chiaverotti called the meeting to order at 5:37 p.m. ROLL CALL Present: Alderpersons Wolfe, Hammel, Borgman, Kapusta, Kubacki and Madden. Also present: City Attorney Warchol and Deputy Clerk Blenski. Absent: Alderperson Engelhardt. STATEMENT OF PUBLIC NOTICE The Deputy Clerk stated the meeting was noticed in accordance with the open meeting law. APPROVAL OF MINUTES – March 12, 2019 Alderperson Madden moved to approve. Alderperson Wolfe seconded; motion carried. NEW BUSINESS Muskego Senior Taxi Mayor Chiaverotti stated the Alderpersons had several questions about the taxi service during the last budget process. The Common Council Resolution that was adopted in September of 2008 (Resolution #165-2008) indicated that the organization was to provide taxi service for the community’s senior citizens and ambulatory disabled adults. Since 2008, service has been extended to other individuals. The Mayor recommends a special Committee be established to review the specifics of the service, the individuals that need the transportation and the funding sources within Waukesha County. Alderperson Madden would like a better understanding regarding the service. Alderperson Wolfe stated the Council needs some type of feedback and needs to be more educated prior to the next budget cycle. Alderperson Kubacki agreed. The Mayor stated she would like Alderpersons Borgman and Kubacki to serve on the Committee as well as someone from the Muskego Senior Taxi Service. Alderperson Madden moved that a Committee be established to review the current Muskego Senior Taxi program and report its findings to the Common Council. Alderperson Kubacki seconded; motion carried. ADJOURNMENT Alderperson Kubacki made a motion to adjourn at 5:46 p.m. Alderperson Madden seconded; motion carried. Minutes taken and transcribed by Jill Blenski, Deputy Clerk. Page 1 of 1 March 26, 2019 Packet Page 2 MEMO Date: March 12, 2019 To: Committee of the Whole From: City Staff Background: The City was approached by an individual proposing a for-profit use of Idle Isle pavilion, bathrooms, parking and trash/recycling service. The proposed use included restaurant food and beverage service including alcohol. Committee of the Whole had a conceptual discussion on November 27, 2018 and the committee requested additional info to include examples of an RFP and P3 Agreement. Additional Info through Research and Review: Adopted Park and Conservation Plan (2017-2021) provide assessment of the current park (Idle Isle) along with a list of recommendations moving forward including the use of RFP. Government Finance Officers Association (GFOA) recommends determining services desired and defined through an RFP (food/beverage, hours, rentals, facility capacity and improvements with continued access to public facility owned and funded by tax payers) and use of a P3 Agreement for the sale or lease of assets belonging to the public. In line with the Comp Plan, the City has used an RFP for concessions at Idle Isle and the Beer Garden. Parking is limited at Idle Isle and fully utilized on Tuesday evenings (Bass fishing tournament) and Wednesday evenings (Ski Shows) and weekends which is typical for a beach park with a boat launch. For private use, parking will need to be added by the private entity. Videos from the park show the pavilion is well used by the public for picnicking. Existing 2 year contract with the Water Bugs through 2019 leasing 2 of the 3 areas. Consideration for single access point to the park, park size, lighting, noise, and public safety (Commercial entities for these matters are address through Plan Commission). Services desired and defined for RFP (food/beverage, hours, rentals, facility capacity, parking and improvements with continued access to public facility owned and funded by tax payers) would not need to go before Plan Commission. Idle Isle is the main boat launch for Little Muskego Lake. Any change to a public park or facility use should involve public input. In 2019, a new 16’ hexagon pavilion will be constructed near the fishing pier for small groups. A split rail fence will also be installed to define the parking area from the grass and a new kiosk will be installed at the launch to provide information. Pavilions and other designate areas in other City parks are currently rented out to the public. Based on the park use, the same rental opportunities will be available at Idle Isle in 5 separate areas including pavilions. Beer Garden was considered at Idle Isle. Due to limited access, parking, close proximity to homes, it was not acted on. Page 1 of 2 Memo Packet Page 3 Items to review prior to COW meeting on 3/12/19 City of Fitchburg RFP example (lessons learned below). City of Muskego concessionaire RFP. City of Muskego Local Food and Drink RFP. Example of a P3 agreement – Operations Concession Arrangement GFOA advisory of best practices for Public-Private Partnership (P3). GFOA advisory for P3 for Sale or Lease of Assets. Lessons Learned from City of Fitchburg o City of Fitchburg RFP is a great blueprint for City of Muskego due to the similarities between communities. o 1st release of RFP in 2017 there were no submittals. o 2nd release of RFP in 2018, only one response from a local vendor who runs beer gardens in the City of Madison. o Fitchburg held public information meetings to present plans to the public. The public had strong opinions/concerns allowing alcohol sales in park, additional traffic, and parking. o All park locations had multiple access points, good facilities, and good park use. o It was determined the public must not be denied use of any area of the pavilion. o No agreement has been reached or finalize. Committee discussion and consideration should involve the following: Give serious consideration to public property being used on a regular basis for a for-profit entity/business. All other local commercial entities go through Plan Commission, provide necessary parking, etc., and pay property taxes. A reduced rent as part of a P3 Agreement would be a disadvantage to tax paying businesses that met City and PC requirements. Continue use of RFP process and P3 agreement as best practice for publicly owned property (GFOA) and Comprehensive Plan. Property improvements (pavilion upgrades) become an asset/ownership of the City (GFOA). Parking needs to be addressed. (Added parking by private entity for patrons). Additional traffic in the residential area which may include more pedestrians/bicyclists on narrow streets. Alcohol sales and consumption in City Park on a regular basis. Conflicts with Beer Permits for park users. Added City staff would be necessary to monitor illegal mooring of boats and trailer stall parking. Residents and park users should be given the opportunity to provide feedback. The City and Water Bugs existing contractual agreement is in place through 2019 giving them use of 2 of the 3 pavilion areas. The third pavilion area is heavily utilized by the public. Determine services desired to enhance the experience for the park users to avoid overexposure to a park considering its size, location, use, limited parking, and neighboring homes. Page 2 of 2 Memo Packet Page 4 Page 1 of 4 GFOA Supporting Documents Packet Page 5 Page 2 of 4 GFOA Supporting Documents Packet Page 6 Page 3 of 4 GFOA Supporting Documents Packet Page 7 Page 4 of 4 GFOA Supporting Documents Packet Page 8 Request for Proposal Concession Services City of Muskego Idle Isle Park 2019 The City of Muskego is hereby requesting proposals from responsive and responsible organizations/individuals to provide concession services for a period of one year at Idle Isle Park. In order to assist interested individuals/fundraising groups in making a proposal, we have attached a list of items that should be addressed by interested parties. Miscellaneous Conditions and Instructions to Interested Vendors 1. The city will be contracting with one vendor/fundraising group to operate one Idle Isle Park concession area. 2. Proposals will be awarded based on the following: a. Minimum monthly lease payment to the city shall be $_____ (highest proposed monthly lease payment will be awarded the concessions agreement – if all other conditions are met) b. Menu of food/drink options available to park users c. Performance capabilities, as perceived by the City of Muskego d. Customer Service e. Successful Criminal History Check (of final concessionaire candidate) f. Concession stand experience, if any 3. The city expects customers to be treated with dignity and respect and expects the concession service provider to place a high priority on ensuring customer satisfaction. 4. Insurance and Indemnification Requirements: In order to protect against potential liability arising out of the activities performed hereunder, contractor shall obtain and maintain, in full force and effect, comprehensive general liability insurance with minimum limits of $1,000,000 per occurrence and $1,000,000 aggregate. Said insurance may not be cancelled, reduced or changed in any way without at least thirty (30) day written notice to the City. Failure to provide proper notice, in and of itself, shall be grounds for termination of this agreement. Contractor shall obtain Certificates of Insurance as well as Endorsements to its insurance policies as follows:  30 day notice of cancellation.  Contractor’s primary insurance.  Waiver of rights of recovery against others to us.  Naming the City as an additional insured. Contractor hereby agrees to indemnify, defend and hold harmless the City of Muskego, its elected and appointed officials, officers, employees, agents, representatives and volunteers, and each of them, from and against any and all suits, actions, legal or Page 1 of 4 RFP Currently Used by the City Packet Page 9 administrative proceedings, claims, demands, damages, liabilities, interest, attorney’s fees, costs, and expenses of whatsoever kind or nature in any manner directly or indirectly caused, occasioned, or contributed to in whole or in part or claimed to be caused, occasioned, or contributed to in whole or in part, by reason of any act, omission, fault, or negligence, whether active or passive, of Contractor or of anyone acting under its direction or control or on its behalf, even if liability is also sought to be imposed on City of Muskego, its elected and appointed officials, officers, employees, agents, representatives and volunteers. The obligation to indemnify, defend and hold harmless the City of Muskego, its elected and appointed officials, officers, employees, agents, representatives and volunteers, and each of them, shall be applicable unless liability results from the sole negligence of the City of Muskego, its elected and appointed officials, officers, employees, agents, representatives and volunteers. Contractor shall reimburse the City of Muskego, its elected and appointed officials, officers, employees, agent or authorized representatives or volunteers for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. In the event that Contractor employs other persons, firms, corporations or entities (sub- contractor) as part of the work covered by this Agreement, it shall be The Sole responsibility to require and confirm that each sub-contractor enters into and Indemnity Agreement in favor of the City of Muskego, its elected and appointed officials, officers, employees, agents, representatives and volunteers, which is identical to this Indemnity Agreement. This indemnity provision shall survive the termination or expiration of this Agreement. 5. CONSEQUENCES FOR NOT COMPLYING WITH THE SCOPE OF THE WORK: A. A substantiated case of non-compliance will be addressed to the contact person representing the contractual service by the City. B. A contractor's response deemed adequate by the City will be accepted and noted should a future situation develop. C. A contractor's response deemed inadequate by the City will result in the immediate termination of the contractual service. 6. The concessionaire will be responsible for supplying all product and labor for the concession stands, while maintaining a current City of Muskego vendor contract. The concession area to be used as part as this RFP is storage area #3 on Exhibit “A”. Page 2 of 4 RFP Currently Used by the City Packet Page 10 7. The City of Muskego reserves the right to reject any and all proposals with or without cause, to accept any and all proposals, and to waive any irregularities in any proposal. All bids are final and binding. Completed proposals may be dropped off or mailed to the address below. Proposals must be received by 4 p.m. on February 1, 2019. If you have any questions regarding this request, please contact Scott Kroeger, Public Works and Development Director, at 262-679-4145. Thank you for your interest in working with the City of Muskego. Public Works and Development Director W182 S8200 Racine Avenue Muskego, WI 53150 Page 3 of 4 RFP Currently Used by the City Packet Page 11 Responsibilities The city will provide:  The concession facility with private entrance, roll up concession door and service counter, and a Waukesha County Health Department approved sink located within Idle Isle Park shelter concessions area. The concession area is storage area #3 on Exhibit “A” approximately 157 square feet.  Electricity hook-up.  Criminal history check The concessionaire is responsible for:  Operating a turn-key concessions operation in accordance with City, State, County, and Federal business, labor, and health department regulations.  Obtaining all necessary regulatory permits and licenses to operate the concessions operation and submitting copies to the Recreation Department.  Opening on time or earlier and closing as scheduled (all weather dependent)  Emptying garbage from concessions area and garbage cans underneath picnic shelter and depositing in provided dumpster while also making sure picnic tables and floor under the shelter roof are kept clean.  Disposing of any cooking products in an approved manner.  Keeping concessions area clean  Correcting any violations noted by the health and fire inspectors in a timely manner.  Assuring that concession staff is always professional in appearance.  Any improvements wanted/needed/desired, need to be approved by the Parks & Conservation Committee and Finance Committee and paid for by the concessionaire  This is a 1-year agreement. Concessionaire is responsible for removing all equipment at the conclusion of the agreement or within 2-weeks of public business hours and for cleaning said leased space. Concessionaire is not allowed to offer concessions during the Wednesday Water Bugs ski show, unless an agreement between both the concessionaire and Water Bugs Ski Club is agreed upon by both parties.  Concessionaire will be charged monthly for any amount of electrical usage above $_____ during the months of May 1 thru Labor Day.  Concessionaire shall pay a minimum monthly lease of $_____ for a total of $______ during the 4 months of leased space, due the first of each month. Page 4 of 4 RFP Currently Used by the City Packet Page 12 A REQUEST FOR PROPOSAL (RFP) FOR: LOCAL FOOD AND DRINK CONCESSION IN SELECT CITY OF FITCHBURG PARKS Issued by: City of Fitchburg Parks, Recreation, and Urban Forestry Department Friday, March 2, 2018 For further information regarding this RFP, contact: Scott Endl Director of Parks, Recreation, and Urban Forestry (608) 270-4288 scott.endl@fitchburgwi.gov Proposals must be submitted by: 4:00 p.m. Friday, March 23, 2018 LATE PROPOSALS WILL BE REJECTED. Page 1 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 13 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks TABLE OF CONTENTS 1.0 GENERAL INFORMATION 1.1. BACKGROUND AND SUMMARY .......................................................... 1 1.2. OBJECTIVE ............................................................................................ 2 1.3 LOCATIONS ........................................................................................... 2 2.0 PROPOSAL 2.1. PROPOSAL SUBMISSION AND CONTACT INFORMATION ................ 5 2.2. PROPOSAL CONTENT .......................................................................... 6 2.3. PROPOSAL ORGANIZATION ................................................................ 7 2.4. PROPOSAL EVALUATOIN AND AWARD ............................................. 8 3.0 CONTRACT TERMS AND CONDITIONS 3.1. INSURANCE REQUIREMENTS .............................................................. 8 3.2. OWNERSHIP .......................................................................................... 8 3.2. CONFLICT OF INTEREST ...................................................................... 9 3.2. REGULATIONS ...................................................................................... 9 APPENDIX A – SAMPLE LANGUAGE – SELECTED PROPOSER(S) – REQUIRED CONTRACTUAL PROVISIONS ......................................10 Page 2 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 14 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks 1 1.0 GENERAL INFORMATION 1.1 BACKGROUND AND SUMMARY The City of Fitchburg (hereafter “City”) is a community of over 26,000 residents, sharing its northern border with the southern border of the City of Madison, a community of approximately 250,000 residents. Fitchburg is an economically and racially diverse city, containing over 22,000 acres within its municipal borders, with approximately 11,000 acres in agricultural use. The City strives for “sustainable and regenerative growth”, with the ultimate end of creating a desirable community in which to live, work, and play. Fitchburg has an integrated regional transportation network, varied housing stock, a diverse commercial/industrial base, three quality public school districts (Madison Metropolitan, Verona Area, and Oregon), and a comprehensive parks, outdoor recreation, and trail system. The City is seeking to enhance its park system by providing a variety of recreational opportunities to a diverse user profile while concurrently strengthening the local food system. In accordance with the City’s Parks, Open Space, and Recreation Plan: 2015-2020 (Adopted: May 10, 2016), the City is exploring opportunities for distribution of local food and/or drink products at select City of Fitchburg park properties. This Request for Proposals (hereafter "RFP”) calls for local food/drink entrepreneurs (hereafter “Proposer(s)”) to submit proposals to operate one (1) or more local food and/or drink concessions within select City of Fitchburg parks. The Proposer shall provide sufficient evidence that the proposed concession will provide excellent customer service, quality food/drink products substantially sourced from Wisconsin (where applicable), generate revenue in the form of commission for the City’s park system, and represent the City and its park system in a positive light. Examples of potential food/drink products to be sold through the concession include but are not limited to the following a. – e.: a. Beer and/or wine; b. Coffee; c. Sandwiches; d. Pastries; e. Ice cream; Page 3 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 15 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks 2 The operation of the proposed concession is contingent on meeting all City requirements stated in this RFP. The selected Proposer(s) shall enter into an annual contract with the City to operate said concession (hereafter “Agreement”). Unless the Proposer proposes another form of compensation, an annual fee, based on a fixed percentage of all pre-tax sales, shall be paid to the City. City of Fitchburg park hours run from 6 a.m. to 10 p.m. The selected Proposer(s) concession shall not operate outside of the aforementioned hours, with said concession subject to additional operating hour restrictions. This RFP does not call for nation-wide “franchises”, rather the City is seeking concession enterprises in the form of “smaller-scale” food/drink businesses that utilize predominately locally- sourced ingredients from Wisconsin (where applicable) to create food and/or drink products. The selected Proposer(s) may be requested by the City to attend various public meetings, and present their proposal before the Common Council, select City bodies, and the general public. 1.2 OBJECTIVE The objective of this RFP is to grant a contract with a Proposer that successfully meets and exceeds the requirements determined by the City, in accordance with the following a. – b.: a. Proposer shall provide a variety of food and/or drink products predominately sourced from Wisconsin (where applicable), in a manner welcoming of all customers including families; b. Proposer shall promote the City of Fitchburg parks system through marketing and service, contributing to the atmosphere of the parks in which the concession is located, and attracting users to said parks; 1.3. LOCATIONS City park properties (hereafter individually “Property” or collectively “Properties”) available for local food/drink concessions, in accordance with this RFP, are as follows, a. – d.: a. McKee Farms Park; b. Dawley Conservancy; c. Parks hosting organized recreational leagues/tournaments, including but not limited to McGaw Park; d. Other City parks in accordance with the map located at the following link: http://www.fitchburgwi.gov/Facilities?clear=False McKee Farms Park, Dawley Conservancy, and McGaw Park have high-user counts and are located adjacent to major regional transportation corridors. This RFP calls for a more permanent concession presence at McKee Farms Park and/or Dawley Conservancy, utilizing existing or expanded facilities, and a more temporary, moveable presence, such as a food/drink cart or truck operation, at parks hosting organized recreational leagues/tournament, including McGaw Park. McKee Farms Park is the only location with the capacity (limited) for food preparation. The RFP does not call for a specific type of proposal at any other City park. The City Parks, Open Space and Recreation Plan calls for the development of use “themes” at select City “signature” parks, including McKee Farms Park, Dawley Conservancy, and McGaw Park. These “themes” are intended to focus on a few related uses and amenities at said parks, to enhance identity and diverse recreational and economic development opportunities for the City, as well as draw users to these parks from throughout the region. An important component of theme development at these signature parks is the addition of local food/drink concession enterprises. Proposers, at their discretion, may choose to formulate a proposal that enhances themes at McKee Farms Park, Dawley Conservancy, and/or McGaw Park. The following provides further detail on potential concession locations: Page 4 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 16 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks 3 a. McKee Farms Park: This park is designated with a “central park” theme and is located south of McKee Road and west of Fish Hatchery Road. This 58.1-acre property is the City’s most heavily-used park, is centrally-located, and has a large pavilion suitable for food/drink service (prep space, sink, refrigerator/freezer, microwave, and service window), a splash pad, playgrounds, basketball courts, soccer fields, ball diamonds, tennis courts, a path system, and restrooms. Additionally, this park hosts regional festivals including Fitchburg Days and Festa Italia. b. Dawley Conservancy – This nature park is designated with a “biking” theme and is located north of McKee Road, both east and west of Seminole Highway. This 38.9-acre property contains an observation deck with restrooms, path system, bike repair/maintenance station and informational kiosk. The Dawley Bike Hub, the convergence of five (5) major recreational trails, the Badger State Trail, Capital City State Trail, Military Ridge State Trail, Southwest Commuter Path, and Cannonball Path, is also located at the conservancy. The Madison Area Transportation Planning Board undertook a 2-hour (4:00 – 6:00 p.m.) bicycle count, comprising 169 trail users, at the Bike Hub on a Tuesday in May 2015. McKee Farms Park Pavilion Source: City of Fitchburg McKee Farms Park Splash Pad Source: City of Fitchburg McKee Farms Park Location Source: City of Fitchburg McKee Farms Park Pavilion Prep Space Source: City of Fitchburg Page 5 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 17 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks 4 c. Parks hosting regular organized leagues, including but not limited to McGaw Park – McGaw Park is designated with a “sport fields” theme is located south of Lacy Road and west of S. Syene Road. This 65-acre property is a heavily-used park, with an ultimate frisbee field, four lighted ball diamonds, shelter, playground, basketball court, tennis courts, path system, and restrooms. Additionally, this park hosts adult softball leagues, an ultimate Frisbee league, and multiple tournaments throughout the year. d. Other City of Fitchburg parks – The City has a wide variety of other parks with various amenities. The locations of these other parks can be viewed at the following link: http://www.fitchburgwi.gov/Facilities?clear=False Dawley Bike Hub Source: The Capital Times Dawley Conservancy Observation Deck Source: City of Fitchburg Dawley Conservancy Restrooms Source: City of Fitchburg Dawley Conservancy Location Source: City of Fitchburg McGaw Park Location Source: City of Fitchburg McGaw Park Ball Fields Source: City of Fitchburg Page 6 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 18 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks 5 ___________________________________________________________________________________ 2.0 PROPOSAL 2.1. PROPOSALSUBMISSION AND CONTACT INFORMATION Proposers shall submit one (1) electronic version of all materials required for acceptance of their proposal by 4:00 p.m. Friday, March 23, 2018, to the following email: Scott Endl, Director of Parks, Recreation, and Urban Forestry City of Fitchburg Email: scott.endl@fitchburgwi.gov If the Proposal is larger than 10 megabytes, please use the following “dropbox” URL to submit an electronic version of all materials: https://dropbox.fitchburgwi.gov/ (register) Please include the following as a subject line in submittal of your materials: Local Food and Drink Concession Submittal – Select City of Fitchburg Parks. No oral, fax, or telephone proposals will be accepted. All costs directly or indirectly related to preparation of a proposal in response to this RFP or any oral presentation required to supplement or clarify a proposal shall be the sole responsibility of the Proposer. This includes charges for delivery, insurance, license fees, permits, preparation costs, and any other costs. All proposals submitted shall be valid for a minimum period of ninety (90) days after the date of the proposal opening. Late proposals will not be considered for review. The City reserves the right to determine the timeliness of all proposals submitted. The City reserves the right to extend the deadline for proposal submission should such action be in the best interest of the City. In the event the proposal submission deadline is extended, Proposers will have the right to revise their proposal. Proposals may be withdrawn by written request, signed by an authorized representative of the submitting entity, and submitted to City prior to the scheduled closing time for receipt of proposals. Submission of a proposal pursuant to this RFP shall constitute acknowledgement and acceptance of the terms and conditions set forth herein. AlI or portions of this RFP and the contents of the proposal submitted by the successful Proposer may become contractual obligation if an Agreement is awarded. Failure of the successful Proposer to accept these obligations may result in cancellation of the award. The City reserves the right to either reject any or all proposals if it deems such to be in the best interest of the County and the general public, or to withdraw this RFP at any time without prior notice for any reason, without making an award, if it deems such to be in the best interest of the City and the general public. All proposals submitted in response to this RFP shall become the property of the City. Any questions concerning this RFP should be directed to the following, in written form via e-mail or standard mail: Scott Endl, Director of Parks, Recreation, and Urban Forestry City of Fitchburg 5520 Lacy Road Fitchburg, WI 53711 Email: scott.endl@fitchburgwi.gov Page 7 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 19 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks 6 Reponses to all questions and any revisions/amendments and/or supplements to the RFP will be provided to all those recipients that received this RFP directly from the City, and those that received this RFP from a party authorized to distribute this RFP by the City. 2.2 PROPOSAL CONTENT Proposals are to be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Proposals shall not exceed twenty (20) pages. Expensive bindings and promotional materials are not necessary or desired. Emphasis should be concentrated on conformance to the RFP instructions, responsiveness to the RFP requirements, and clarity of content. Proposers shall respond to all questions as thoroughly as possible. Any omission or deviation from the stipulations and requirements identified in this RFP may be cause for the rejection of the entire proposal. All proposals shall contain all of the following elements, a. – g.: a. COVER LETTER, to include all of the following: i. Identification of key personnel, including title and position; ii. Mailing address, phone/fax number, and email address for primary proposal contact; iii. A statement that the Proposer confirms its acknowledgement and acceptance of the terms and conditions set forth herein, without exceptions, or with exceptions as noted in 2.2 g. herein; b. BUSINESS INFORMATION, to include all of the following: i. Full legal name and primary mailing address of company; ii. Organizational structure of the company (i.e. corporation, partnership, joint venture, or sole proprietorship): iii. Company stability, to include the following: a. Name and location of the food/drink enterprise; b. Number of years operating a food/drink enterprise; c. Number of years holding either a Class B or liquor license (if applicable); d. License number and the jurisdiction granting said license (if applicable); e. Number of employees proposed at the potential concession enterprise identified in the proposal; c. DESIRED PROPERTIES AND POTENTIAL FOOD/DRINK PRODUCTS, to include all of the following: i. Rank the top three (3) Properties, as identified in 1.3 herein, in order of desirability for proposed concession enterprise (i.e. 1. most desirable); ii. List the top fifteen (15) food/drink products to be sold through the concession, including suggested retail price. Please include size and weight of products in ounces (if applicable). Page 8 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 20 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks 7 d. PROPOSED PROPERTY INFRASTRUCTURE USE AND IMPROVEMENTS, to include all of the following: i. Identification of use of existing Property infrastructure (pavilions, shelters, etc.); ii. If applicable, identification of proposed new Property infrastructure and landscaping, to include detailed building and landscaping plans, and cost estimates thereof; iii. If applicable, a timeline for the completion of proposed new Property infrastructure and landscaping; e. MARKETING PLAN, to include all of the following: i. Describe how the proposed concession enterprise will be marketed and how said concession will enhance the Property. Please include specifics related to advertising, signage, on-line websites, etc. f. FINANCIAL OFFER, to include all of the following: i. A statement indicating the vendor shall pay the City an annual Property lease fee, based on a percent of annual gross receipts* from the concession, or another form of compensation, to be suggested by the Proposer, for the term of the Agreement: * "Gross Receipts" is defined as the total of all receipts (cash, checks, credit cards) derived from the rental or sales of all merchandise associated with the concession, less sales tax. Deductions for client non-payments or bad-debt expenses are not allowed. g. EXCEPTIONS, to include all of the following: i. If the Proposer takes exception or requires clarification on any points of the RFP before signing an Agreement with the City, please list items. With each exception, please state proposed wording. All proposed exceptions are subject to the discretion and approval of the City. Should the Proposer and the City be unable to resolve any exceptions to the mutual satisfaction of both parties, the City reserves the right to reject the Proposer’s proposal from any further consideration. If no exceptions are listed in the proposal submitted in response to this RFP, Proposer indicates agreement to all terms and conditions contained in this RFP, including all appendices. If exceptions are listed in said proposal, the Proposer agrees to all terms and conditions contained in this RFP, with those noted exceptions. 2.3 PROPOSAL ORGANIZATION To expedite proposal evaluation and selection, each Proposer shall organize its proposal as described in the following. Proposals which do not follow the specified organization outlined in the following may be deemed incomplete and disqualified from the proposal evaluation and award process. All required proposal elements shall be labeled clearly with a text heading as identified below, a. – g. (with the exception of the cover letter): a. Cover Letter; b. Business Information; c. Desired Properties and Potential Food/Drink Products; d. Proposed Property Use and Infrastructure Improvements; Page 9 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 21 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks 8 e. Marketing Plan; f. Financial Offer; g. Exceptions; Furthermore, proposal content under the aforementioned a. – g. shall be organized under letter and Roman numeral headings as identified in 2.2 herein. Proposals shall be submitted in electronic format and shall not exceed twenty (20) pages. 2.4 PROPOSAL EVALUATION AND AWARD The City reserves the right to request additional information to clarify a submitted proposal. Furthermore, the City reserves the right to conduct such investigations as it considers appropriate with respect to the qualifications of each Proposer and any information contained in its proposal. All complete and accurate proposals will be reviewed by a selection committee who shall make a recommendation to the City of Fitchburg Parks Commission for award of a concession agreement(s). In seeking the best and highest quality of services, the following criteria, a. – e., shall be utilized in proposal evaluations, with each proposal scored and ranked in accordance with said criteria. No one criterion or combination of criteria will be controlling in the selection process. a. Qualifications and experience of the Proposer in providing food/drink concessions; b. Aesthetic appeal and uniqueness of the proposed concession as it relates to enhancing the Property and user profile thereof; c. The extent that the products are locally-sourced (where applicable), quality of products, and reasonableness of pricing; d. Marketing plan; e. Revenue to the City; Select Proposers may be required to make oral presentations to supplement their proposals, if requested by the City. Oral presentations shall be conducted March 27 - 29, 2018, if needed. The City may choose to conduct these interviews by conference call. The City will make every reasonable attempt to schedule each presentation at a time agreeable to the Proposer. Failure of a Proposer to conduct a presentation to the City on the date scheduled may result in rejection of the proposal. The City reserves the right to waive any or all irregularities in the RFP process; to reject any or all proposals if it deems such to be in the best interest of the City and the general public; to cancel this RFP at any time for any reason without making an award if it deems such to be in the best interest of the City and the general public; or to make an award for a longer or shorter period than as indicated in 1.1 herein. _________________________________________________________________________________ 3.0 Contract Terms and Conditions 3.1 INSURANCE REQUIREMENTS The selected Proposer(s) must meet the City of Fitchburg Insurance Requirements. 3.2 OWNERSHIP All documents, graphics, maps, and exhibits produced by the selected Proposer(s) as part of a proposal in response to this RFP shall be provided to the City, become the property of the City, and are to be available to the City in any manner the City deems appropriate. Page 10 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 22 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks 9 3.3 CONFLICT OF INTEREST The Proposer certifies that to the best of its knowledge no employee of the City, nor any member thereof, nor any public agency or official affected by any Agreement that results from this RFP, has any pecuniary interest in the business of the Proposer, and that no person associated with the Proposer has any interest that would conflict in any manner with the performance of the Agreement. 3.4. REGULATIONS The Proposal shall meet all current, pending and future regulatory requirements of all authorities having jurisdiction over its design, construction and operation, including the Federal, State and local laws and statutes including Dane County and the City. The Proposer shall fully comply with all applicable laws, regulations, and building codes governing non-discrimination in public accommodations and commercial facilities, including without limitation, the requirements of the Americans with Disabilities Act and all regulations thereunder. No Agreement shall be awarded to any person, firm, joint venture, or corporation that is in arrears or is in default to the City upon any debt or contract or that is a defaulter as surety or otherwise upon any obligation to the City. Page 11 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 23 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks 10 APPENDIX A. SAMPLE LANGUAGE - SELECTED PROPOSER(S) – REQUIRED CONTRACTUAL PROVISIONS 4.0 REQUIRED CONTRACTUAL PROVISIONS The following, 4.1 – 4.9, are selected areas of contractual provisions which will be required of the selected Proposer(s). Any award of contract resulting in an Agreement between the City and a Proposer will be "exclusive" as to food and drink concession at the selected Properties only. The City reserves the right to award a contract with one (1) or more additional Proposers to provide food/drink in other areas of the Properties. 4.1 TERM The term of the Agreement shall be for one (1) year, effective on the date of execution, with a possibility for additional consecutive one (1) year options, if mutually agreeable to the City and Proposer (hereafter “Parties”). 4.2 HOURS OF OPERATION The Parties agree to negotiate the hours of operation, days of service, and length of the operating season, which approvals shall not be unreasonably conditioned or delayed. The Parties agree to meet prior to June 1 to mutually agree upon the days and hours of operation. 4.3 INSURANCE The selected Proposer shall acquire and maintain the established insurance and liability limits for this Concession. Such evidence shall include insurance coverage in the following minimum amounts: a. Type of Coverage/Minimum Limits i. Commercial General Liability: $1,000,000 Per Occurrence; ii. Bodily Injury and Property Damage (including Personal Injury, Fire Legal, Contractual & Products/Completed Operations) $1,000,000 General Aggregate; i. Liquor Liability $1,000,000; ii. Automobile Liability: Bodily Injury & Property Damage: $1,000,000 per Accident; iii. All Autos-Owned, non-owned and/or hired and uninsured motorists: Per Wisconsin requirements; iv. Wisconsin Workers' Compensation or Proof of AlI States Coverage: Statutory; v. Employers' Liability $100,000/$500,000/$100,000; b. The City will be named as an additional insured for General Liability and Automobile Liability. A waiver of subrogation for Workers Compensation by endorsement in favor of the City shall be provided. Disclosure must be made of any non-standard or restrictive additional insured endorsement, and any use of non-standard or restrictive additional insured endorsement will not be acceptable. A certificate indicating the above coverages shall be submitted for review and approval by the City. Page 12 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 24 Request For Proposals Local food and Drink Concession – Select City of Fitchburg Parks 11 4.4 PUBLIC ACCESS The Proposer understands that the premises is part of a public park and is to remain open and accessible to the public in a manner that is compatible with the use of the facilities as contemplated by the Agreement. 4.5 TAXES The Proposer shall pay all taxes of whatever character which may be levied, or per Wisconsin requirements, charged upon the Proposer to use the Property and its facilities, or upon the improvements, fixtures, equipment or other property, or upon the operations under the Agreement. 4.6 CLEANLINESS Proposer shall, at its own expense, keep the premises and the surrounding area, at least twenty- five (25) feet, clean and sanitary at all times. No offensive or refuse matter, nor any substance constituting an unnecessary, unreasonable, or unlawful hazard, nor any material detrimental to the public health, shall be permitted to remain thereon, and vendor shall prevent any such matter or material from being or accumulating upon said premises. Proposer, at its own expense, shall see that all garbage or refuse is collected as often as necessary and in no case less than once a day and disposed of in the City receptacles. The Proposer will incur the cost of all excessive garbage pick-up from the Concession during the term of the Agreement. 4.7 EQUIPMENT MAINTENANCE Proposer shall, at all times and at its own expense, keep and maintain all equipment, whether owned or installed by Proposer or the City, such as, but not limited to, all of the fixtures, plate and mirror glass, equipment, and personal property therein, in good repair and in a clean, sanitary, and orderly condition and appearance. No equipment provided by the City shall be removed or replaced by Proposer without the prior written consent of the City Parks, Recreation, and Urban Forestry Director, and if consent if secured, such removal or replacement shall be at the expense of Proposer. 4.8 CONCESSIONARE OBLIGATIONS The Proposer shall be obligated to the following, a. – m.: a. Provide food, drink, and other concessionable products and services to meet or exceed the needs and expectations of the public and the City; b. Meet all local health code requirements; c. Obtain all necessary permits and licensing for the operation of a food/drink concession; d. Provide any equipment necessary for the proposed concession that is not already provided by the City; e. Reimburse the City for any repairs of the Property or equipment due to the negligence of the Proposer or its employees; f. Maintain all equipment and surroundings in a state of cleanliness and repair to prevent injuries to the public; g. Be responsible for keeping the concession facility and the immediate outside area free of trash and litter; h. Operate as an independent contractor responsible for all applicable taxes, including sales tax and withholding tax; i. By a date agreed upon by the Proposer and the City, furnish a detailed monthly statement of receipt (format to be agreed upon) along with the commission payments to the City; j. Provide all advertising and signage for the operation of the concession; k. Allow for inspection by the appropriate City staff at all times; l. Comply with all current City practices, including compliance with current City agreements, and forgoing the sale of glass bottles, gum, and tobacco products; Page 13 of 13 RFP Fitchburg for Private For-Profit Use Packet Page 25 1 A REQUEST FOR PROPOSAL (RFP) FOR: LOCAL FOOD AND DRINK CONCESSION FOR CITY OF MUSKEGO AT IDLE ISLE PARK Issued by: City of Muskego Friday, March 2, 2018 For further information regarding this RFP, contact: Scott Kroeger Public Works and Development Director (262) 679-5686 skroeger@cityofmuskego.org Proposals must be submitted by: 4:00 p.m. Friday, March 23, 2018 LATE PROPOSALS WILL BE REJECTED. Page 1 of 13 RFP Example For-Private Use Packet Page 26 2 TABLE OF CONTENTS 1.0 GENERAL INFORMATION 1.1 BACKGROUND AND SUMMARY 3 1.2 OBJECTIVE 4 1.3 LOCATION 4 2.0 PROPOSAL 2.1 PROPOSAL SUBMISSION AND CONTACT INFORMATION 5 2.2 PROPOSAL CONTENT 6 2.3 PROPOSAL ORGANIZATION 7 2.4 PROPOSAL EVALUATION AND AWARD 8 3.0 CONTRACT TERMS AND CONDITIONS 3.1 INSURANCE REQUIREMENTS 9 3.2 OWNERSHIP 9 3.2 CONFLICT OF INTEREST 9 3.2 REGULATIONS 9 APPENDIX A – SAMPLE LANGUAGE – SELECTED PROPOSER(S) – REQUIRED CONTRACTUAL PROVISIONS 10 Page 2 of 13 RFP Example For-Private Use Packet Page 27 3 1.0 GENERAL INFORMATION 1.1 BACKGROUND AND SUMMARY The City of Muskego (hereafter “City”) is a community of approximately 25,000 residents. This Request for Proposals (hereafter "RFP”) calls for local food/drink entrepreneurs (hereafter “Proposer(s)”) to submit proposals to operate one (1) local food and/or drink concessions within City of Muskego Idle Isle Park. The Proposer shall provide sufficient evidence that the proposed concession will provide excellent customer service, quality food/drink products substantially sourced from Wisconsin (where applicable), generate revenue in the form of commission for the City’s park system, and represent the City and its park system in a positive light. Examples of potential food/drink products to be sold through the concession include but are not limited to the following a. – f.: a. Beer and/or wine; b. Coffee; c. Sandwiches; d. Pastries; e. Ice cream; f. Soda Page 3 of 13 RFP Example For-Private Use Packet Page 28 4 The operation of the proposed concession is contingent on meeting all City requirements stated in this RFP. The selected Proposer(s) shall enter into an annual contract with the City to operate said concession (hereafter “Agreement”). Unless the Proposer proposes another form of compensation, an annual fee, based on a fixed percentage of all pre-tax sales, shall be paid to the City. City of Muskego park hours run from 6 a.m. to 10 p.m. The selected Proposer(s) concession shall not operate outside of the aforementioned hours, with said concession subject to additional operating hour restrictions. This RFP does not call for nation-wide “franchises”, rather the City is seeking concession enterprises in the form of “smaller-scale” food/drink businesses that utilize predominately locally-sourced ingredients from Wisconsin (where applicable) to create food and/or drink products. The selected Proposer(s) may be requested by the City to attend various public meetings, and present their proposal before the Common Council, select City bodies, and the general public. 1.2 OBJECTIVE The objective of this RFP is to grant a contract with a Proposer that successfully meets and exceeds the requirements determined by the City, in accordance with the following a. – b.: a. Proposer shall provide a variety of food and/or drink products predominately sourced from Wisconsin (where applicable), in a manner welcoming of all customers including families; b. Proposer shall promote the City of Muskego parks system through marketing and service, contributing to the atmosphere of the parks in which the concession is located, and attracting users to said parks; 1.3. LOCATION City park property (hereafter individually “Property”) available for local food/drink concessions, in accordance with this RFP, is as follows, a a. Idle Isle Park; Idle Isle has a high-user count and is located on Little Muskego Lake. It is located on an island with one access point. The island has limited parking and the main boat launch for Little Muskego Lake. This RFP calls for a more permanent concession presence at Idle Isle, utilizing existing or expanded facilities. It is recommended the proposer proposes a “theme”. The “theme” is intended to focus on a few related uses and amenities at said parks, to enhance identity and diverse recreational and economic development opportunities for the City, as well as draw users to these parks from throughout the region. An important component of theme development at this signature parks is the addition of local food/drink concession enterprises. The potential concession location is the existing pavilion at Idle Isle. Page 4 of 13 RFP Example For-Private Use Packet Page 29 5 2.0 PROPOSAL 2.1. PROPOSALSUBMISSION AND CONTACT INFORMATION Proposers shall submit one (1) electronic version of all materials or hard copy required for acceptance of their proposal by 4:00 p.m. Friday, March 23, 2018, to the following email: Scott Kroeger Public Works and Development Director (262) 679-5686 skroeger@cityofmuskego.org Please include the following as a subject line in submittal of your materials: Local Food and Drink Concession Submittal – City of Muskego Idle Isle Park. No oral, fax, or telephone proposals will be accepted. All costs directly or indirectly related to preparation of a proposal in response to this RFP or any oral presentation required to supplement or clarify a proposal shall be the sole responsibility of the Proposer. This includes charges for delivery, insurance, license fees, permits, preparation costs, and any other costs. All proposals submitted shall be valid for a minimum period of ninety (90) days after the date of the proposal opening. Late proposals will not be considered for review. The City reserves the right to determine the timeliness of all proposals submitted. The City reserves the right to extend the deadline for proposal submission should such action be in the best interest of the City. In the event the proposal submission deadline is extended, Proposers will have the right to revise their proposal. Proposals may be withdrawn by written request, signed by an authorized representative of the submitting entity, and submitted to City prior to the scheduled closing time for receipt of proposals. Submission of a proposal pursuant to this RFP shall constitute acknowledgement and acceptance of the terms and conditions set forth herein. AlI or portions of this RFP and the contents of the proposal submitted by the successful Proposer may become contractual obligation if an Agreement is awarded. Failure of the successful Proposer to accept these obligations may result in cancellation of the award. The City reserves the right to either reject any or all proposals if it deems such to be in the best interest of the City and the general public, or to withdraw this RFP at any time without prior notice for any reason, without making an award, if it deems such to be in the best interest of the City and the general public. All proposals submitted in response to this RFP shall become the property of the City. Any questions concerning this RFP should be directed to the following, in written form via e-mail or standard mail: Scott Kroeger Public Works and Development Director (262) 679-5686 skroeger@cityofmuskego.org Page 5 of 13 RFP Example For-Private Use Packet Page 30 6 Reponses to all questions and any revisions/amendments and/or supplements to the RFP will be provided to all those recipients that received this RFP directly from the City, and those that received this RFP from a party authorized to distribute this RFP by the City. 2.2 PROPOSAL CONTENT Proposals are to be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Proposals shall not exceed twenty (20) pages. Expensive bindings and promotional materials are not necessary or desired. Emphasis should be concentrated on conformance to the RFP instructions, responsiveness to the RFP requirements, and clarity of content. Proposers shall respond to all questions as thoroughly as possible. Any omission or deviation from the stipulations and requirements identified in this RFP may be cause for the rejection of the entire proposal. All proposals shall contain all of the following elements, a. – g.: a. COVER LETTER, to include all of the following: i. Identification of key personnel, including title and position; ii. Mailing address, phone/fax number, and email address for primary proposal contact; iii. A statement that the Proposer confirms its acknowledgement and acceptance of the terms and conditions set forth herein, without exceptions, or with exceptions as noted in 2.2 g. herein; b. BUSINESS INFORMATION, to include all of the following: i. Full legal name and primary mailing address of company; ii. Organizational structure of the company (i.e. corporation, partnership, joint venture, or sole proprietorship): iii. Company stability, to include the following: a. Name and location of the food/drink enterprise; b. Number of years operating a food/drink enterprise; c. Number of years holding either a Class B or liquor license (if applicable); d. License number and the jurisdiction granting said license (if applicable); e. Number of employees proposed at the potential concession enterprise identified in the proposal; c. POTENTIAL FOOD/DRINK PRODUCTS, to include all of the following: i. List the top fifteen (15) food/drink products to be sold through the concession, including suggested retail price. Please include size and weight of products in ounces (if applicable). Page 6 of 13 RFP Example For-Private Use Packet Page 31 7 d. PROPOSED PROPERTY INFRASTRUCTURE USE AND IMPROVEMENTS, to include all of the following: i. Identification of use of existing Property infrastructure (pavilions, shelters, etc.); ii. If applicable, identification of proposed new Property infrastructure and landscaping, to include detailed building and landscaping plans, and cost estimates thereof; iii. If applicable, a timeline for the completion of proposed new Property infrastructure and landscaping; e. MARKETING PLAN, to include all of the following: i. Describe how the proposed concession enterprise will be marketed and how said concession will enhance the Property. Please include specifics related to advertising, signage, on-line websites, etc. f. FINANCIAL OFFER, to include all of the following: i. A statement indicating the vendor shall pay the City an annual Property lease fee, based on a percent of annual gross receipts* from the concession, or another form of compensation, to be suggested by the Proposer, for the term of the Agreement: ii. If the percent of annual gross receipts less than $_______ a rental fee of $___________ shall be charged. * "Gross Receipts" is defined as the total of all receipts (cash, checks, credit cards) derived from the rental or sales of all merchandise associated with the concession, less sales tax. Deductions for client non-payments or bad-debt expenses are not allowed. g. EXCEPTIONS, to include all of the following: i. If the Proposer takes exception or requires clarification on any points of the RFP before signing an Agreement with the City, please list items. With each exception, please state proposed wording. All proposed exceptions are subject to the discretion and approval of the City. Should the Proposer and the City be unable to resolve any exceptions to the mutual satisfaction of both parties, the City reserves the right to reject the Proposer’s proposal from any further consideration. If no exceptions are listed in the proposal submitted in response to this RFP, Proposer indicates agreement to all terms and conditions contained in this RFP, including all appendices. If exceptions are listed in said proposal, the Proposer agrees to all terms and conditions contained in this RFP, with those noted exceptions. 2.3 PROPOSAL ORGANIZATION To expedite proposal evaluation and selection, each Proposer shall organize its proposal as described in the following. Proposals which do not follow the specified organization outlined in the following may be deemed incomplete and disqualified from the proposal evaluation and award process. Page 7 of 13 RFP Example For-Private Use Packet Page 32 8 All required proposal elements shall be labeled clearly with a text heading as identified below, a. – g. (with the exception of the cover letter): a. Cover Letter; b. Business Information; c. Potential Food/Drink Products; d. Proposed Property Use and Infrastructure Improvements; e. Marketing Plan; f. Financial Offer; g. Exceptions; Furthermore, proposal content under the aforementioned a. – g. shall be organized under letter and Roman numeral headings as identified in 2.2 herein. Proposals shall be submitted in electronic format and shall not exceed twenty (20) pages. 2.4 PROPOSAL EVALUATION AND AWARD The City reserves the right to request additional information to clarify a submitted proposal. Furthermore, the City reserves the right to conduct such investigations as it considers appropriate with respect to the qualifications of each Proposer and any information contained in its proposal. All complete and accurate proposals will be reviewed by the Parks and Conservation committee who shall make a recommendation to the City of Muskego Finance Committee for award of a concession agreement(s). In seeking the best and highest quality of services, the following criteria, a. – e., shall be utilized in proposal evaluations, with each proposal scored and ranked in accordance with said criteria. No one criterion or combination of criteria will be controlling in the selection process. a. Qualifications and experience of the Proposer in providing food/drink concessions; b. Aesthetic appeal and uniqueness of the proposed concession as it relates to enhancing the Property and user profile thereof; c. The extent that the products are locally-sourced (where applicable), quality of products, and reasonableness of pricing; d. Marketing plan; e. Revenue to the City; Select Proposers may be required to make oral presentations to supplement their proposals, if requested by the City. Oral presentations shall be conducted March 27 - 29, 2018, if needed. The City may choose to conduct these interviews by conference call. The City will make every reasonable attempt to schedule each presentation at a time agreeable to the Proposer. Failure of a Proposer to conduct a presentation to the City on the date scheduled may result in rejection of the proposal. The City reserves the right to waive any or all irregularities in the RFP process; to reject any or all proposals if it deems such to be in the best interest of the City and the general public; to cancel this RFP at any time for any reason without making an award if it deems such to be in Page 8 of 13 RFP Example For-Private Use Packet Page 33 9 the best interest of the City and the general public; or to make an award for a longer or shorter period than as indicated in 1.1 herein. 3.0 Contract Terms and Conditions 3.1 INSURANCE REQUIREMENTS The selected Proposer(s) must meet the City of Muskego Insurance Requirements. 3.2 OWNERSHIP All documents, graphics, maps, and exhibits produced by the selected Proposer(s) as part of a proposal in response to this RFP shall be provided to the City, become the property of the City, and are to be available to the City in any manner the City deems appropriate. 3.3 CONFLICT OF INTEREST The Proposer certifies that to the best of its knowledge no employee of the City, nor any member thereof, nor any public agency or official affected by any Agreement that results from this RFP, has any pecuniary interest in the business of the Proposer, and that no person associated with the Proposer has any interest that would conflict in any manner with the performance of the Agreement. 3.4. REGULATIONS The Proposal shall meet all current, pending and future regulatory requirements of all authorities having jurisdiction over its design, construction and operation, including the Federal, State and local laws and statutes including Waukesha County and the City. The Proposer shall fully comply with all applicable laws, regulations, and building codes governing non-discrimination in public accommodations and commercial facilities, including without limitation, the requirements of the Americans with Disabilities Act and all regulations thereunder. No Agreement shall be awarded to any person, firm, joint venture, or corporation that is in arrears or is in default to the City upon any debt or contract or that is a defaulter as surety or otherwise upon any obligation to the City. Page 9 of 13 RFP Example For-Private Use Packet Page 34 10 APPENDIX A. SAMPLE LANGUAGE - SELECTED PROPOSER(S) – REQUIRED CONTRACTUAL PROVISIONS 4.0 REQUIRED CONTRACTUAL PROVISIONS The following, 4.1 – 4.9, are selected areas of contractual provisions which will be required of the selected Proposer(s). Any award of contract resulting in an Agreement between the City and a Proposer will be "exclusive" as to food and drink concession at the selected Properties only. The City reserves the right to award a contract with one (1) or more additional Proposers to provide food/drink in other areas of the Properties. 4.1 TERM The term of the Agreement shall be for one (1) year, effective on the date of execution, with a possibility for additional consecutive one (1) year options, if mutually agreeable to the City and Proposer (hereafter “Parties”). 4.2 HOURS OF OPERATION The Parties agree to negotiate the hours of operation, days of service, and length of the operating season, which approvals shall not be unreasonably conditioned or delayed. The Parties agree to meet prior to April 1 to mutually agree upon the days and hours of operation. 4.3 INSURANCE In order to protect against potential liability arising out of the activities performed hereunder, contractor shall obtain and maintain, in full force and effect, comprehensive general liability insurance with minimum limits of $1,000,000 per occurrence and $1,000,000 aggregate. Said insurance may not be cancelled, reduced or changed in any way without at least thirty (30) day written notice to the City. Failure to provide proper notice, in and of itself, shall be grounds for termination of this agreement. Contractor shall obtain Certificates of Insurance as well as Endorsements to its insurance policies as follows:  30 day notice of cancellation.  Contractor’s primary insurance.  Waiver of rights of recovery against others to us.  Naming the City as an additional insured. Contractor hereby agrees to indemnify, defend and hold harmless the City of Muskego, its elected and appointed officials, officers, employees, agents, representatives and volunteers, and each of them, from and against any and all suits, actions, legal or administrative proceedings, claims, demands, damages, liabilities, interest, attorney’s fees, costs, and Page 10 of 13 RFP Example For-Private Use Packet Page 35 11 expenses of whatsoever kind or nature in any manner directly or indirectly caused, occasioned, or contributed to in whole or in part or claimed to be caused, occasioned, or contributed to in whole or in part, by reason of any act, omission, fault, or negligence, whether active or passive, of Contractor or of anyone acting under its direction or control or on its behalf, even if liability is also sought to be imposed on City of Muskego, its elected and appointed officials, officers, employees, agents, representatives and volunteers. The obligation to indemnify, defend and hold harmless the City of Muskego, its elected and appointed officials, officers, employees, agents, representatives and volunteers, and each of them, shall be applicable unless liability results from the sole negligence of the City of Muskego, its elected and appointed officials, officers, employees, agents, representatives and volunteers. Contractor shall reimburse the City of Muskego, its elected and appointed officials, officers, employees, agent or authorized representatives or volunteers for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. In the event that Contractor employs other persons, firms, corporations or entities (sub- contractor) as part of the work covered by this Agreement, it shall be The Sole responsibility to require and confirm that each sub-contractor enters into and Indemnity Agreement in favor of the City of Muskego, its elected and appointed officials, officers, employees, agents, representatives and volunteers, which is identical to this Indemnity Agreement. This indemnity provision shall survive the termination or expiration of this Agreement. 4.4 CONSEQUENCES FOR NOT COMPLYING WITH THE SCOPE OF THE WORK: A. A substantiated case of non-compliance will be addressed to the contact person representing the contractual service by the City. B. A contractor's response deemed adequate by the City will be accepted and noted should a future situation develop. C. A contractor's response deemed inadequate by the City will result in the immediate termination of the contractual service. Page 11 of 13 RFP Example For-Private Use Packet Page 36 12 4.5 PUBLIC ACCESS The Proposer understands that the premises is part of a public park and is to remain open and accessible to the public in a manner that is compatible with the use of the facilities as contemplated by the Agreement. 4.6 TAXES The Proposer shall pay all taxes of whatever character which may be levied, or per Wisconsin requirements, charged upon the Proposer to use the Property and its facilities, or upon the improvements, fixtures, equipment or other property, or upon the operations under the Agreement. 4.7 CLEANLINESS Proposer shall, at its own expense, keep the premises and the surrounding area, at least twenty-five (25) feet, clean and sanitary at all times. No offensive or refuse matter, nor any substance constituting an unnecessary, unreasonable, or unlawful hazard, nor any material detrimental to the public health, shall be permitted to remain thereon, and vendor shall prevent any such matter or material from being or accumulating upon said premises. Proposer, at its own expense, shall see that all garbage or refuse is collected as often as necessary and in no case less than once a day and disposed of in the City receptacles. The Proposer will incur the cost of all excessive garbage pick-up from the Concession during the term of the Agreement. 4.8 EQUIPMENT MAINTENANCE Proposer shall, at all times and at its own expense, keep and maintain all equipment, whether owned or installed by Proposer or the City, such as, but not limited to, all of the fixtures, plate and mirror glass, equipment, and personal property therein, in good repair and in a clean, sanitary, and orderly condition and appearance. No equipment provided by the City shall be removed or replaced by Proposer without the prior written consent of the City, and if consent if secured, such removal or replacement shall be at the expense of Proposer. 4.9 CONCESSIONARE OBLIGATIONS The Proposer shall be obligated to the following, a. – l.: a. Provide food, drink, and other concessionable products and services to meet or exceed the needs and expectations of the public and the City; b. Meet all local health code requirements; c. Obtain all necessary permits and licensing for the operation of a food/drink concession; d. Provide any equipment necessary for the proposed concession that is not already provided by the City; e. Reimburse the City for any repairs of the Property or equipment due to the negligence of the Proposer or its employees; f. Maintain all equipment and surroundings in a state of cleanliness and repair to prevent injuries to the public; g. Be responsible for keeping the concession facility and the immediate outside area free of trash and litter; h. Operate as an independent contractor responsible for all applicable taxes, including sales tax and withholding tax; i. By a date agreed upon by the Proposer and the City, furnish a detailed monthly statement of receipt (format to be agreed upon) along with the commission payments to the City; Page 12 of 13 RFP Example For-Private Use Packet Page 37 13 j. Provide all advertising and signage for the operation of the concession; k. Allow for inspection by the appropriate City staff at all times; l. Comply with all current City practices, including compliance with current City agreements, and forgoing the sale of glass bottles, gum, and tobacco products; Page 13 of 13 RFP Example For-Private Use Packet Page 38 EXHIBIT 1 1 FOOD, BEVERAGE, AND GIFT SHOP CONCESSION AGREEMENT THIS AGREEMENT, by and between CITY OF WICHITA FALLS, TEXAS, a municipal corporation principally situated in Wichita County, ("City") and _________________________, “Company”) a corporation existing under the laws of the State of TEXAS whose address is listed in Section 17.2. W I T N E S S E T H: WHEREAS, City controls, owns, operates, and maintains an airport in the City of Wichita Falls, Wichita County, Texas known as the Wichita Falls Regional Airport ("Airport"), with the power to grant rights and privileges with respect thereto, and WHEREAS, Company is engaged in the business of operating Food and Beverage facilities as a service to the traveling public, and WHEREAS, proposals were received for the operation of a food, beverage and gift shop concession at the Airport pursuant to a Request for Proposals and the specifications contained therein, and Company was the business selected by this process and determined to be qualified to operate the concession, and WHEREAS, City, on the terms and conditions herein contained, is willing to grant to Company the right to operate the food, beverage and gift shop concession at the Airport; NOW, THEREFORE, for and in consideration of the premises and mutual covenants contained herein, City and Company agree as follows: SECTION 1 DEFINITIONS Section 1.1 Definitions. The words and phrases defined in Section 1 shall have the following meanings when used elsewhere in this Agreement. (a) Agreement means this Food, Beverage and Gift Shop Concession Agreement between City and Company, as the same may be amended or supplemented from time to time pursuant to the terms hereof, which shall include the City’s Request for Proposal and Company’s response to said Request for Proposal, which is attached hereto and made an integral part hereof. (b) Airport means the Wichita Falls Regional Airport. Page 1 of 35 P3 Agreement Packet Page 39 EXHIBIT 1 2 (c) City means the City of Wichita Falls, a municipal corporation. (d) City Property means finishings, fixtures, furnishings and equipment acquired, installed and owned by the City. (e) Commencement Date shall mean the first day of the Primary Term of this Agreement, which shall be the date of execution by the City Manager of the City of Wichita Falls, following execution by company, and shall be the effective date of the agreement. (f) DBE means Disadvantaged Business Enterprise as defined in 49 C.F.R. Part 23, subpart F, and shall include small business concerns which are owned and controlled by socially and economically disadvantaged individuals which shall include small business administration (“SBA”), Section 8(a) certificate holders. (g) Director shall mean the Director of Aviation, Traffic & Transportation of the City, or the designee of the Director of Aviation, Traffic & Transportation whenever the Director of Aviation, Traffic & Transportation is unable to act in such capacity. (h) DOT means the United States Department of Transportation or any department of agency succeeding to its jurisdiction and function. (i) EPA means the United States Environmental Protection Agency and any federal, state or local agency, or governmental entity, succeeding to, or being delegated with, its jurisdiction, functions, or responsibilities. (j) FAA means the Federal Aviation Administration of the United States Department of Transportation, or any department or agency succeeding to its jurisdiction or function. (k) FAR means Federal Aviation Regulations and shall include, but not be limited to, all regulations, policies, statements and directives promulgated or issued by the FAA. (l) Finishes means those improvements to the Leased Premises installed by Company, including counters, partitions, carpeting, wall coverings, counters, heating, plumbing, ventilation, and air conditioning duct work and controls, ceilings, lighting and power fixtures, wiring, accessories and parts necessary to bring power to the Leased Premises. (m) Fiscal Year shall mean City’s fiscal year meaning the twelve (12) month period commencing October 1st and extending to September 30th of the following year. Page 2 of 35 P3 Agreement Packet Page 40 EXHIBIT 1 3 (n) Governmental Requirements means all federal, state and local laws, rules, regulations, security plans, and rulings, including all amendments, now in effect or hereinafter enacted. (o) Expendables shall mean commodities, supplies, glassware, dishes, utensils and consumable items. (p) Leased Premises means the area or areas designated on Exhibit “A” attached hereto as the place or places within the Airport where concessions are located. (q) Leasehold Improvements means all improvements and equipment which are affixed to the Leased Premises and which cannot be removed without material damage to the Leased Premises. (r) Minimum Annual Guarantee if applicable, means the annual minimum guarantee payable monthly by Company to City subject to each and every term and condition contained in this Concession Agreement. In the event of a partial month, the monthly portion of the Minimum Annual Guarantee shall be prorated based on the number of days during the month that this agreement was in effect. (s) Personal Property shall mean all movable property of the Company not directly related to the restaurant operations of the privileges granted hereunder, including office furniture, office equipment, and office supplies. (t) Term shall mean the fixed term commencing no later than sixty (60) days after the commencement date, or upon the opening of operations for business, whichever occurs earlier. (u) Refurbish or Refurbishment shall mean the routine repainting or redecoration of public areas within the Leased Premises, as necessary, including the replacement or repair of worn carpet, tile, furniture, fixtures or finishes. Refurbishment shall not mean the performance of routine or deferred maintenance. (v) Request for Proposal (RFP) means City’s Request for Proposal for Food, Beverage, and Gift Shop Concession for the Wichita Falls Regional Airport, RFP #05-14. (w) Terminal Building means the Passenger Terminal Building at the Airport, as it exists on the date hereof, and any additions made thereto during the term of this Agreement. (x) Trade Fixtures means all non-affixed items that are not City property, except Expendables, and Personal Property, which can be removed without damage Page 3 of 35 P3 Agreement Packet Page 41 EXHIBIT 1 4 to the Leased Premises, including cash registers, safes, display fixtures and the like. (y) TSA shall mean Transportation Security Administration of the United States Department of Homeland Security, or any department or agency succeeding to its jurisdiction or function responsible for providing personnel and equipment to screen passengers, baggage and goods at the Airport and enforcing federal transportation security regulations. Section 1.2 Rules of Construction. Throughout this Agreement, unless the context clearly shall require otherwise (a) The singular includes the plural and vice versa; (b) The words “and” and “or” shall be both conjunctive and disjunctive; (c) The words “hereby”, “herein”, “hereof”, “hereto” and “hereunder” and any similar terms used in this Agreement refer to this Agreement; (d) The words "all" and "any" mean "any and all"; (e) The word "including" shall not mean in a limiting nature, but shall be construed to mean "including without limitation"; (f) The word "he" or any other masculine pronoun includes any individual regardless of gender; (g) Words denoting persons shall include firms, associations, partnerships, limited liability corporations, limited liability partnerships, trusts, corporations and other legal entities, including public bodies, as well as natural persons. (h) Reference to any attachments or exhibits shall mean exhibits attached to this Agreement which shall be deemed incorporated fully by reference and made an integral part of this Agreement; and (i) Any headings preceding the text of the Articles, and Sections of this Agreement and any Table of Contents or marginal notes appended to notes hereof shall be solely for convenience of reference and shall not constitute a part of this Agreement, nor shall they affect the meaning, construction, interpretation or effect of this Agreement. (j) Reference to articles or sections respectively shall mean articles or sections of this Agreement. (k) Reference to “travel related items” and “gift shop” are used interchangeably. (l) Reference to Leased Premises shall also include public vending locations Page 4 of 35 P3 Agreement Packet Page 42 EXHIBIT 1 5 Page 5 of 35 P3 Agreement Packet Page 43 EXHIBIT 1 6 SECTION 2 TERM Section 2.1 Term. This Agreement shall become effective on and shall continue unless sooner terminated in accordance with this Agreement until . Section 2.2 Holding Over. To provide continuous service to the air traveler and public, Company may, upon written request of City, remain upon the Leased Premises and manage the operation of all concessions, including approved vending, subject to this Agreement for up to a ninety (90) day period, as so requested by City, after termination of this Agreement by expiration of the Term, cancellation or default, to give a new company sufficient time to be chosen and commence operation. Upon the termination of this Agreement, through the passage of time or otherwise, Company shall aid City, in all ways possible, in continuing the business of management of the operation of the facilities subject to this Agreement without interruption, between termination of this Agreement and commencement of operations by a new company. In the event that Company, without request or objection by City, shall continue to occupy the Leased Premises beyond the Term of this Agreement, such holding over shall not constitute a renewal of this Agreement, but shall be considered a month-to- month tenancy only upon the terms incorporating all terms and conditions of this Agreement; except provided, however that, at City’s option, the Minimum Annual Guarantee shall be equal to the last Minimum Annual Guarantee paid to City, increased by Consumer Price Deflator Index published by the U.S. Department of Labor, as may be selected by City. The Company will continue to pay rentals using the adjusted Minimum Annual Guarantee and the payment structure defined in Section 5 hereof. No such holdover shall be deemed to operate as renewal or extension of the Term. Such month-to-month tenancy may be terminated by City or Company by giving thirty (30) days’ written notice of said termination to the other party at any time. Company will have no rights to renew or extend the term of this Agreement. SECTION 3 LEASED PREMISES Section 3.1 Leased Premises. For and in consideration of the mutual covenants contained herein, City hereby provides Company 1,505 square feet of concession related operating space hereinafter called “Leased Premises”, as set forth on Exhibit A. For purposes of this Agreement relating to Company’s responsibilities, the Leased Premises shall mean the areas shown on Exhibit A where (a) the exact boundaries are deemed to be three (3) inches inside each wall separating the Leased Premises Page 6 of 35 P3 Agreement Packet Page 44 EXHIBIT 1 7 from the adjacent premises or the external Terminal wall, and (b) with respect to the facade and/or wall on the front of the Leased Premises, separating the Leased Premises from the Terminal common areas, the exact boundary is deemed to be the external face of the facade and/or wall. In addition, and with the written approval of the Director, kiosks, patio-type tables and similar facilities may be located in other public areas of the terminal if doing so is warranted for enhanced customer service, and does not interfere with other terminal and passenger flow activities. The area and location may from time to time be adjusted as hereinafter provided and subsequently illustrated on a revised Exhibit A. Section 3.2 Extent of Leasehold. In addition to the exclusive use of the Leased Premises described in Section 3.1 above, Company shall possess the non-exclusive right of ingress and egress to and from the Leased Premises as may be necessary on through areas designated by the Director, subject to Airport rules and regulations, including security regulations, as may be amended from time to time, provided that Company’s exercise of such right shall not impede or interfere unduly with the operation of the Airport by City, its tenants, customers and other authorized occupants. Company shall not place or install any racks, stands or other display of merchandise or trade fixtures in any Airport property outside the Leased Premises without the express prior consent of the Director. In no event will Company engage in any activity on the Airport outside the Leased Premises for the recruitment or solicitation of business. Section 3.3 Remeasurement of Leased Premises. At any time and from time to time, the Director may cause City to conduct a space audit pursuant to which City remeasures the Leased Premises, using the Airport’s th en current measurement specifications. At the Director’s request, Company and City shall enter into an amendment of this Agreement reflecting the results of such remeasurement. Section 3.4 Changes to Airport. Company acknowledges and agrees that (a) City shall have the right at all times to change, alter, expand, and contract the Airport, including the Terminal Building; (b) City has made no representations, warranties, or covenants to Company regarding the design, construction, pedestrian traffic, or views of the Airport or the Leased Premises. Without limiting the generality of the foregoing, Company acknowledges and agrees that the Airport (i) is currently undergoing and may from time to time hereafter undergo renovation, construction, and other Airport modifications; and (ii) may from time to time adopt rules and regulations relating to security and other operational concerns that may affect Company’s business. Such construction and renovation programs might involve barricading, materials storage, noise, the presence of workers and equipment, rearrangement, utility interruptions, and other inconveniences normally associated with construction and renovation. Although City will use reasonable efforts to Page 7 of 35 P3 Agreement Packet Page 45 EXHIBIT 1 8 minimize the effect of Airport changes on Company’s business, Company acknowledges that such activity may have some effect on the Company’s operations located at the Airport, and Company shall not be entitled to any rent credit or other compensation therefor. At any time and from time to time, City may, without the consent of Company, and without effecting Company’s obligations under this Agreement, at City’s sole discretion, (a) change the shape, size, location, number and extent of the improvements in any portion of the Airport, including without limitation the concourses, boarding areas, and restaurant areas and security areas located within the Terminal Building, (b) build additional stories above or below the Airport buildings, including the Terminal Building, (c) eliminate or relocate public entrances to the Leased Premises so long as there is at all times one public entrance to the Leased Premises, (d) construct multi-level, elevated or subterranean parking facilities and (e) expand or contract the Airport, including redefining the Airport boundaries so as to include additional lands within the Airport or exclude lands from the Airport or both. Without limiting waivers set forth elsewhere in this Agreement, Company hereby waives all claims against City and releases City from all losses that Company suffers or incurs arising out of or in connection with any changes to the Airport or any portion of the Airport and Company further agrees that Company will not be entitled to any rent abatement or any other rent relief in connection with any changes to the Airport or any portion of the Airport. Section 3.5 Common Areas. The term “common areas” means all areas and facilities located within the Airport that are determined by City from time to time for the general use and convenience of the tenants of the Airport and other occupants of the Airport and the traveling public and other visitors to the Airport such as concourses, sidewalks, elevators, escalators, parking areas and facilities, restrooms, pedestrian entrances, driveways, loading zones and roadways. City may, in its sole discretion, and without any liability to Company (a) change the common areas, (b) increase or decrease the common areas (including conversion of common areas to leasable areas and the conversion of leasable areas to common areas) and (c) impose parking charges. City will, in its sole discretion, maintain the common areas, establish and enforce Airport rules and regulations concerning the common areas, close temporarily portions of the common areas for maintenance purposes, and make changes to the common areas including changes in the location of security check points, driveways, entrances, exits, parking spaces, parking areas, and the direction of the flow of traffic. Page 8 of 35 P3 Agreement Packet Page 46 EXHIBIT 1 9 SECTION 4 USES AND PRIVILEGES Section 4.1 Concession Rights Granted. For and in consideration of the prompt payment of the compensation to City as hereinafter provided, City hereby grants to Company, subject to all of the terms, covenants and conditions of this Agreement, the Terminal Building-exclusive right and obligation to operate and maintain the food, beverage and gift shop services operation. Company shall enjoy the following privileges in connection with its use of the Leased Premises: (a) The right, privilege, and obligation to conduct and operate a Terminal Building food, beverage and gift shop services operation at the Airport, as well as approved vending services in the secure area of the terminal building. Company shall not engage in any other business on the Airport under this Agreement. (b) The right, privilege and obligation to sell food, alcoholic and non-alcoholic beverages to passengers, employees and the general public and to cater airline and private aircraft food and beverage needs, if required by airline or charter companies, as well as meetings and special events taking place on airport, in accordance with the terms and conditions outlined herein. Company may also provide catering services to the general public from the leased premises. Company shall sell food and beverages only in accordance with the terms of this Agreement. (c) If space is available, and at the sole option of City, Company may lease additional storage and office space identified by City as available for such purposes, at an annual rate to be paid monthly in an amount at least equal to the then current rate on a per square foot basis for similar or equivalent space. Section 4.2 Operational Assurances and Requirements. (a) Deposit. Company shall pay to the City a refundable deposit of $500.00 prior to occupying leasehold. Deposit will be held to cover cleaning or repairs to leasehold should Company vacate without cleaning or repairing leasehold to the satisfaction of the Director. (b) Approval of Menus. Company shall not conduct any other business, or sell any type of food and beverage products unless specifically authorized to do so by the Director. Company shall be permitted to sell those menu items outlined in Exhibit B, attached. Changes to the menu and prices shall be submitted to the Director for his review and written approval prior to the change. City will respond to such requests for authorization within a Page 9 of 35 P3 Agreement Packet Page 47 EXHIBIT 1 10 reasonable time not to exceed five (5) business days. This does not apply to menus for catering, meetings and special events, which are for private use only and not for public consumption. However, those requiring catering services have the right to bring in outside food and beverage, as long as these services are not utilized in the leased area identified in this agreement. (c) Development of Food, Beverage and Gift Shop Business. At the location(s) indicated herein, Company shall provide food, beverage and gift shop services every day of the term hereof, without exception. The Company shall also provide vending options located in the secure portion of the airport terminal, accessible for passengers that have cleared the Transportation Security Administration screening process. City may consider additional proposed vending options proposed by the Company in other public areas of the facility. Company shall not divert, cause or permit to be diverted any business from the Leased Premises and Vending Locations without the written approval of the Director. Such approval shall be subject to fees for non-airport use of airport facility and equipment. It is acknowledged that Company may operate non-airport catering, and that all revenues deriving there from will be included in gross revenues in accordance with Section 5. Company shall take all reasonable measures, in every proper manner, to develop, maintain and increase the business conducted by it under this Agreement. Company shall actively operate each food, beverage and gift shop facilities so as to best serve the needs of the traveling public at the airport. (d) Advertising and Promoting of Products. Company may advertise brand- name products on its packaging and within the Leased Premises and Vending Locations only upon the written approval of the Director. City will respond to such requests for authorization within a reasonable time not to exceed five (5) business days. Receipts for any such advertising or promotion, if any, shall be subject to fees as described in Section 5 hereof. This does not pertain to the advertisement or promotion of food , beverages and travel related items sold in the leased premises and Vending Locations. (e) Dispute with Other Tenants. In the event of a dispute between Company and any other Airport tenant as to the services to be offered or products to be sold, Company shall meet and confer with the Director, who shall consider the rights and obligations set forth in the tenants’ Agreements with the City and make a determination. Company agrees that it shall be bound by the decision of the Director. Page 10 of 35 P3 Agreement Packet Page 48 EXHIBIT 1 11 (f) No Other Uses. Company shall not use nor permit the Leased Premises and Vending Locations to be used for any purpose other than as herein above set forth except with the prior written consent of City, nor for any use in violation of any applicable present or future law, ordinance, rule or regulation of any governmental authority, agency, department or officer thereof. (g) Purchasing. The Company shall have the right to purchase Personal Property or services, materials and supplies used by Company from any person or company of Company's choice. The Company shall have the right to make agreements with any person or company of Company's choice for services to be performed for Company which are incidental to the conduct of Company's activities. It is understood that if Company's suppliers, contractors and furnishers of service exclusively use any portion of the Airport or facilities of City, then City may charge reasonable fees therefore, but nothing herein gives the Company the right to grant to any other party the privilege to use any portion of the Airport or facilities of City. (h) Disposal of Equipment. The Company may dispose of equipment, which is not City property, and which has been replaced or fully amortized, or which is unnecessary; provided, that such right shall not be construed as authorizing the conduct of a separate business. (i) Employees' Parking Facilities. If not otherwise provided, Company shall have the right to the use of reasonably adequate vehicular parking facilities for its employees employed at the Airport in common with other employees, which facilities shall be located in an area designated by the Airport Director as near as practicable to the Terminal Building. Only employees assigned to the Airport shall use the Terminal Building employee parking facilities. City reserves the right to assess a reasonable charge for such employee parking facilities, based on the cost of providing, operating, and maintaining the facilities as set forth on City’s published schedule of Airport rates, fees and charges. (j) Access. (1) Subject to the provisions hereof, the rules, regulations, and ordinances, and such restrictions as Company may impose with respect to its Leased Premises, City hereby grants to Company, its agents, suppliers, employees, contractors, passengers, guests, and invitees, the right and privilege of access, ingress, and egress to the Leased Premises and to non- secure public areas and non-secure public facilities of the Terminal; (2) The ingress and egress provided for above shall not be used, enjoyed, or extended to any person engaging in any activity or performing any act or furnishing any service for or on behalf of Company that Company is not authorized to engage in or perform under the provisions hereof unless expressly authorized by City; (3) City shall have the right at any time or times to close, relocate, reconstruct, change, alter, or modify any such means of access provided for Company's use pursuant to this Agreement or otherwise, Page 11 of 35 P3 Agreement Packet Page 49 EXHIBIT 1 12 either temporarily or permanently; provided that reasonable notice to Company and a reasonably convenient and adequate means of access, ingress and egress shall exist or be provided in lieu thereof. City shall suffer no liability by reason thereof and such action shall in no way alter or affect any of Company's obligations under this Agreement (k) Company must maintain, at minimum, a state-issued Beer and Wine Permit at all times and provide such beverages for sale at all times as permitted by such Permit. (l) Pest Control. Company is responsible for maintaining monthly scheduled licensed pest control. (m) Grease Trap. Company is responsible for cleaning the grease pit and ensuring proper disposal of removed grease. Section 4.3 No Joint Venture or Partnership. This Agreement shall not be deemed or construed (a) to create any relationship of joint venture or partnership between City and Company, (b) to give City any interest in the business of Company, or (c) to grant to Company any powers as an agent or representative of City, the Authority, or the City for any purpose or to bind City, the Authority, or the City. SECTION 5 COMPENSATION, BOOKKEEPING, AND AUDIT Section 5.1 Compensation (a) Rents. As consideration for the privilege of operating the restaurant hereunder, Company shall pay to the City each year, for the full term of the Agreement, $2,400 in monthly installments of $200.00. (b) Fees. As consideration for the privilege of operating the restaurant hereunder, the Company shall pay to the City % of gross receipts, paid monthly, for the full term of the Agreement. (b) Other Fees and Charges. Notwithstanding the above, City expressly reserves the right to assess and collect the following: 1. A reasonable fee payable by Company or its Terminal Building employees for the employee parking area(s) provided at the Airport. 2. Charges for other services or facilities not enumerated herein which are provided by City to Company, at Company’s request, except as provided in Section 7.2. Such services or facilities may include, but are not limited Page 12 of 35 P3 Agreement Packet Page 50 EXHIBIT 1 13 to, special maintenance of Leased Premises. Charges will be based on the actual cost of providing such facilities or services. Section 5.2 – Gross Receipts Defined As used herein, the term “Gross Receipts” shall include all revenue derived from the sale of products, services, merchandise and all revenue transactions from Leased Premises, whether delivered on or off the Airport, and whether paid for in cash or credit, and regardless of when or whether paid for or not, except only as explicitly excluded hereunder. Excluded from Gross Receipts shall be: (a) Federal, state, county, and municipal sales taxes or other taxes separately stated and collected from customers; (b) Actual credit card transaction fees not to exceed three percent (3%) for any given transaction; (c) Receipts from the sale of or the trade-in value of any Trade Fixtures; (d) Receipts from, the value of, or the sale of, any supplies or equipment to another operation or affiliate of Company, whether or not located at the Airport; provided such sale is incidental to or not made for the purpose of circumventing the fee provisions of this Agreement. (e) Receipts in the form of refunds from or the value of merchandise, supplies, or equipment returned to shippers, suppliers, or manufacturers; (f) Cost or value of meals provided without charge to employees of Company or the amount of any discount, if any, given to Airport employees, employees of Company or employees of other tenants of the Airport; (g) The amounts of any gratuities paid or given by patrons or customers to employees of Company, so long as such gratuities are voluntary and not included in the invoices to such patrons or customers. (h) Receipts from the sale of uniform or clothing to Company’s employees whether such uniforms or clothing are required to be worn by said employees. Except as herein above specified, if any charge for any of the products or services provided hereunder is not assessed, charged, or collected, irrespective of the reason therefore, the proper amount of such charge shall, nevertheless, be included in the term “Gross Receipts” as the same is used in this section. Further, no deduction shall be made from Gross Receipts by reason of any credit loss, charge, or deduction that may be incurred by reason of the acceptance or use of credit cards or other charge or charge arrangements. Section 5.3 – Statements, Books and Records. Page 13 of 35 P3 Agreement Packet Page 51 EXHIBIT 1 14 Within ten (10) days after the close of each calendar month of the term of this Agreement, Company shall submit to City, in such detail and form as may be specified by City, certain information, including but not limited to, a statement of its Gross Receipts during the preceding month said statement to be signed by a responsible accounting officer of Company. Said statement shall include, at a minimum, a breakdown of Company’s sales at each location for food, beverages and travel related items. City reserves the right to change the form of the monthly statement and to require the submission by Company of other information pertaining to the Gross Receipts hereunder, and Company agrees to change the form of its statements to that requested by City and to provide any additional information City may request. Section 5.4 Late Fees on Overdue Payments Any payment not received from Company within ten (10) days after the due date shall accrue a late fee at an interest rate of one percent (1.0%) per month, beginning with the original due date until paid in full, subject to a minimum late fee of twenty- five dollars ($25.00). Section 5.5 Rent Abatement The City agrees to abate all rents payable under 5.1(a) for the first twelve (12) months of this Agreement. At the written request of the Company, the City may also waive all or portions of rents for the second twelve (12) months of this Agreement, if so approved by the City Council. In exchange for the rent abatement, Company must participate in the Fly Wichita Falls VIP Program by providing free coffee and water (water bottles provided by the Airport) to Fly Wichita Falls VIP members when they present a membership card. SECTION 6 IMPROVEMENTS AND EQUIPMENT IN LEASED PREMISES Section 6.1 Improved Space. The Leased Premises is provided by the city fully finished and equipped for typical food and beverage services operation. Section 6.2 Alterations and Improvements. Company shall not install or erect additional, nonstructural improvements in the Leased Premises, or alter, change, or make other improvements unless and until plans and specifications for such additional alterations or improvements shall have been submitted to and approved in writing by Director. Full and complete plans and specifications for all work, facilities, improvements, and finishes, and the time required to complete same, shall be submitted to and receive the written approval of Director before any work or construction is commenced. Any such alterations or improvements shall be without Page 14 of 35 P3 Agreement Packet Page 52 EXHIBIT 1 15 cost to City, except as provided in Section 6.3 below. All structural improvements, equipment and interior design and decor constructed or installed by Company, its agents, or contractors, including the plans and specifications, shall be of attractive construction and first-class design and shall comply with any and all applicable statutes, ordinances, building codes, and rules and regulations. City shall make its architect for the Terminal Building available for coordination on design matters. Approval of City shall extend to and include architectural and aesthetic matters and City reserves the right to reject any layout or design proposals submitted and to require Company to submit any such layout or design proposal until they meet City’s approval. One reproducible final copy of the as-built plans for all improvements or subsequent changes therein or alterations thereof to the Leased Premises shall be signed by Company and submitted to the Director within thirty (30) days following completion of any project. These plans, and any subsequent modifications or alterations, shall also be furnished to City on computer discs as electronic files in a format compatible with the CAD system used by City. Section 6.3 Title, Removal, and Demolition of Improvements. All permanent improvements, additions and alterations made to the Leased Premises by Company shall upon installation become the property of City free and clear of liens or encumbrances; provided, however, that any Trade Fixtures, signs and other Personal Property of Company not permanently affixed to Leased Premises shall remain the property of Company. Should Company fail within twenty (20) business days following the termination of this Agreement to remove its Trade Fixtures, signs and other Personal Property of Company not permanently affixed to Leased Premises, then at the option of City, title to same shall vest in City at no cost to City. Company shall not remove or demolish, in whole or in part, any improvements upon Leased Premises without the prior written consent of the Director. Company understands and agrees that consent may be conditioned upon the obligation of Company to replace the same by an improvement specified in such consent at Company’s sole expense. SECTION 7 MAINTENANCE Section 7.1 City’s Obligations in Terminal Building. (a) City shall provide structural maintenance of the Terminal Building and maintenance of electrical, heating, ventilating and air conditioning systems providing services to the leased premises. City may also include a listing of the Company in the City operated “Fly Wichita Falls” website, along with a link Page 15 of 35 P3 Agreement Packet Page 53 EXHIBIT 1 16 to the Company’s website, as long as the Director finds the Company’s website in good, business-like standing. (b) City will at all times maintain, operate, and keep in good repair the Terminal Building, and all appurtenances, facilities, and services now or hereafter connected thereto. Section 7.2 Company’s Obligations in Terminal Building. (a) Except for structural maintenance of the Terminal Building, as provided in Section 7.1, Company shall be obligated, without cost to City, to maintain the Leased Premises in good appearance, repair, and safe condition consistent with good business practices, industry standards and in accordance with all applicable laws and rules and regulations of the City. Company shall maintain and repair all Leasehold Improvements and all furnishings, fixtures, and equipment therein, whether installed by Company, the City or by others, including repainting or redecorating as necessary, and replacing or repairing worn carpet, tile, fixtures or furnishings. All such maintenance and repairs shall be of quality equal to the original in materials and workmanship, and all work, including paint colors, shall be subject to the prior written approval of Director. Company shall be responsible for such repairs to City-owned equipment up to Seven Hundred Fifty dollars ($750) in cost. City shall be responsible for any repairs to City-owned equipment which exceeds Seven Hundred Fifty dollars ($750) with the exception that any damage resulting from Company’s or its employee’s or agent’s abuse or neglect shall be the full responsibility of Company. (b) Company shall be responsible for transporting all trash to City designated trash containers in a manner satisfactory to the Director. (c) If City determines that maintenance of the Leased Premises is not satisfactory, City shall so notify Company in writing. If said maintenance is not performed by Company within fifteen (15) days after receipt of written notice, City or its agent shall have the right to perform the maintenance therefor and Company agrees to reimburse City promptly for the cost thereof, plus ten percent (10%) thereof for administrative overhead. (d) Upon execution of this Agreement, Company shall establish a preventive and routine maintenance program, the provisions of which shall be subject to the approval and periodic review by the Director. Company shall from time to time, upon request, provide the Director a written schedule of Company’s cleaning and maintenance program. (e) On or about the commencement of each calendar year, representatives of City and Company shall tour the Leased Premises and jointly agree upon Page 16 of 35 P3 Agreement Packet Page 54 EXHIBIT 1 17 what, if any, routine Refurbishment is required to maintain the Leased Premises in first-class condition, and Company shall undertake such Refurbishment at its sole cost and expense. If Company and City cannot jointly agree upon the type and extent of Refurbishment, City may at its sole discretion determine the Refurbishment required. (f) Upon discovery, Company shall immediately give oral and written notice to City of any hazardous or potentially hazardous conditions in the Leased Premises or in the Terminal Building. Any hazardous or potentially hazardous condition in the Leased Premises shall be removed and disposed of immediately in accordance with local, state and federal regulations. At the direction of said Director, Company shall close the Leased Premises until such hazardous or potentially hazardous condition is removed. (g) Company agrees to employ sufficient maintenance and janitorial personnel, and provide necessary equipment, to keep the Leased Premises and all furniture, furnishings, fixtures and equipment clean, neat, safe, sanitary and in good working order and condition at all times. (h) Company shall comply with all health and sanitary regulations adopted by all applicable governing bodies and all rules and regulations promulgated by the City. Company shall give access for inspection purposes to any duly authorized representatives of such governing bodies and to the Director and Company shall promptly give a copy of any reports to the Director. SECTION 8 OPERATIONS OF LEASED PREMISES Section 8.1 – Hours of Operation. Company shall actively operate its food, beverage and gift shop operation and use its best efforts to accomplish a business- like operation therein. The operation shall be open to serve the public Sunday through Friday with the exception of Thanksgiving Day, Christmas Day, New Year’s Day, July 4th and Labor Day , unless otherwise authorized in writing by City. In no event shall the hours of operation be curtailed to an extent that the service contemplated under this Agreement shall be diminished. Except as otherwise stated herein, the hours of service shall be determined in light of changing public demands and airline operating schedules. Company may advise the Director of Company’s analysis of the optimum arrangements, but the final determination shall be made by the Director based on an analysis of necessary service to the public. No facilities shall be blocked off or closed at any time during the approved hours of operation. Section 8.2 – Delivery of Goods. Company shall arrange for the timely delivery of all food products, goods, merchandise, and supplies, at such times, in such Page 17 of 35 P3 Agreement Packet Page 55 EXHIBIT 1 18 location(s), and by such routes as determined by the Director and according to such procedures that may be established from time to time by the Director and, in the case of deliveries to secured areas, the Transportation Security Administration. Section 8.3 Utilities. The cost of all utilities, excluding phone and data, used or consumed in the Leased Premises shall be borne by the City. Section 8.4 Personnel. All personnel employed by Company shall be neat, clean, groomed and courteous at all times. Company shall employ sufficient trained personnel to staff and meet the reasonable needs or demands of patrons. Personnel shall be thoroughly qualified, familiar with the business, the products sold, courteous, informative and helpful to the public. (a) Removal of Employees. After receipt of written notice from City, Company shall immediately remove any employee or other representative of Company from the Airport who participates in improper or illegal acts on the Airport, who violates Airport rules and regulations or any provision of this Agreement, or whose continued presence on the Airport is, in the opinion of the Director, deemed not to be in the best interests of City. (b) Conduct of Suppliers, Others. Company shall not allow its agents, servants, contractors, suppliers or employees to conduct business in a loud, noisy, boisterous, offensive or objectionable manner. Company shall ensure that all personnel treat all patrons equally and courteously. (c) Lawful Working Age. All employees or other personnel of Company working on City property shall be of lawful working age. Company shall comply with all federal, state and local labor and employment laws, including laws and regulations relating to the handling, sale, and serving of alcoholic beverages. (d) Employee Appearance. Company shall ensure that its employees present a neat, clean, and orderly appearance at all times. (e) Security Background Checks. Employees of Company providing services in secured areas of the Terminal Building must qualify for a security clearance, submit to the required fingerprinting and background check, and obtain appropriate security badges, at Company’s expense, and otherwise comply with security regulations that may be established by the City and the TSA from time to time. Personnel who are refused security clearance shall not be permitted by Company to perform work in the secured areas of the Airport. (f) General Manager. Company shall select and appoint a general manager with day-to-day responsibility for the food, beverage and gift shop concession. The management employee shall be in complete charge of Company’s operation at the Airport and shall be a qualified and experienced manager vested with full powers to conduct Company’s operation hereunder. The Page 18 of 35 P3 Agreement Packet Page 56 EXHIBIT 1 19 management employee shall be available during regular business hours; and at all times during his/her absence, a designated representative of the Company shall be in charge and available. City shall have the right to approve the appointment of Company’s general manager prior to assignment to the Airport. (g) Uniforms. Uniforms should be worn by all employees, along with identification name tags, at all times during hours of operation. All uniform options must be pre-approved by the Director. Failure to wear pre-approved uniform options may result in the removal of the employee from the facility. Section 8.5 – Quality and Character of Service. (a) Type of Operation. Company shall maintain and operate the concession privileges granted hereunder in an orderly, proper, and first-class manner, which, in the sole judgment of City, does not annoy, disturb, or offend others at the Airport. Company shall ensure that each customer receives prompt, efficient and courteous service. In conjunction with that requirement, Company shall ensure that the operation has adequate staff to provide such service. Company shall ensure that all locations are adequately staffed during normal peak operating hours and during any special (e.g., charter flights, aircraft diversions, public event, etc.) or emergency situation. Company shall conduct its business in the manner described in the Company’s Proposal, incorporated herein by reference. (b) Quality of Food. Company shall supply sufficient goods and product to fully stock its Leased Premises. All foodstuff must be new, fresh, and of top quality. Branded food and beverage units will, at a minimum, conform to the requirements established by the franchisor or licensor. (c) Pricing. The Company has covenanted in the Company’s Proposal to charge prices that are reasonable and comparable to prices charged for similar items in similar facilities in the Wichita Falls area. The Airport reserves the right to verify, approve or reject the prices and/or comparable used by the company. Comparable facilities shall mean food, beverage and gift shop facilities offering similar service, quality, and quantity of offerings, including shopping malls or downtown locations. Comparable facilities may also include special event venues, seasonal festivals, fairs and sporting events, or hotels and convention centers. (d) Director’s Right to Object. The Director shall have the right to raise reasonable objections to the condition of the Leased Premises, the quality and quantity of food, beverage and gift shop items offered, the character of the service, the hours of operation, the appearance and performance of Page 19 of 35 P3 Agreement Packet Page 57 EXHIBIT 1 20 service personnel, and to require any such conditions or practices objectionable to said Director to be remedied by Company. (e) Services Nondiscriminatory. Company shall provide all services authorized hereunder to its customers and patrons upon a fair, equal, and nondiscriminatory basis and charge fair, reasonable and nondiscriminatory prices; provided, however, that Company may make or give such reasonable and nondiscriminatory discounts, rebates, or other similar price reductions as it may desire to its employees. (f) Replacements and Refunds. Company may, at all times during the term of this Agreement, and without any additional charge to customers, replace any food or beverage product by said customer to be unsatisfactory, or shall provide said customer a full refund therefor. (g) Credit/Debit Cards. At all times during the term of this Agreement, Company shall accept as payment for goods and services at least two nationally recognized credit/debit cards (e.g., American Express, Master Card, Visa, etc.). (h) General Public Services. Company understands and agrees that its operation at the Airport obligates it to render public services such as making change upon request and without charge, giving directions, and reasonably assisting the public, when requested. (i) Additional Compliance. Company shall comply with all applicable governmental laws, ordinances, and regulations in the conduct of its operations under this Agreement. Section 8.6 – Signs. (a) Right to Install. Company shall have the right to install and operate upon or in the Leased Premises, and at Company’s sole cost and expense, signs containing its name and representing its business. Company acknowledges City’s desire to maintain a high level of aesthetic quality in the Terminal Building and in all concession facilities throughout the Terminal Building. Therefore, Company covenants and agrees that, in the exercise of its privilege to install and maintain appropriate signs on the Leased Premises, it will submit to City the size, design, content, and intended location of each and every sign it proposes to install on or within the Leased Premises, and that no signs of any type shall be installed on or within the Leased Premises without the specific prior written approval of Director as to the size, design, content, and location. Handwritten, or hand lettered signs are prohibited. Notwithstanding any prior written approval, upon written notice from the Director at any time during the term of this Agreement, Company shall install, remove, or modify any signs which the Director deems necessary or Page 20 of 35 P3 Agreement Packet Page 58 EXHIBIT 1 21 unnecessary for identification or information to the public, passengers, or other Airport users. Failure to require removal of any sign placed on or about the Leased Premises without written permission shall not imply consent or limit the authority of the Director to require removal of any unapproved sign. (b) Signs and Fixtures Outside Premises. Company shall not place or install any racks, stands, and trade fixtures, pedestal signs, or other displays of products outside the boundaries of the Leased Premises without the express prior written approval of the Director. (c) Removal of Signs. Upon the expiration or sooner termination of this Agreement, Company shall, if requested by the Director, remove any and all identification signs and similar devices placed by Company on or in the Leased Premises. In the event of the failure on the part of Company to so remove each and every sign as requested by the Director, the Director may perform such work and, upon demand, Company shall pay the cost thereof to City. Section 8.7 - Security. Company acknowledges and accepts full responsibility for the security and protection of the Leased Premises and any and all inventory, equipment, and facilities now existing or hereafter placed on or installed in or upon its Leased Premises, and for the prevention of unauthorized access to its facilities and expressly agrees to comply with all rules and regulations of the Airport and of any and all other governmental entities that now or may hereafter have jurisdiction over such security. Company further expressly acknowledges and accepts full responsibility to maintain the integrity of the airfield security from or through the leased premises to the airfield operations area, and hereby agrees to fully comply with all Federal, State and local laws, including, but not limited to 49CFR Part 1542, Airport Security, as amended from time to time, and with all rules and regulations of Airport concerning security procedures, as they presently exist or may be amended from time to time. SECTION 9 LICENSES AND TAXES Company covenants and agrees to obtain all proper licenses or permits for the operation of its business hereunder, and to pay all taxes assessed or imposed by any governmental authority upon the fees, rentals, and charges and upon any improvements erected or installed thereon. Company shall, after notifying City of its intention to do so, have the right to contest in good faith by all appropriate proceedings, the amount, applicability, or validity of any such tax or assessment. In the event that Company shall fail to pay any of the foregoing items required by this Section, City may (but shall be under no obligation to) pay the same, and any amounts so advanced therefor by City shall become an additional obligation of Company, which amounts, together with interest thereon at the rate of one percent Page 21 of 35 P3 Agreement Packet Page 59 EXHIBIT 1 22 (1.0%) per month from the date thereof, Company agrees to pay upon demand. The foregoing provision shall in no way be construed as restricting City from contesting the legality of any such tax or other governmental assessment. Company shall be solely responsible for any training expenditure requirements for its employees and management. Training expenditures include the cost of classes, travel, hotels, and all costs associated with completing training requirements. SECTION 10 LIENS, PAYMENTS AND PERFORMANCE BONDS Construction Surety Bond. Company shall not allow any liens to attach to the Leased Premises or its leasehold interest without the prior written approval of City. Prior to the commencement of any construction, alteration, or repair hereunder which exceeds twenty-five thousand dollars ($25,000) in cost, Company or its contractor shall furnish to City, and without expense to City, a surety bond, naming City as co-obligee, issued by a surety company licensed to transact business in the state of Texas and satisfactory to and approved by City with Company’s contractor or contractors as principals, in a sum not less than one hundred percent (100%) of the total cost of contract or contracts for the construction, alteration, or repair of the improvements and facilities mentioned herein. Said bond shall guarantee the prompt payment of all persons supplying labor, materials, provisions, supplies, and equipment used directly or indirectly by said contractor, subcontractor(s) and suppliers in the prosecution of the work provided for in said construction contract and shall protect City from any liability, losses or damages arising therefrom. Section 11 Damage or Destruction of Leased Premises in Terminal Building Section 11.1 Partial Damage. If all or a portion of the Leased Premises is partially damaged by fire, explosion, the elements, public enemy, or other casualty, but not rendered untenantable, the same will be repaired with due diligence by City subject to the limitations of Section 13.4; provided, however, that if the damage is caused by the negligent act or omission of Company, its sub-Lessee, agents, or employees, to the extent that such damage or destruction is not covered by insurance, Company shall be responsible for reimbursing City for the costs and expenses incurred in such repair. Section 11.2 Extensive Damage. If the damages referred to in Section 13.1 shall be so extensive as to render the Leased Premises untenantable, but capable of being repaired in thirty (30) days, the same shall be repaired with due diligence by City subject to the limitations of Section 13.4; and, the compensation payable herein under Section 5 shall abate from the time of such damage or destruction until such Page 22 of 35 P3 Agreement Packet Page 60 EXHIBIT 1 23 time as the said Leased Premises is fully restored and certified by City's Building Inspectors as ready for occupancy; provided, however, that if said damage is caused by the negligent act or omission of Company, its sub-Lessee, agents or employees, said fees and charges will not abate and, to the extent that such damage or destruction is not covered by insurance, Company shall be responsible for reim- bursing City for the costs and expenses incurred in such repair. Section 11.3 Complete Destruction. In the event the Leased Premises is completely destroyed by fire, explosion, the elements, public enemy, or other casualty, or so damaged that it is untenantable and cannot be replaced for more than thirty (30) days, City shall undertake the repair, replacement, and recon- struction of said Leased Premises; and compensation payable herein under Section 5 shall abate as of the time of such damage or destruction until such time as the said Leased Premises is fully restored and certified by City's Building Inspectors as read y for occupancy; provided, however, that if said damage is caused by the negligent act or omission of Company, its sub-Lessees, agents, or employees, said fees and charges will not abate, and to the extent that such damage or destruction is not covered by insurance, Company shall be responsible for reimbursing City for the costs and expenses incurred in said repair; provided further, however, if within twelve (12) months after the time of such damage or destruction said Leased Premises shall not have been repaired or reconstructed, Company may cancel this Agreement in its entirety. Section 11.4 Limits of City's Obligations. It is understood that, in the application of the foregoing Sections 11.1, 11.2, and 11.3, City's obligations shall be limited to repair or reconstruction of the Terminal Building Leased Premises to the same extent and of equal quality as obtained at the commencement of operations. Redecoration and replacement of furniture, fixtures, equipment, and supplies provided by Company shall be the responsibility of Company and any such redecoration and refurnishing/re-equipping shall be of equivalent quality to that originally installed hereunder. SECTION 12 FEDERAL REQUIREMENTS (a) Company, its successors in interest and assigns, does hereby covenant and agree that: (i) No person on the grounds of race, color, national origin or disability shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities. (ii) In the construction of any improvements on, over or under such land and the furnishing of services thereon, no person on the grounds of race, color, national origin or disability shall be excluded from participation in, Page 23 of 35 P3 Agreement Packet Page 61 EXHIBIT 1 24 denied the benefits of, or otherwise be subjected to discrimination. (iii) The Company shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Sub-title A, Part 21, Non- discrimination in federally assisted programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. (b) Company acknowledges and agrees that the provisions of all Federal-Aid Airport Program Grant Agreements with the City that are applicable to the Airport are by reference made a part hereof to the same extent as though copied herein at length. (c) Nothing herein shall be deemed to grant Company any exclusive right for the use of any landing area or air navigation facility upon which Federal funds have been expended, within the meaning of Section 308 of the Federal Aviation Act of 1958, as amended or supplemented. (d) Company agrees to comply with the City’s Disadvantaged Business Enterprise programs insofar as such programs are applicable to Company’s operations on the Airport. Company acknowledges that the goals set forth in such programs shall be subject to change without notice to Company. (e) Public Benefit. Company agrees to operate the Leased Premises for the use and benefit of the public and further agrees: (i) To use reasonable efforts to furnish good, prompt and efficient services adequate to meet all the demands for its services at the Airport; (ii) To furnish said services on a fair, equal and not unjustly discriminatory basis to all users thereof; and (iii) to charge fair, reasonable and nondiscriminatory prices for each unit of sale or service, provided that the Company may make reasonable nondiscriminatory discounts, rebates or other similar types of price reductions for volume purchases SECTION 13 RIGHTS AND OBLIGATIONS OF CITY Section 13.1 Right of Flight. Company understands that the City and United States Air Force reserves the right of flight for the passage of aircraft above the surface of the Leased Premises in accordance with the criteria of the Federal Aviation Administration and that the grant and demise of the Leased Premises is Page 24 of 35 P3 Agreement Packet Page 62 EXHIBIT 1 25 subject to this reserved right of flight, which such right shall include the right to cause in such air space such noise as may be inherent to the operation of aircraft now known or hereafter used for the navigation of or flight in the air. Further, Company understands and agrees that City and United States Air Force reserves the right to use said air space for landing at, taking off from and operating aircraft on and over the Airport. Section 13.2 Operation, Maintenance and Expansion of Airport by the City. (a) The City agrees to operate, maintain and keep in good repair the areas and facilities at the Airport for the public and Company in accordance with the practices of a reasonably prudent airport operator. The City agrees to use reasonable efforts to keep the Airport free from obstructions and to do all things reasonably necessary for the safe, convenient and proper use of the Airport by those who are authorized to use the same. The City agrees to maintain and operate the Airport in accordance with all applicable standards, rules and regulations of the FAA. (b) The City may expand and improve the Airport as it, in its sole judgment, may deem necessary to provide required facilities in the interest of the public and the City. (c) The City shall have the right, but not the obligation, to maintain and keep in repair the landing area of the Airport and all publicly-owned facilities of the Airport, together with the right to direct and control all activities of Company in this regard. SECTION 14 LIABILITY, INDEMNIFICATION, INSURANCE AND CONDEMNATION Section 14.1 Liability. The City shall not be liable for its failure to perform any of the obligations under this Agreement or for any delay in the performance thereof, nor shall any delay or failure be deemed a default by the City when such failure or delay is the result of any cause beyond its reasonable control or jurisdiction. In any such case, a promptly written notice will be given by the City to Company of the existence of such cause and of readiness to resume performance upon the removal or termination thereof provided, however, that in every instance where the operation of the Airport and its facilities shall be wholly or partially suspended because of fires, storms, riots or acts of God, the City will proceed with due diligence and insofar as it has funds available to do so, to repair and restore the Airport and its facilities to such conditions as will permit its use and enjoyment as a commercial airport. Section 14.2 Indemnification. A. Definitions Page 25 of 35 P3 Agreement Packet Page 63 EXHIBIT 1 26 For the purpose of this section the following definitions apply: “City” shall mean all officers, agents and employees of the City of Wichita Falls. “Claims” shall mean all claims, liens, suits, demands, accusations, allegations, assertions, complaints, petitions, proceedings and causes of action of every kind and description brought for damages. “Damages” shall mean each and every injury, wound, hurt, harm, fee, damage, cost, expense, outlay, expenditure or loss of any and every nature, including but not limited to: (i) injury or damage to any property or right (ii) injury, damage, or death to any person or entity (iii) attorney’s fees, witness fees, expert witness fees and expenses, and (iv) all other costs and expenses of litigation “Premise Defects” shall mean any defect, real or alleged, which now exists or which may hereafter arise upon the premises. “Company” includes the corporation, company, partnership, or other entity, its owners, officers, and/or partners, and their agents, successors, and assigns. “Company’s employees” shall mean any employees, officers, agents, subcontractors, licensee and invitees of Company. “Proven” shall mean that a court of competent jurisdiction has entered a final unappealable judgment on a claim adjudging an entity or person liable for a monetary judgment. “Sole negligence” shall mean negligence of a party that is unmixed with the fault of any other person or entity. B. Indemnity The Company must indemnify, hold harmless, and defend the City from and against liability for any claims arising out of the Company's work and activities conducted in connection with this Contract. The Company is an independent contractor and is not, with respect to its acts or omissions, an agent or employee of the City. Page 26 of 35 P3 Agreement Packet Page 64 EXHIBIT 1 27 Company must at all times exercise reasonable precautions on behalf of, and be solely responsible for, the safety of Company’s employees while in the vicinity where the work is being done. The City is not liable or responsible for the negligence or intentional acts or omissions of the Company or Company’s employees. The City assumes no responsibility or liability for damages which are directly or indirectly attributable to premise defects. Responsibility for all such defects is expressly assumed by the Company. The City and Company must provide the other prompt and timely notice of any covered event which in any way affects or might affect the Company or City. The City has the right to compromise and defend the same to the extent of its own interests. BOTH CITY AND COMPANY EXPRESSLY INTEND THIS CONTRACT'S INDEMNITY PROVISION TO REQUIRE COMPANY TO INDEMNIFY AND PROTECT THE CITY FROM THE CONSEQUENCES OF THE CITY'S OWN NEGLIGENCE WHILE CITY IS PARTICIPATING IN THIS CONTRACT, WHERE THAT NEGLIGENCE IS A CONCURRING CAUSE OF THE DAMAGES. THIS CONTRACT'S INDEMNITY PROVISION DOES NOT APPLY TO ANY CLAIM WHERE DAMAGE IS PROVEN TO RESULT FROM THE SOLE NEGLIGENCE OF THE CITY. Page 27 of 35 P3 Agreement Packet Page 65 EXHIBIT 1 28 Section 14.3 Insurance. (a) The Company shall provide and maintain, at its own expense, the following types and amounts of insurance, during the term of this Lease: TYPE AMOUNT (i) Comprehensive General (Public) Liability – to include (but not limited to) the following: Combined single limit coverage (or equivalent) for bodily injury and property damage: $1 million on a per occurrence basis a) Premises/operations b) Independent contractors c) Personal injury liability d) Contractual liability e) Product/completed operations liability f) Liquor Liability (ii) Worker’s Compensation and Employer’s Liability Statutory $100,000 per occurrence The preceding amounts notwithstanding, the City reserves the right to increase the minimum amount required insurance to be effective 90 days after notice is sent to the address provided in Section 17.2 (or subsequent address provided in writing to the City, through its airport management designee. (b) The procurement of said insurance shall not be construed to be a limitation upon the Company's liability or as a full performance on its part of the indemnification provisions of the Lease. The Company's obligations are, notwithstanding said policy of insurance, for the full and total amount of any damage, injury or loss caused by or attributable to its activities conducted at or upon the Leased Premises. (c) Before commencement of activities under this Lease, the Company shall furnish to the City, certificates of insurance, plainly and clearly evidencing the required insurance, and thereafter, new certificates prior to the expiration date of any prior certificate. The Company understands that it is solely responsible to provide this necessary information. If the City notifies Company, in writing, that a violation of this article has occurred, Company will have 30 days to comply. If after thirty (30) days such violation has not been cured, this shall be considered a cause for cancellation of this lease, under the provisions of Section 15. Page 28 of 35 P3 Agreement Packet Page 66 EXHIBIT 1 29 (d) Insurance required herein shall be issued by a company or companies of sound and adequate financial responsibility and authorized to do business in the state of Texas. All policies shall be subject to examination and approval by Legal office for their adequacy as to form, content, form of protection, and providing company. (e) Insurance required by this Lease for the City, as additional insured, shall be primary insurance and not contributing with any other insurance available to the City, including any third party liability policy. The inclusion of the City as an additional insured is not intended to, and shall not make the City a partner or joint venturer with Company. (f) The Company further agrees that with respect to the above-required insurance, the City shall: (i) Be named as additional insured/or an insured, as its interest may appear; (ii) Be provided with a waiver of subrogation; and (iii) Be provided within thirty (30) days advance notice, in writing, of cancellation or material change. (g) Said policies of insurance shall be performable in Wichita County, Texas, and shall be construed in accordance with the laws of the state of Texas. (h) Protection against loss by fire or other casualty to the equipment or property of Company shall not be an obligation of the City. Section 14.4 Insurance of the Leased Premises. (a) Improvements. The Leased Premises shall be insured at all times during the term of this Agreement by Company for fire risks under a policy issued by a responsible insurance company. All such insurance policies on the Leased Premises shall name as insured thereunder the City and Company. Said insurance on a replacement cost basis, in an amount not less than fifty thousand dollars ($50,000), covering loss or damage to any buildings and/or improvements on the premises and premises contents owned or leased by the Company. The City of Wichita Falls shall not be liable for any damages to fixtures, merchandise, or other personal property of Company, regardless of the cause, and the Company does hereby release the City from any such liability; and Company shall release and relieve the City, and waive its entire claim of recovery for loss or damage to property arising out of any of the perils whether included in Company’s property insurance, or not, regardless if the loss or damage is due to negligence of the City or the Company, or their respective agents, employees, guests, licensees, invitees, contractors or other persons. Page 29 of 35 P3 Agreement Packet Page 67 EXHIBIT 1 30 (b) Reconstruct/Repair. In the event the Leased Premises or a substantial part thereof is damaged or destroyed by an insured casualty, Company shall at its sole cost reconstruct or repair the improvements and the insurance proceeds shall be applied to the reconstruction or repair of the improvement, the Company shall pay any deficiency between the cost of reconstructing or repairing the improvements to its state prior to such loss and the proceeds. The facilities shall be reconstructed or repaired, either in accordance with the original plans and specifications or in accordance with the new or modified plans and specifications jointly approved by the City and Company. Before any repair or reconstruction under this paragraph, Company shall submit plans and specifications to the City for approval. SECTION 15 EVENTS OF DEFAULT AND REMEDIES Section 15.1 Default by Company. The following shall be events of default as to the Company under this Agreement: (a) Failure by the Company to pay any rent and fees within thirty (30) days of the date it receives written notice from the City that such rent is past due. (b) Failure by the Company to observe and perform any covenant, condition or agreement on its part to be performed other than as referred to in sub-section (a) for a period of thirty (30) days after receipt of written notice from the City specifying such failure and requesting that it be remedied. (c) Abandonment or desertion of Leased Premises by the Company for any period of time exceeding thirty (30) consecutive calendar days or filing of any lien against the Leased Premises or Company’s interest therein in violation of this Agreement and shall remain unreleased for a period of sixty (60) days from the date of such filing unless within said period the Company is contesting in good faith the validity of such lien and while such lien is appropriately bonded. (d) A receiver is appointed without Company’s application or consent, in any action or proceeding by or against Company and such action or proceeding is not stayed or discharged within sixty (60) days after its commencement, or Company is involuntarily made a party to any insolvency proceeding conducted pursuant to the laws of any state or of a political subdivision of any state and such proceeding is not stayed or discharged within sixty (60) days after its commencement, or Company involuntarily becomes a debtor in any case commenced under the provisions of the United States Bankruptcy Code, as amended and such case is not stayed or discharged within sixty (60) days after its commencement. Page 30 of 35 P3 Agreement Packet Page 68 EXHIBIT 1 31 (e) The dissolution or liquidation of Company or the filing by Company of a voluntary petition in bankruptcy or failure by the Company promptly to remove any execution, garnishment or attachment of such consequence as will impair its ability to carry on its operations at the Leased Premises. Section 15.2 Remedies on Default. Whenever any event of default referred to in Section 15.1 hereof shall have happened, the City may take any one or more of the following remedial steps as against the Company: (a) The City may re-enter and take possession of the Leased Premises of Company without terminating this Agreement and sub-lease the interest of the Company to any party or operate the same on behalf of the Company. In either case, holding the Company liable for the difference, if any, between the rents and other amounts payable by Company hereunder and the rents and other amounts payable by such sub-leasing. (b) After thirty (30) days’ written notice to Company, the City may terminate this Agreement, exclude the Company from possession of the Leased Premises and shall use its best effort to lease Company’s interest therein to another party for the account of City holding Company liable for all rents and other amounts due under this Agreement and not paid by such other party. (c) The City may take whatever other action at law or in equity as may appear necessary or desirable to collect the rent then due and thereafter to become due from Company or to enforce performance and observance of any obligation, agreement or covenant of the Company under this Agreement. (e) If the City and the Company disagree with respect to Company’s obligations to pay money under this Agreement, Company may pay the amount under protest and such payment shall not prejudice Company’s right to recover the disputed amount if it is determined that such payment was not due. Section 15.3: Non-Exclusive Remedy. No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement. Section 15.4: Legal Fees. In the event there should be a default under any of the provisions of this Agreement and the City should determine that the services of an attorney are required or the City incurs other expenses for the collection of rent or the enforcement of performance or observance of any obligation or agreement on the part of Company, the Company agrees that it will on demand therefor pay to the City the reasonable, just and necessary fees of such legal and other reasonable incurred expenses. Page 31 of 35 P3 Agreement Packet Page 69 EXHIBIT 1 32 SECTION 16 ASSIGNMENTS, SUBLETTING, TERMINATION AND ENCUMBRANCES Section 16.1 Assignment and Subletting (a) Company covenants and agrees that it will not sell, convey, transfer or assign this Agreement or any part thereof or any rights created thereby or sublet the Leased Premises covered by this Lease or any part thereof without the prior written consent of the Director provided, however, that Company shall have the right to assign its interest hereunder or to sublet the Leased Premises to any subsidiary, affiliate or successor company thereof upon the condition that the Company hereunder shall remain liable for the full, faithful and complete performance of this Agreement. Upon approval of the Director, Company may sublet the Leased Premises subject to Company and Sub-Company remaining liable for the full faithful and complete performance of this Lease both pre-assignment and post-assignment. Such approval will consider the effect such sale, conveyance, transfer or assignment will have on the continued performance of successor company under this agreement and its response to the request for proposal. Director may withhold written consent under this section for any reason. (b) If, without the prior written consent of the Director, the Company assigns, sells, conveys, transfers or sublets in violation of Section (a) of this Section or if the Leased Premises are occupied by anybody other than the Company, as provided in this Lease, the City may collect rent from any assigns, sub- Company or anyone who claims a right to this Agreement or who occupies the Leased Premises and the City shall apply the net amount collected to the rental herein reserved but no such collection shall be deemed a waiver by the City of the covenants contained in subdivision (a) of this Section or an acceptance by the City of any such assignee or sub-Company. (c) Any assignment or transfer of this Agreement or any rights of Company hereunder (except as otherwise permitted herein) whether it be a voluntary assignment without the consent of Director or an assignment or transfer by operation of law, shall be null and void and shall constitute a default on the part of the Company. Section 16.2 Termination by Company. If not in default in any of its obligations hereunder, Company may at its option terminate this Agreement by giving the Director thirty (30) days’ written notice thereof if any of the following shall occur: (a) The City shall fail to remedy any breach by it of any of the covenants and agreements herein contained within thirty (30) days after receipt of a written notice by the Company of the existence of such breach. Page 32 of 35 P3 Agreement Packet Page 70 EXHIBIT 1 33 (b) To the extent within its reasonable control, the City fails, for a period of thirty (30) days after receipt of a written notice by the Company to remove any or take the reasonable steps to remove a condition of the Airport caused by the act or omission of the City and such condition results in Company’s inability to conduct business operations at the Airport. (c) The condemnation and taking by authority of eminent domain of the Leased Premises or any part thereof that substantially renders unusable the operation by Company of its authorized business at the Airport. SECTION 17 MISCELLANEOUS Section 17.1 Consents and Approvals (a) With respect to the approvals herein required of the Company, Company shall from time to time furnish to the City appropriate certifications setting forth the officers or representatives of Company who are authorized to grant such approvals and to bind the Company thereto. (b) The City’s Airport Director may give any consent or approval herein re quired of the City unless otherwise provided. (c) All consents and approvals required or permitted herein by either party shall be given in writing. Section 17.2 Notices All notices required or permitted to be given to the City or Company shall be deemed sufficiently given if in writing and sent either by registered mail or certified mail, postage prepaid, addressed as follows, or to such other address or addresses as the City or Less City: Company: Director of Aviation, Traffic & Transportation Wichita Falls Regional Airport 2100 Seymour Highway Wichita Falls, Texas 76301 Section 17.3 Brokerage. The Company represents and warrants that no brokers have been concerned on their behalf in the negotiation of this Agreement and that there are no such brokers who are or may be entitled to be paid commissions in Page 33 of 35 P3 Agreement Packet Page 71 EXHIBIT 1 34 connection therewith. Company shall hereby indemnify and save harmless the City of and from any claim for commission or brokerage made by any such brokers when such claims are based in whole or in part upon any acts or omissions by Company. Section 17.4 Force Majeure. Neither the City nor Company shall be deemed in default hereunder if either party is prevented from performing any of its obligations, other than the payment of rentals, fees and charges hereunder, by reasons of strikes, boycotts, labor disputes, embargoes, shortages of energy or material, acts of God, acts of the public enemy, acts of superior governmental authority, weather conditions, floods, riots, rebellion, acts of sabotage or any other circumstances for which it is not responsible or which are not within its control. Section 17.5 Entire Agreement. This Agreement constitutes the entire agreement between the City and Company. Section 17.6 Lease to Federal Government. During time of war or national emergency, City shall have the right to lease the landing area or any part thereof the leased premises to the United States Government for military use and if any such lease is executed, the provisions of this Agreement insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended but such suspension shall not extend the term of this Agreement, without written approval by the City. Section 17.7 Place of Performance; Laws Governing Venue . This Agreement shall be performable and enforceable in Wichita County, Texas, and shall be construed in accordance with the laws of the State of Texas. Venue for any cause of action shall be Wichita County, Texas. Section 17.8 Severability. Should any part of this Lease be held to be invalid, such invalidity shall not affect the balance of that provision or the remaining provisions of this Lease, which shall remain in full force and effect. (THE REST OF THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY) Page 34 of 35 P3 Agreement Packet Page 72 EXHIBIT 1 35 IN WITNESS WHEREOF this Agreement has been entered into and is effective as of the Effective Date and has been executed in quadruplicate original counterparts by the respective officers of the parties hereto as of the dates noted below. City of Wichita Falls, a Municipal Corporation By: ____________________________ By: ________________________ Darron Leiker, City Manager Date: ___________________________ Date: ________________________ APPROVED: ________________________ Julia Vasquez Acting City Attorney ATTEST: ATTEST: _______________________ _____________________________ Tracy Norr City Clerk Page 35 of 35 P3 Agreement Packet Page 73