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HomeMy WebLinkAboutTHE CROWN CLUB - CONTRACT - RFP - 7009 COLLINDALE GOLF COURSE RESTAURANT SNACK BAR CONCESSIONAIRECOLLINDALE GOLF COURSE RESTAURANT/SNACK BAR CONCESSION AGREEMENT This Collindale Golf Course Restaurant/Snack Bar Concession Agreement (the "Agreement"), is made and entered into as of the 61hday of March, 2009, by and between THE CITY OF FORT COLLINS, COLORADO, a municipal corporation, whose principal offices are at 300 LaPorte Avenue, Fort Collins, Colorado 80521 (the "City"), and Crown Enterprises Incorporated, DBA The Crown Club at Collindale whose principal offices are at 134 S. College Ave., Fort Collins, CO (the "Concessionaire"). ARTICLE 1 Concession mace 1.1 Definition of Concession Space. For the purposes of this Agreement, the "Concession Space" means the following areas at the Collindale Golf Course, 1441 East Horsetooth Road: 1.1.1 The kitchen, bar, and wait area on the main floor of the Collindale Clubhouse building. 1.2 Use of Concession Space. The Concessionaire shall have the use of the Concession Space for the purpose of offering food, non-alcoholic beverages, licensed alcoholic beverages, and related services primarily to golfers using the Collindale Golf Course and, incidentally, to the public. ARTICLE 2 Concessionaire's Use of the Clubhouse and the Concession Space . 2.1 In General. Subject to other limitations expressed in this Agreement, the City grants to Concessionaire the right to exclusive use of the Concession Space and the right to use in common with others the public areas of the Clubhouse building and the grounds of the Collindale Golf Course in conjunction with its food and beverage operations (and for no other purpose) in such spaces and manner as may be prescribed by the City. . 2.2 Smoking. Smoking instruments and tobacco products of any kind will not be sold or otherwise supplied by Concessionaire at Collindale golf course. Smoking is not permitted in any areas of the clubhouse or on the adjacent patio within 20 feet of entrances. Concessionaire shall comply with any other requirements of applicable Fort Collins City ordinances and Colorado state law regarding smoking and tobacco products. 7.4 Interest on Past Due Amounts. Concessionaire shall pay interest on all past due amounts at the rate of eighteen percent (18%) per annum from the due date, until paid. 7.5 Method of Payment. Payment for all fees under Article 7 shall be by check or money order payable to the order of "City of Fort Collins-- Golf' and shall be mailed or personally delivered to the Accounting Department at 215 N Mason St, P.O. Box 580, Fort Collins, Colorado, 80522. ARTICLE 8 Utilities, Maintenance and Janitorial Duties 8.1 Utilities. The City shall pay all charges for water, storm water, sewer, gas, trash collection, recycling, basic clubhouse security system. The Concessionaire shall pay 25% of the natural gas and electric services to the Clubhouse building and that payment shall be due by the 151h of each month for previous month usage. 8.2 Maintenance and Repair. The City shall maintain and repair the Clubhouse building and Concession Space. After September 30, 2009 the City and Concessionaire will split cost of repair of the City kitchen equipment and fixtures (defined in Article 9 and listed in Exhibit D). Concessionaire shall submit all requests for repairs or maintenance to the City Representative. Notwithstanding anything to the contrary contained herein, the City shall not in any way be liable to the Concessionaire for failure to make repairs as herein specifically required of it unless the Concessionaire has previously notified the City in writing of a need for such repairs, and the City has failed to commence and complete said repairs within a reasonable period of time following receipt of the Concessionaire's written notification. 8.2.1 The Concessionaire shall neither hold nor attempt to hold the City liable for any injury or damage, either approximate or remote, occasioned through or caused by defective electrical wiring or the breaking or stoppage of plumbing or sewage upon the Concession Space/Area, whether said breakage or stoppage results from freezing or otherwise. 8.3 Cleaning and Janitorial. The Concessionaire shall keep the Concession Space and its fixtures clean and in good sanitary condition as required by the ordinances, resolutions, statutes and health, sanitary and police regulations of the City of Fort Collins, County of Larimer and State of Colorado. 8.3.1 Concessionaire shall thoroughly clean the entire Concession Space, including all equipment and fixtures, whether provided by the City or Concessionaire, the grills and exhaust, ovens, floors, sinks counters, refrigerators and all coils, at least four times per year at minimum on the following schedule: once prior to, once during, and once after the close of the April through September golf season, and one additional time during the October to March off-season. 8.3.2 Concessionaire is responsible for the ongoing cleanliness of the Concession Space in order to provide a clean and orderly appearance for golfers and the public, including but not limited to, busing and cleaning tables, chairs, patio deck, floor areas and common areas/hallways, removing trash accumulations to designated trash containers, and cleaning designated restrooms located in the clubhouse, and the patio deck. 8.3.3 Concessionaire is responsible for snow removal on the walks leading to the restaurant. The City will plow the parking lot when two or more inches of snow accumulate. ARTICLE 9 Acceptance and Trade Fixtures 9.1 Concession Space, City Equipment and Fixtures. In addition to the Concession Space, the City shall provide the following: 9.1.1 Existing equipment as.listed on Exhibit "D", attached hereto and made a part hereof; 9.1.2 Lighting fixtures for general area illumination; and 9.1.3 Heat and air conditioning. 9.2 Acceptance. On the date of commencement of this Agreement, Concessionaire shall acknowledge that it accepts the Concession Space as well as any City equipment and fixtures as is." 9.3 Installation of Equipment and Trade Fixtures. Except for the items listed on Exhibit "E", attached hereto and made a part hereof, no equipment, trade fixtures, signs or other personal property used by Concessionaire in its business, whether or not attached to the Clubhouse or any improvements thereon, shall be installed without the prior written approval of the City. 9.4 Removal of Equipment, Trade Fixtures. Concessionaire shall have the right at any time during the term of this Agreement or upon termination and within ten (10) days thereafter, to remove all trade fixtures, equipment and other personal property subject to any valid lien the City may have thereon for unpaid rents or installation of equipment in lieu of Concession Fee pursuant to Article 7. Any property not so removed by Concessionaire upon termination shall become a part of the realty on which it is located and title thereto shall vest in the City. 9.5 Title to Improvements. Upon installation or erection of Improvements, such improvements (but excluding any of Concessionaire's personal property and trade fixtures which are attached or affixed thereto) shall become a part of the realty upon which they are erected and title thereto shall vest in the City. Upon vesting, the Improvements become part of the Concession Space and are subject to the terms applicable to the Concession Space within this Agreement. 9.6 Applicable Law. All Improvements and all trade fixtures, equipment or other personal property installed by Concessionaire shall be subject to and conform in all respects to the applicable statutes, ordinances, building codes, rules and regulations of all governmental agencies which have jurisdiction over such matters. ARTICLE 10 Damage by Concessionaire The Concessionaire shall be liable for and shall repair, replace or cause to be repaired or replaced within fifteen (15) days after occurrence, any damage to the Clubhouse, including the Concession Space, or to City's property, equipment and fixtures (defined in Article 9) caused by Concessionaire, its officers, agents, employees or anyone acting under its direction and control, ordinary wear and tear excepted. All repairs or replacements shall be made promptly and when necessary and shall be in a quality and of a class at least equal to the original. If the damage for which Concessionaire is liable is to the Concession Space, Concessionaire shall continue to be liable for all rent/fees owed for the Concession Space. ARTICLE 11 Total or Partial Destruction 11.1 Concession Space or Other Major Component Rendered Untenantable. In case, during the term of this Agreement, the Concession Space, Clubhouse, Golf Course or any principal part of any one of them shall be destroyed or shall be so damaged by fire, flood or other casualty so as to be rendered untenantable or unusable as determined by the City: 11.1.1 Then, in such event, at the option of the City or Concessionaire, the term hereby created shall cease; and this Agreement shall become null and void from the date of such damage or destruction; and Concessionaire shall immediately surrender the Concession Space and its interest therein to the City; provided, however, that the City or Concessionaire shall exercise such option to so terminate this Agreement by notice, in writing, delivered to the other party within thirty (30) days after the City's determination of untenantability or unusability. 11.1.2 In the event neither the City nor Concessionaire shall elect to terminate this Agreement, this Agreement shall continue in full force and effect; and the City shall repair the Concession Space, Clubhouse, or Golf Course excluding Improvements or equipment, signs, trade fixtures or other personal property installed by Concessionaire, with all reasonable speed, placing the same in as good a condition as it was at the time of the damage or destruction. 11.2 Concession Space Only Untenantable. In the event of destruction rendering only the Concession Space untenantable, the City shall endeavor, but not be obligated to make substitute premises available for Concessionaire's use. During any period of use by Concessionaire of such substitute Concession Space, the City may direct that the Concessionaire's Fee shall be abated proportionately. 11.3 Components Tenantable. If the Clubhouse, Concession Space or Golf Course shall be only injured by fire or the elements to such extent so as not to render the same untenantable and unfit for use and occupancy, the City shall repair the same with all reasonable speed. 11.4 Removal of Rubbish. In any event, upon the occurrence of damage or destruction, Concessionaire shall remove all rubbish, debris, merchandise, furniture, furnishings, equipment and other items of its personal property within five (5) days after request being made by the City. 11.5 Exception for Damage Caused by Concessionaire. In the event of damage caused by Concessionaire as more specifically addressed in Article 10 of this Agreement, the provisions of Article 10 shall govern in any conflict between Article 10 and Article 11. 11.6 No Claim by Concessionaire. No compensation or claim shall be made by or allowed to Concessionaire by reason of any inconvenience or annoyance arising from the necessity of repairing any portion of the Clubhouse or Collindale Golf Course, however the necessity may occur. ARTICLE 12 Indemnification and Insurance 12.1 City's Liability. The City shall not in any way be liable for any cost, liability, damage or injury, including cost of suit and reasonable expenses of legal services, claimed or recovered by any person whomsoever or whatsoever as a result of any operations, works, acts or omissions performed within Collindale Golf Course and Clubhouse by Concessionaire, its agents, employees or contractors unless caused by the negligence or willful misconduct of the City, its employees, agents or contractors. 12.2 Indemnification. Concessionaire covenants that it will indemnify and hold the City harmless from all claims, demands, judgments, costs and expenses, and legal fees including attorneys' fees, claimed or recovered (whether justly, unjustly, falsely, fraudulently or frivolously) by any person by reason of injury to or death of any individual person or persons, or by reason of damage to, destruction or loss of use of any property, including City's personnel and City's property, directly or indirectly arising out of, resulting from or occurring in connection with any operations, works, acts or omissions of Concessionaire. As used herein, the term "Concessionaire" includes the respective directors, officers, agents, employees, contractors and subcontractors of Concessionaire. In the event a subcontractor performs any work under this Agreement, the Concessionaire shall be responsible for any liability directly or indirectly arising out of the work performed by such subcontractor. 12.3 Intellectual Property Representation. Concessionaire represents that it is the owner of or is fully authorized to use any and all services, processes, machines, articles, makes, names or slogans used by it in its operation or in any way connected with this Agreement. 12.4 Concessionaire Insurance. Without limiting any of the Concessionaire's obligations hereunder, the Concessionaire shall provide and maintain insurance coverage naming the City as an additional insured under this Agreement as specified in Exhibit "F", which is attached hereto and incorporated herein by this reference. 12.5 Precautions Against Injury. The Concessionaire shall take all necessary precautions in performing the operations hereunder to prevent injury to persons and property. 12.6 Failure to Insure. Neither the failure of Concessionaire to take out and/or maintain, nor the taking out and/or maintenance of any required insurance shall relieve Concessionaire from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with the obligations of Concessionaire concerning indemnification. In the event the Concessionaire fails to maintain insurance required hereunder, the City may, at its option, take out and maintain at the expense of the Concessionaire such insurance as the City may deem proper. The City may offset the cost of any such insurance from any monies that may be due or become due to the Concessionaire under this Agreement. ARTICLE 13 No Interest in Real Property Concessionaire agrees that this Agreement constitutes merely a right to use and occupy the Concession Space for a limited purpose and does not create or convey to Concessionaire any interest in real property. ARTICLE 14 Assignment The Concessionaire shall not assign this Agreement, sublet or otherwise allow any person to take possession of all or any portion of the Concession Space without prior written consent of the City nor permit any transfer by operation of law of Concessionaire's interest created hereby, other than by merger or consolidation unless approved by City. ARTICLE 15 Right of City to Enter, Inspect and Make Repairs 15.1 In General. City and its authorized employees, agents, contractors and other representatives shall have the right (at such times as may be reasonable under the circumstances and with as little interruption to Concessionaire's operation as is reasonably practicable) to enter upon any part of the Concession Space for the following purposes: 15.1.1 To inspect such premises at reasonable intervals during regular business hours (or at any time in case of emergency) to determine whether Concessionaire has complied with and is complying with the terms and conditions of this Agreement with respect to the premises; 15.1.2 To perform or cause to be performed maintenance and make repairs and replacements: and 15.1.3 To make structural additions and alterations. 15.2 Obstruction by City. All entries made for the purposes enumerated above shall, except as otherwise provided in Article 11 bTotal or Partial Destruction, be without abatement of rent for damage for inconvenience. However, in the event any entry by City in the Concession Space for the purpose of making repairs or alterations as provided for in Section 15.1.2 above (other than repairs necessitated as a result of damage by Concessionaire under Article 10) constitutes a substantial obstruction to and impairment of Concessionaire's right of use of such Concession Space, then Concessionaire shall be entitled to a fair and just abatement of the rent/fees for such premises during the period required by City to make such repairs. 15.3 Obstruction by Concessionaire. In the event that any personal property of Concessionaire shall obstruct the access of the City, its officers, employees, agents or contractors, or a utility company furnishing utility service to any of the existing utility, mechanical, electrical and other systems, and thus shall interfere with the inspection, maintenance or repair of any such system, Concessionaire shall move such property, as directed by the City or utility company, in order that access may be had to the system or part thereof for inspection, maintenance or repair. If Concessionaire shall fail to so move such property after direction from the City or said utility company to do so, the City or the utility company may move it without liability for damage sustained in moving. 15.4 No Eviction or Abatement. Exercise of any or all of the foregoing rights in this Article, by the City, or others under right of the City, shall not be, nor be construed to be, an eviction of Concessionaire, nor be made the grounds for any abatement of rental nor any claim or demand for damages against the City, consequential or otherwise, except claims for damages to person or property caused solely by the negligence of the City. ARTICLE 16 Default, Rights of Termination 16.1 Default by Concessionaire. Time of payment and performance is of the essence of this Agreement. Concessionaire shall be in default under this Agreement upon the occurrence of any one or more of the following events: 16.1.1 Concessionaire's failure to pay any fee or other charge when due and within five (5) workings days after notice from City of such nonpayment. 16.1.2 Concessionaire's failure to maintain the insurance required in Section 12.4. 16.1.3 Concessionaire's assignment of any right hereunder in violation of Article 14. 16.1.4 Concessionaire's failure to perform, keep or observe any of the terms, covenants or conditions of this Agreement within seven (7) days (or such longer time as may be necessary to cure, provided that cure is commenced within the initial seven (7) days) after notice from the City specifying the nature of the deficiency with reasonable particularity and the corrective action that is to be taken within such period to cure the deficiency. 16.1.5 The filing by Concessionaire of a voluntary petition in bankruptcy, the filing of an involuntary petition in bankruptcy against Concessionaire, the taking of possession of all or substantiallyall of Concessionaire's assets pursuant to proceedings brought under the provisions of any federal reorganization act or the appointment of a receiver of all or substantially all of Concessionaire's assets and the failure of Concessionaire to secure the return of such assets and/or the dismissal of such proceeding within ninety (90) days after the filing. 16.1.6 The abandorunent for a period of seven (7) days by Concessionaire of the conduct of its services and operations during the season from the beginning of April through the end of September, or for a period of fourteen (14) days during the October through March off-season. 16.1.7 The assignment by Concessionaire of any or all of its assets for the benefit of creditors. 16.1.8 The death of the Concessionaire or dissolving of the Corporation. 16.1.9 After written notice to the Concessionaire of any violation of the personal conduct standards set forth in Section 4.4, and a hearing of the matter before the City's Director of Purchasing and Risk Management, if such a hearing has been requested in writing and received by the. Director of Purchasing and Risk Management within ten (10) days after mailing of written notice of violation, a determination by the Director of Purchasing and Risk Management that the alleged violation has, in fact, occurred, and that such violation materially interferes with Concessionaire's ability to perform its services hereunder in a manner satisfactory to the City or otherwise impairs the benefits to be derived from the City by this Agreement, including the good will, satisfaction, health and safety of the general public. 16.2 City's Remedies on Default. 16.2.1 In the event of a default by Concessionaire, the City may terminate this Agreement effective immediately upon providing written notice of the termination to Concessionaire. In the alternative, the City may elect to keep the Agreement in force and work with Concessionaire to cure the default. If this Agreement is terminated, the City shall have the right to take possession of the Concession Space at the time of default. Concessionaire's liability to City for damages and rent shall survive the termination, and the City may re-enter, take possession of the Concession Space and remove any persons or property by legal action or by self-help with the use of reasonable force and without liability for damages. 16.2.2 Following re-entry or abandonment, City may make arrangements for use of the Concession Space by others and in that circumstance may make any suitable alterations or refurbish the Concession Space, but City shall not be required to make such arrangement for any use or purpose. 16.3 Rights and Remedies Reserved. It is understood and agreed that any rights and remedies reserved pursuant to this Article are in addition to any other rights or remedies the City may have pursuant to this Agreement or to applicable law to seek judicial enforcement, damages or any other lawful remedy. ARTICLE 17 Miscellaneous Provisions 17.1 Cumulative Rights. All remedies provided in this Agreement shall be deemed cumulative and additional and not in lieu of, or exclusive of, each other or of any other remedy available to the City, or Concessionaire, at law or in equity, and thQ exercise of any remedy, or the existence herein of other remedies or indemnities shall not prevent the exercise of any other remedy. 17.2 Non -Waiver. The failure by either party to exercise any right or rights accruing to it by virtue of the breach of any covenant, condition or agreement herein by the other party shall not operate as a waiver of the exercise of such right or rights in the event of any subsequent breach by such other party, nor shall such other party be relieved thereby from its obligations under the terms hereof. 17.3 Non -liability of Individuals Other than Concessionaire. With the exception of Concessionaire, no director, officer, agent or employee of either party shall be charged personally or held contractually liable by or to the other party under any term or provision of this Agreement or of any supplement, modification or amendment to this Agreement because of any breach thereof, or because of its or their execution or attempted execution of the same. 17.4 Limitations on Use. Concessionaire shall not use, or permit the use of the Concession Space, or any part thereof, for any purpose or use other than those authorized by this Agreement. Concessionaire shall not permit nor suffer any disorderly noise or nuisance whatsoever about the Concession Space, Clubhouse or Collindale Golf Course. 17.5 Governing Law. This Agreement shall be performable and enforceable in Larimer County, Colorado, and shall be construed in accordance with the laws of the State of Colorado. 17.6 Benefits. This Agreement is made for the sole and exclusive benefit of the City and Concessionaire, their successors and assigns, and is not made for the benefit of any third party. 17.7 Construction. In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 17.8 Successors and Assigns. All covenants, stipulations and agreements in this Agreement shall extend to and bind each party hereto, its legal representatives, successors and assigns. 17.9 Headings. The titles of the several articles of this Agreement are inserted for convenience only, and are not intended and shall not be construed to affect in any manner the terms and provisions hereof, or the interpretation or construction thereof. 17.10 Legal Fees. In the event any legal action or proceeding is brought to collect sums due or to become due hereunder or any portion thereof or to enforce compliance with this Agreement for failure to observe any of the covenants of this Agreement, the losing party agrees to pay to the prevailing party the sums a Court may judge reasonable for legal fees, including attorneys' fees and costs, in such action or proceeding and in any appeal. 17:11 Incorporation of Request for Proposals/Entire Agreement. Request for Proposal Number 7009, and all specifications included therein, and the Proposal submitted and interview responses by the Concessionaire in response thereto, are incorporated and made a part of this Agreement by this reference, except that in the event of a conflict between such documents and the express terms of this Agreement, the terms of this Agreement shall prevail. This Agreement, which is the entire agreement between the parties hereto, supersedes all prior agreements, understandings, warranties or promises between the parties hereto, whether written, spoken or implied from the conduct of the parties hereto, except as expressly incorporated herein. 17.12 Severability. In the event any covenant, condition or provision of this Agreement is held to be invalid by final judgment of any court of competent jurisdiction, the invalidity of such covenant, condition or provision shall not in any way affect any of the other covenants, conditions or provisions of this Agreement, provided that the invalidity of any such covenant, condition or provision does not materially prejudice either the City or the Concessionaire in his or its respective rights and obligations under the valid covenants, conditions or provisions of this Agreement. 17.13 Surrender of Possession. Upon the expiration of this Agreement or its earlier termination as herein provided, Concessionaire shall remove all of its property from Collindale Golf Course and surrender entire possession of its rights at Collindale Golf Course to City and its improvements in accordance with Section 10 above, unless this Agreement is renewed or replaced. 17.14 City Representative. The City designates the Director of Parks as its representative who shall make, within the scope of his/her authority, all necessary and proper decisions with reference to this Agreement. All requests.for contract interpretations, amendments and other clarifications or instructions shall be directed to the City Representative. 17.15 Notices. Notices permitted or required to be given under this Agreement shall be in writing and shall be deemed given upon personal delivery or upon deposit in the United States Mail, certified, return receipt requested, postage fully prepaid, addressed as follows or to such other address as the parties may designate from time to time by notice given in accordance with this Section: To Concessionaire: Crown Enterprises Incorporated, DBA The Crown Club at Collindale 134 S. College Ave Fort Collins, CO 80524 To the City: Director of Parks City of Fort Collins 300 LaPorte Avenue P.O. Box 580 Fort Collins, Colorado 80522-0580 17.16 Schedules and Exhibits. Whenever reference is made in this Agreement to a Schedule or an Exhibit, unless otherwise specifically expressed to the contrary, such Schedule or Exhibit shall be deemed attached to and by this reference incorporated in this Agreement. 17.17 Force Majeure. Neither the City nor the Concessionaire shall be deemed in violation of this Agreement if prevented from performing any of its obligations hereunder by reason of strikes, boycotts, labor disputes, embargoes, shortage of energy or materials, acts of God, act of public enemy, acts of superior governmental authority, weather conditions, rights, rebellion, sabotage or any other circumstances that are not within its control. 2.3 Restriction on Items Offered for Sale. Concessionaire may offer such non-food or non -beverage items as are incidental to its food and beverage service, except for smoking instruments and tobacco products, pursuant to section 2.2. 2.4 Compliance with Applicable Law. The Concessionaire agrees to comply fully with all applicable state and federal laws and regulations and municipal ordinances, as well as all rules and regulations, policies, and procedures adopted by the City or any of its Boards, Service Areas, Service Units, Divisions or Departments having jurisdiction over Collindale Golf Course. ARTICLE 3 Rights of Ingress and Egress 3.1 In General. The Concessionaire shall have the right of ingress and egress to and from the Clubhouse and Concession Space for Concessionaire's employees, agents and invitees to the extent reasonably necessary in connection with the conduct of Concessionaire's business under this Agreement. Areas designated as restricted areas by the City shall be excluded. 3.2 Closures., The City may, at any time, temporarily or permanently, close or consent to or request the closing of any roadway or any other way at, in, or near the Clubhouse or Collindale Golf Course, presently or hereafter used as such, so long as a reasonable and safe means of ingress and egress remains available to Concessionaire. ARTICLE 4 Undertakings of Concessionaire 4.1 Service. Concessionaire agrees as follows: 4.1.1 The Concessionaire shall furnish and pay for all equipment, except as otherwise provided by the City pursuant to Article 9, all goods, labor, transportation, supervision and services necessary to provide food and beverage services in accordance with this Agreement. 4.1.2 Services provided by the Concessionaire shall include the maintenance of an adequate stock of food and beverage supplies, condiments, dishes, silverware, napkin dispensers, salt and pepper shakers, cups and glassware, and any kitchen utensils or bar equipment if necessary to serve the demand for such items at the Collindale Golf Course, as well as paying for all cable and/or satellite television services in the Clubhouse except for the Pro Shop. 4.1.3 Concessionaire acknowledges the desire and obligation of the City to provide the public high quality food and beverages and a high level of public service. Therefore, Concessionaire agrees to offer for sale from the Concession Space only good quality food and beverages at fair and competitive pricing, relative to comparable restaurant facilities 17.18 No Limitation on General Powers. Nothing in this Agreement shall be construed as in any way limiting the general powers of the City to fully exercise their governmental functions or their obligations under any bond covenants or federal, state or local laws, rules or regulations. 17.19 No Relationship. Nothing contained herein shall be deemed or construed by the parties or by any third party as creating the relationship of employer and employee, principal and agent or a partnership or a joint venture between the parties hereto. 17.20 Survival. To the extent necessary to carry out all of the .terms and provisions hereof, the said terms, obligations and rights set forth herein required shall survive and shall not be affected by the expiration or termination of this Agreement. IN WITNESS written above. TTEST: City Clerk TO FORM: ttorney ATTEST: CORPORATE SECRE Y ies hereto have executed this Agreement on the day and year CITY OF FORT COLLINS, COLORADO :A unicipal Corporation -�" C®LO Jam is B. O'Neill, II, CPPO, FNIGP . Dire of Purchasing and Risk Management Crown Enterprises Incorporated DBA The Crown Club at Collindale ---V En , ( WJYu (A)t ZM f--r- CORPORATE PRESIDENT OR VICE PRESIDENT Date: �; 0o (Corporate Seal) EXHIBIT A City of Fort Collins Cultural, Library and Recreational Services Golf Division Policy: Contractor Personnel Conduct and Demeanor, and Background Screening for Positions of Trust. Under the terms and conditions of each respective Agreement with the City, all Golf Professionals and Restaurant/Snack Bar Concessionaires (the "Contractor") shall control the conduct and demeanor of their employees, volunteers, and other representatives or agents of the Contractor that will be working on behalf of the Contractor in providing services to the City. The Contractor agrees to provide to the City at all times a current list of employees, volunteers, and other representatives or agents of Contractor that will be working on behalf of the Contractor in providing services to the City under their Agreement, and that all such employees, volunteers, and other representatives or agents of Contractor agree to adhere to the "Behavior/Standards of Personal Conduct and Performance." Contractors and the City also hereby acknowledge and agree that certain services provided by the Contractor will require that specified employees, volunteers, and other representatives or agents of the Contractor act in "positions of trust" which can include the handling of and/or accounting for funds of the City and/or of City property, or direct contact with youth and members of the general public. Accordingly, each Contractor agrees that all specified employees, volunteers, or other representatives or agents of Contractor in positions of trust shall be screened/investigated at the expense of the Contractor using the City's contracted background screening/investigation procedure as described in each respective contractor's Agreement, and that the results of such background screening/investigation shall be provided to the City prior to any such persons participation in the provision of services, as described in each respective contractor's Agreement. Each Contractor shall require the completion and execution of the Disclosure/Waiver form for all specified employees, volunteers, and other representatives or agents of Contractor. The purpose of this form is to provide the necessary information about an applicant and permission to review confidential information for a complete and thorough background screening/investigation. The Contractor shall provide to all said employees, volunteers, and other representatives or agents a Summary of Rights under the Fair Credit Reporting Act. The background screening/investigation shall include, but is not necessarily limited to, checking arrests and/or conviction records, driving records, credit history, education, previous employment and volunteer work and other records as may be appropriate, and references, including review of any records of information available to the City as a result of past employment or contractual relationships the employee, volunteer, or other representative or agent has had with the Contractor or the City. The City will provide assistance in completing the background screening/investigation, including providing the completed disclosure form to an outside vendor for a confidential records check. Contractor acknowledges that by providing such assistance the City assumes no responsibility for the timeliness, accuracy or completeness of the background screening/investigation, or for the direct or indirect consequences resulting from the same, and the Contractor shall hold the City harmless for any resulting injury or loss. The Contractor shall make job assignments and responsibility assignments based upon and in consideration of the background screening/investigation, and shall not permit any person to perform any position for which such person's character or suitability are reasonably in question based upon the information obtained in connection with a background screening/investigation. The City may, in its discretion, object to any assignments of Contractor Personnel to positions of trust, as based upon the background screening/investigation. In the event that information from the report is utilized in whole or in part in making an adverse decision with regard to potential employment/volunteer/representative/agent status, before making the adverse decision, the City will attempt to provide Contractor with a copy of the consumer report/criminal history. Specified employees, volunteers, and other representatives or agents of Contractors identified at this time to be in positions of trust shall include, but are not necessarily limited to, all top assistants, area or section managers, lesson providers, personnel that directly handle and/or account for City funds; and those positions that can work individually with youth or members of the general public. Contractor Process for Obtaining Background Screening/Investigation Information Once an employee, volunteer, other representative or agent has been selected by the Contractor, the employee, volunteer, other representative or agent (applicant) shall complete the background screening/investigation form, which is titled "Disclosure to Prospective Employees, Volunteers, or Other Representatives or Agents of Contractors Regarding Procurement of a Consumer Report (including a criminal history report)." 2. When the employee, volunteer, other representative or agent (applicant) has completed and signed the form, the Contractor shall initial and date the bottom of the form, giving the bottom copy of the form to the applicant. The Contractor shall also give to the applicant at this time a summary of his/her rights under the Federal Fair Credit Reporting Act. The Fair Credit Reporting Act also imposes requirements and procedures related to any adverse decisions based upon credit information. 3. The Contractor keeps one copy of the form and forwards the original signed copy of the form to the Golf Division Administrative office. In order to expedite the processing time, the Contractor may also FAX a copy or bring the original copy of the form to the golf Division Administrative Aide. Once the Administrative Aide enters the form information into the computer, it takes three to four days for the City's contracted background screening/investigation firm to perform their service. 4. Because of the large number of applicants being screened using this similar process, there shall be no notification to the Contractor unless an applicant receives a negative report within four days of the time that the Administrative Aide enters the information into the computer. Therefore, the applicant may begin assignment for the Contractor after four days unless the Contractor is notified otherwise. However, be aware that it is possible that we could receive a negative report after four days, and we will have to address the situation at that time. i EXHIBIT B DISCLOSURE TO PROSPECTIVE EMPLOYEES, VOLUNTEERS, OR OTHER REPRESENTATIVES OR AGENTS OF CONTRACTORS REGARDING PROCUREMENT OF A CONSUMER REPORT (including a criminal history report) In connection with your status as a prospective employee, volunteer, or other representative or agent of the Contractor, Contractor and the City of Fort Collins may procure a consumer report/criminal history on you" as part of the process of. considering your candidacy for said status. The investigation conducted in conjunction with the report may include an investigation of your personal employment/volunteer history, education, financial, and credit records, public records concerning your driving record, civil and criminal court records, county, state, and Federal tax liens, notices of default and bankruptcies, and other records as may be appropriate. In the event that information from the report is utilized in whole or in part in making an adverse decision with regard to your potential employment/volunteer/representative/agent status, before making the adverse decision, the City and the Contractor will attempt to provide you and the Contractor with a copy of the consumer report/criminal history and a 'description in writing of your rights under the Federal Fair Credit Reporting Act. The Fair Credit Reporting Act gives you specific rights in dealing with consumer reporting agencies. A copy of A SUMMARY OF YOUR RIGHTS UNDER THE. FAIR CREDIT REPORTING ACT is attached to this document. By your signature below, you hereby authorize us to obtain a consumer report,and/or an investigative report about you in order to consider your status as a prospective employee, volunteer, or other representative or agent for the Contractor. Applicant's Name: (Please Print) First Signature: Applicant' Address: City/State/Zip: Driver's License #: Signature of Parent or Guardian: (if Applicant is under the age of 18): Other names used in the last seven (7) years: Middle Date of Birth: Social Security #: Previous out-of-state address(es) in the past seven (7) years. Address City County State 2. Address City County State Please list any additional addresses on the back of this page. Contractor's Initials: Date: City Staff Initials: Last Date: Zip WE EXHIBIT C Para informacion en espanol, visite mviv /ic.gov/credit o escribe a la FTC Consumer Response Center, Room 130-A 600 Pennsylvania Ave. N. W., Washington, D.C. 20580. A Summary of Your Rights Under the Fair Credit Reporting Act The federal Fair Credit Reporting Act (FORA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records). Here is a summary of your major rights under the FCRA. For more information, including information about.additional rights, go to www.ftc.gov/credit or write to: Consumer Response Center, Room 130-A, Federal Trade Commission, 600 Pennsylvania Ave. N.W., Washington, D.C. 20580. You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment — or to take another adverse action against you — must tell you, and must give you the name, address, and phone number of the agency that provided the information. You have the right to know what is in your file. You may request and obtain all the information about you in the files of a consumer reporting agency (your "file disclosure"). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if. • a person has taken adverse action against you because of information in your credit report; • you are the victim of identify theft and place a fraud alert in your file; • your file contains inaccurate information as a result of fraud; • you are on public assistance; • you are unemployed but expect to apply for employment within 60 days. In addition, by September 2005 all consumers will be entitled to one free disclosure every 12 months upon request from .each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See www.ftc.aov/credit for additional information. You have the right to ask for a credit score. Credit scores are numerical summaries of your credit -worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender. You have the right to dispute incomplete or inaccurate information. If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See www.ftc.vov/credit for an explanation of dispute procedures. Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate. • Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10'years old. • Access to your file is limited. A consumer reporting agency may provide information about you only to people with a valid need -- usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those -with a valid need for access. • You must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go to www.ftc.Qov/credit. • You may limit "prescreened" offers of credit and insurance you get based on information in your credit report. Unsolicited "prescreened" offers for credit and insurance must include a toll -free phone number you can call if you choose to remove your name and address from the lists these offers are based on. You may opt -out with the nationwide credit bureaus at 1-800- XXX-XXXX. • You may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court. • Identity theft victims and active duty military personnel. have additional rights. For more information, visitwww.ftc.gov/credit. States may enforce the FCRA, and many states have their own consumer reporting laws. In some cases, you may have more rights under state law. For more information, contact your state or local consumer protection agency or your state Attorney General. Federal enforcers are: TYPE OF BUSINESS: CONTACT: Consumer reporting agencies, creditors and others not listed below Federal Trade Commission: Consumer Response Center - FCRA Washington, DC 20580 1-877-382-4357 National banks, federal branches/agencies of foreign banks (word Office of the Comptroller of the Currency "National" or initials "N.A." appear in or after bank's name) Compliance Management, Mail Stop 6-6 Washington, DC 20219 800-613-6743 Federal Reserve System member banks (except national banks, and Federal Reserve Board federal branches/agencies of foreign banks) Division of Consumer & Community Affairs Washington, DC 20551 202.452-3693 Savings associations and federally chartered savings banks (word Office of Thrift Supervision "Federal" or initials "F.S.B." appear in federal institution's name) Consumer Complaints Washington, DC 20552 800-842-6929 Federal credit unions (words "Federal Credit Union" appear in National Credit Union Administration institution's name) 1775 Duke Street Alexandria, VA 22314 703-519-4600 State -chartered banks that are not members of the Federal Reserve Federal Deposit Insurance Corporation System Consumer Response Center, 2345 Grand Avenue, Suite 100 Kansas City, Missouri 64108-2638 1-877-275-3342 Air, surface, or rail common carriers regulated by former Civil Department of Transportation, Office of Financial Management Aeronautics Board or Interstate Commerce Commission Washington, DC 20590 202-366-1306 Activities subject to the Packers and Stockyards Act, 1921 Department of Agriculture Office of Deputy Administrator - GIPSA Washington, DC 20250 202-720-7051 • a ' EXHIBIT D CITY OWNED EQUIPMENT COLLINDALE RESTAURANT/SNACK BAR EQUIPMENT AND FLOOR PLAN O1 Underbar equipment from left to right: 90 degree corner section 12" hand sink section 84" 3-compartment glass washing sink section 42" flat glass storage/staging section 36" ice bin/coctail section 18" blender and dump sink section 18" flat top glass storage unit 02 Bar front & back millwork and cooler face. 03 Step-in bar cooler with double 36" hinged glass doors & bar drainer (beer taps/system by vendors) 04 Espresso deleted. 05 Pass window shelf/ledge 06 Work top with storage aboveibelow. 07 Storage cabinet (s/s top by KEC, base by GC) 08 Storage cabinet (s/s top by KEC, base by GC) 09 Hand sink 10 Linen drop 11 Spare number 12 Ice maker & soda system 13 Storage cabinets (s/s top by KEC-base by GC) 14 Spare number 15 Ice machine and bin 16 China/utensil storage rack 17 Soiled dish landing table 18 Waste disposal with spray rinse 19 Condensate hood 20 Clean dishtable 21 3-compartment utensil wash sinks 22 Hand sink 23 Spare number 24- Pass -through salad & dessert refrigerator 25 Mega -refrigerated condiment table 26 Double overhead pass -over shelves 27 Utility chase from serving line to ceiling 28 Chef s plate landing table 29 Wait staff tray shelf & dish storage below 30 3-opening water bath baine marie hot food table 4 " ► 31 Hot food lamp 32 Undercounter refrigerator drawer unit 33 Pantry shelving units 34 Exhaust hood, s/s wall panel & fire suppression 35 Fryers 36 Char grill with open base 37 Flat top grill with over base & salamander over 38 4-open burner top range with oven 39 Convection oven 40 Exhaust hood & fire suppression 41 Food mixer on stand w/tree 42 Work table 43 Convection steamer 44 Hand sink 45 2-compartment vegetable prep sinks 46 Food slicer 47 Work table 48 Freezer shelving 49 Cooler shelving 50 Walk-in cooler & freezer 51 Dry storage shelving 52 Lavatory 53 Mop sink 54 Chemical storage shelving 55 Pass -through "turn" window sill (slider by GC) 56 "Turn" window work table 57 Work table 58 Reach -in refrigerator 59 Work table 60 Hand sink 61 Cook-n-hold hot food unit 62 Spare number 63 Spare number 64 Deliver, set, assemble, start & calibrate 65 All tables, chairs, and furniture 66 Televisions — 2 — Panasonc 27' in Banquet Room 67 Video Surveillance System 68 Patio Furniture and Umbrellas in Fort Collins. If, in the opinion of the City, the pricing is not comparable, or the selection of items offered is inadequate or not of good quality, or if any of the items are found to be objectionable for display and/or sale in a public facility, then the pricing shall change or the items shall be removed or replaced as required by the City. The City Representative shall meet and confer with Concessionaire regarding such matters. However, Concessionaire acknowledges that the City's determination as to the same shall be conclusive. Failure of Concessionaire to correct, rectify or modify its prices or quality within five (5) days of being advised in writing to do so shall be cause for default. 4.1.4 Concessionaire shall submit to the City for review a list of all items to be sold in the concession space, and proposed prices for all such items. The Concessionaire shall submit to the City in writing all subsequent item and price changes. 4.2 Hours of Operation. Subject to the exception for inclement weather expressed in 4.2.2 below, the Concessionaire will be required to provide daily food and beverage services in the Concession Space during the months of April, May, June, July, August and September; at a minimum, the services shall be available from no later than 6:30 a.m. to no earlier than beyond sundown during these months. 4.2.1 The parties agree that the hours of operation during the months of October, November, December, January, February, and March shall be from no later than 10:00 a.m. to no earlier than 5:00 p.m. daily, at a minimum. However, the Concessionaire shall not be required to operate the concession when the Golf Course is closed due to bad weather or other reason as approved by the City. 4.2.2 Throughout the year, Concessionaire may, in its own discretion, close the concession during inclement weather, or provide less than a full -service operation pending customer demand during specified times, unless the closure or service level is objected to by the City. 4.3 Special Events Option. Concessionaire shall have the first option, upon request by the City or the Collindale Golf Professional, but shall not be obligated, to provide luncheons or other meals for special occasions, including but not limited to association meetings and tournaments. In the event such a request is made and Concessionaire elects not to provide such services, the City or the Collindale Golf Professional may provide food and non-alcoholic beverage services through other means. Such services shall not make use of the Concession Space, unless approved by Concessionaire. 4.4 Concessionaire Personnel. Concessionaire shall control the conduct and demeanor of its agents and employees. If the City so requests, Concessionaire agrees to supply and require its employees to wear suitable attire and to wear or carry badges or other suitable means of identification, the form of which shall be subject to prior and continuing approval of the City. I - v e 4.4.1 The Concessionaire agrees to provide to the City at all times a current list of employees, volunteers, and other representatives or agents of Concessionaire that will be working on behalf of Concessionaire in providing services to the City under this Agreement. The Concessionaire and the City acknowledge and agree that certain services provided by Concessionaire will require employees, volunteers, and other representatives or agents of Concessionaire act in positions of trust which will entail the handling of and accounting for funds of the City and City property, or direct contact with youth and other members of the general public. Accordingly, Concessionaire agrees that all employees, volunteers, and other representatives or agents of the Concessionaire in positions of trust, as described in Exhibit A, consisting of three (3) pages and incorporated herein by this reference, shall be screened using the background screening procedure described on Exhibit A, at Concessionaires expense, and that the results of such background screening shall be provided to the City prior to any such persons participation in the provision of services hereunder. The Concessionaire shall require the, completion and execution of the Disclosure/Request, Authorization, and Waiver form attached hereto as Exhibit B, consisting of one (1) page and incorporated herein by this reference. Concessionaire shall also provide to their employees/volunteers a copy of the Summary of Rights under the Fair Credit Reporting Act attached hereto as Exhibit C, consisting of two (2) pages and incorporated herein by this reference. 4.4.2 The City may provide assistance in completing the background investigation, including providing information from the completed disclosure form to an outside vendor for a confidential records check. Concessionaire acknowledges that in such event, by providing such assistance to Concessionaire, the City assumes no responsibility for the timeliness, accuracy or completeness of the background investigation, or for the direct or indirect consequences resulting from the same, and Concessionaire shall hold the City harmless for any injury or loss resulting therefrom. 4.4.3 In the event that a background check, or any other information available to the Concessionaire or the City, raises questions about the trustworthiness, fitness for provision of services under this Agreement, competence or suitability of any individual for a position of trust of any kind, including handling of funds, City equipment or property, or working with youths or other members of the general public, such individual shall not be employed or allowed to volunteer in connection with the services or activities required or permitted under this Agreement, or in a manner that would permit contact by that person with the funds, equipment, property associated with the provision of services hereunder, or persons participating in programs or services provided under this Agreement. 4.4.4 Upon receipt of written notice from the City of any reasonable objection from the City concerning trustworthiness, fitness for provision of services under this Agreement, competence or suitability of any individual for a position of trust of any kind, or concerning conduct, demeanor or competence of any employee or volunteer of Concessionaire, the Concessionaire shall immediately take all lawful steps to remove or otherwise address to the City's reasonable satisfaction the cause of the objection or to remove such individual from the performance of any services provided hereunder. 4.4.5 The following constitute unacceptable personal conduct that the parties acknowledge and agree shall be subject to reasonable objection by the City. The parties acknowledge that other conduct not listed in this Section may be determined by the City to be reasonably expected to impair Concessionaire's ability to provide satisfactory services under this Agreement, and may also give rise to a reasonable objection by the City to which Concessionaire shall be expected to respond as set forth herein. In the event that Concessionaire, or the individual site manager, if different from Concessionaire, commits any of the following examples of unacceptable conduct, or fails or refuses to take reasonable action to correct such conduct by any person providing services for or on behalf of Concessionaire hereunder, the City may give Concessionaire notice of violation and proceed in the manner as set forth in Section 16.1.9. A. Commission or conviction of a felony, or of any crime involving moral turpitude; B. Theft or misuse of City money or property; C. Harassment of, or discrimination against, any individual based on race, religion, national origin, age, sex, sexual orientation or disability; D. Falsification, unauthorized use or destruction of City records, reports or other data or information belonging to the City; E. Abusive or threatening treatment of any person, including, but not limited to physical or verbal confrontation; F. Using, consuming, possessing, having in the body or distributing alcohol (except in the normal performance of concession services) or controlled substances during working time; G. Destruction, loss or abuse of City property; H. Unauthorized use of City equipment or property for personal use; or I. Possessing or maintaining sexually explicit materials on City property. 4.5 Statements, Recordkeeping and Audits. Concessionaire shall keep books and records of the business, including an accounting of all revenue and expenses of the concession operation, in accordance with good accounting practice and in such form as is satisfactory to the City. The Concessionaire hereby grants to the City the right to audit Concessionaire's books and records for its operation at Collindale Golf Course and agrees to make available to the City, or its authorized representative, at any time, Monday through Friday inclusive, between the hours of 9:00 a.m. and 5:00 p.m., at the offices of the City or Collindale Golf Course, at the City's election, all records, books and relevant related information as may be required for audit purposes. 4.6 . Physical Interference. Concessionaire shall not do, nor permit to be done, anything which may interfere with the effectiveness or accessibility of the drainage system, sewerage system, fire protection system, sprinkler system, alarm system and fire hydrants and hoses, if any, installed or located in the Clubhouse or elsewhere at Collindale Golf Course. M 4.7 Taxes. Concessionaire agrees to pay all local, state and federal social security, unemployment insurance, sales, use, personal property, possessory interest, and other taxes, assessments and payments -in -lieu that, during the term of this Agreement or any extension hereof, may become a lien of which may be levied or charged by the State, County, City of Fort Collins or other tax -levying body upon or with respect to the Concession Space or Collindale Golf Course, upon any taxable interest acquired by the Concessionaire in this Agreement, or any taxable possessory right which Concessionaire may have in or to the Concession Space or facilities or the improvements thereon, by reason of Concessionaire's occupancy or use thereof, or otherwise, as well as all taxes on taxable property, real or personal, owned by Concessionaire or taxes on Concessionaire's operations or activities in or about the Concession Space, Clubhouse, or elsewhere at Collindale Golf Course. However, except as otherwise permitted by this Agreement, no charges, fees or taxes of any nature shall be imposed by the City solely upon Concessionaire for exercising any right or privilege granted by the City to Concessionaire in this Agreement with respect to the use of the Concession Space and Clubhouse. Nothing herein shall prevent Concessionaire from protesting, through due process, any taxes levied. 4.8 Licenses. Concessionaire agrees to obtain, maintain, and pay for all licenses necessary in connection with its operation, including but not limited to, a County Health Department Food Services Establishment inspection, a Hotel -Restaurant with Optional Premises Liquor License, and a City business license and/or occupation license. Failure to qualify for a liquor license or other required license, or failure to obtain any such license within ninety (90) days of execution of this Agreement shall constitute a default hereunder. 4.8.1 Any such licenses held by the Concessionaire in connection with this Agreement shall be surrendered by the Concessionaire upon termination of this Agreement. 4.8.2 Upon Concessionaire's surrender of all licenses and acquisition of new licenses by such replacement concessionaire as the City may select, the City shall reimburse Concessionaire for such proportional amount of the cost of the license as may be attributable to any remaining period which may exist from the date of Concessionaire's surrender to license expiration. 4.8.3 For the purpose of the Hotel -Restaurant with Optional Premises Liquor License, the "premises" shall be defined to include the Collindale Clubhouse building and adjacent outdoor Patio, and the entire grounds of Collindale Golf Course. 4.9 Vending Machines/Beverage Carts. This Agreement does not contemplate Concessionaire's use of vending machines to supply food, beverages or incidental items during the April through September golf season. Any installation or use of vending machines is subject to the prior written consent of the City Representative. 4.9.1 Concessionaire shall be required to provide and operate a minimum of two (2) beverage/food carts in order to provide food and beverage services on the grounds of the golf course from April through September when a sufficient number of customers, as determined by the City, are golfing. City -owned or leased golf cart or maintenance vehicles shall not be used for this purpose unless approved by the City. ARTICLE 5 Employing Illegal Aliens . 5.1 Prohibition Against Employing Illegal Aliens. Pursuant to Section 8-17.5-101, C.R.S., et. seq., Concessionaire represents and agrees that: 5.1.1 As of the date of this Agreement: 1. Concessionaire does not knowingly employ or contract with an illegal alien who will perform work under this Agreement; and 2. Concessionaire will participate in either the e-Verify program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, administered by the United States Department of Homeland Security (the "e-Verify Program") or the Department Program (the "Department Program"), an employment verification program established pursuant to Section 8-17.5-102(5)(c) C.R.S. in order to confirm the employment eligibility of all newly hired employees to perform work under this Agreement. 5.1.2 Concessionaire shall not knowingly employ or contract with an illegal alien to perform work under this Agreement or knowingly enter into a contract with a subcontractor that knowingly employs or contracts with an illegal alien to perform work under this Agreement. 5.1.3 Concessionaire is prohibited from using the e-Verify Program or Department Program procedures to undertake pre -employment screening of job applicants while this Agreement is being performed. 5.1.4 If Concessionaire obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien, Concessionaire shall: 1. Notify such subcontractor and the City within three days that Concessionaire has actual knowledge that the subcontractor, is employing or contracting with an illegal alien; and 2. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the illegal alien; except that Concessionaire shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. 5.1.5 Concessionaire shall comply with any reasonable request by the Colorado Department of Labor and Employment (the "Department") made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5-102 (5), C.R.S. 5.1.6 If Concessionaire violates any provision of this Agreement pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this Agreement is so terminated, Concessionaire shall be liable for actual and consequential damages to the City arising out of Concessionaire's violation of Subsection 8-17.5-102, C.R.S. 5.1.7 The City will notify the Office of the Secretary of State if Concessionaire violates this provision of this Agreement and the City terminates the Agreement for such breach. ARTICLE 6 Term . 6.1 Period. The term of this Agreement shall commence March 2, 2009 or on the date this Agreement is executed by the parties and, unless terminated sooner, shall expire on December 31, 2009. 6.2 Renewal -- 2010. This Agreement shall be automatically renewed for a period from January 1, 2010, until December 31, 2010, unless the Concessionaire is in default or unless one party serves written notice to the other party of its lintention to terminate the Agreement, provided such written notice must be served at least ninety (90) days prior to December 31, 2009. 6.3 Renewal -- 2011. This Agreement shall be automatically renewed for a period from January 1, 2011, until December 31, 2011, unless the Concessionaire is in default or unless one party serves written notice to the other party of its intention to terminate the Agreement, provided such written notice must be served at least ninety (90) days prior to December 31, 2010. 6.4 Renewal -- 2012. This Agreement shall be automatically renewed for a period from January 1, 2012, until December 31, 2012, unless the Concessionaire is in default or unless one party serves written notice to the other party of its intention to terminate the Agreement, provided such written notice must be served at least ninety (90) days prior to December 31, 2011. 6.5 Renewal -- 2013. This Agreement shall be automatically renewed for a period from January 1, 2013, until December 31, 2013, unless the Concessionaire is in default or unless one party serves written notice to the other party of its intention to terminate the Agreement, provided such written notice must be served at least ninety (90) days prior to December 31, 2012. 6.6 Extension. This Agreement may be extended beyond the original five (5) year term if performance is satisfactory and subject to City Council approval and negotiation of a mutually acceptable extension agreement. 6.7 Holding Over. In the event that the Concessionaire, or its successor in interest, if any, shall remain beyond the term set forth herein, although no right to remain is given by this Article, it is the intention of the parties and it is hereby agreed that a right of use from month -to - month shall then arise subject to all provisions and conditions of this Agreement in connection with such right, except that the City shall have the sole right to determine reasonable fees for any holdover period. ARTICLE 7 Fee For Conducting Business 7.1 Concession Fee. For the privilege of conducting the concession operations hereunder, and the exclusive use of the Concession Space, the Concessionaire shall pay to the City 10% of Gross Sales, where Gross Sales are all taxable sales as reported on the City of Fort Collins monthly sales tax return, as the Concession Fee, with a minimum and maximum amount as listed below: 7.1.1 2009 - $4000 minimum, $10,000 maximum 7.1.2 2010 - $4000 minimum, $10,000 maximum 7.1.3 2011 - $4000 minimum, $11,000 maximum 7.1.4 2012 - $4000 minimum, $12,000 maximum 7.1.5 2013 - $4000 minimum, $12,000 maximum 7.2 Busing and Janitorial Services. During the term of the Agreement, Concessionaire shall provide busing and janitorial services described in Section 8.3, at the Concession Space and in designated locations of the Clubhouse and Patio. 7.3 Time of Payment. The Concessionaire shall pay the Concession Fee monthly no later than fifteen (15) days after the first day of the next month.