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HomeMy WebLinkAboutResolution - 3578 - Agreement - Bob Jordan Amusement Company Inc - Game Machine Concession, LIA - 03/28/1991HW:dw RESOLUTION Resolution No. 3578 March 28, 1991 Item 416 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Concession Agreement with Bob Jordan Amusement Company, Inc. for a game machine concession at the Lubbock International Airport, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 28th day of T: an tte Boyd, City 'Secretary— APPROVED ec eta APPROVED AS TO CONTENT: Bern E. Case, Director of Aviation APPROVED AS TO FORM: aro Willard, Assistant City Attorney March , 1991. c f 4 C. McMINN, MAYOR HW:dw THE STATE OF TEXAS COUNTY OF LUBBOCK P1 Resolution No. 3578 March 28, 1991 Item #16 KNOW ALL MEN BY THESE PRESENTS: CONCESSION AGREEMENT This Agreement entered into by the City of Lubbock (referred to herein as City), a Home Rule Municipality of Lubbock County, Texas, and Bob Jordan Amusement Co., Inc., 3512 Avenue Q, Lubbock, Texas 79412 (referred to herein as Concessionaire). WITNESSETH: Whereas, City owns, controls and operates the Lubbock International Airport (referred to herein as Airport), situated at Route 3, Lubbock, Texas, and has authority to grant certain rights and privileges with respect thereto, including those hereinafter set forth; and Whereas, City desires to enter into a game machine concession agreement with Concessionaire; and Whereas, Concessionaire desires to make said game machine services available at the Airport and has the capability of providing such services; NOW THEREFORE: Inconsideration of the mutual covenants, promises and conditions herein contained, the said parties hereby covenant, promise and agree with each other as follows: 1. City does hereby grant Concessionaire the right to exhibit coin-operated game machines in the Airport terminal. The number of machines and their location shall be determined by the Director of Aviation of City. The City grants such right for a term of four (4) years beginning on the 28th day of March , 1991, and continuing until the 28th day of March , 1995. 2. In consideration thereof, the Concessionaire promises and agrees to pay City fifty per cent (50%) of the gross receipts from said game machines after reimbursement of all State and City occupational taxes payable by Concessionaire on such machines. 3. Concessionaire agrees to construct a gaming area in the Airport terminal at a cost of approximately $10,858.00. City agrees that it will allow Concessionaire to amortize such cost over a 36 -month period at eleven per cent (11%) interest by excluding $355.49 per month from the calculation of the biweekly gross receipts which are to be divided equally between Concessionaire and City. Said period of amortization shall begin on the date such construction is completed to the satisfaction of the Director of Aviation of City. 4. The actual cost of the gaming area whose construction is herein authorized shall not exceed the approximate cost, as hereinabove stated, without written approval from the Director of Aviation of City and will in no event exceed $12,000. If the actual cost of the improvements does not equal the approximate cost, as hereinabove stated, the amount excluded from the calculation of gross receipts will be adjusted proportionately. 5. The exact location of the gaming area and the specifications for its construction shall each be subject to approval from the Director of Aviation of City. 6. Concessionaire shall notify the Director of Aviation and he shall be entitled to have a representative present each time a game machine cash box is opened; and all game machine revenue will be counted at the Airport Administration Office every two weeks, with payment of the City's percentage as agreed upon in numbered paragraphs (2) and (3) above made at the time of each revenue count. 7. The acceptable noise level of the game machines shall be determined solely by the Director of Aviation of City. 8. The Concessionaire shall provide a money change machine adequate to supply necessary,change to the public for use in the game machines and shall maintain such machines in good operating order. 9. The Concessionaire shall be responsible for obtaining and maintaining all necessary licenses and permits in accordance with all laws, ordinances and regulations, and for payment of any occupational taxes in accordance with all laws, ordinances and regulations. 10. Each machine shall have an operating meter that accurately counts each play, and each machine shall have a manufacturer's certificate properly attached. 11. No illegal game machines will be allowed. - 2 - 12. All game machines shall be current and popular and shall be reviewed every ninety (90) days by the Director of Aviation of City for possible replacement by other machines. All machines shall be among the top ten (10) rated machines by Play Meters or another equivalent trade publication. 13. The Concessionaire shall repair and put back into operation within forty-eight (48) hours any machine that malfunctions (or replace such malfunctioning machine with an equivalent and properly functioning machine). The Concessionaire shall also replace any machine that malfunctions or needs repairs frequently. 14. Selection of individual machines shall be made by mutual agreement of the Concessionaire and the Director of Aviation. 15. The Director of Aviation of City may terminate this Agreement without forfeiture, waiver or release of the City's rights to any sum of money due or to become due under the provisions of this Agreement, by giving Concessionaire thirty (30) days written notice of termination for any of the following reasons or upon or after the happening of any one of the following events: a. Public demand. b. The filing by Concessionaire of a voluntary petition in bankruptcy. C. The adjudication of the Concessionaire as bankrupt. d. The default by the Concessionaire of any of its obligations under this Agreement and the failure of the Concessionaire to remedy such default for a period of thirty (30) days after receipt of written notice from the Director of Aviation of City to remedy same. e. The failure by Concessionaire to pay City its share of gross receipts when due. 16. The failure of the City or the Director of Aviation to insist in any one or more instances upon performance of any of the terms or conditions of this Concession Agreement shall not be construed as a waiver or relinquishment of the future performance of any such terms or conditions by the Concessionaire and the obligations with respect to such future performance shall continue in full force and effect. - 3 - 17. The privileges contained herein are personal, and the Concessionaire agrees that it will not assign the same without the express consent of the Director of Aviation of City in writing. 18. Concessionaire, its agents and employees will not discriminate against any person or class of persons due to age, race, color, sex or national origin in providing any services or in the use of any of its facilities provided for the public, in any manner prohibited by Part 15 of the Federal Aviation Regulations. The Concessionaire further agrees to comply with such enforcement procedures as the United States might demand that the City take in order to comply with the Sponsor's Assurances. 19. Concessionaire agrees not to discriminate against any employee or applicant for employment because of age, race, color, sex or national origin. The Concessionaire further agrees to take affirmative action to insure that applicants are employed, and that its employees are treated during employment without regard to their age, sex, race, color or national origin. Such action shall include, but not be limited to, employment, upgrading, demotion, transfer, recruitment layoff, rates of pay or other forms of compensation and selection for training, including apprenticeship. 20. The City shall stand indemnified by the Concessionaire as provided by this Agreement. The Concessionaire shall be deemed to be an independent contractor and operator responsible to all parties for its respective acts and omissions and the City shall in no way be responsible therefor. In the use of the Airport generally or specifically in the exercise or enjoyment of the privileges granted by this Agreement, the Concessionaire shall indemnify and save harmless the City from any and all losses that may proximately result to the City because of any fault or negligence on the part of the Concessionaire, its agents or employees or invitees and shall indemnify the City against any and all claims, demands, suits, judgments and losses whatsoever. 21. The Concessionaire shall maintain at all times, at its sole expense, insurance with an insurance underwriter acceptable to the City and authorized to do business in the State of Texas, against claims of public liability and property damage resulting from Concessionaire's business activities at the Airport. - 4 - 22. In the event any covenant, condition or provision contained in this Agreement is determined to be invalid by any court of competent jurisdiction, the invalidity of any such covenant, condition or provision shall in no way affect any other covenant, condition or provision herein contained; provided that the invalidity of such covenant, condition or provision does not materially prejudice either City or Concessionaire in their respective rights and obligations contained in the valid covenants, conditions or provisions of this Agreement. EXECUTED on this 28th CITY OF LUBBOCK B. C. McMINTJ�, MAYOR T: Ran tte Boyd, City e etary X17VEI AS TO CONTENT Bern E. Case, Director of Aviation APPROVED AS TO FORM: arold Willa d, Assis ant City Attorney day of - 5 - March CONCESSIONAIRE , 1991. Bob Jordan Amusement Co., Inc. BY • C - TITLE: 6 i DATE: 9� /