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HomeMy WebLinkAbout06 AMEND 5 - RIDES & CONCESSIONS AGRMNT 03-18-08AGENDA REPORT MEETING DATE: MARCH 18, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: DAVID A. WILSON, ACTING DIRECTOR, PARKS & RECREATION SUBJECT: AMENDMENT NO. 5 TO AGREEMENT REGARDING RIDES & CONCESSIONS AT TUSTIN TILLER DAYS SUMMARY: Amendment No. 5 would extend the term of the Agreement Regarding Rides and Concessions at Tustin Tiller Days and the Tustin Street Fair and Chili Cook-Off with "O" Entertainment for three years. The Amendment provides for an increase in the compensation the City realizes from ticket sales and rental vendor booth spaces. RECOMMENDATION: Request the City Council to Approve the attached Amendment No. 5 to the Agreement between the City and "O" Entertainment. FISCAL IMPACT: The Amendment increases the percentage of the revenue to the City derived from the sale of carnival ride tickets and rental of vendor space for food and game booths at Tustin Tiller Days and the Tustin Street Fair and Chili Cook-Off. Net proceeds from Tiller Days subsidize festival and parade related expenses. Proceeds from the Tustin Street Fair and Chili Cook-Off offset event expenses and proceeds are awarded to local non-profit organizations selected by members of the organizing committee and the Tustin Community Foundation. BACKGROUND: Hassett and Davis, now doing business as, "O" Entertainment has successfully provided the City with carnival rides and event support equipment since 1996. They have respectfully complied with the terms of the previous agreement and have satisfied City Insurance requirements and Tustin Police Department requests. The proposed Amendment to the Agreement would increase the net proceeds to the City at Tiller Days and the Tustin Street Fair and Chili Cook-Off. The City Attorney has reviewed the Page 2 Agreement and approved as to form. Staff requests City Council approve the proposed Amendment. David A. Wilson Acting Director -Parks and Recreation Services AMENDMENT NO. S TO AGREEMENT REGARDING RIDES AND CONCESSIONS AT TUSTIN TILLER DAYS This Amendment No. 5, dated for purposes of identification only this day of 2008, is made and entered into between the CITY OF TUSTIN, a municipal corporation, (hereinafter referred to as "City"), and "O" ENTERTAINMENT, INC., a California corporation, (hereinafter referred to as "Operator"). RECITALS 1. The City and Operator previously entered into the Agreement Regarding Rides and Concessions at Tiller Days, dated March 25, 1996 (The "Agreement"). The term of the Agreement was for three years; 1996, 1997, 1998. 2. The Agreement was amended (Amendment No. 1) on May 5, 1998 to permit the Operator to provide rides only at the E1 Camino Street Fair and Chili Cook Off. 3. The Agreement was amended (Amendment No. 2) on January 5, 1999 to extend the Agreement three years; 1999, 2000, 2001. 4. The Agreement was amended (Amendment No. 3) on August 6, 2001 to extend the Agreement three years; 2002, 2003, 2004. 5. The Agreement was amended (Amendment No. 4) on May 17, 2004 to extend the Agreement three years; 2005, 2006, 2007. NOW THEREFORE, for and in consideration of the mutual promises, covenants, and conditions contained herein, the parties agree as follows: AGREEMENT Employment of Operator Upon the terms and conditions set forth in the Agreement, City hires operator to provide services at Tustin Tiller Days and the Tustin Street Fair and Chili Cook Off. The term of this agreement shall be for one (1) year (2008) with two (2) extensions for (1) year unless terminated by either party. This agreement shall be automatically renewed in 2009 and 2010 unless terminated by either party by written notice at least ninety (90) days prior to the scheduled event date. If the agreement is terminated, no renewal or extension shall be assumed for a subsequent year. 2. Compensation A. At Tustin Tiller Days, Operator agrees to pay City twenty percent (21 %) of the gross receipts, which is 21 % of the income derived from carnival rides up to eighty-five thousand dollars ($85,000), twenty five and one-half percent (25.5%) of all ride receipts beyond eighty-five thousand dollars ($85,000) up to one hundred and ten thousand dollars ($110,000), and thirty and one-half percent (31.5%) of all ride receipts beyond one hundred and ten thousand dollars ($110,000). Operator may provide up to a maximum of fifteen (15) game booths and agrees to pay the City One hundred and twenty-five dollars ($125) for each game booth. Operator may provide up to a maximum of two (2) food booths and agrees to pay the City two hundred-fifty dollars ($250) per food booth. Operator may provide up to a maximum of ten (10) vendor booths and agrees to pay the City two hundred fifty dollars ($250) per vendor booth. B. At the El Camino Street Fair and Chili Cook Off, Operator agrees to pay City seventeen and one-half percent (17.5%) of all ride receipts. Operator may provide up to a maximum of five (5) game booths and agrees to pay the City one hundred and twenty-five dollars ($125) for each game booth. Operator is prohibited from operating any food booths at El Camino Street Fair and Chili Cook Off. 3. Agreement remains in effect -Except as specifically amended herein, all other terms and conditions of the Agreement shall remain in effect. IN WITNESS WHEREOF, the parties have caused this Amendment No. 5 to be executed on the dates hereinafter respectively set forth. "City" Dated: CITY OF TUSTIN Mayor ATTEST: Pamela Stoker City Clerk APPROVED AS TO FORM: Douglas Holland City Attorney "Operator" "O" ENTERTAINMENT, INC. Dated: Name: Title: