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HomeMy WebLinkAbout05 AMENDMENT NO. 6 TO TILLER DAYS RIDES/CONCESSIONS AGREEMENT• Agenda Item ~ ,Y.._. . AGENDA REPORT Reviewed: Finance Director MEETING DATE: FEBRUARY 1, 2011 TO: HONORABLE MAYOR AND COUNCIL MEMBERS VIA: DAVID C. BIGGS, CITY MANAGER FROM: DAVID A. WILSON, DIRECTOR, PARKS AND RECREATION SUBJECT: AMENDMENT NO. 6 TO AGREEMENT REGARDING RIDES AND CONCESSIONS AT TUSTIN TILLER DAYS SUMMARY: Amendment No. 6 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 will realize from ticket sales and rental vendor booth spaces and includes carnival worker background screening. RECOMMENDATION: The City Council Approve the attached Amendment No. 6 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 the Tiller Days subsidize festival and parade related expenses. Proceeds from the Tustin Street Fair and Chili-Cook Off offset event expenses and additional proceeds are awarded to local non- profit organizations 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 since 1996. They have complied with the tetJms of the previous agreement and have satisfied City Insurance requirements and Tustin Police Department requests. The proposed Amendment to the Agreement would increase net proceeds to the City at Tiller Days and the Chili Cook-Off and give the City more information regarding carnival employees working the events. Page 2 The City Attorney has reviewed the Agreement and approved it as to form. Staff requests City Council approve the proposed Amendment. ~ s? ~# +, ~ ~, Dad A! Wilson, Director Parks'& Recreation Approved for Forwarding By: ~. David C. Biggs, City Manager AMENDMENT NO. 6 TO AGREEMENT REGARDING RIDES AND CONCESSIONS AT TUSTIN TILLER DAYS This Amendment No. 6, dated for purposes of identification only this day of 2011, 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 El 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. 6. The Agreement was amended (Amendment No. 5) on May 6, 2008 to extend the Agreement three years; 2008, 2009, 2010. 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 (2011) with two (2) extensions for (I) year unless terminated by either party. This agreement shall be automatically renewed in 2012 and 2013 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 two percent (22%) of the gross receipts, which is 22% of the income derived from carnival rides up to eighty-five thousand dollars ($85,000), twenty six and one-half percent (26.5%) of all ride receipts beyond eighty-five thousand dollars ($85,000) up to one hundred and ten thousand dollars ($110,000), and thirty two percent (32%) 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 seventy five dollars ($175) for each game booth. Operator may provide up to a maximum of two (2) food booths and agrees to pay the City three hundred dollars ($300) per food booth. Operator may provide up to a maximum of ten (10) vendor booths and agrees to pay the City two hundred and seventy five dollars ($275) per vendor booth. B. At the El Camino Street Fair and Chili Cook Off, Operator agrees to pay City eighteen and one-half percent (18.5%) 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 seventy-five dollars ($175) for each game booth. Operator is prohibited from operating any food booths at El Camino Street Fair and Chili Cook Off. 3. Employee Background Screening A. Thirty (30) days prior to each event, Operator will provide the City with the name, social security number, date of birth and driver's license number or equivalent as determined by the City, for all employees working the event. B. The Operator will be required to provide the City with a California Department of Justice clearance or equivalent as determined by the City, for all employees at their expense thirty (30) days prior to each event. C. The parties agree that in the event that the Operator fails to perform any of the duties described in this section, this will constitute a material breach of the contract entitling the City to terminate immediately with no further responsibility to perform any other duties under the contract. 4. Clean Premises A. Operator agrees to clean at Operator expense, the designated carnival area and dispose of all refuse within twenty-four (24) hours of the close of the event and restore the grounds to the same condition prior to the event. 5. 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. 6 to be executed on the dates hereinafter respectively set forth. Dated: ATTEST: Pamela Stoker City Clerk APPROVED AS TO FORM: ~~ ~~ ~- D =' glas Holland ty Attorney Dated: "City" CITY OF TUSTIN Mayor "Operator" "O" ENTERTAI ENT, IN f ;r By: t Name: ~~~~sE~~ Title: ~~