HomeMy WebLinkAbout12 AMEND. 3 H&D ENT. 08-06-01AGENDA REPORT
NO. 12
08-06-01
MEETING DATE:
TO'
FROM'
SUBJECT'
AUGUST 6, 2001
400-10
WILLIAM A. HUSTON, CITY MANAGER
PARKS & RECREATION SERVICES DEPARTMENT
AMENDMENT NO. 3 TO AGREEMENT BETWEEN THE CITY OF TUSTIN AND
H&D ENTERTAINMENT, INC.
SUMMARY'
The proposed Amendment No. 3 would extend the term of the current agreement and
change the compensation provisions with H&D Entertainment, .Inc. to provide rides and
concessions at Tustin Tiller Days and the El Camino Street Fair & Chili Cook Off.
RECOMMENDATION'
Request the City Council approve the attached Amendment No. 3 between the City and
H&D Entertainment, Inc.
FISCAL IMPACT:
Under terms of the proposed Amendment the City would receive an additional one-
percent (1%) of gross receipts over provisions described in Amendment No. 2 as
compensation derived from carnival rides at Tustin Tiller Days. At the El Camino Street
Fair & Chili Cook Off the City would receive fifteen percent (15%) of all ride receipts.
BACKGROUND:
The City and H&D Entertainment, Inc. originally entered into an Agreement Regarding
Rides and Concessions at Tustin Tiller Days in March 1996. The term of the
Agreement was for three years. The Agreement was amended (Amendment No. 1)in
May 1998 to permit the operator to provide rides at the El Camino Street Fair & Chili
Cook Off. The Agreement was again amended (Amendment No. 2) in' January 1999 to
extend the terms through October 2001.
The proposed Amendment No. 3 would extend the terms and conditions of the
Agreement for one additional year (2002) with two one-year extensions available. The
agreement would be automatically renewed in 2003 and 2004 unless terminated by
either party.
Compensation paid to the City would increase one-percent over the terms described in
Amendment No. 2 for rides at Tustin Tiller Days. At the El Camino Street Fair & Chili
Cook Off the operator would pay the City fifteen percent (15%) of all ride receipts.
Due to the quality of the rides and reliability of the operator the Parks & Recreation
Service Department recommends that the City approve the proposed Amendment No. 3
to extend the terms of the existing Agreement which otherwise would expire after the
event this year. Tustin Tiller Days is scheduled for October 5.,6 & 7.
Director
H&D AMEND NO 3
upenntendent ·
AMENDMENT NO. 3 TO AGREEMENT BETWEEN
THE CITY OF TUSTIN AND H & D ENTERTAINMENT, INC.
This Amendment No. 3, dated for purposes of identification only this
day of
, 2001, is made and entered into between the CITY OF TUSTIN, a
municipal corporation, (hereinafter referred to as "City"), and H & D
ENTERTAINMENT, INC., a California corporation, (hereinafter referred to as
"Operator").
RECITALS
o
The City and Operator previously entered into the Agreement Regarding Rides
and Concessions at Tiller Days, dated March 25, 1996 (The "Agreemem"). The term of
the Agreement was for three years; 1996, 1997, 1998.
o
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.
ge .
The Agreement was amended (Amendment No. 2) on January 5, 1999 to extend
the Agreement three years; 1999, 2000, 2001.
NOW THEREFORE, for and in consideration of the mutual promises, covenants,
and conditions contained herein, the parties agree as follows'
AGREEMENT
o
Employment of Operator
Upon the terms and conditions set forth in the Agreement, City hires operator to
provide services at Tustin Tiller Days and E1 Camino Street Fair and Chili Cook Off.
The term of this agreement shall be for one (1) year (2002) with two (2) extensions for
(1) year unless terminated by either party. This agreement shall be automatically
renewed in 2003 and 2004 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 eighteen percent (18%) of
the gross receipts, which is 18% of the income derived from carnival fides up
to eighty-five thousand dollars ($85,000), twenty three percent (23%) of all
ride receipts beyond eighty-five thousand dollars ($85,000) up to one hundred
and ten thousand dollars ($110,000), and twenty eight percent (28%) of all
ride receipts beyond one hundred and ten thousand dollars ($110,000).
Operator may provide up to a maximum of thirteen (13) game booths and
agrees to pay the City fifty dollars ($50) for each game booth. Operator may
provide up to a maximum of four (4) food booths and agrees to pay the City
one hundred dollars ($100) per food booth. Operator may provide up to a
maximum of ten (10) vendor booths and agrees to pay the City fifty dollars
($50) per vendor booth.
B. At the E1 Camino Street Fair and Chili Cook Off, Operator agrees to pay City
fifteen percent (15%) of all ride receipts. Operator may provide up to a
maximum of five (5) game booths and agrees to pay the City fifty dollars
($50) for each game booth. Operator is prohibited from operating any food
booths at E1 camino Street Fair and Chili Cook Off.
o
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. 3 to be executed
on the dates hereinafter respectively set forth.
"City"
CITY OF TUSTIN
Dated:
Mayor
ATTEST:
Pamela Stoker
City Clerk
APPROVED AS TO FORM:
Lois E. Jeffrey
City Attorney
"Operator"
H & D ENTERTAINMENT, INC.
Dated: By:
Name:
Title'