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HomeMy WebLinkAboutLease Agreement with Daisys Italian Ice and Gelati for Concessions Operations at Settlers ParkLEASE AGREEMENT for CONCESSIONS OPERATIONS AT SETTLERS PARK This LEASE AGREEMENT for CONCESSIONS OPERATIONS AT SETTLERS PARK ("Lease") is entered into by and between the City of Meridian ("Landlord"), and Julie Scarborough, on behalf of Daisy's Italian Ice & Gelati LLC ("Tenant"), effective the 1;;) day of r� , 2016 ("Effective Date"). In this Lease, Landlord and Tenant may be referred to individually as a "Party" or collectively as "Parties." WHEREAS, Landlord owns Settler's Park, located at 3245 N. Meridian Road, which park includes a concession building adjacent to the splash pad (hereinafter "Lease Premises"); WHEREAS, Landlord is authorized by Idaho Code section 50-1401 to manage real property owned by the Landlord in ways which the judgment of City Council deems to be in the public interest; WHEREAS, the City Council of the City of Meridian hereby finds that the lease of the Lease Premises to Tenant for selling concessions serves the public interest; WHEREAS, pursuant to Idaho Code section 50-1407, the mayor and council hereby resolve and authorize the lease of Lease Premises to Tenant; NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and agreed, and in consideration of the mutual promises and covenants herein contained, and in consideration of the recitals above, which are incorporated herein, Landlord and Tenant agree as follows: I. Lease granted. In consideration of the payment of rent and other sums to be paid by Tenant to Landlord pursuant to this Lease (collectively referred to hereinafter as "Rent") and the performance of the other covenants, conditions and agreements in this Lease to be kept and performed by Tenant, Landlord does hereby lease and demise Lease Premises to Tenant. II. Use of Lease Premises. Tenant's use and occupancy of the Lease Premises shall be limited to the preparation of food consistent with the requirements and standards established by applicable federal, state, city and health department laws, ordinances, regulations and resolutions; and the sale of food, beverages, swim diapers, and novelty items as set forth in Request for Proposals for Project no. PKS-1617-10120.d, and Tenant's response thereto, which are attached hereto as Exhibit A. Tenant shall not use or permit the use of the Lease Premises for any other purpose without the express written consent of Landlord. Tenant warrants and represents that Tenant has undertaken a complete and independent evaluation of any and all risks inherent in the execution of this Lease and the operation of the Lease Premises for its use permitted hereby, and that, based upon said independent evaluation, Tenant has elected to enter into this Lease and hereby assumes all risks with respect thereto, some of which risks may be unknown. SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 1 of 11 III. Scope of services. As a condition of Tenant's use and occupancy of the Lease Premises, Tenant shall provide the services enumerated in Attachment A (Specifications/Scope) of the Request for Proposals for Project no. PKS-1617-10120.d, attached hereto as Exhibit A, under sections B (Dates/Times of Service) and D (Additional Requirements). Further, Tenant shall insure that the area within and immediately adjacent to concession area of the Lease Premises is kept clean and free of all debris, litter, or other unclean or unsightly condition caused or created by the operation. IV. Term of lease. The term of this lease shall begin on the Effective Date, and shall end at 11:59 p.m. on October 31, 2018, unless earlier terminated by either Party by the method established herein. Tenant shall be deemed to have occupied the Lease Premises for purposes of commencing the Lease term as of the Effective Date. Time is of the essence in all matters related to this Lease. V. Responsibilities of Tenant. With regard to Tenant's use and occupancy of the Lease Premises under this Lease, Tenant shall be responsible for each and all of the following. A. Rent. Beginning with the Effective Date, Tenant shall pay Rent to Landlord according to the Payment Schedule set forth in Exhibit B hereto. B. Personal property taxes. If applicable, Tenant shall pay, prior to delinquency, all personal property taxes payable with respect to all personal property of Tenant located on or at the Lease Premises, including any inventory, equipment, floor, ceiling and wall coverings, furniture and/or trade fixtures kept or used in or on the Lease Premises, and any improvements to the Lease Premises that are owned by and separately assessed to Tenant. C. Surrender of Lease Premises; removal of property. Subject to the provisions set forth herein regarding early termination, upon expiration of the Lease term or earlier termination of the Lease, whether by lapse of time or otherwise, Tenant, at Tenant's sole expense, shall: 1. Remove the Property of Tenant; 2. Repair and restore the Lease Premises to a condition as good as received by Tenant from Landlord, reasonable wear and tear excepted; and 3. Promptly and peacefully surrender the Lease Premises and yield up possession to Landlord. Any property left on the Premises after the expiration or termination of the Lease shall be deemed to have been abandoned and shall become the property of Landlord. Tenant shall be liable for all costs associated with the removal and/or disposal of such property. Tenant hereby waives all claims for damages that may be caused by Landlord's reentering and taking possession of the Lease Premises or removing and storing the Property of Tenant and/or other property as herein provided. No such reentry shall be considered or construed to be a forcible entry. Tenant shall indemnify Landlord against any loss or liability resulting from delay by Tenant in surrendering the Lease Premises, including, without limitation, any claims made by a succeeding tenant founded on such delay. SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 2 of 11 D. Condition of Premises. Tenant acknowledges that Tenant has inspected the Lease Premises and does hereby accept the Lease Premises as being in good and satisfactory order, condition, and repair. It is understood and agreed that Landlord makes no warranty or promise as to the condition, safety, usefulness or habitability of the Lease Premises, and Tenant accept the Lease Premises "as is." In entering into this Lease, Tenant is relying on its own investigation and inspection of the Lease Premises and its own determination of the suitability of the Lease Premises, physically and legally, for its intended use. E. Alterations. Tenant shall make no additions, changes, alterations or improvements to the Premises or to any electrical, mechanical or fire protection facilities pertaining to the Premises without the prior written consent of Landlord. Tenant shall be responsible for any and all code requirements resulting from any additions, changes, alterations or improvements to the Premises. F. Waste. Tenant shall not commit or allow to be committed any waste upon the Premises, or any nuisance, or any act in or about the Premises that disturbs the quiet enjoyment of Landlord. Tenant, at Tenant's sole expense, shall comply with all laws and regulations relating to its use or occupancy of the Lease Premises. G. No assignment or subletting. Tenant shall not, without first obtaining Landlord's written consent: (1) sell, assign, mortgage, or transfer this Lease or any interest therein; (2) sublease all or any portion of the Lease Premises; or (3) allow the use or occupancy of the Lease Premises by anyone other than Tenant. No assignment or sublease shall relieve the Tenant of any liability under this Lease, unless Landlord consents in writing to accept such assignment or sublease as a whole or partial novation. Notwithstanding the foregoing, any transfer of this Lease by merger, consolidation or liquidation of Tenant shall not constitute an assignment hereunder. H. Compliance with ADA. Tenant shall not enter into any change of use of the Premises, whether approved by Landlord or not, if such change in use would result in increased liability of Landlord under the Americans with Disabilities Act of 1990, Public Law No. 101-336, 42 USC 12101 et. seq. as it may be amended from time to time ("ADA"). I. No Hazardous Substances. Tenant specifically agrees not to use, store or deposit any substance that is hazardous or dangerous to person, property or the environment (or any similar substance) as now or hereafter defined by or determined pursuant to any applicable state or federal law or regulation in amounts exceeding legally permissible levels in, on, or about the Lease Premises. Liens. Tenant agrees that it will pay or cause to be paid all costs for work done by Tenant on the Premises, and Tenant will keep the Lease Premises free and clear of all mechanics' liens on account of work done by Tenant or persons claiming under Tenant. Tenant agrees to defend, indemnify and save Landlord free and harmless against liability, loss, damage, costs, attorneys' fees, and all other expenses on account of claims of lien of laborers or materialmen or others for work performed or materials or supplies furnished SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 3 of 11 to 'Tenant or persons claiming under Tenant. If Tenant shall desire to contest any claim of lien, it shall furnish Landlord adequate security for the value or in the amount of the ,-iaim, plus estimated costs and interest, or a bond of responsible corporate surety in such amount conditioned on the discharge of the lien. If a final judgment establishing the validity or existence of lien for any amount is entered, Tenant shall pay and satisfy the same at once. If Tenant shall be in default in paying any charge for which a mechanics' lien claim and suit to foreclose has been filed and Tenant shall not have furnished Landlord adequate security as more particularly provided above, then, in order to protect the Lease Premises and Landlord against such claim of lien, Landlord may, but shall not be required to, pay the claim and any costs, and the amount so paid, together with reasonable attorneys' fees incurred in connection therewith, shall be immediately due and owing from Tenant to Landlord, and Tenant agrees to and shall pay the same. Should any claims of lien be filed against the Lease Premises or any action affecting the Lease Premises be commenced, the Party receiving notice of such lien or action shall forthwith give the other Party written notice thereof. K. Indemnification. Tenant specifically indemnifies Landlord and holds Landlord harmless from any loss, liability, claim, judgment, or action for damages or injury to Tenant, to Tenant's personal property or equipment, and to Tenant's employees, agents, guests or invitees arising out of or resulting from the condition of the Lease Premises or any lack of maintenance or repair thereon and not caused by or arising out of the tortious conduct of Landlord or its employees. Tenant further agrees to indemnify and hold Landlord harmless from any loss, liability, claim or action from damages or injuries to persons or property in any way arising out of or resulting from the use and occupancy of the leased premises by Tenant or by Tenant's agents, employees, guests or business invitees and not caused by or arising out of the tortious conduct of Landlord or its employees. If any claim, suit or action is filed against Landlord for any loss or claim described in this paragraph, Tenant, at Landlord's option, shall defend Landlord and assume all costs, including attorney's fees, associated with the defense or resolution thereof, or indemnify Landlord for all such costs and fees incurred by Landlord in the defense or resolution thereof. L. Insurance. 1. Comprehensive Liability Insurance. Tenant shall purchase and maintain in force throughout the term of this lease in force with an insurance carrier acceptable to Landlord a policy of commercial general liability insurance covering the activities of Tenant in connection with the Lease Premises, having a combined single limit of not less than one million dollars ($1,000,000) per person and per occurrence and property damage liability insurance with a limit of not less than one million dollars ($1,000,000) per accident or occurrence. The insurance shall insure against any and all liability of Tenant with respect to the Lease Premises and any other property used or useable by Tenant. 2. Personal Property Insurance. Tenant shall purchase and maintain in force throughout the term of this lease insurance covering all of Tenant's and Landlord's furniture and fixtures, machinery, equipment, inventory, and other personal property SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 4 of 11 owned or used by Tenant in, on, or about the Lease Premises. All policy proceeds shall be used for the repair or replacement of the property damaged or destroyed egardless of the cause of such damage; however, if this Lease ceases due to early termination due to damage or destruction as described herein, Tenant shall be entitled to any proceeds resulting from damage to Tenant's furniture and fixtures, machinery, equipment, inventory, and any other personal property. 3. Policy Form. All policies of insurance provided for herein shall be issued by insurance companies rated A, Class VI, or better in Best's Key Rating Guide and qualified to do business in the State of Idaho. All insurance required to be furnished by Tenant shall be on forms and with loss payable clauses satisfactory to Landlord naming Landlord as additional insured and copies of policies of such insurance or certificates issued by the insurance company evidencing the existence and amounts of such insurance shall be delivered to Landlord. Failure of Tenant to renew or replace such insurance at least thirty (30) days prior to the expiration date of such policy shall constitute a material default under the terms of this Lease. All policies of insurance provided by Tenant may be provided within the coverage of a blanket policy(s) of insurance carried and maintained by Tenant. 4. Failure of Tenant to Insure. In the event Tenant shall fail to purchase and keep in force any of the insurance required of the Tenant, Landlord has the right to terminate the Lease. Landlord may, but shall not be required to, purchase and keep in force the same, in which event the Tenant shall pay to the Landlord the full amount of the Landlord's expenses with respect thereto, said payment to be made within ten (10) days after demand for such payment by the Landlord. 5. Insurance Risks. Tenant shall not do or permit to be done any act or thing upon the Lease Premises which would (a) jeopardize or be in conflict with fire insurance policies covering the Lease Premises, fixtures, and property on the Lease Premises; (b) increase the rate of any insurance applicable to the Lease Premises to an amount higher than it otherwise would be for the general use of the Lease Premises; or (c) subject Landlord to any liability or responsibility for injury to any person or persons or to property by reason of any business or operation being carried on upon the Lease Premises. VI. Responsibilities of Landlord. During the Lease term, Landlord shall be responsible for each and all of the following. A. Repair and maintenance of Lease Premises. Landlord shall repair and maintain the structural portions of the Lease Premises, including, but not limited to, the electrical systems, roof, and structural integrity of the premises, unless such maintenance or repairs are required as a result, in whole or in part, of the act of, or neglect of any duty by, Tenant, its agents, servants, employees, or invitees, in which event Tenant shall pay to Landlord the reasonable cost of such maintenance or repairs within ten (10) days of Tenant's receipt of Landlord's itemized bill therefor. SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 5 of 11 B. Equipment. The parties acknowledge equipment owned by Landlord, as described in Exhibit C hereto. All such equipment shall be placed in good working order by the Effective Date at Landlord's sole expense. During the Lease term, Landlord shall repair and maintain equipment owned by Landlord. C. Entry and inspection. Landlord at all reasonable times, and at any time in case of emergency, may enter the Lease Premises for the purpose of inspection, cleaning, repairing, altering, maintaining or improving the Lease Premises subject to Tenant's reasonable security requirements and reasonable client confidentiality requirements. D. Property insurance. Landlord shall maintain insurance on the Lease Premises, excluding equipment described in Exhibit C, which insurance Tenant shall provide. The insurance provided for in this Section may be provided within the coverage of a blanket policy(s) of insurance carried and maintained by Landlord. VII. GENERAL PROVISIONS. A. No agency; independent contractor. It is understood and agreed Tenant shall not be considered an agent of Landlord in any manner or for any purpose whatsoever in Tenant's use and occupancy of the Lease Premises. In all matters pertaining to this Lease, Tenant shall be acting as an independent contractor, and neither Tenant nor any officer, employee or agent of Tenant shall be deemed an employee of Landlord. Tenant shall have no authority or responsibility to exercise any rights or power vested in Landlord. B. Notices. All notices to be provided under this Agreement shall be in writing and addressed as follows: Tenant: Daisy's Italian Ice & Gelati LLC Attn: Julie Scarborough 2401 N. Heath Ave, Boise, ID 83713 Landlord: City of Meridian Attention: Colin Moss 33 East Broadway Meridian, Idaho 83642 Notices shall be either personally delivered or sent by U.S. mail, postage prepaid. Notice shall be deemed to have been given upon deposit in the U.S. mail, or upon personal delivery to the party above specified. C. Early termination due to damage or destruction. In the case of damage to the Lease Premises by a Force Majeure, Tenant shall immediately notify Landlord. "Force Majeure" shall mean a cause or event that is not reasonably foreseeable or otherwise caused by or under the control of either Party, including acts of God, fire, flood, vandalism, accident, governmental acts, and other like events that are beyond the reasonable anticipation or control of the Party affected thereby. If the Lease Premises are damaged by Force Majeure to such extent that they are rendered unusable or unsafe for use, Landlord may immediately terminate this Lease. SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 6 of 11 D. Default or breach; cure; termination. If Tenant is in breach or default of any of the terms, covenants or conditions of this Agreement and Tenant fails or refuses to cure such breach or default within ten (10) days of written notice thereof, this Agreement, and all rights of Tenant in and to Premises, at Landlord's option, may be deemed terminated and forfeited without further notice or demand. In the event of any default or breach of this Agreement and Tenant's failure or refusal to cure as hereinbefore provided, Landlord may, upon three (3) days' notice, enter into and upon the premises, take possession thereof and expel Tenant therefrom, with or without process of law, and without being guilty of trespass, and without prejudice to any and all other rights and remedies Landlord may have. Tenant shall be liable for any damages and any costs, including legal expenses and attorneys' fees, incurred by Landlord in recovering the Premises hereunder. The rights, privileges, elections and remedies of Landlord set forth in this Lease or allowed by law or equity are cumulative, and the enforcement by Landlord of a specific remedy shall not constitute an election of remedies and/or a waiver of other available remedies. E. Nonappropriation. Notwithstanding any other provision of this Agreement, Landlord shall not be obligated by any provision of this Agreement during any future fiscal year unless and until the Meridian City Council appropriates adequate funds for this Agreement in the City's budget for each such future fiscal year. In the event that funds are not appropriated for this Agreement, then this Agreement shall terminate as of September 30 of the last fiscal year for which funds were appropriated. Landlord shall notify Tenant of any such non -allocation of funds at the earliest practicable date. In the event of such termination, the Parties shall have no further obligations under this Agreement other than for the accounting for funds due and owing prior to such termination. F. No waiver. Landlord's waiver on one or more occasion of any breach or default of any term, covenant or condition of this Lease shall not be construed as a waiver of any subsequent breach or default of the same or a different term, covenant or condition, nor shall such waiver operate to prejudice, waive, or affect any right or remedy Landlord may have under this Agreement with respect to such subsequent default or breach by Tenant. The acceptance of any Rent by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular Rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such Rent. G. No obligation. By the granting of this lease, Landlord does not in any way bar, obligate, limit, or convey any warranty with regard to any action relating to development or operation of said premises, including, but not limited to, annexation, rezone, variance, permitting, environmental clearance, or any other action allowed or required by law or conveyed by City Council. H. Mediation. Any disputes between the Parties in connection with the rights and obligations under this Lease, shall be settled by mediation upon the request of any party and the mutual agreement of both parties. Mediation shall be a required precursor to SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 7 of 11 litigation filed regarding this Agreement. All costs associated with mediation shall be shared equally by the parties. I. Nondiscrimination. Both Parties warrant and agree that there shall be no discrimination against any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Premises. J. Attorney fees. Tenant shall be liable to Landlord for all damages and costs, including legal expenses and attorneys' fees, suffered or incurred by Landlord in the enforcement of any of the terms, covenants or conditions of this Agreement. K. Exhibits. All exhibits to this Agreement are incorporated by reference and made a part of hereof as if the exhibits were set forth in their entirety herein. L. Entire agreement. This Agreement and the Exhibits hereto contain the entire agreement of the parties and supersedes any and all other agreements, leases, or understandings, oral or written, whether previous to the execution hereof or contemporaneous herewith. No oral or written inducements to execute this Lease have been made to Tenant. In entering into this Lease, Tenant relies upon no statement, fact, promise or representation, whether express or implied, written or oral, not specifically set forth herein in writing. IN WITNESS WHEREOF, the parties shall cause this Agreement to be executed by their duly authorized officers to be effective as of the day and year first above written. TENANT: DAISY'S ITALIAN ICE & GELATI State of Idaho ) ) ss: County of f�Ar,�, ) 4uliScarborough I HEREBY CERTIFY that on this 5day ofr� , 2016, before the undersigned, a Notary Public in the State of Idaho, personally appeared Julie Scarborough, proven to me to be the person who executed the said instrument, and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year in this certificate first above written. LANDLORD: Not4y Public or dahB` Residing at 0�-`n Idaho My Commission Expires: 1 -I c..D CITY OF MERID_�AI�I;_ _ F oe �`Vo nUe's3 l TTEST: 9 Cf�yof BY- bY Ta "deeerd, Mayo , n, City SEAL F�r�R °� hr 7AEP6aQ0 SETTLER'S PARK CONCESSION BUILDING LEA ENT Page 8 of 11 EXHIBIT A REQUEST FOR PROPOSALS FOR PROJECT NO. PKS-1617-10120.D SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 9 of 11 j =F PURCHASING DEPARTMENT 33 East Broadway Ave., Ste 106 Meridian, ID 83642 Phone: (208) 489-0416 Fax: (208) 887-4813 CONTRACT SPECIFICATIONS FOR: 2016 - 2018 SETTLERS PARK CONCESSIONS PROPOSALS MUST BE RECEIVED PRIOR TO 4:00 P.M. MARCH 2, 2016 DELIVER TO: CITY OF MERIDIAN, PURCHASING DEPARTMENT 33 EAST BROADWAY AVENUE, STE 106 MERIDIAN, ID 83642 Pre -Bid Conference/Walk Through February 23, 2016 1:30 p.m. MANDATORY [ ] YES Settlers Park Concession Bldg [x]NO 3245 N Meridian Rd. Meridian rreparea py: KAIHY VVANNtK ESS OF VENDOR SUBMITTING NAME: Daisy's Italian Ice & Gelati ADDRESS: 2401 N Heath Ave DATE:. 2/26/2016 Email: daisysice@yahoo.com Boise, ID 83713 Page 1 of 28 PART NOTICE CALLING FOR PROPOSALS PURPOSE Meridian Parks and Recreation is seeking proposals for vendors to provide seasonal concessions services in the Settlers Park concessions building. SCOPE OF WORK Contained within the Specifications / Scope of Work "Attachment A" are specific objectives which will be required of the awarded respondent. The City of Meridian shall retain the ability to revise this scope as necessary. PRESENTATIONS Those respondents which are determined to be best qualified to undertake the services required under this Request for Proposals may be invited to make a presentation to the City. Further information may be provided to the prospective respondents after the initial selection. SUBMITTAL REQUIREMENTS One (1) original and one (1) copy of the respondents sealed proposal will be received by the City on MARCH 2, 2016 until 4:00 p.m., MT at the office of the Purchasing Agent, City of Meridian, 33 East Broadway Avenue, Ste, 106, Meridian, Idaho 83642. The Proposal must contain, but is not limited to the following information: 1. Completed proposal form submitted on PART III - A PROPOSAL FORM. 2. A summary of the respondents experience with projects similar to the types of work stated in this Request for Proposals, submitted on PART III - B, RESPONDENT'S EXPERIENCE STATEMENT. 3. Any additional information which the respondent deems appropriate. Page 2 of 28 GENERAL TERMS AND CONDITIONS Mistakes must be corrected and the correction inserted; correction must be initialed in ink by the person signing the Proposal. The City reserves the right to waive any informalities or minor irregularities in connection with the Proposals received. All provisions of the City code are applicable to any Proposal submitted or lease agreement awarded pursuant thereto. Within thirty (30) days after the Proposal opening, a lease agreement may be awarded by the City to the lowest responsive and responsible Proposer, subject to the right of the City to reject all Proposals, as it may deem proper in its absolute discretion. The time for awarding a lease agreement may be extended at the sole discretion of the City if required to evaluate Proposals or for such other purposes as the City may determine, unless the Proposer objects to such extension in writing with his Proposal. The City of Meridian does not discriminate on the basis of race, religion, sex, national origin, marital status, age, physical handicap, ownership by women or minorities or sexual orientation. ADDITIONAL TERMS AND CONDITIONS EXAMINATION OF CONTRACT DOCUMENTS The Proposer's shall carefully examine the specifications, and satisfy themselves as to their sufficiency, and shall not at any time after submission of the Proposal, dispute such specifications and the directions explaining or interpreting them. PURCHASE AGREEMENT DOCUMENTS A copy of the Notice Inviting Proposals, General Conditions and Instructions to Proposal's, Special Conditions, Additional Terms and Conditions, Specifications, Plans and / or Drawings, Proposal's Submittal, and any other related documents will remain on file in the office of the City Purchasing Agent. It is understood that these documents will form the basis of the purchase agreement upon award of the lease agreement. All materials or services supplied by the Lessor shall be in conformance with all the specifications contained herein and shall be in compliance with any applicable Local, State, and Federal Laws and regulations. Page 3 of 28 CITY'S REPRESENTATIVES Purchasing Representative Kathy Wanner, Buyer 33 East Broadway Ave Meridian, ID 83642 (208) 489-0416 Fax (208) 887-4813 kwannerCa_meridiancity.org Technical Representative Colin Moss, Project Manager 33 East Broadway Ave Meridian, ID 83642 (208) 888-3579 Fax (208) 898-5501 cmoss@meridiancity.org Any and all explanations desired by a respondent regarding the meaning or interpretation of this Request for Proposals or any part thereof must be requested in writing and directed to the person named as the Purchasing Representative and in accordance with section 1 "EXPLANATIONS TO RESPONDENTS". Violation(s) may be caused for rejection of the proposal. Dated: Z21 CITY OF MERIDIAN / �� Keit6 Watts, Purchasing Manager Page 4 of 28 PART II INSTRUCTIONS TO RESPONDENTS 1. EXPLANATIONS TO RESPONDENTS There are twenty eight (28) total pages in this Request for Proposals. It is the respondent's responsibility to ensure that all pages are included. If any pages are missing, immediately request a copy of the missing page (s) by e -mailing your request to Kathy Wanner, Buyer at kwanner@meridiancity.org , RFP Project # PKS-1617-10120.d. Any explanation desired by a respondent regarding the meaning or interpretation of the Request for Proposals, or any part thereof, must be requested in writing( via fax or e-mail) and with sufficient time allowed for a reply to reach respondent before the submission of their proposal. Any Request of a technical nature should be sent to BOTH the Purchasing Representative and Technical Representative. Any interpretation made will be in the form of an addendum to the Request for Proposals, issued by the Purchasing Agent, and will be furnished to all prospective respondents of record. Oral explanations or instructions given before proposal opening will not be binding. 2. CONDITIONS AFFECTING THE WORK Before submitting a proposal, each respondent must (1) examine the Request for Proposals documents thoroughly, (2) visit the site to familiarize himself/herself with local conditions that may, in any manner, affect cost, progress or performance of the work, (3) familiarize himself/herself with Federal, State and Local laws, ordinances, rules and regulations that may, in any manner, affect cost, progress or performance of the work; and (4) study and carefully correlate respondent's observations with the Request for Proposal's. Failure to do so will not relieve respondent from responsibility for estimating properly the difficulty or cost of successfully performing the work. The City will assume no responsibility for any understanding or representations concerning conditions made by any of its officers or agents prior to the execution of the lease agreement, unless included in the Request for Proposal's, or any addendum. 3. SUBMISSION OF PROPOSALS Interested vendors shall submit one (1) original and one (1) copy of their response in Accordance with this Request for Proposals and must be sealed and addressed as directed below. Failure to do so may result in a premature opening of, or a failure to open, such proposals. Such premature or late opening, or failure to open, may result in disqualification of the proposal. The outside of the envelope must bear the notation: PROJECT # PKS-1617-10120.d SETTLERS PARK CONCESSIONS MARCH 2, 2016 4:00 P.M. The envelope must be addressed and delivered to: City of Meridian, Purchasing Department, 33 East Broadway Avenue, Ste. 106, Meridian, Idaho 83642. Page 5 of 28 4. LATE PROPOSALS AND MODIFICATIONS Proposals and modifications thereof received after the exact time of closing of proposals which is 4:00 p.m. MT, MARCH 2, 2016 will not be considered. 5. WITHDRAWAL OF PROPOSALS Unless otherwise specified, proposals may be withdrawn by written request received from respondent prior to the time set for closing of proposals. 6. PROPOSAL REQUIREMENTS To receive consideration, the proposal must comply with the following additional requirements: a.) The proposal and all other documents or material submitted will be deemed to constitute part of the proposal., b.) Proposals must be valid for a period of sixty (60) calendar days from the date of opening. 7. INTENT OF THE CITY The objective of this Request for Proposals is to provide sufficient information to enable qualified respondents to submit written proposals. This Request for Proposals is not a contractual offer or commitment to purchase services. Contents of this Request for Proposals and respondent's proposal will be used for establishment of final contractual obligation. It is to be understood that this Request for Proposals and the respondent's proposal may be attached or included by reference in an agreement between the City and successful respondent. 8. BASIS FOR SELECTION This Request for Proposals will be evaluated utilizing the criteria listed below. History from the current and previous projects and customers of the respondent may be used to evaluate some of the criteria. a. (15 points) Product menu and proposed prices. b. (25 points) Proposed lease payment G (50 points) References and experience in similar operations. d. (10 points) Additional information. Proposals containing false information will not be considered. Potential vendors whose criminal history includes any felony or misdemeanor conviction for a crime involving or related to violence, drugs or alcohol, sex crimes, theft, fraud, or moral turpitude will not be considered. Page 6 of 28 The City reserves the right to reject any or all proposals, to make an award on the basis of suitability to purpose or superior quality, to accept other than lowest proposal or any other criteria the City believes to be in the best interest of the City. After the City has identified the proposal with the best value for the City, the City shall have the right to negotiate with the respondent over the final terms and conditions of the lease agreement. These negotiations may include bargaining. The primary objective of the negotiations is to maximize the City's ability to obtain best value, based on the requirement and the evaluation factors set forth in the Request for Proposals. If an agreement cannot be reached, the negotiation will be terminated and similar negotiations will occur with the second ranked firm. 9. INDEMNIFICATION AND INSURANCE INDEMNIFICATION. By Tenant..Tenant agrees to indemnify and hold Landlord and Landlord's employees, and agents harmless against all actions, claims, demands, costs, damages or expenses of any kind on account thereof including, without limitation, attorneys' fees and costs of defense, which may be brought or made against Landlord or which Landlord may incur, by reason of Tenant's negligent or willful act or omission. By Landlord. Landlord agrees to indemnify and hold Tenant and Tenant's members, directors, officers, employees, and agents harmless against all actions, claims, demands, costs, damages or expenses of any kind on account thereof including, without limitation, attorneys' fees and costs of defense, which may be brought or made against Tenant, or which Tenant may pay or incur, by reason of Landlord's negligent or willful act or omission. INSURANCE. Comprehensive Liability Insurance. Tenant shall purchase and maintain throughout the term of this lease in force with an insurance carrier acceptable to Landlord a policy of commercial general liability insurance covering the activities of Tenant in connection with the Premises, having a combined single limit of not less than $1,000,000.00 per person and per occurrence and property damage liability insurance with a limit of not less than $1,000,000 per accident or occurrence. The insurance shall insure against any and all liability of Tenant with respect to the Premises and any other portions of the Building used or useable by Tenant. Landlord shall also maintain a Liability Insurance policy to cover the property. The tenant shall cause the Landlord to be named as an additional insured on the tenant's commercial general liability insurance policy. Personal Property Insurance. Tenant shall purchase and maintain in force insurance covering all of Tenants and Landlords furniture and fixtures, machinery, equipment, inventory, and other personal property owned and used in Tenant's business and found in, on, or about the Premises or the Building, and any leasehold improvements to the Premises, if any, in an amount not less than 100% of the full replacement cost. All policy proceeds will be used for the repair or replacement of the property damaged or destroyed regardless of the causes of such damage; however, if this Lease ceases under the provisions of Section 12, Tenant will Page 7 of 28 be entitled to any proceeds resulting from damage to Tenant's furniture and fixtures, machinery, equipment, inventory, and any other personal property. The tenant shall cause the Landlord to be named as an additional insured on the tenant's personal property insurance policy. Casualty Insurance. Landlord shall maintain insurance on the Building (excluding any fixtures and items which Tenant is entitled to utilize or required to remove, which insurance Tenant shall provide) against damage by fire and the perils now specified in the most current standard extended coverage endorsement in an amount equal to the replacement cost of the Building as reasonably determined by Landlord, exclusive of the cost of excavations, foundations, and footings. The insurance provided for in this Section may be provided within the coverage of a blanket policy(s) of insurance carried and maintained by Landlord. Policy Form. All policies of insurance provided for herein shall be issued by insurance companies rated A, Class VI, or better in Best's Key Rating Guide and qualified to do business in the State of Idaho. All insurance required to be furnished by Tenant shall be on forms and with loss payable clauses satisfactory to Landlord naming Landlord as additional insured and copies of policies of such insurance or certificates issued by the insurance company evidencing the existence and amounts of such insurance shall be delivered to Landlord. Failure of Tenant to renew or replace such insurance at least thirty (30) days prior to the expiration date of such policy shall constitute a material default under the terms of this Lease. All policies of insurance provided by Tenant may be provided within the coverage of a blanket policy(s) of insurance carried and maintained by Tenant. Failure of Tenant to Insure. In the event the Tenant shall fail to purchase and keep in force any of the insurance required of the Tenant in Section 14, the Landlord has the right to terminate the lease. The Landlord may, but shall not be required to, purchase and keep in force the same, in which event the Tenant shall pay to the Landlord the full amount of the Landlord's expenses with respect thereto, said payment to be made within ten (10) days after demand for such payment by the Landlord. 10. PUBLIC RECORDS The City of Meridian is a public agency. All documents in its possession are public records. Proposals are public records and, except as noted below, will be available for inspection and copying by any person. If any Proposer claims any material to be exempt from disclosure under the Idaho Public Records Law, the Proposer will expressly agree to defend, indemnify and hold harmless the City from any claim or suit arising from the City's refusal to disclose any such material. No such claim of exemption will be valid or effective without such express agreement. The City will take reasonable efforts to protect any information marked "confidential" by the Proposer, to the extent permitted by the Idaho Public Records Law. Confidential information must be submitted in a separate envelope, sealed and marked "Confidential Information" and will be returned to the Proposer upon request after the award of the lease agreement. It is understood, however, that the City will have no liability for disclosure of such information. Any proprietary or otherwise sensitive information contained in or with any Proposal is subject to potential disclosure. Page 8 of 28 11. PROPOSED SCHEDULE Issue the Request for Proposal February 12, 2016 Pre -Proposal Conference (On Site) February 23, 2016 Receive Qualifications March 2, 2016 Anticipated Selection Date March 9, 2016 Anticipated Award of Lease March 22, 2016 12. TERM The lease agreement will be for a term of 3 years unless otherwise negotiated between the successful Vendor and the City of Meridian. Page 9 of 28 PART ill PROPOSAL DOCUMENTS A - PROPOSAL FORM In response to the Request for Proposals, the undersigned respondent hereby proposes to furnish labor, material, travel, professional services, permits, supervision, equipment and equipment rental and all related expenses, and to perform all work necessary and required to complete the following project in strict accordance with the terms of this Request for Proposals and the final lease agreement for the prices specified by the respondent for: PROJECT # PKS-1617-10120.d 2016 - 2018 SETTLERS PARK CONCESSIONS Respondent certifies that he/she has examined and is fully familiar with all of the provision of the Request for proposals and any addendum thereto; that he/she is submitting a proposal in strict accordance with the Instructions to Respondents; and that he/she has carefully reviewed the accuracy of all attachments to this proposal. Respondent certifies that he/she has examined the proposal documents thoroughly, studied and carefully correlated respondent's observations with the proposal documents, and all other matters which can in any way affect the work or the cost thereof. Respondent agrees that this proposal constitutes a firm offer to the City which cannot be withdrawn by the respondent for sixty (60) calendar days from the date of actual opening of proposals. If awarded the lease agreement, respondent agrees to execute and deliver to the City within seven (7) calendar days after receipt of City's Conditional Notice of Award, the applicable Lease agreement form, insurance certificates and bonds (if required). Attached is the Respondent's Experience Statement (Part III, B) which has been completed by respondent and made a part of this proposal. Respondent also acknowledges receipt of the following addendum to the Request for Proposals which addendum have been considered by respondent in submitting this proposal (if none, state "NONE"): Addendum No. 1 7pd12 Scal-POP0o Addendum No. 2 c7tk SGRY60i-06gh PLEASE RETURN THIS PAGE WITH YOUR PROPOSAL Page 10 of 28 Submitted by, Vendor Information Business Name: Daisy's Italian Ice & Gelati LLC Name: Julie Scarborough SSN: State of Idaho Resale Number: Address: 2401 N Heath Ave City: Boise State: ID Zip: Home Phone: Work Phone: Cell Phone: 208-869-9790 E -Mail: daisysice@yahoo.com Fax: Note: If respondent is a corporation, give State of incorporation, if a partnership or joint venture, give full names of all partners or joint venturers. Idaho PLEASE RETURN THIS PAGE WITH YOUR PROPOSAL Page 11 of 28 DECLARATION UNDER PENALTY OF PERJURY The undersigned declares: that he/she holds the position indicating below as a corporate. Officer or the owner or a partner in the business entity submitting this Proposal; that the undersigned is informed of all relevant facts surrounding the preparation and submission of this Proposal, that the undersigned knows and represents and warrants to the City of Meridian that this Proposal is prepared and submitted without collusion with any other person, business entity, or corporation with any interest in this Proposal. I declare under penalty of perjury that the foregoing is true and correct. LESSEE /FIRM: Daisy's Italian Ice & Gelati LLC By: Julie Scarborough TITLE: owner ADDRESS: 2401 N Heath Ave, Boise, ID 83713 DATE: 2/26/2016 PLEASE RETURN THIS PAGE WITH YOUR PROPOSAL Page 12 of 28 PART III PROPOSAL DOCUMENTS B -RESPONDENT'S EXPERIENCE STATEMENT The respondent submits as a part of its proposal, the following information as to its experience and qualifications; a. The respondent has been engaged in this business under its present business name for 3 years. b. Experience in work of a nature similar in type and magnitude to that set forth In the request for proposal extends over a period of 3 years. Please answer the following questions with as much detail as possible. Attach additional pages if needed. 1. Please list the products you propose to offer for sale as well as the proposed prices. See attached menu 2. State your proposed lease payment to operate the concession stand at Settlers Park as described above. Please list as a percentage of gross sales. 16% of qross sales 3. Please describe your experience in managing comparable operations. Daisy's has operated a kiosk in Boise, Idaho and participated in vendor events around the Treasure Valley for the past 3 summer seasons. Page 13 of 28 4, Please list three (3) references who can attest to your quality of product and service. Name Address Phone Number Relationship Ellen Tingstrom etingstrom@canyonco.org 208-455-8500 CC Event Coordinator Rance Pugmire 827 E Park Blvd # 100, Boise, ID 208-275-8156 BMF Coordinator Karen Akers 611 W Linden St, Boise, ID 208-440-1869 restaurant manager 5. Please disclose any and all criminal convictions, including withheld judgments, for felonies or misdemeanors involving or related to violence, drugs or alcohol, sex crimes, theft, fraud, or moral turpitude. none 6. Please include any additional information you would like to be considered in the RFP awarding process. We provide a product unique to the area and are able to function in a fast -paced environment while providing exceptional customer service and an exceptional product. We have attended various events in the Treasure Vailev and continue to be requested at the events. We have also successfully run a kiosk in the past. PLEASE RETURN THESE PAGES WITH YOUR PROPOSAL (INCLUDING ADDITIONAL PAGES AS NECESSARY) Page 14 of 28 ATTACHMENT A SPECIFICATIONS / SCOPE A. Settlers Park Concessions Building. Settlers Park is a 56 acre park located at 3245 N. Meridian Road on the NW corner of Meridian Road and Ustick Road. Amenities at the park include several grass sports fields, a fishing pond, 8 baseball/softball fields (baseball/softball fields contain their own concessions buildings), 7 fiill-size tennis courts, 3 ten and under tennis courts, 16 horseshoe courts, 3 reservable picnic shelters, walking paths, and the Adventure Island Playground which includes a large universally accessible playground, swings, climbing boulders, sound garden, and splash pad. The concessions building is located in the middle of the park within close proximity to the Adventure Island Playground, sports fields, picnic shelters, and horseshoe courts. The interior of the concessions building is 22' x 15 %'. Equipment included in the concessions building that will be available for use by the successful vendor include a three compartment sink, hand washing sink, mop sink, refrigerator, chest freezer, microwave and cash register. All other food preparation and storage equipment will need to be provided by the successful vendor. B. Dates/Times of Service. Minimum dates of operation are Monday through Sunday, June 4 through August 21. In addition to being open daily while traditional calendar schools are out for the summer, the successful vendor must be open on weekends, at a minimum, from Memorial Day weekend through the third weekend in September. In 2016, this would include May 28-30, August 27- 28, September 3-5, September 10-11, and September 17-18. Minimum times of operation are 11:00am-8:00pm on all open days with the exception of dates when outdoor movies are shown at Settlers Park. On such dates, (every Friday in June, July and August) the concessions stand must stay open until the movie is over which varies from 10:45pm-11:45pm depending on the date of the show and the length of the movie. Additional dates and/or times of operation may be requested by Meridian Parks and Recreation based on activities scheduled at the park. Vendor may choose to be open during dates and times that exceed these minimums. However, hours must stay consistent through the summer. By City Code, the park closes daily one-half hour after sunset unless otherwise ordered or allowed by the Department Director in writing (such as Movie Nights). Exceptions to the minimum dates and hours of operation may be allowed in the event of adverse weather or other prohibitive conditions. C. Sales History. The Meridian Parks and Recreation Department has been leasing the Settlers Park concessions building to a third party vendor since 2009. The following are gross sales totals for the entire summer by year. • 2009 - $21,926.75 (open 95 days for a daily average of $230.81) • 2010 - $25,703.00 (open 88 days for a daily average of $292.08) • 2011 - $37,538.09 (open 91 days for a daily average of $412.51) • 2012 - $19,873.60 (open 90 days for a daily average of $220.82) Page 15 of 28 • 2013 - $42,535.19 (open 97 days for a daily average of $438.51) • 2014 - $35,558.94 (open 112 days for a daily average of $317.49) • 2015 - $28,150.02 (open 93 days for a daily average of $302.69) D. Additional Requirements. Upon selection, the successful Vendor must: • Have or obtain all necessary Central District Health Department permits. • Provide a credit report (or authorize the City of Meridian to obtain a credit report) and/or a 2014 tax return. • Provide a copy of vendor's current insurance policy per the insurance requirements listed in Section 9 of this RFP. The City of Meridian shall be named as additionally insured. • Negotiate and enter into a separate, detailed lease agreement with the City of Meridian establishing terms and conditions of operation in Settlers Park. This lease agreement will be for a term of 3 years unless otherwise negotiated between the successful Vendor and the City of Meridian. A sample lease agreement is attached. • Undergo and pass a criminal background check. The cost of the successful vendor's background check will be paid for by the City of Meridian. • If employing one or more persons to work in the concession building, provide worker's compensation insurance and require all employees to undergo a criminal background check. Vendor shall not employ any person to work in the concession building whose criminal history includes any felony or misdemeanor conviction for a crime involving or related to violence, drugs or alcohol, sex crimes, theft, fraud, or moral turpitude. The cost of all employees' background checks will be paid for by the successful vendor. The current cost of a background check is $18.50. Page 16 of 28 -0 MS U) 12 W J r W uo `1 ATTACHMENT B SAMPLE LEASE AGREEMENT } LEASE AGREEMENT for CONCESSIONS OPERATIONS AT SETTLERS PARK This LEASE AGREEMENT for CONCESSIONS OPERATIONS AT SETTLERS PARK ("Lease") is entered into by and between the City of Meridian ("Landlord"), and NAME OF VENDOR ("Tenant"), effective the day of , 201 XX. In this Lease, Landlord and Tenant may be referred to individually as a "Party" or collectively as "Parties." WHEREAS, Landlord owns Settler's Park, located at 3245 N. Meridian Road, which park includes a concession building adjacent to the splash pad (hereinafter "Lease Premises"); WHEREAS, Landlord is authorized by Idaho Code section 50-1401 to manage real property owned by the Landlord in ways which the judgment of City Council deems to be in the public interest; WHEREAS, the City Council of the City of Meridian hereby finds that the lease of the Lease Premises to Tenant for selling concessions serves the public interest; WHEREAS, pursuant to Idaho Code section 50-1407, the mayor and council hereby resolve and authorize the lease of Lease Premises to Tenant; NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and agreed, and in consideration of the mutual promises and covenants herein contained, and in consideration of the recitals above, which are incorporated herein, Landlord and Tenant agree as follows: I. Lease granted. In consideration of the payment of Rent, and other sums to be paid by Tenant to Landlord pursuant to this Lease (collectively referred to hereinafter as "Rent") and the performance of the other covenants, conditions and agreements in this Lease to be kept and performed by Tenant, Landlord does hereby lease and demise Lease Premises to Tenant. II. Use of Lease Premises. Tenant's use and occupancy of the Lease Premises shall be limited to the preparation of food consistent with the requirements and standards established by applicable federal, state, city and health department laws, ordinances, regulations and resolutions; and the sale of food, beverages, swim diapers, and novelty items as set forth in Request for Proposals for Project no. PKS-1617-10120.D, and Tenant's response thereto, which are attached hereto as Exhibit A. Tenant shall not use or permit the use of the Lease Premises for any other purpose without the express written consent of Landlord. Tenant warrants and represents that Tenant has undertaken a complete and independent evaluation of any and all risks inherent in the execution of this Lease and the operation of the Lease Premises for its use permitted hereby, and that, based upon said independent evaluation, SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 18 of 28 Tenant has elected to enter into this Lease and hereby assumes all risks with respect thereto, some of which risks may be unknown. III. Scope of services. As a condition of Tenant's use and occupancy of the Lease Premises, Tenant shall provide the services enumerated in Attachment A (Specifications/Scope) of the Request for Proposals for Project no. PKS-1617-10120.D, attached hereto as Exhibit A, under sections B (Dates/Times of Service) and D (Additional Requirements). Further, Tenant shall insure that the area within and immediately adjacent to concession area of the Lease Premises is kept clean and free of all debris, litter, or other unclean or unsightly condition caused or created by the operation. IV. Term of lease. The term of this lease shall begin on May lst, 20XX ("Effective Date"), through 11:59 p.m. on September 30, 20XX, unless earlier terminated by either Party by the method established herein. Tenant shall be deemed to have occupied the Lease Premises for purposes of commencing the Term as of the Effective Date. Time is of the essence in all matters related to this Lease. V. Responsibilities of Tenant. With regard to Tenant's use and occupancy of the Lease Premises under this Lease, Tenant shall be responsible for each and all of the following. A. Rent. Beginning with the Effective Date, Tenant shall pay Rent to Landlord according to the Payment Schedule set forth in Exhibit B hereto. Rent shall include the cost and expenses for all utilities in connection with the Premises, including the cost of electricity or other fuels or power sources, water and sewer services, and waste disposal services. Land line telephone service is not available at the premises. B. Personal property taxes. If applicable, Tenant shall pay, prior to delinquency, all personal property taxes payable with respect to all property of Tenant located on or at the Lease Premises. "Property of Tenant" shall mean and include all personal property of Tenant including any inventory, equipment, floor, ceiling and wall coverings, furniture and/or trade fixtures kept or used in or on the Lease Premises, and any improvements to the Lease Premises that are owned by and separately assessed to Tenant. C. Surrender of Lease Premises; removal of property. Subject to the provisions set forth herein regarding early termination, upon expiration of the Lease term or earlier termination of the Lease, whether by lapse of time or otherwise, Tenant, at Tenant's sole expense, shall: 1. Remove the Property of Tenant; 2. Repair and restore the Lease Premises to a condition as good as received by Tenant from Landlord, reasonable wear and tear excepted; and 3. Promptly and peacefully surrender the Lease Premises and yield up possession to Landlord. Any property left on the Premises after the expiration or termination of the Lease shall be deemed to have been abandoned and shall become the property of Landlord. Tenant shall be liable for all costs associated with the removal and/or disposal of such property. Tenant hereby waives all claims for damages that maybe caused by Landlord's reentering SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 19 of 28 and taking possession of the Lease Premises or removing and storing the Property of Tenant and/or other property as herein provided. No such reentry shall be considered or construed to be a forcible entry. Tenant shall indemnify Landlord against any loss or liability resulting from delay by Tenant in surrendering the Lease Premises, including, without limitation, any claims made by a succeeding tenant founded on such delay. D. Condition of Premises. Tenant acknowledges that Tenant has inspected the Lease Premises and does hereby accept the Lease Premises as being in good and satisfactory order, condition, and repair. It is understood and agreed that Landlord makes no warranty or promise as to the condition, safety, usefulness or habitability of the Lease Premises, and Tenant accept the Lease Premises "as is." In entering into this Lease, Tenant is relying on its own investigation and inspection of the Lease Premises and its own determination of the suitability of the Lease Premises, physically and legally, for its intended use. E. Alterations. Tenant shall make no additions, changes, alterations or improvements to the Premises or to any electrical, mechanical or fire protection facilities pertaining to the Premises without the prior written consent of Landlord. Tenant shall be responsible for any and all code requirements resulting from any additions, changes, alterations or improvements to the Premises. F. Waste. Tenant shall not commit or allow to be committed any waste upon the Premises, or any nuisance, or any act in or about the Premises that disturbs the quiet enjoyment of Landlord. Tenant, at Tenant's sole expense, shall comply with all laws and regulations relating to its use or occupancy of the Lease Premises. G. No assignment or subletting. Tenant shall not, without first obtaining Landlord's consent: (1) sell, assign, mortgage, or transfer this Lease or any interest therein; (2) sublease all or any portion of the Lease Premises; or (3) allow the use or occupancy of the Lease Premises by anyone other than Tenant. No assignment or sublease shall relieve the Tenant of any liability under this Lease, unless Landlord consents in writing to accept such assignment or sublease as a whole or partial novation. Notwithstanding the foregoing, any transfer of this Lease by merger, consolidation or liquidation of Tenant shall not constitute an assignment hereunder. H. Compliance with ADA. Tenant shall not enter into any change of use of the Premises, whether approved by Landlord or not, if such change in use would result in increased liability of Landlord under the Americans with Disabilities Act of 1990, Public Law No. 101-336, 42 USC 12101 et. seq, as it may be amended from time to time ("ADA"). I. No Hazardous Substances. Tenant specifically agrees not to use, store or deposit any substance that is hazardous or dangerous to person, property or the environment (or any similar substance) as now or hereafter defined by or determined pursuant to any applicable state or federal law or regulation in amounts exceeding legally permissible levels in, on, or about the Premises. SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 20 of 28 J. Liens. Tenant agrees that it will pay or cause to be paid all costs for work done by Tenant on the Premises, and Tenant will keep the Lease Premises free and clear of all mechanics' liens on account of work done by Tenant or persons claiming under Tenant. Tenant agrees to defend, indemnify and save Landlord free and harmless against liability, loss, damage, costs, attorneys' fees, and all other expenses on account of claims of lien of laborers or materialmen or others for work performed or materials or supplies furnished to Tenant or persons claiming under Tenant. If Tenant shall desire to contest any claim of lien, it shall furnish Landlord adequate security for the value or in the amount of the claim, plus estimated costs and interest, or a bond of responsible corporate surety in such amount conditioned on the discharge of the lien. If a final judgment establishing the validity or existence of lien for any amount is entered, Tenant shall pay and satisfy the same at once. If Tenant shall be in default in paying any charge for which a mechanics' lien claim and suit to foreclose has been filed and Tenant shall not have furnished Landlord adequate security as more particularly provided above, then, in order to protect the Lease Premises and Landlord against such claim of lien, Landlord may, but shall not be required to, pay the claim and any costs, and the amount so paid, together with reasonable attorneys' fees incurred in connection therewith, shall be immediately due and owing from Tenant to Landlord, and Tenant agrees to and shall pay the same. Should any claims of lien be filed against the Lease Premises or any action affecting the Lease Premises be commenced, the Party receiving notice of such lien or action shall forthwith give the other Party written notice thereof. K. Indemnification. Tenant specifically indemnifies Landlord and holds Landlord harmless from any loss, liability, claim, judgment, or action for damages or injury to Tenant, to Tenant's personal property or equipment, and to Tenant's employees, agents, guests or invitees arising out of or resulting from the condition of the Lease Premises or any lack of maintenance or repair thereon and not caused by or arising out of the tortious conduct of Landlord or its employees. Tenant further agrees to indemnify and hold Landlord harmless from any loss, liability, claim or action from damages or injuries to persons or property in any way arising out of or resulting from the use and occupancy of the leased premises by Tenant or by Tenant's agents, employees, guests or business invitees and not caused by or arising out of the tortious conduct of Landlord or its employees. If any claim, suit or action is filed against Landlord for any loss or claim described in this paragraph, Tenant, at Landlord's option, shall defend Landlord and assume all costs, including attorney's fees, associated with the defense or resolution thereof, or indemnify Landlord for all such costs and fees incurred by Landlord in the defense or resolution thereof. L. Insurance. 1. Comprehensive Liability Insurance. Tenant shall purchase and maintain in force throughout the term of this lease in force with an insurance carrier acceptable to Landlord a policy of commercial general liability insurance covering the activities of Tenant in connection with the Lease Premises, having a combined single limit of not less than one million dollars ($1,000,000) per person and per occurrence and property damage liability insurance with a limit of not less than one million dollars ($1,000,000) per accident or occurrence. The insurance shall insure against any and SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 21 of 28 all liability of Tenant with respect to the Lease Premises and any other property used or useable by Tenant. 2. Personal Property Insurance. Tenant shall purchase and maintain in force throughout the term of this lease insurance covering all of Tenant's and Landlord's furniture and fixtures, machinery, equipment, inventory, and other personal property owned or used by Tenant in, on, or about the Lease Premises. All policy proceeds shall be used for the repair or replacement of the property damaged or destroyed regardless of the cause of such damage; however, if this Lease ceases due to early termination due to damage or destruction as described herein, Tenant shall be entitled to any proceeds resulting from damage to Tenant's furniture and fixtures, machinery, equipment, inventory, and any other personal property. 3. Policy Form. All policies of insurance provided for herein shall be issued by insurance companies rated A, Class VI, or better in Best's Key Rating Guide and qualified to do business in the State of Idaho. All insurance required to be furnished by Tenant shall be on fon-ns and with loss payable clauses satisfactory to Landlord naming Landlord as additional insured and copies of policies of such insurance or certificates issued by the insurance company evidencing the existence and amounts of such insurance shall be delivered to Landlord. Failure of Tenant to renew or replace such insurance at least thirty (30) days prior to the expiration date of such policy shall constitute a material default under the ten -ns of this Lease. All policies of insurance provided by Tenant may be provided within the coverage of a blanket policy(s) of insurance carried and maintained by Tenant. 4. Failure of Tenant to Insure. In the event Tenant shall fail to purchase and keep in force any of the insurance required of the Tenant, Landlord has the right to terminate the Lease. Landlord may, but shall not be required to, purchase and keep in force the same, in which event the Tenant shall pay to the Landlord the full amount of the Landlord's expenses with respect thereto, said payment to be made within ten (10) days after demand for such payment by the Landlord. 5. Insurance Risks. Tenant shall not do or permit to be done any act or thing upon the Premises or the Building which would (a) jeopardize or be in conflict with fire insurance policies covering the Building and fixtures and property in the Building; (b) increase the rate of any insurance applicable to the Building to an amount higher than it otherwise would be for the general use of the Building; or (c) subject Landlord to any liability or responsibility for injury to any person or persons or to property by reason of any business or operation being carried on upon the Lease Premises. VI. Responsibilities of Landlord. During the Lease term, Landlord shall be responsible for each and all of the following. A. Repair and maintenance of Lease Premises. Landlord shall repair and maintain the structural portions of the Lease Premises, including, but not limited to, the electrical systems, roof, and structural integrity of the premises, unless such maintenance or repairs are required as a result, in whole or in part, of the act of, or neglect of any duty by, SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 22 of 28 Tenant, its agents, servants, employees, or invitees, in which event Tenant shall pay to Landlord the reasonable cost of such maintenance or repairs within ten (10) days of Tenant's receipt of Landlord's itemized bill therefor. B. Equipment. The parties acknowledge equipment owned by Landlord, as described in Exhibit C hereto. All such equipment shall be placed in good working order by the Effective Date at Landlord's sole expense. During the Term, Landlord shall repair and maintain equipment owned by Landlord. C. Entry and inspection. Landlord at all reasonable times, and at any time in case of emergency, may enter the Lease Premises for the purpose of inspection, cleaning, repairing, altering, maintaining or improving the Lease Premises subject to Tenant's reasonable security requirements and reasonable client confidentiality requirements. D. Property insurance. Landlord shall maintain insurance on the Lease Premises, excluding equipment described in Exhibit C, which insurance Tenant shall provide. The insurance provided for in this Section may be provided within the coverage of a blanket policy(s) of insurance carried and maintained by Landlord. VII. GENERAL PROVISIONS. A. No agency; independent contractor. It is understood and agreed Tenant shall not be considered an agent of Landlord in any manner or for any purpose whatsoever in Tenant's use and occupancy of the Lease Premises. In all matters pertaining to this Lease, Tenant shall be acting as an independent contractor, and neither Tenant nor any officer, employee or agent of Tenant shall be deemed an employee of Landlord. Tenant shall have no authority or responsibility to exercise any rights or power vested in Landlord. B. Notices. All notices to be provided under this Agreement shall be in writing and addressed as follows: Tenant: NAME OF VENDOR Attn: Address City, State, Zip Landlord: City of Meridian Attention: Colin Moss 33 East Broadway Meridian, Idaho 83642 Notices shall be either personally delivered or sent by U.S. mail, postage prepaid. Notice shall be deemed to have been given upon deposit in the U.S. mail, or upon personal delivery to the party above specified. SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 23 of 28 A. Early termination due to damage or destruction. In the case of damage to the Lease Premises by a Force Majeure, Tenant shall immediately notify Landlord. "Force Majeure" shall mean a cause or event that is not reasonably foreseeable or otherwise caused by or under the control of either Party, including acts of God, fire, flood, vandalism, accident, governmental acts, and other like events that are beyond the reasonable anticipation or control of Party affected thereby. If the Premises or Building are damaged by Force Majeure to such extent that they are rendered unusable or unsafe for use, Landlord may immediately terminate this Lease. B. Default or breach; cure; termination. If Tenant is in breach or default of any of the terms, covenants or conditions of this Agreement and Tenant fails or refuses to cure such breach or default within ten (10) days of written notice thereof, this Agreement, and all rights of Tenant in and to Premises, at Landlord's option, may be deemed terminated and forfeited without further notice or demand. In the event of any default or breach of this Agreement and Tenant's failure or refusal to cure as hereinbefore provided, Landlord may, upon three (3) days notice, enter into and upon the premises, take possession thereof and expel Tenant therefrom, with or without process of law, and without being guilty of trespass, and without prejudice to any and all other rights and remedies Landlord may have. Tenant shall be liable for any damages and any costs, including legal expenses and attorneys' fees, incurred by Landlord in recovering the Premises hereunder. The rights, privileges, elections and remedies of Landlord set forth in this Lease or allowed by law or equity are cumulative, and the enforcement by Landlord of a specific remedy shall not constitute an election of remedies and/or a waiver of other available remedies. C. No waiver. Landlord's waiver on one or more occasion of any breach or default of any term, covenant or condition of this Lease shall not be construed as a waiver of any subsequent breach or default of the same or a different tern, covenant or condition, nor shall such waiver operate to prejudice, waive, or affect any right or remedy Landlord may have under this Agreement with respect to such subsequent default or breach by Tenant. The acceptance of any Rent by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular Rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such Rent. D. No obligation. By the granting of this lease, Landlord does not in any way bar, obligate, limit, or convey any warranty with regard to any action relating to development or operation of said premises, including, but not limited to, annexation, rezone, variance, permitting, environmental clearance, or any other action allowed or required by law or conveyed by City Council. E. Mediation. Any disputes between the Parties in connection with the rights and obligations under this Lease, shall be settled by mediation upon the request of any Party and the mutual agreement of both parties. Mediation shall be a required SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 24 of 28 precursor to litigation filed regarding this Agreement. All costs associated with mediation shall be shared equally by the parties. F. Nondiscrimination. Both Parties warrant and agree that there shall be no discrimination against any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Premises. G. Attorney fees. Tenant shall be liable to Landlord for all damages and costs, including legal expenses and attorneys' fees, suffered or incurred by Landlord in the enforcement of any of the terms, covenants or conditions of this Agreement. H. Exhibits. All exhibits to this Agreement are incorporated by reference and made a part of hereof as if the exhibits were set forth in their entirety herein. I. Entire agreement. This Agreement and the Exhibits hereto contain the entire agreement of the parties and supersedes any and all other agreements, leases, or understandings, oral or written, whether previous to the execution hereof or contemporaneous herewith. No oral or written inducements to execute this Lease have been made to Tenant. In entering into this Lease, Tenant relies upon no statement, fact, promise or representation, whether express or implied, written or oral, not specifically set forth herein in writing. IN WITNESS WHEREOF, the parties shall cause this Agreement to be executed by their duly authorized officers to be effective as of the day and year first above written. TENANT: NAME OF VENDOR State of Idaho ) ) ss: County of ) I HEREBY CERTIFY that on this — day of , 20xx, Name before the undersigned, a Notary Public in the State of Idaho, personally appeared NAME OF VENDOR/OWNER, proven to me to be the person who executed the said instrument, and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year in this certificate first above written. Notary Public for Idaho Residing at , Idaho My Commission Expires: LANDLORD: CITY OF MERIDIAN: ATTEST: Tammy de Weerd, Mayor Jaycee Holman, City Clerk SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 25 of 28 EXHIBIT A REQUEST FOR PROPOSALS FOR PROJECT NO. PKS-1617-10120.D SEE ATTACHED SEPARATELY SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 26 of 28 EXHIBIT B PAY SCHEDULE A. Amount. Tenant pay Rent to the Landlord in the following amounts: 1. XX percent (XX%) of gross sales. B. When due. Tenant shall pay Rent to the Landlord no later than the tenth (10th) of the following month, Tenant shall submit copies of all daily cash register receipts for the preceding week by 11:59 p.m. on every Friday. C. Accounting required. Tenant shall keep a full and accurate set of books, adequately showing gross receipts received during each month for all operations associated with this Lease Agreement and shall, with reasonable notice, allow Landlord to inspect said books and receipt records. SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 27 of 28 EXHIBIT C LIST OF LANDLORD'S FIXTURES 1. Freezer 2. Fridge 3. Microwave 4. Cash register 5. Three compartment sink 6. Handwashing sink 7. Mop sink SETTLER'S PARK CONCESSION BUTLDING LEASE AGREEMENT Page 28 of 28 Daisy's Italian Ice & Gelati February 26, 2016 Settler's Park Kiosk Daisy's Italian ice & Gelati Julie Scarborough daisysice@ ay hoo.com 208-869-9790 I. Summary Daisy's Italian Ice & Gelati is proposing to sign a 3 year contract for the available kiosk in Settler's Park. Daisy's is a family run business that has been in operation in the Treasure Valley since 2013. We provide a product that originated on the East Coast and is unique to this area. We provide a delicious summer treat reminiscent of a snow cone but with a creamier, blended texture and the addition of fresh fruit that enhances the flavor, and appeals to all ages. Daisy's Italian Ice & Gelati intends to grow and increase business over the next several years. The kiosk at Settler's Park will give us an original home base and provide additional income to the Park. We will pay 16% of our sales directly back to Settlers and we will be able to bring in new families to enjoy the park while they are looking for Italian ice. We will also sell additional snack items and beverages and add hot food items to sell of the Friday Movie Nights. Page 2 of 6 II. Introduction Daisy's Italian Ice & Gelati was founded by the Scarborough family in 2013. We started with a kiosk in Boise, Idaho for our first season and have since expanded to events Including the Canyon County Fair, Boise Music Festival, and Parktacular in Settler's Park. We have also vended our product at Farmer's Markets around the Treasure Valley, at private events, and as a temporary establishment at the Town and Country shopping center, Our product has been successful and continues to grow each year. Our goal is to enhance family's summer fun by introducing a unique product to the Treasure Valley. Although our product is not commonly found in this area (yeti), it is extremely popular on the east coast where most of our family resides. Throughout the summer you'll find Italian ice along the Jersey Shore as well as the Maryland and Delaware beaches. Italian ice is made using fresh fruit from local farmers (including our family owned orchard in Emmett, ID) and various ingredients which help to create a real fruit base that is sweetened then churned like ice cream in a special batch freezer. It then mixes and freezes all the ingredients to create delicious frozen dessert that is scooped into cups and eaten with a spoon. Unlike snow cones, which is simply crushed ice topped with artificial flavoring, Italian ice uses fresh fruit to give it a more natural taste. Because of our great selection of fruit here in Idaho we have found that our product appeals to everyone, from kids to adults. Our gelati, which is our number one seller, combines scoops of fresh fruit Italian ice with ice cream to create a creamier style dessert. The benefits to our product include enjoyment by all age groups, it contains no egg, dairy, or gluten (except gelati of course) and is an inexpensive summer treat. Page 3 of 6 III. Needs/Problems The snack kiosk in Settler's Park is currently not under contract and in need of a food vendor to occupy the space. • Sales need to be run daily from May 28, 2016 through September 18, 2016, with extended hours on the Friday night movie nights held at the park. • A 3 year contract is needed to run the kiosk operations for summer seasons 2016- 2019. • The park needs to receive a percentage of the vendor proceeds in exchange for use of the space. • A product needs to be offered that will appeal to age groups from young to old and Meridian families that use the park for recreation, sports activities, and attendance at movie nights. IV. Goals/Objectives Daisy's Italian Ice & Gelati is the perfect vendor to occupy the Settler's Park kiosk. • We are able to be open for regular hours 1 I am until Bpm daily for the full season with our family run business and will extend our hours on Friday nights until 12am. • We are willing to sign and fulfill a 3 year contract. As our business grows and we participate in more events throughout the years, our fan base continues to increase and this will bring more people out to enjoy Settler's Park. • We propose to return 16% of our profits to Settler's Park each season. With our growing business and unique product we anticipate an increase in sales from previous years and therefore more profit for Settler's Park. • Our product is unique to this area and offers a delicious alternative to traditional snow cones. Feedback from past years shows that our product appeals to all ages and is the perfect treat while playing or relaxing. in addition to our Italian ice products we will have additional food items available as well as personal products such as sunscreen and swim diapers. On the Friday Movie nights we will add to our menu. These menu details are provided below in the menu section. V. Proposed Bid We are proposing to return to Settler's Park 16% of our gross sales for the season as payment for using the kiosk space. VI. Daily Menu (see attached menu) Page 4 of 6 Italian ICe — Italian Ice, called granita in Sicily, is a frozen treat using fresh locally grown Idaho fruit, fruit purees, natural sweeteners, and purified water. This is not a snow cone or shaved ice that is flavored; rather, it is made by the same process by which ice cream is made: freezing the ingredients while mixing them. Italian ice is similar to sorbet but differs from American-style sherbet in that it does not contain dairy or egg ingredients. Italian Ice is commonly found near my hometown and throughout the Delaware Valley. Our common flavors are: black cherry, strawberry, cherry, blue raspberry, peach, and watermelon (fruit from our family orchard in Emmett and other farms throughout the Treasure Valley). We also serve other East Coast favorites like lemon, mango, and many others. Kiddie -$2.50 Regular - $3.75 Large - $4.75 Gelati — A layering of your favorite Italian Ice and homemade creamy custard style ice cream. Find out why it's our #1 selling treat! Kiddie - $3.50 Regular - $4.75 Large - $5.75 Blendini — Creamy and crunchy, it's mixed-up magic. Choose your favorite Italian Ice, along with Frozen Custard, and then mix -in your own topping for your personal perfection. Choose from Reese's* Peanut Butter Cups Mini Pieces, OREO Cookie Pieces, M&M's Minis, and Snickers. Kiddie - $3.95 Regular - $4.95 Large - $5.95 Misto — We take your favorite Italian Ice and Custard. Blend. Voila. The perfect drink for you on -the - go -getters. Get a mouthful of Misto. Kiddie - $3.95 Regular - $4.95 Large - $5.95 Italian Soda — A combination of Toriani's syrups, clear soda, and heavy cream. These ingredients are shaken, not stirred, and served over ice. Regular - $3.00 Large - $3.75 Snow Cone — Small - $2.50 Medium - $3.50 Large - $4.50 Candy — prices vary Drinks - prices vary Chips -$1.50 Fruit cup/yogurt —prices vary Movie Night Menu — includes hotdogs, popcorn, Philly cheesesteak, cheeseburger Daisy's Italian IceB ti Our homemade Italian Ice Our signature Gelati f Our kiosk, tent set up and previous event photos i �, PAY SCHEDULE A. Amount. Tenant shall pay Rent to the Landlord in the amount of sixteen percent (16%) of gross sales. B. When due. Tenant shall pay Rent to the Landlord no later than the tenth (10th) of the following month. Along with each payment, Tenant shall submit a spreadsheet of daily and monthly gross sales totals. C. Accounting required. Tenant shall keep a full and accurate set of books, adequately showing gross receipts received during each month for all operations associated with this Lease Agreement and shall, with reasonable notice, allow Landlord to inspect said books and receipt records. SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 10 of 11 r LIST OF LANDLORD'S FIXTURES 1. Chest Freezer 2. Refrigerator 3. Microwave 4. Cash register 5. Three compartment sink 6. Handwashing sink 7. Mop sink SETTLER'S PARK CONCESSION BUILDING LEASE AGREEMENT Page 11 of 11