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HomeMy WebLinkAboutReso 1966-3955 Form No. 342 RESOLUTION NO. 3955 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND MR. JACK THOMAS AND MRS . RUTH FAIR FOR THE OPERATION OF THE RESTAURANT AND BAR FACILITIES AT THE GOLF COURSE AND AUTHORIZING THE MAYOR TO EXECUTE SAME The City Council of the City of Chula Vista does hereby resolve as follows : That that certain agreement between the City of Chula Vista, a municipal corporation, and Mr. Jack Thomas and Mrs . Ruth Fair for the operation of the restaurant and bar facilities at the Chula Vista Municipal Golf Course, dated the 18th day of January 18 , 1966 , a copy of which is attached hereto and incorporated herein, the same as though fully set forth herein be, and the same is hereby approved. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista be, and he is hereby authorized and directed to execute said agreement for and on behalf of said City. Presented by 35----' 1F-2-"( -1.7 7( C-4.;----- Fred A. Ross, Chief Administrative Officer Approved as to form by r George D ' indberg, City Attor. -1- ADOPTED AND APPROVED by the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, thisi$trday of January 19_66 , by the following vote, to-wit: AYES: COUNCILMEN McAllister, Anderson, McCorquodale, Sparling, McMains NAYES: COUNCILMEN None ABSENT: COUNCILMEN None i • Mayor of the City of Chula Vista � ff// /ZKf ATTEST _.22( .z c_,�_._r.ttYl `rr.�:. `\� City Clerk / STATE OF CALIFORNIA COUNTY OF SAN DIEGO ss. CITY OF CHULA VISTA I, KENNETH P. CAMPBELL, City Clerk of the City of Chula Vista, California, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of , and that the same has not been amended or repealed. DATED: City Clerk R 03 ?S5 CC 652 Form No. 301 UNANIMOUS CONSENT FORM IT IS HEREBY REQUESTED by the undersigned that the following item, with the unanimous consent of the City Council of the City of Chula Vista, be considered and acted upon by the Council pursuant to the provisions of Section 1. 16 of the Chula Vista City Code. Resolution finding certain work to be of urgent necessity and that contract for said work should be let without advertising c )(7 ,. - C .. (Signature) Unanimous Consent of the City Council, as indicated by the following atur so \WI V-t-4Csk_z.-Q—C ( -----' (' 7- '''' -- :::7' t.'" ' 2 , .. 47,,(.,1_,,v , ,,./-4"4 -* ii'c %5.=%2:4e.e,,_; 6 te,., Cy r.r�._�i g395y LEASE AGREEMENT FOR THE OPERATION OF THE RESTAURANT AND BAR PREMISES AT THE CHULA VISTA MUNICIPAL GOLF COURSE THIS AGREEMENT, made and entered into this 18th day of January , 1966, by and between the CITY OF CHULA VISTA, a municipal corporation, hereinafter referred to as "Lessor," and MR. JACK THOMAS and MRS. RUTH FAIR, hereinafter referred to as "Lessees," W I T N E S S E T H : WHEREAS, the City of Chula Vista desires to lease those certain restaurant and bar premises located at the Chula Vista Municipal Golf Course, and has heretofore invited bids for the operation of said facilities, and WHEREAS, after a review of the bids submitted, it has been determined that the operation of said facilities by Mr. Jack Thomas and Mrs. Ruth Fair will best serve the interests of the City of Chula Vista. NOW, THEREFORE, for and in consideration of the rent herein- after specified and the covenants and agreements hereinafter set forth, Lessor agrees to lease to Lessees those certain premises with the appurtenances set forth herein, to be used exclusively for the operation and maintenance of a bar and restaurant and such activities as are commonly or usually conducted in said premises and for the preparation and sale of food, refreshments and all lawful beverages as approved by the Director of Parks and Recreation and by the Chief Administrative Officer of the City of Chula Vista. Said premises shall include all of the club house located at the Chula Vista Municipal Golf Course except for that portion of the premises presently used for the operation of a Pro Shop and locker room for the use of golfers, and more particularly described as follows: A portion of the Chula Vista Municipal Golf Course Club House in the Bonita Valley consisting of approximately 4,200 square feet of space as is now designated and used as a restaurant and bar facility, together with any additional portions of said premises, such as office space, within said Chula Vista Municipal Golf Course as designated by the Director of Parks and Recreation and mutually agreeable to Lessees. IT IS FURTHER EXPRESSLY AGREED AND UNDERSTOOD by and between the parties hereto as follows: 1. In addition to the use of said premises, Lessees may be permitted to establish concessions on said golf course for the purpose of the sale of refreshments and beverages at such places and times as are approved and designated by the Director of Parks and Recreation. 2. Lessees agree to use the premises for the purposes for which they are demised and to diligently conduct the business so as to produce a reasonable and substantial gross income, and failure to so conduct said business shall be grounds for termination of this lease. Lessees further agree to use said premises and to keep open said restaurant and bar in accordance with the hours and days of operation as permitted under State law, provided that the hours and days of operation may be modified with the approval of the Director of Parks and Recreation if he determines that that there is no public need for the full operation referred to above. 3. All prices charged on sales by Lessees shall be reasonable and consistent with current prices in the community and such prices shall be subject to review and approval by the Director of Parks and Recreation. 4. The term of this lease shall be five (5) years beginning on the date of possession of said golf course (tentatively scheduled '`- for January 26, 1966) by the City of Chuls. Vista or as soon thereafter as practical, provided, however, that this lease may be terminated at any time by either party upon ninety (90) days written notice after the first year of operation pursuant to the terms of this lease, and if such notice is given by the City pursuant to this section, Lessor shall also tender to Lessees a proportional part of any rent paid in advance by Lessees. 5. The rent is payable monthly in arrears at the Finance Office of the City of Chula Vista, Room 114, on the 10th day of each month, commencing with the 10th day of March, 1966, which rent shall be for the term of the preceding month plus a pro-rata share of the monthly rent from the date of the beginning of the operation to the 10th day of February, 1966. Said rent shall be the sum $250.00 per month or a sum equal to 5% of the gross proceeds of all sales made on or from the leased premises during the preceding month, whichever amount is greater. Lessees shall pay any such additional sums over and above the base rent of $250.00 accuring during the preceding period, commencing on April 10, 1966. Lessees further agree to pay an additional 5% for each 15 days in which the rend due remains delinquent. Gross proceeds as used in this lease shall include all income resulting from the occupancy of the premises from whatever source derived, including manufacturer's or importer's excise tax, but shall not include federal, state or municipal taxes collected from the consumer and paid over periodically by Lessees to a governmental agency. Lessees shall submit a monthly statement, together with the monthly rental payment. Lessor shall have the right to audit Lessees' records at any time. Whenever the rent hereunder is dependent on percentage calculations of gross income accruing to Lessees or materials of any kind removed from the leased premises during all of the interval concerned, the Lessees shall keep, or cause to be kept, true accurate and complete records and double entry books from which the City can at all times determine the nature and amounts of income subject to rental percentage from the operation of the leased premises. Such records shall show all transactions relative to the conduct of the operation, and such transactions shall be supported by documents of original entry such as sales slips, cash register tapes, purchase invoices and tickets issued. 6. Lessees shall have the use of all furniture located in the lounge and dining room area as set forth in the appraisal made by Marshall and Stevens, and which shall be acquired by the City in the purchase of the Bonita Valley Country Club. They shall also have the use of the kitchen equipment as designated in said appraisal, with the exception of pots and pans, utensils, silverware, stainless steel and china place settings. Lessees shall have the right, concurrent with the execution of this lease, to purchase said items at their present value, an amount in the sum of $2,000.00, or such sum as may be derived by negotiation between Lessees and Lessor within the first thirty (30) days of operation. In the event that said items are not purchased by Lessees, City shall auction said items and Lessees shall be required to furnish replacements therefor, as may be required for the operation of the business. Lessees shall acknowledge receipt of and responsibility for said equipment by signed receipts to Lessor. Any furniture or equipment furnished by Lessees may be removed at the termination of the lease, provided that Lessees repair any damage resulting from the removal of such equipment. 7. Lessor agrees to transfer said leased premises in good repair, including the installation of meters and lines for existing utility needs. In the event that any alterations or modifications of the premises are undertaken by Lessees, including major repairs, said alterations, modifications or repairs must be approved by Lessor, and Lessor may reduce the percentage of gross revenues as provided herein in order to cover the cost of payment for such alterations, modifications or repairs and to reimburse Lessees for the cost of same. -2- 8. Lessees shall care for and maintain the interior of the leased premises, except any structural portions thereof, in at least the same order and condition in which received, ordinary wear and tear excepted, and any act, occurrence or happening included within and insured against by the extended coverage fire insurance policy which shall be procured and maintained by Lessees. Any signs placed on the exterior of the Club House shall be subject to the approval of the Director of Parks and Recreation. Lessees shall at all time keep the entire premises in a clean, sanitary and orderly condition, and all personnel employed in the service to the public shall be clean and properly dressed in clean clothing suitable for such services. 9. Except for such installations and utilities as Lessor herein expressly agrees to pay, Lessees shall order, obtain and pay for all utilities, and service and installation charges in connection therewith. 10. Lessees shall, during the term of this lease or any extension thereof, hold harmless and indemnify the City, its officers and employees from and against all claims, demands, loss, damage and liability arising out of or connected with the use of the leased premises by Lessees. During the term of this lease or any extension thereof, Lessees shall obtain an insurance policy from a responsible and solvent corporation authorized to issue such policy under the laws of the State of California, which policy shall insure the parties to this lease against loss or liability imposed by law for injury to or death of any person or damage to property arising from or growing out of the use of the leased premises pursuant to this lease, in the minimum amounts as follows: $25,000.00 property damage; $100,000.00 for death or injury to any one person in any one accident; $300,000.00 for death or injury to two or more persons in any one accident or occurrence. Said policy shall include "products" liability coverage. In addition, Lessees shall maintain a policy of Workmen's Compensation insurance to cover Lessees' employees and shall provide social security coverage for such employees. Lessees shall file the above-named polices or certificates thereof with the Finance Officer of the City of Chula Vista. The Finance Officer may at any time require Lessees to replace any such policy or certificate with another policy or certificate. 11. Lessees shall not assign or transfer this lease or any part thereof without the written consent of the Lessor first had and obtained, and Lessees shall not make any alterations in or to the leased premises without the written consent of the Director of Parks and Recreation of the City of Chula Vista first had and obtained. 12. If, during the term of the lease hereby granted, the leased premises shall be destroyed by fire or the elements or any other cause, and if same shall be so damaged that they cannot be repaired with reasonable diligence within sixty (60) days, then said lease shall terminate at the option of either party and become null and voic from the date of such damage or destruction, and in the event of the exercise of such option by either party, Lessees shall immediately surrender the premises to Lessor and this agreement shall, thereupon terminate. 13. This lease cannot be assigned involuntarily or by any process of law, and in case Lessees are adjudged to be bankrupt or insolvent or make a general assignment for the benefit of creditors or fail to release any levy or attachment or execution upon Lessees ' property within ten (10) days after such levy is made, then it shall be optional with the Lessor to consider any of the same a breach of this lease and to cancel and terminate the lease, but nothing herein contained shall be construed to compel the Lessor to do so. -3- 14. Mechanic's Lien Bond. Lessees will save City free and harmless, indemnify it against all claims for labor and materials in connection with improvements, repair or alterations to leased premises, and the cost of defending against such claims, including reasonable attorney's fees. In the event that improvements, repairs or alterations are constructed on the leased premises by other than the City, the Lessees shall file with the City a bond, conditioned for the payment in full of all claims of all persons performing labor upon or furnishing materials to be used, in the amount of the estimated cost of the improvement, alteration or repair, as determined by the Director of Parks and Recreation. The bond shall be acknowledged by the Lessees as principal and by a corporation licensed by the Insurance Commissioner of the State of California to transact the business of a fidelity and surety insurance company as surety. In the event that a lien is recorded under Chapter II of Title 4 of Part 3 of the California Code of Civil Procedure against the leased premises and the lien-holder attempts to perfect such lien by a lawsuit and the Lessees have failed to comply with the requirements of this paragraph, this lease shall automatically terminate five (5) days after the service of summons in such lawsuit upon the City; provided, however, that the Chief Administrative Officer shall have the right to continue this lease in full force and effect by notifying the Lessees in writing of his election to do so. IN WITNESS WHEREOF, City has caused this agreement to be executed by having affixed thereto the signature of the Mayor of said City, acting under and pursuant to Resolution No. of the City Council of the City of Chula Vista, and Lessees have caused this agreement to be executed, as duly authorized, the day and year first hereinabove written. THE CITY OF CHULA VISTA C - i (1- Eleanor Anderson, Mayor LESSEES: Jachomas Ruth`' F it Approved as to form by (Thy i George 12indberg, Ci y Attorne -4- %-y:-�. a "