CONCESSIONAIRE AGREEMENT

 

  1. Parties. This Agreement is entered into this ____ day of __________, 2006, by and between the Rapid City Public Library, hereinafter referred to as “RCPL”, and Susan and Jerald Clark, hereinafter referred to as “Lessee”.

 

  1. Purpose. The purpose of this Agreement is to establish the rights and conditions under which the RCPL leases a concession stand to Lessee for the limited purposes of conducting food and beverage concessions.

 

  1. Term. The term of the Agreement shall be from _________­­­_________, 20_____, to _____________________, 20_____.

 

In the event that Lessee remains in possession of the premises after the expiration of the tenancy and without the execution of a new agreement, it shall be deemed to by occupying said premises as Lessee from month-to-month and subject to all other conditions, provisions, and obligations of this Agreement insofar as the same are applicable to a month-to-month tenancy.

 

  1. Independent Contractor. Lessee shall undertake the furnishing of services hereunder as an Independent Contractor and personnel supplied by Lessee shall be and remain Lessee’s employees and Lessee assumes full responsibility for their acts.

 

  1. Personnel. Lessee shall adequately staff the stand during all times that it is open to the public for business.

 

Employees on the Lessee’s payroll shall be the Lessee’s responsibility.  Lessee shall comply with all applicable government regulations related to the employment, compensation, and payment of said personnel.

 

Personnel of the Lessee shall observe all applicable regulations regarding employees of the RCPL. The RCPL shall provide Lessee’s employees with necessary RCPL orientation. Lessee shall secure signature and date of all individuals and the RCPL trainer prior to that individual working on RCPL property. 

 

Lessee shall be responsible for the professional presentation of its staff. Lessee shall furnish and require employees to wear nametags. 

 

  1. Equipment & Supplies. Lessee shall purchase, maintain, and insure all necessary equipment and supplies needed to properly perform the functions agreed to herein and needed to provide adequate services to patrons. Such equipment shall include but is not limited to necessary items to produce and dispense food and beverage items. Said equipment shall be of good quality and shall comply with all federal, state, and municipal rules, statutes, ordinances and regulatory measures and laws of any kind applicable.

 

The RCPL shall provide approximately Five Hundred and Seventy (570) square feet of existing space in the main library to Lessee to operate their business. Lessee hereby agrees the RCPL will maintain ownership of the capital improvements made in preparation for this lease. The above-described capital improvements include, but are not limited to the following: flooring, electrical, plumbing, plumbing fixtures, and furniture.

 

  1. Maintenance & Sanitation. Lessee shall furnish all supplies, equipment, management, and labor necessary for the efficient, nutritional, sanitary, and ecologically sound operation of the food and beverage service agreed to.

 

The premises, equipment, and facilities shall be cleaned and maintained in a condition satisfactory to the RCPL.  Lessee shall adhere to the highest standards of cleanliness and sanitary practices to ensure continual sanitation in matters related to the execution of the terms of this Agreement.  This includes but is not limited to the food handler’s appearance, and performance in the preparation, service, transport, and storage of food and related items.

 

The RCPL shall allow access to RCPL cleaning and sanitation facilities to the Lessee for cleaning and prep work.

 

  1. Supervision. RCPL shall have the right to exercise general supervision over Lessee’s operations, including the right to review Lessee’s compliance with regulations regarding the method of handling and selling food and beverage products.

 

  1. Payment. For the purposes of the Agreement, “gross receipts” from sales is defined as the total revenues generated less the full amount of State and Municipal sale taxes, if any, applicable thereto.  In this connection, Lessee agrees to timely file all necessary sales tax returns at its own expense.

 

Lessee shall pay RCPL six percent (6%) of the previous month’s gross receipts, or a minimum of Two Hundred and Fifty Dollars ($250.00), whichever is greater by the 5th day of each month.

 

Gross sales will be based on cash register receipts readings and/or beginning and ending inventory counts rectified through cash, as mutually agreed upon by Lessee and the RCPL.

 

The RCPL reserves the right to count all beginning and ending inventories if an inventory system is used.  The RCPL or a representative of the City of Rapid City reserves the right to perform cash audits and spot checks at its sole discretion.

 

  1. Statements. Lessee shall exercise maximum control over cash sales transactions.

All accounts and records of the Lessee relating to the operation of the concessions shall be available for examination upon request by the RCPL.

 

RCPL shall have the right to review any and all money handling aspects of the stand.

 

  1. Hours of Operation. Lessee shall be open during all hours agreed upon by the RCPL and the Lessee. Lessee shall clearly post said hours.

 

  1. Design. The interior design of the leased space must meet the approval of the RCPL.

 

  1. Signage. All exterior signage must meet the approval of the RCPL.

 

  1. Alterations, Repairs, or Improvements. Lessee shall not make any alterations, repairs, or improvements to the structure or the area immediately surrounding said structure without obtaining prior written consent of the RCPL. Requests to make any alterations, repairs, or adjustments shall be in writing. Any alterations or improvements shall become the property of the RCPL.

 

  1. Licenses. Lessee shall obtain all licenses necessary and required to operate a food and beverage concession.

 

  1. Rules & Regulations. Lessee shall comply with all rules and regulations of RCPL and with all federal, state, and municipal rules, regulatory measures and laws of any kind applicable to the operation of a concession.

 

  1.  Non-Discrimination. Lessee shall provide food and beverage services to the general public without discrimination as to race, color, creed, national origin, disability, age, or sex. Lessee agrees that in the operation and use of the premises, it will not on the grounds of race, color, creed, national origin, disability, age, or sex, discriminate or permit discrimination against any person or group of persons in any manner.

 

Lessee agrees not to discriminate against any employee or applicant for employment because of race, color, creed, national origin, disability, age or sex.

 

  1. Transference of Ownership. This Agreement is non-transferable to any new ownership of agreed concession stand.  This Agreement cannot be sold as a part of any transference of ownership and should be considered valid between the RCPL and the undersigned persons ONLY.

 

  1. Assignment and Sublease. Lessee agrees not to assign, lease or sublease the premises, or any part thereof, without the express written permission of the RCPL.

 

  1. Termination. This Agreement shall be terminable by either party upon a sixty (60) day written notice.

 

  1.  Breach. Breach of this Agreement by either Party shall be cause for termination of this Agreement if the breaching party does not cure the breach within thirty (30) days of receipt of written notice of such from the other party.

 

  1. Surrender of Possession. At the termination of the Agreement, lessee shall quit and surrender possession of said premises in as good condition as received; usual wear and tear and providential destruction excepted. 

 

  1. Hold Harmless. Lessee shall indemnify, defend, and hold the RCPL and the City of Rapid City, its governing boards, employees and agents harmless from any and all damages, claims, suits, demands, or asserted obligations for injuries or damages arising out of the use or occupation of the premises or the operation of the business described in this Agreement.

 

  1. Workers Compensation. Lessee agrees to purchase and maintain Workers’ Compensation Insurance as required by state and federal law.

 

  1. Insurance. Lessee shall at all times during the term of this Agreement maintain liability insurance with a One Million Dollar ($1,000,000.00) limit per occurrence or equivalent for the leased premises operations and product liability. Lessee shall furnish RCPL with a certificate of insurance acceptable to the City of Rapid City, City Attorney’s Office. Such certificate shall be attached hereto and incorporated herein along with a statement generally describing the coverage therein contained. Said insurance shall name the City of Rapid City as an additional insured. Lessee’s failure to maintain the levels of insurance as specified in the Agreement shall be cause for immediate termination of this Agreement.

 

  1. Choice of Law and Venue. The parties’ rights and obligations under this Agreement shall be governed by, and construed in accordance with the law of the State of South Dakota. Any dispute concerning this Agreement shall be litigated and venued in the Circuit Court of the Seventh Circuit for the State of South Dakota, located in Rapid City, Pennington County, South Dakota.

 

  1. Enforcement. The RCPL may undertake any legal or equitable action available to enforce the provisions of this Agreement in addition to any remedy provided herein. In the event that the RCPL is required to undertake any action to enforce the terms of this Agreement, Lessee agrees the RCPL may recover from Lessee its reasonable expenses, including attorney’s fees incurred with respect to such action.

 

  1. Invalid Sections. If any section(s), or provision(s) of this Agreement is declared invalid for any reason whatsoever by any competent court, such invalidity shall not affect any other section(s) or provision(s) of this Agreement if it can be given effect without the invalid section(s) or provision(s).

 

  1. Merger.  The parties agree that this writing constitutes the entire agreement between them and that there are no other oral or collateral agreements or understandings of any kind or character except those contained herein.  No modification or amendment to this Agreement shall be valid, unless evidenced by a writing signed by the parties hereto.