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HomeMy WebLinkAboutContract 47178 iF II up p TEMPORARY LEASE AGREEMENT FOR TRIAL PERIOD This lease agreement ("Lease") is made and entered into this, the _29th day of October 2015 ("Effective Date"), by and between Holy Frijole ("Lessee"), and the City of Fort Worth, a Texas municipal corporation, acting by and through its duly authorized Assistant City Manager, Jesus J. Chapa ("Lessor"). The term "Lessee" shall include the agents, representatives, employees, and contractors of Lessee. The term "Lessor" shall include the agents, representatives, and employees of Lessor. SECTION 1. Leased Premises. For and in consideration of the rental payments to be paid under this Lease, Lessor leases to Lessee and Lessee leases from Lessor space of approximately _200 square feet, located at 1000 Throckmorton St., Fart Worth, Texas 76102, which is located within the parking lot known as the "Horseshoe" located on the South end of City Hall ("Space"). The Space shall be referred to as the "Leased Premises." The boundaries and location of the Leased Premises are described on Exhibit "A," attached hereto and made part hereof for all purposes. SECTION 2. Use of premises. The Leased Premises shall be used by Lessee to provide food and beverage services to City of Fort Worth employees through the use of a food truck. Lessee is allowed to use the Leased Premises Tuesdays between the hours of 11:00 a.m. and 1:30 p.m., excluding holidays, and is limited to only one (1) food truck each day. Should Lessee be unavailable for its designated day, Lessee may coordinate with other food truck companies that are also under a Lease with Lessor for the same Leased Premises to exchange days between each other with the understanding that there still can be no more than one (1) food truck per day at the designated times. Lessor reserves the right to use the Leased Premises outside these specified hours and at any time Lessee informs Lessor it will not be using the Leased Premises on a particular day. SECTION 3. Term. (a) This Lease shall be for a period of thirty (30) days commencing on October 30, 2015 and terminating on November 29, 2015 ("Initial Term"), unless a prior termination is effected by either Lessor or Lessee under the termination provisions of this Lease. (b) This Lease may be renew for up to two (2) successive terms of thirty (30) days each ("Renewal Terms") at the sole discretion of the Lessor, unless either party terminates this Lease. The terms of this Lease shall continue to govern and control the relationship of the parties during any extensions or holdover by Lessee. (c) Lessee understands that this Lease is intended to be temporary and for a trial period only. At the h end of the Initial Term and any Renewal Terms, Lessor will evaluate the effectiveness of this Lease and develop a process to continue offering food truck services to City of Fort Worth dx y, employees. Lessee acknowledges that this Lease provides no guarantee of future leases and that x i Lessee must participate in an open competitive process to be considered for future leases. y� (c) Lessee agrees that Lessor, in its sole discretion, shall have the right to tow any of Lessee's r" °r' property "Pro ert " including its food truck or other related equipment, left on the Leased p' p y ( p y )� g � Premises beyond any term of this Lease or remaining on the Leased Premises beyond the time 1� Temporary Lease Agreeinent for Trial Period between CFW and Page 1 of 8 restrictions outlined in Section 2 of this Lease. Such cost of towing shall be borne by Lessee and not recoverable against Lessor. SECTION 4. Rent. (a) Lessee shall pay Lessor rent in the amount of_$20.00 per month, a set sum of $20.00 per month during the Initial Term. All rental payments shall be payable to Lessor at the location of notice set forth in Section 16 of this Lease. The rental payment shall be made to the Lessor on the first day of the Initial Term. Rent for any partial calendar month shall be prorated on a per diem basis. (b) Rent for the Renewal Terms of thirty (30) days each, beginning November 30, 2015 and ending _December 28, 2015 , shall be _$20.00 per month, and this rental rate shall remain in effect in the event of any holdover of this Lease beyond the second renewal term, unless the parties agree otherwise in writing. SECTION 5. Utilities. Lessee agrees that it will be responsible for providing all utilities to service its Property on the Leased Premises and shall not use any utilities belonging to Lessor during the terms of this Lease. SECTION 6. Maintenance. (a) Lessor will maintain the Leased Premises in its existing condition. Lessee shall allow Lessor to use the Leased Premises to provide maintenance as needed without any requirement that Lessor provide notice to Lessee. (b) Lessee shall not damage the Leased Premises in any way. If any damage occurs to the Leased Premises, Lessor, in its sole discretion, may require Lessee to make necessary repairs or provide maintenance to restore the Leased Premises to its original condition. If Lessee fails to make the repairs required by Lessor, Lessor reserves the right to make the repairs and bill Lessee for such costs of repairs. If Lessee fails to pay the billed amount, Lessor may take action against Lessee to collect the amount due. (c) Lessee shall not leave its Property on the Leased Premises longer than authorized under Section 2 of this Lease. Lessee is responsible for the security of the Leased Premises and any of Lessee's Property during the Lease. Lessor, in any event, shall have no liability hereunder for any theft, burglary, or other breach of securing Lessee's property under this Lease. (d) Lessee shall keep the Leased Premises in good, clean, attractive, and sanitary condition in compliance with all applicable health ordinances and regulatory provisions. SECTION 7. Insurance. Lessee agrees to insure the Leased Premises. Such insurance shall provide protection for liability, fire and casualty, and property damage for the property owned by the Lessor, situated at, and including, the Leased Premises. The Lessee shall carry the following insurance coverage with a company that is licensed to do business in Texas or otherwise approved by the City: Temporary Lease Agreement for Trial Period between CFW and Page 2of 8 Commercial General Liability(CGL) Insurance Policy: $1,000,000 Each occurrence $2,000,000 Aggregate limit General Insurance Requirements: 1. All applicable policies shall name the Lessor as an additional insured thereon, as its interests may appear. The term Lessor shall include its employees, officers, officials, agents, and volunteers in respect to the contracted services. 2. A minimum of Thirty (30) days' notice of cancellation or reduction in limits of coverage shall be provided to the Lessor. Ten (10) days' notice shall be acceptable in the event of non-payment of premium. Notice shall be sent to the Risk Manager, City of Fort Worth, 1000 Throckmorton, Fort Worth, Texas 76102, with copies to the City Attorney at the same address. 3. The insurers for all policies must be licensed and/or approved to do business in the State of Texas. All insurers must have a minimum rating of A- VII in the current A.M. Best Key Rating Guide, or have reasonably equivalent financial strength and solvency to the satisfaction of Lessor's Risk Management Office. If the rating is below that required, written approval of Lessor's Risk Manager is required. 4. Any failure on the part of the Lessor to request required insurance documentation shall not constitute a waiver of the insurance requirement. 5. Certificates of Insurance evidencing that the Lessee has obtained all required insurance shall be delivered to and approved by the Lessor's Risk Management Division prior to execution of this Agreement. Lessor assumes no liability or financial obligation for the acquisition or maintenance of such insurance; all costs incurred during the course of insuring the Leased Premises shall be borne solely by the Lessee. Lessor is basically a self-funded entity and as such, generally, it does not maintain a commercial liability insurance policy to cover premises liability. Damages for which Lessor would ultimately be found liable would be paid directly and primarily by Lessor and not by a commercial insurance compkny. SECTION 8. Liability and Hold Harmless. LESSEE COVENANTS AND AGREES TO RELEASE, INDEMNIFY, HOLD HARMLESS AND DEFEND LESSOR, ITS OFFICERS, AGENTS, SERVANTS, AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR PROPERTY DAMAGE, PERSONAL INJURY, OR ANY OTHER TYPE OF LOSS OR ADVERSE CONSEQUENCE RELATED IN ANY WAY TO THE EXISTENCE OF THIS LEASE OR THE USE OR OCCUPANCY OF THE LEASED PREMISES, REGARDLESS OF WHETHER THE ACT OR OMISSION COMPLAINED OF Temporary Lease Agreement for Trial Period behveen CFW and Page 3of 8 RESULTS FROM THE ALLEGED NEGLIGENCE OR ANY OTHER ACT OR OMISSION OF LESSOR, LESSEE, OR ANY THIRD PARTY. SECTION 9. Fixtures and Improvements. (a) Lessee herein agrees that it will not install any of its Property on the Leased Premises. Lessor shall reserve the right to remove any and all such Property installed in violation of this section at any time during the term of this Lease, or subsequent to its termination by either party. (b) Lessee may not paint, erect or display a sign, placard or lettering on the Leased Premises, except that Lessee may maintain its logo on the outside of its Property while using the Leased Premises. SECTION 10. Default, Termination, Funding and Non-Appropriation. (a) Lessor Default. A default by Lessor shall exist if Lessor breaches the terms contained in this Lease. Upon a default by Lessor, Lessee, as its sole remedy, may terminate this Lease. Upon termination of the Lease, Lessee will only be entitled to a refund at a prorated daily rate up to the amount paid monthly for those days Leased Premises are not used after termination. (b) Lessee Default. If Lessee defaults in the performance or observance of any covenant or agreement of this Lease, which default is not cured within seven (7) days after the giving of notice thereof by Lessor, then Lessor may, at Lessor's option, either (i) terminate this Lease or (ii) cure the Lessee's default. The cost of the cure of Lessee's default pursuant to this Section 10(b) shall be payable by Lessee to Lessor within seven(7) days after written demand therefor by Lessor. Such costs must be actually and reasonably incurred and must not exceed the scope of the Lessee's default. Such costs must be reasonably documented and copies of such documentation shall be delivered to Lessee with the written demand for reimbursement. Nothing contained in this Section 10(b) shall create or imply the existence of any obligation by Lessor to cure any Lessee default. (c) Termination. Lessor shall have the right to terminate this Lease at any time for any reason by giving Lessee three (3) days' written notice prior to the intended termination date. If this Lease is terminated under this Section, or as a result of the expiration of the Initial Term or Renewal Terms, neither party shall have any further obligation or liability to the other under this Lease. Lessor and Lessee shall be bound by the terms, covenants and conditions expressed herein until Lessee surrenders the Leased Premises, regardless of whether the date of surrender coincides with the date of termination of the Lease. (c) Funding and Non-Appropriation. Lessor shall not be responsible to provide any funding under this Lease. This Lease shall terminate in the event Lessor's governing body fails to appropriate sufficient funds allowing Lessor to satisfy obligations related to this Lease. Termination shall be effective as of the last day of the fiscal period for which sufficient funds were appropriated or upon expenditure of all appropriated funds, whichever comes first. Termination pursuant to this non-appropriation clause shall be without further penalty or expense to either party. Temporary Lease Agreement for Trial Period between CFW and Page 4of 8 SECTION 11. Damage or Destruction. (a) Notice. If the Leased Premises should be damaged or destroyed by fire, tornado, or other casualty, Lessor shall promptly give written notice thereof to Lessee. Lessor, in its sole discretion, will assess the damage and decide whether to allow Lessee to continue use of the Leased Premises under this Lease. (b) Temporary Reduction of Rent. Rent to be paid by Lessee under this Lease shall abate proportionally during any period and to the extent that a fire or other casualty or incident renders the Leased Premises unfit for use by Lessee. SECTION 12. Right of Inspection. Lessor reserves the right to enter upon the Leased Premises at all reasonable times for the purpose of inspecting the Leased Premises, provided that such entry does not conflict with Lessee's rights hereunder. SECTION 13. Surrender of Leased Premises. Upon the termination of this Lease for any reason whatsoever, Lessee shall surrender possession of the Leased Premises in the same condition as the Leased Premises were in upon delivery of possession under the Lease. Lessee shall remove all its Property on or before the termination of the Lease; and Lessee shall be responsible for repairing any damage to the Leased Premises caused by the removal such items. SECTION 14. Acceptance of Leased Premises. Lessee acknowledges that Lessee has fully inspected the Leased Premises, and on the basis of such inspection Lessee hereby accepts the Leased Premises as suitable for the purposes for which the same are leased. SECTION 15. Prohibition of Assignment or Sublease. Lessee shall not assign or sublet this Lease. Any attempted assigning or sublease shall be null and void and not binding on Lessor. SECTION 16. Notices. Notices required to be made under this Lease shall be sent to the following persons at the following addresses, provided, however, that each party reserves the right to change its designated person for notice, upon written notice to the other party of such change: All notices to Lessee shall be sent to: Tomas Horta 5608 Fursman Avenue Fort Worth, Texas 76114 All notices to Lessor shall be sent to: Attn: Peter Elliott 311 West 10th Street Fort Worth Texas 76102 Temporary Lease Agreement for Trial Period behveen CFW and Page 5of 8 As well as to: City of Fort Worth Assistant City Manager for TPW 1000 Throckmorton Street Fort Worth, Texas 76102 As well as to: City of Fort Worth City Attorney's Office Attn: Jessica Sangsvang 1000 Throckmorton Fort Worth, Texas 76102 All time periods related to any notice requirements specified in the Lease shall commence upon the terms specified in the section requiring the notice. The notice shall be deemed effective when deposited in United States mail postage prepaid, certified mail, return receipt requested, addressed to the other party as set forth above. SECTION 17. Compliance to Laws. Lessee, at its expense, shall comply with all environmental, air quality, zoning, planning, building, health, labor, discrimination, fire, safety and other governmental or regulatory laws, ordinances, codes and other requirements applicable to the Leased Premises, including, without limitation, the Americans with Disabilities Act of 1990 (collectively, the "Building Laws"). Prior to Lessee's occupancy of the Leased Premises, Lessee shall obtain certificates as may be required or customary evidencing compliance with applicable codes. Lessee shall also obtain all permits or approvals necessary for use of the Leased Premises for the intended purposes. Lessee shall cause the Leased Premises to be continuously in compliance with all codes or laws applicable to Lessee's use. SECTION 18. Entire Agreement. This Lease shall constitute the entire agreement of the Lessor and Lessee, and shall supersede any prior agreements, either oral or written, pertaining to the Leased Premises. SECTION 19. Waivers. One or more waivers of any covenant, term, or condition of the Lease by either Lessor or Lessee shall not be construed as a waiver of a subsequent breach of the same covenant, term, or condition. The consent or approval by either Lessor or Lessee to or of any act by the other party requiring such consent or approval shall not be deemed a waiver or render unnecessary consent to or approval of any subsequent similar act. SECTION 20. Choice of Law and Venue. This Lease and the relationship created hereby shall be governed by the laws of the State of Texas. Venue for any action brought to interpret or enforce the terms of the Lease or for any breach shall be in Tarrant County, Texas. Temporary Lease Agreement for Trial Period between CFW and Page 6of 8 the other party requiring such consent or approval shall not be deemed a waiver or render unnecessary consent to or approval of any subsequent similar act. SECTION 20. Choice of Law and Venue. This Lease and the relationship created hereby shall be governed by the laws of the State of Texas. Venue for any action brought to interpret or enforce the terms of the Lease or for any breach shall be in Tarrant County, Texas. SECTION 21. Invalidity of Particular Provisions. If any provision of this Lease is or becomes illegal or unenforceable because of present or future laws or any rule or regulation of any governmental entity, the remaining parts of this Lease will not be affected. SECTION 22. Governmental Powers. It is understood that by execution of this Lease, the Lessor does not waive or surrender any of it governmental powers. IN WI� SS W REOF the parties have executed this Lease to be effective as of this ,- , d y of , 2015 in Fort Worth, Tarrant County, Texas. LESSEE: LESSOR: CITY OF FORT WORTH By" y: Jay Chapa Name "' tF =- Assistant City Manager Title: APPROVED- S TO FORM AND LEGALITY: Jessica San va g Assistant ty Attorney OF 0 04 ATTEST: � c3 r ary Ka .< City Secretary ` a v M & C Number N/A Temporary Lease Agreement for Trial Period between CFW and Page 6 EXHIBIT A City Hall Horseshoe r w f r s.. 3� r Location: The south side of City Hall. The horseshoe is defined by Texas Street on the south, Monroe to the West, Jennings to the east and City Hall to the north. The area with the red boundary marks the limit of the horseshoe and the yellow area marked within represents the parking space for the food trucks estimated at 25'*8' or 200 square feet. Temporary Lease Agreement for Trial Period between CFW and Page 8of 8