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98-810Council File # � p - 8�� ORlGINAL Presented By Referred to Committee: Date 1 WHEREAS, Riverboats Inc. desires to operate a passenger vessel 2 service on navigable waters and to make the vessels available for 3 hire by the public for trips, cruises, charters, dining, 4 entertainment and food and beverage services, and agrees to 5 locate and operate from a portion of Watergate Marina, located in 6 Saint Pau1 and owned and operated by the City of Saint Paul, and; 7 WHEREAS, the City recognizes that this operation would provide a 8 benefit to the public by expanding opportunities for enjoyment of 9 the Mississippi River and the City of Saint Paul�s river front 10 environment, and; 11 12 13 14 15 16 WAEREAS, the entering into this agreement is part of settling the law suit filed by Riverboats Inc, against the City and Robert P. Piram, Superintendent of Parks and Recreation. NO THEREFORE BE IT RESOLVED, that the proper City officials and staff are hereby directed and authorized to enter into the attached lease agreement with Riverboats Inc. Yeas Nays Absent 8enanav � BZakey_ � Bostrom � � f Xarris '! Col eman � Lantry_ � Rezter � � � Adopted by Council: Date � Adoption Certified by Council Secretary By �C'��'S', � RESOLUTit?N CI'fY OF SAINT PAUL, MINNESOTA Green Sheet # tp a�t 3� as aequested by: ' ision of Par s and e ation � By . �+--�._ `� Form Approved by city Attorney By: � �-.'i-Y,-'���� r Mayor e � :� to _ ....,.�crv ilOFflCE/COUNCII Parks and Recreation COWTACT PERSON ANp PHONE �ATE INRIATED July 30, 7998 Vic Wittgenstein (226-6409) q ��� p HUMeEPFDq� MUST BE Ofi COUNCIL AGENDA BY I�Aip aOtrtING OfiDEH ASAP TOTAL J OF SIGNANNE PAGES � (CLIP ALL LOCA710NS FOH SIONANflE) ACiION fiEQUESTED: a�-810 GREEN SHEET � 5� NO. 62731 INfTiAUDATE INITIAVDATE � OEPnRTMENT OIRECTOR �I CT' fAUNC1L Z CRY A7TORNEY _CfiY CtERK _FINANCiaL SERVICES OIR, 3 MAVOR (OR ASSISTANA 5 Parks & Recreation Signatures of the Superintendent of Parks and Recreation, City Attorney, and Mayor and passage of the attached Council Resolution by the City Council. AECOMMENDATIONS: Appruve {A) ot Rejsct (FI _PLANNIN6 LOMMISSION __CIVIL SEflvICE COMMISSIDN _C16 CoMM1Ti'EE _ A srAr-� _ __OISTRICTCOUNGiI __ SUPPDqTS WHICH COUNdL O&lECTIVE? INRIATING PpO61.EM. ISSUE, OPPORTUNRY iH'ho, LVhat. When. YVhere, YVhy�: PERSON0.l SERVICE CANiRACTS MUST ANSWER THE WLIOWING QUESTIONS: L Has thrs personitirm ever worketl untler a cmttact for [his tlepartment? Y£5 NO 2. Has this persoNfirm ever 6een e ciry empbyee? YES NO 3. Does th�s persoNfirtn possess a sWll nat normalry possessetl by any current ciry em0�oyee? YE$ NO Explain all yas answaes on saparate 5heet and attach to grean aheet. Riverboats Inc. desires to operate a passenger vessel service out of Watergate Marina. This activity can add to the recreational use of the river by the public. ��'�NEf� \�VANTAGE5IF APPflOVED: � 3 199� Adds an etement to the City`s recreation arena. ei�j , is part ot the settlement of the law suit between Riverboats Inc. and the C�y���Q�` YDVANTAGES IF APPROVEO: ne ✓ANTAGES IF NOT APPROVED: aw suit against the City wili go forward. Counc°s3 Researcti Cen+er � � � "� ADUNTOFTRANSACTION S �L.�JOO - F +ouece Wateroate Marina COST/REVENUE BUUGEfED ICtliCLE ONEI YES NO acrrvrtv Hnme�t � 23160 INFDflMAT1ON: �EXPLAIN) Riverboats Inc. shall pay the City SZ,500 annually or 5°h of its gross revenues derived trom t passenqers in 1998-2Q00 and 5% of its gross revenue from all sources in 2001 & 2002. �t � '`��° 0 This agreement is made and executed on this day of , 1998, by and between River Boats Inc., a corporation organized and existing under the laws of the State of Minnesota, having its principal office at 495 Kenny Rd., St. Paul, MN 55101 (hereafter River Boats), and the City of Saint Paul, a municipal corporation (hereafter the City). ARTICLE I RECZTALS WHEREAS, River Boats desires to operate a passenger vessel service on navigable waters and ta make the vessels available for hire by the public for trips, cruises, charters, dininq, entertainment and food and beverage services, and agrees to locate and operate from a portion of Watergate Marina, located in St. Paul and owned and operated by the City of St. Paul, and; wHEREAS, the City recognizes that this operation would provide a benefit to the public by expanding opportunities for enjoyment of the Mississippi River and the City of Saint Paul's riverfront environment. NOA, THEREFORE, in consideration of the promises and mutual covenants herein contained, it is agreed as follows: ARTFCLE II DESCRZPTION OF PREMISES II.1. City shall permit River Boats, for the limited purpose more fully described in Article V, and here generally described as the conducting a passenger vessel service, upon that certain area of the land and harbor space, located at Watergate Marina, situated in the City of St. Paul, County of Ramsey, State of Minnesota, as that certain area is more particularly described in Exhibit A, attached hereto and made a part of this agreement by incorporation. Z2.2. As used in this agreement, the term "premises" shall refer to the real property as we11 as the areas used, traversed or occupied by River Boats upon the waters within the Lower Harbor of Watergate Marina, all as more particularly described in Exhibit A. IZ.3. It is the intent of the parties that River Boats locate at and operate fr��m the Northwe_;tern most portion of the Lower Harbor, as that area is more part�cularly described in Exhihit A. However, to that end, the City agrees to make its best effort to promptly dredge that location, at its expense, to make the location suitable for River Boats' operation. Should the location, by the agreement of both parties, be otherwise unsuitable, the City will 1 �Y-��a allow River Boats to relocate to another location adjacent to the western bank inside the Lower Harbor, provided that such relocation can be accomplished without impeding other marina traffic. Any such relocation of River Boats' operation shall be made at River Boats' expense unless River Boats has already completed extension of services to the Northwestern portion of the Lower Harbor and otherwise put in all ramps, docks, and vandaZ liqhts at that location. If River Boats has already completed extension of services to the Northwestern portion of the Lower Harbor and otherwise put in all ramps, docks, and vandal lights at that location, the relocatian expenses shall be borne by the City. ARTICLE IZI TERM OF AGREEMENT IZI.1. The term of this agreement shall be for five (5) years, commencing on May 1, 1998, or when the agreement is authorized and executed in accordance with the provisions of the City of 5aint Paul Administrative Code, Chapter 86, whichever last occurs, and ending on October 31, 2002; unless earlier terminated in the manner provided for in this agreement. III.2. This agreement shall not be construed as providing, either explicitly or implicitly, for any right to renewal or at- will tenancy, upan the expiration of its term or upon termination. However, if there has been no uncured breaah of this agreement, for which the City has given written notice or if the agreement has not been terminated due to a breach, the City shall provide River Boats with an option to renew the Agreement for another four-year term, at rates to be negotiated, at Watergate Marina or another location suitable to River Boats if Watergate Marina will no longer be used for commercial Passenger Vessel Services. III.3. River Boats has no right to enter, locate at, operate from, remain or possess the premises prior to or after the term of this agreement, or its termination. River Boats shall vacate the premises thirty (30) days following termination of the agreement or thirty (30) days following the end of the term on october 31, 2002, whichever occurs first. Should River Boats fail to vacate the premises in the time provided for in this agreement, the City shall be entitled to reasonable liquidated damages in an amount of $150.00 per day, which sum is believed to be a fair pre-estimate of such damages and is agreed between the parties to be a fair amount, reasonable in the light of the anticipated harm whiah could be caused by the breach, the difficulty of proof of lo'ss, and the inconvenience or non-feasibility of otherwise obtaining an adequate remedy. ART�CLE IQ PAYMENTS ID.1. In consideration for the use of the Premises by River 2 R�.�� b Boats under this Agreement, River Boats agrees to pay the City the following sums: A. Base Payment: River Boats agrees to deliver, without prior demand, to the Manager of Special Services, Parks & Recreation Division o£ Saint Paul, at 300 City Hall Annex, 25 W. 4th Street, St. Paul, M13 55102, or such other address as the City may from time to time designate in writing, a base payment of Two Thousand Five Hundred Dollars ($2,500.00), in lawful money of the United States, per year. The first year's base payment shall be delivered to the City upon final execution of this agreement. Each year's base payment thereafter shall be delivered to the City in two equal installments of $1,250 on July 1 and October l of each year. 8, Percentage Payment: 1. During the first three years of this agreement (1498, 1999, 2000) River Boats agrees to pay the City five percent (5%j per annum, of its gross proceeds derived from the lease, rental, license, charter or other use of its vessels for the carrying of passengers. This percentage payment shall be appliaable to all uses of River Boats' vessels for the carrying of passengers which either originate or terminate at watergate Marina or any other park, parkway, landing, public space, open space, or other public property, owned and operated by the City of St. Paul, per annum. This five percent (5%) per annum payment shall be due and payable only to the extent that it exceeds the Base Payment of Two Thousand Five Hundred Dollars ($2,500.00), per annum. The amount of the Percentage Payment shall be the difference between the Base Payment and the five percent (5°s} of River Boats' gross proceeds derived from the lease, rental, license, charter, or other use of its vessels for the carrying of passengers only, per annum. Payments shall be made to the City no later than February 15th of the year following the year in which the gross proceeds were generated. (For example, all percentage payments due for the calender year 1998 are due no later than February 15th, 1999.) Payment shall be made in the manner provided for in Article IV. A. 1., of this agreement. Should the agreement be terminated prior to the end of the term, the City shall be entitled to the five percent (50) per annum payment on all proceeds generated up to the date when River Boats vacates the Premises. Any such payment shall be due and payable no later than thirty (30) days following River Boats.vacation of the premises. 2. During the last two years oE this agreement (2001, 2002) , River Boats agrees to pay the �.ity five perce�nt (5%) per annum, of its qross proceeds derived from all sourcES. "Gross proceeds derived from all sources" means the agqregate dollar amount received from any and all sales, leases, rentals, or other services by River Boats from activities arisinq out of this agreement, whether such sales, leases, rentals, or services be 3 G �� _plU evidenced by check, credit, charge aocount, exchange, or otherwise, and shall include, but not be limited to, the amounts received from the sale, lease or rental of services, qoods, wares, merchandise, beverages, food, or entertainment. "Gross proceeds derived from all sources" shall also be construed to include all proceeds derived from the lease, rental, license, charter, or other use vf River Boats' vessels for the carrying of passengers. This percentage payment shall be applicable to all uses of River Boats' vessels which either originate or terminate at Watergate Marina or any other park, parkway, landing, public space, open space, or other public property which is owned and operated by the City oP St. Paul, per annum. This five percent (5�) per annum payment shall be due and payable only to the extent that it exceeds the Base Payment of Two Thousand Five Hundred Dollars ($2,500�, per annum. The amount of the Percentage Payment in years four and five of this agreement shall be the differenae between the Base Payment and the five percent (5°s) of River Boats "gross proceeds derived from all sources". Payments shall be made to the City prior to the last day of the year in which the "gross proceeds derived from all sources" were generated. Payment shall be made in the manner provided for in Article TV. A. 1., of this agreement. Should the aqreement be terminated prior to the end of the term, the City shall be enkitled to the five percent (5%) per annum payment on "gross proceeds derived from all sources" generated up to the date when River Boats vacates the Premises. Any such payment shall be due and payable no later than thirty (30} days following River Boats vacation of the premises. 3. Excluded Business Activities: Nothing contained in Article IV. shall require River Boats to pay the City a Percentage Payment for revenue generated Prom (a) vessels not covered in this agreement; (b) vessels which are not moored at Watergate Marina and do not operate from Watergate Marina; or (c) vessels covered by this agreement which are removed from Watergate Marina and no longer operate or moor at locations owned or operated by the City. C. Records: River Boats shall keep at the premises, or at 495 Kenny Road, St. Paul, Minnesota, a permanent accurate set of books and records of all sales, leases, rentals, arid charters, and all transactions producing revenue derived from any business conducted by River Boats or arising from the use of the base of operations or vessels during each day of the term of this aqreement which are subject to the percentage payment, and all supporting documents, including cash register ribbons, sales slips, sales checks, state sales and use tax reports, and business and: occupation tax reports. All such pertinent records shall be kept, retained, and preserved for at least three (3) years after the ex�iration of each fiscal year or until the completion of any litiqation �in which they are relevant, whichever is later. A11 such records shall be open to inspection by the City and its agents, upon reasonable notice at all reasonable times during River Boats ordinary business hours. River Boats_shall also be required to keep records of disposal of sewage or other waste stored or 4 a�-�ro produced on its vessels, appurtenant structures andjor "the premises", as defined in Article II.2.. D. Audit: The acceptance by the City of payments of Base Payments and Percentage Payments shall be without prejudice to the City's riqht to an examination of River Boats books and records of its transactions at the premises, 495 Kenny Road, or other locations, in order to verify the amount of Percentage Payments received by the City. The City may, at any reasonable time during River Boats business hours, cause a complete audit to be made of River Boats entire business affairs and records relating to its business which arises out of its operations under this agreement during the years of this agreement's Term, by a reputable licensed accountant of the City's choice, at the City's cost. If such audit discloses an overpayment of five percent (5%) or more by River Boats to the City, the City shall refund the overpayment within thirty (30) days of written demand. If such audit discloses an error of five percent (50) or more in River Boats Percentage Payment to the City as required by IV.A.5, of this agreement, (i) River Boats shall pay the City the resultinq deficiency in the Percentage payment as well as the cost of said audit, all within thirty (30) days, and (ii) in addition, the City may, at its option, terminate this Agreement on fifteen (15) days written notice to River Boats. E. Periodic Statements: River Boats sha11, no later than February 15 of the year following the year in which the gross proceeds were generated, deliver to the City a written statement of all transactions which are subject to this ac3reement, occurring during the fiscal year. (For example, the report due for the calendar year 1998 is due no later than February 15, 1999.) This Periodic Statement sha11 be prepared in accordance with generally accepted accountinq principles consistently applied or other method approved by the City's Chief Accountant, and satisfactory to accurately account for all revenues which are subject to the Percentage Fayment. This Periodic Statement shall be delivered, whether or not a Percentage Payment is due and payable. F. Rate Approval: Sixty (60) days prior to River Boats commencement of operations during each year of the term it shall deliver to the City a copy of all fees and charges that it intends to make in conjunction with it operations. The City shall have the right to approve such fees and charges before River Boats implements them. For'the first year of this agreement the sixty (60) day requirement is not applicable and River Boats agrees to promptly deliver its rates upon execution of this agreement. ARTICLE V PERMITTED IISE _ V.1. Generally: The premises may be used by River Boats only as a base of operations and point of departure and/or return for 5 98.g�o passengers utilizing its vessels for cruises, charters, dining, entertainment, and food and beverage services. River Boats sha11 not use or occupy the premises for any business or purpose other than those set forth explicitly in this agreement. River Boats shall not occupy any land at Watergate Marina, nor shall it make any land based improvements or erect any structures, except for those explicitly provided for in this agreement, or those permitted in writinq by the City. River Boats shall not store any materials of any kind on any land at Watergate Marina without the written permission of the Watergate Marina Manager. A. Base of Operations: River Boats may employ a loading barge (hereinafter Barge) which is currently at the premises, as a base of operations for its business at Watergate Marina. The Barge shall be moored within the Lower Harbor in a location more specifically described in Exhibit A. The Barge shall be utilized as the embarkation point for passengers coming aboard or disembarking from River Boats vessels. No other loading or unloading point shall be allowed, unless necessary to load or unload handicapped gassengers or unless first approved by the Watergate Marina Manager. The Barge may also be utilized for administrative purposes and for storaqe of supplies and material secandary to River Boats operations at Watergate Marina. No other use of the Barge shall be allowed. No service of any food or beverages shall be made on the Barge. River Boats shall be entitled to replace the Barge with another vessel of the same or smaller size, upon written approval of the City, which approval sha11 not be unreasonably denied. If River Boats decides not to use the Barge as a base of operations, it may locate the Magnolia Blossom at the same location and use it as both a base of operations and passenger vessel. B. Vessels: River Boats shall be allowed to operate ohly those two vessels which are specifically identified and named the "Magnolia Blossom" and "Maggie". River Boats shall not utilize or allow any other vessels to operate from or pick up or drop off passengers at the premises or its base of operations at Watergate Marina. River Boats shall be entitled to replace either vessel with another vessel of the same or smaller size, upon approval of the City, which approval shall not be unreasonably denied. Any replacement vessel shall be of the same general kind and quality with similar passenger capacities and other accommodations and offering the same manner of passenger transportation. In no event shall River Boats be allowed to operate more than two (2) vessels. Furthermore, any replacement of vessels shall not be allowed unless and until this agreement is amended to reflect such repiacement. The vessel "Magnolia Blos�aos." is to be moored on the west bank of the Lower Harbor, immediat�ly behind the Barge, as that location is more specifically delineated in Attachment A. The "Maggie" is to be moored at a slip in Watergate Marina at no additional charge. Alternatively, with the written permission of the City, the Maggie may moor immediately behind the Magnolia Blossom. � [7 �s -8tio C. Hours of ogeration: River Boats shall be allowed to operate its business at Watergate only during the times from sunrise to Midnight, on any particular day. D. Parking: The City shall provide 50 parking spaces which spaces may be used by River Boats customers and by other members of the public. Parking shall be provided in the lot adjacent to the Watergate Administration Building. The use of these parking spaces by River Boats customers is not exclusive. To the extent that the lot may be legitimately occupied by other vehicles owned by park or marina users, River Boats customers shall be allowed to park along the shore at the north end of the Lower Harbor. River Boats' employees shall be permitted to park no more than five (5) of their own vehicles and support vehicles at the north end of the Lower Harbor as well. These locations are more specifically delineated in Attachment A, and specifically incorporated herein. All River Boats parking shall be done in an orderly manner and under the general direction of the Manaqer of Watergate Marina. Parking for River Boats customers shall be allowed only during River Boats Aours of Operation. No parking for River Boats' customers or employees shall be allowed on the peninsula located between the two harbors or along the east shore of the Lower Harbor at Watergate Marina without first obtaining written permission from the Watergate Marina Manager. However, River Boats may temporarily park no more than two (2) support vehicles at those locations, if necessary to service its operations. In no event, may any support vehicles be left at those locations overnight without first obtaining the written permission of the Watergate Marina Manager. E. Compliance with Law: 1. River Boats shall use and occupy the premises solely for the purposes described in this agreement and will not use or occupy the Premises for any unlawful purpose. 2. River Boats agrees to comply with all duly enacted laws, ordinances, regulations and orders of all g4vernmental units having jurisdiction over the Premises and its vessels and base of operations. 3. River Boat specifically agrees to comply with and observe a11 laws, ordinances, rules and regulations of the City, State and federal government pertaining to discrimination in employment, housing, education, and public accommodations on grounds of race, color, creed, national origin or ancestry. A. River Boats shall provide worker's compensation � insurance for employees during the term of this agreement, if required. A current certificate of insurance or an exemption certificate, if required, shall be furnished to the City prior to commencement of oparations. 7 atg - �'tti 5. River Boats shall comply with all rules and regulations established hy the U.S. Coast Guard governing craft on navigable waters, and shall provide the City with a copy of the USCG Certificate of Inspection of the vessels prior to any commencement of River Boats ogerations. These Certificates shall be maintained, updated and renewed as required by the U.S. Coast Guard and River Boats shall provide the City with any updates or renewals, in a timely fashion. 6. River Boats sha11 not cause or permit any unreasonable noise, vibrations, odors or nuisance in or about the premises or on its vessels or Barge which interferes with the quiet enjoyment of the Marina or the navigable waters by slip lessees or other lawful visitors or users. Zt is recognized that River Boats will be offering entertainment, including musical bands, on its vessels. However, no such entertainment sha11 be allowed within Waterqate Harbor or upon the barge or base of operations, if the Watergate Marina Manager determines that it is interfering with the quiet enjoyment of the Marina by others. 7. River Boats shall, prior to operation, secure all required permits and licenses pertaining to the sale or furnishing of intoxicating liquors, beer, food, cigarettes, and any other items River Boats intends to sell or of£er to its customers. River Boats will further comply with any applicable licensing provisions including, but not limited to, access for inspection and record keeping. F. Day to Day Operations: 1. River Boats shall maintain its vessels, base of operations,barge, and any and all docks, ganq-planks, or other methods of egress and ingress to its vessels and base of operations in a well-kept, clean, sanitary, safe, lawful and comfortable condition. 2. River Boats wi11, at a11 times, make its passenger boat services available to the qeneral public. 3. River Boats will not allow its passenqers to leave the vessels, barqe or the base of operations with any beverages or food purchased from River Boats. It is recognized that passengers f'or some charters may provide their own food and beverages and, in those instances, the passengers may leave with those items. 4. River Boats will not hawk, peddle, or sell any merchandise from Watergate Marii�a land. ` Souvenirs or other merchandise may be sold from the vessels. 5. With respect to refuse or rubbish generated by or resulting out of River Baats' operations, River Boats will use its 0 q$ •gto best efforts to maintain the land around the base of operations and paths or common courses of exit and entry from parking areas to the base of operations in a clean and sanitary condition, and free from refuse or rubbish which accumulates on its vessels, base of operations, land around the base of operations, or which otherwise is generated or results from River Boats' operations. 6. River Boats shall be responsible for providing for and paying the costs related to the collection and disposition of any trash or refuse that accumulates on its vessels, base of operations, land around the base of operations, or is otherwise generated or results from River Boats' operations. 7. River Boats shall not install, use, generate, store or dispose of in or about the premises or any waters of the State of Minnesota any hazardous substance, toxic chemical, pollutant, waste material, or other material regulated by the Comprehensive Environmental Response, Compansation and Liability Act of 1985 or the Minnesota Environmental Response and Liability Act or any other similar law or regulation, including without limitation any material containinq asbestos or PCB, excepting normal waste that is lawfully contained in the septic systems of the vessels and base of operations, or normal bilge. 8. River Boats shall take all necessary precautivns and exercise such supervision as may be necessary to ensure the safety of passenqers, visitors, employees, and all others while on the vessels, base of operations, during boarding and disembarking and ta and from passenger's parking locations. 9. River Boats shall be responsible for securing any necessary construction permits, archeological surveys, U.S. Coast Guard, Minnesota Dept. of 23atural Resources or U.S. Army Corps of Engineers permits or licenses, and any needed State or Local licenses, permits or authorizations. 10. River Boats shall be responsible for any and all applicable taxes, levies or assessments which may be assessed against its operations. 11. River Boats shall be responsible for all day to day operating expenses of the operation. 12. The City shall maintain the areas bf Watergate Marina used for parking of River Boats' customers in a well-kept, clean, sanitary, safe and lawful condition. G. z�ignage: 1. River Boats may post and maintain signs, at its own expense, at three locations: (i)up to two (2) signs at the entrance to Hidden Falls/Crosby Farm Park at the intersection of Shepard Road and Crosby Farm Road; (ii) at the entrance to Watergate 7 qg-$►b Marina as it leads ofP of Crosby Farm Road; and (iii) at the shore line abutting the premises and visible from the parking location. 2. All proposed signage sha11 first be approved by the City, as to size, content, and location, and must be approved by the Minnesota Department of Transportation if necessary and otherwise comply with all applicable federal, state, municipal and local statutes, laws, ordinances and regulations. A11 progosed signage shall comply with the requirements £ound in the Minnesota Manual on Uniform Traffic Control Devices, Part II-I, §2I-a through 2I-7. The City agrees to provide specifications to River Boats to assist it in complying with this provision within 15 days of the execution of this agreement. ARTICLE VI INDEMNIFICATION VI.1. River Boats aqrees to indemnify, defend, save and hald harmless the City of St. Paul and any agents, officers and employees thereof from any loss, injury, death, ar damages to persons or property and all claims, demands, actions or causes of action of whatsoever nature or character which may be suffered or sustained by any person, or other legal entity who may at any time be using, occupying, visiting or otherwise present on River Boats' vessels, base of operations, or the premises, if the loss, injury, death, or damages shall be caused by or in any way result from or arise out af any act, omission, or negliqence of River Boats, its owners, operators, employees, agents, or any visitors, passengers, customers or any other person or legal entity present on the premises, vessels, or base of operations. VI.2. Furthermore, River Boats agrees to hold the City harmless and indemnify it for any and all charges, penalties, or assessments imposed for any violation of any laws, ordinances, or regulations arising out of actions or omissions of River Boats or its agents, operatars, or employees. ARTICLE VII LIABILITY COVERAGE VII.1. In orde.r to honor its duty to indemnify the City, River Boats shall provide, at its own expense, a general liability insurance policy from an insurance carrier licensed to do business in Minnesota in which the City shall be named a�� an additio��al insured, which policy shall cover the entire term of this agreemeiit and any edditional time during which River Boats may be located at or operating from City property, and shall cover injury to persons or property arising out of the operations or activities of River Boats in amounts of not less than Three Hundred Thousand Dollars l0 s ` � �' ($300,000.00) where the claim is one for injury or death by wrongful act or omission and Seven Hundred and Fifty Thousand Dollars ($?50, 000.00) for any number of claims arising out oP a single occurrence. If the maximum liability is modifiad by the legislature, River Boats shall be required to provide coverage adequate to cover up to the limits of the City's maximum liability. VZI.2. To the extent that River Boats intends and desires to be held privately responsible for claims up to Two Hundred Thousand Dollars ($200,000.00), River Boats sha11 be allowed to self-insure up to this amount, provided first that it maintains a general liability golicy for claims sxceeding this amount up to the limits addressed above and, further, that it maintains at all times a certificate of deposit or treasury savings account as collateral in the amount of self-insurance it decides to self insure itself for. River Boats shall at all times guarantee and maintain the certificate of deposit or treasury savings account in the full amount of self-insurance provided pursuant to this agreement for the purpose of satisfying any judgment against the City. Prior to this agreement becoming effective, River Boats shall execute a written agreement with a federally insured Bank or other financial institution, lawfully doing business in the State of Minnesota, and issuing the certifiaate of deposit or treasury savings account, which requires the bank to notify, in writinq, the City of St. Paul through its Manager of Special Services, Parks & Recreation Divisian of St. Paul, at 300 City Hall Annex, 25 W. 4th Street, St. Paul, MN 55162, not less than thirty (30) days before the certificate of deposit or treasury savings account is transferred, encumbered, posted as collateral for any other debt or obligation, gifted, devised, or otherwise compromised. However, if there are pending claims against the City, the agreement, shall provide that there is to be no such transfer or other compromise of the Certificate of Degosit or treasury savings account without first obtaining the City's express written consent. Any transfer or compromise of the Certificate of Deposit or treasury savings account, without the City of St. Paul's express written consent, will automatically work an immediate termination of this agreement. River Boats shall exclusively be entitled to any interest earned on said certificate of deposit or treasury savings account. Concomitant with the duty to indemnify, River Boats also aqrees ta apply the funds held as self-insurance to any claimant who secures a judgment against River Boats or the City arising out of any claim for damages in connection with River Boats operations, subject to the terms of the obligation to indemnify. Furthermore, River Boats expressly agrees to cooperate fully with the City in investigating any and all claims for damages brought by the City or third partie:.�. To this end, River 3oats agreas to provide the City with any and all documents relating to any claims including, without limitation, insurance forms, written reports, records of repairs or damages, any and a12 statement of witnesses, photographs, drawings or other related visual or audio recordings or depictions. River Boats shall also make available its officers, employees and agents li °18 - 8 t�o for oral interviews or depositions and shall timely comply with all discovery requests. ARTICLE V2II ASSIGNMENT VIII.1. River Boats shall not assign, transfer, sublet, pledge, mortqage or otherwise transfer rights and responsibilities (hereinafter referred to as an "assignment"), delegated to it under this agreement to any third party; nor shall any assignment of the rights and responsibilities designated to River Boats under this agreement be effectuated by operation of law or otherwise, without in each such case obtaining the prior written consent of the City, which consent shall not be denied unless the City makes a good faith fletermination that the proposed assignee lacks sufficient financing or experience to assume ar maintain a passengar vessel operation, has a felony criminal conviction in the past ten {10) years, or otherwise has a history of past business practices or experiences indicating unsuccessful ventures or poor business practices or business judgment. vIII.2. If River Boats desires to make an assignment, it shall first notify the City of its desire to do so and shall submit in writing to the City (i) the name of the proposed assignee, (ii) the nature of the proposed assignee's business, (iii) a copy oP the proposed assignment agreement and any other agreements to be entered into concurrently with such assignment, including full disclosure of all financial terms, and (iv) such financial infarmation as the City may reasonably request concerning the proposed Assignee. River Boats shall pay the City a reasonable fee for the City's expenses, including attorneys' fees, in reviewing such proposed assignment and in reviewing the proposed assignee's financial ability to assume the agreement, said fee not to exceed $500.00. VIII.3. If, at any time during the term of this agreement, there shall occur any change in the identity of any of the persons, including Harry Euqene Cassidy, (excepting his immediate family), presently having power to participate in or control the day to day operations of the corporation River Boats, or any other change in the corporate structure of River Boats, or the transfer or alteration in the method of control or decision making regarding River Boats, such change or alteration shall be deemed to be an assignment. Any such change shall wo'rk an immediate termination of this agreement unless such change is tirst approved by the City in the manner provided above for other assignments. ARTICLE IR IMPRODEMENTS Z%.1. River Boats shall be responsible for all costs incurred in establishing and maintaining services to its operation, 12 . ; � • � including site preparations and improvements and the establishment or extension of any necessary water and electrical services from existinq locations. Any proposed improvements shall first be approved by the City. Site improvements shall be limited to those necessary to qain access to the base of operations and vessels via stairs, ramp, dock andJor gangplank. River Boats shall be entitled to install no more than two vandal lights, without prior written consent of the City. The kind and quality of said lights sha11 be first approved by the Manager of Watergate Marina and s/he may refuse any lights which s/he reasonably believes would interfere with the enjoyment of other slip lessees. The City will permit River Boats to obtain water from Waterqate Marina via the use of hoses for the vessels and base of operations. IB.2. All site improvements and extension or establishment of services shall comply with all applicable federal, state, county and local laws, regulation, ordinances or other lawful requirements or limitations. Al1 improvements and extensions shall be done in an orderly and workmanlike manner and shall not materially alter the appearance of or limit access to Watergate Marina. River Boats shall be required, at the City's option, to remove any and all improvements upon termination. I%.3. River Boats shall bear the cost and shall fully and promptly pay Por all gas, heat, light, power, telephone service, and other public utilities of every kind furnished to the premises, with the exception of water used via hoses, throughout the term of this agreement. IX.4. Should the City expand Watergate Marina or alter its configuration so as to displace River Soats' location of operations the City shall bear all costs in relocating, including the extension of necessary services to River Boats within Watergate Marina at a location acceptable to both parties. ARTICLE X TERMINATION R.1. If either party shall fail or neglect to observe, keep, or perform any of the terms, conditions, requirements or obligations contained in this agreement on its part to be observed, kept or performed, and the default shall continue for a period of thirty (30) days following delivery of written notice specifically describing the alleged default and a demand that it be cured, then the party not in dafault shall have the right at its option, on written notice, delivered to the defaulting party, to terminate this agreemsnt, effective�immediately. If eithEr party fails or neglects to observe, keep or perform any of the tarms, conditions, requirements or obligations contained in the aqreement on its part to be observed, kept or performed, on two (2) or more separate occasions, then the party not in default shall have the right, at _ its option, on written notice, delivered to the defaulting party, 13 q�-8�o to terminate this agreement, effective immediately, regardless of whether or not either or both of the breaches have been cured. x.2. Upon termination of the agreement, in the manner provided in Article X.1, River Boats shall vacate the premises within sixty (60) days. If River Boats fails to timely vacate, the City may, without further notice to River Boats, have the right immediately to enter and take possession of the premises with or without process of law and to remove all of River Boats property and improvements from the premises and all persons occupying the premises and to use all necessary force therefor and in all respects to take the actual, full, and exclusive possession of the premises without incurring any liability to River Boats due to repossession. Zn furtherance of any repossession, the City may have the base of operations, barge, and vessels removed £rom the premises. Furthermore, the City shall be entitled to Percentage Payments accrued up to the date of repossession. If it is later determined by a court of competent jurisdiction that there was no basis for termination resulting in the exercise of the City's rights under this paragraph than the City will be responsible for damages resulting from any repossession, as provided for by law. 5.3. With the exception of removable docks and improvements to vessels, upon termination of this agreement the City shall become the owner of any and all improvements made to the premises and River Boats is prohibited from removing or destroying any such improvements. %.4. Termination of this agreement, in the method provided for, shall not operate as a bar to any other lawful action or process available to either party. X.S. The City, at its expense, shall promptly remove any navigational obstructions such as cable, pipes, stumps and other debris along the West shore of the harbor, which interfere with the navigation or mooring of River Boats' vessels in the harbor. %.6. The City shall be responsible for designating the original and any subsequent placements and locations of the River Boat's vessels and base of operations. River Boats shall bear the cost of the original placement and location, subject to Article I2.3, above. ARTICLE XI ADDITIONAL PROVISIONS � %I.1. waiver: A waiver by either party of any breach of this agreem��nt is not a waiver of any other or subsequent breach of this agreement. XI.3. Attorneys' Fees: In the event that any action is filed in relation to this agreement, the_unsuccessful party in the action sha11 pay to the successful party, in addition to all the sums that 14 a g-�'� o either garty may be caZied on to pay, a reasonable sum for the success£ul party's attorney fees. This provision does not apply to legal fees for outside counsel who represent the City. %2.4. Entire Agzeement: This agreement constitutes the entire aqreement between the parties. No representatians, warranties, undertakings, or promises, whether oral, implied, written, or otherwise, have been made by either party hereto to the other unless expressly stated in this agreement or unless reduced to an amendment executed in the fashion provided for below. SI.S. Amendments: Any amendments or modifications to this agreement shall be in writing, shall be attached to and made a part of this agreement, and sha11, if necessary, be first approved, as to form, by the St. Paul City Attorney's Office and executed by the same parties who executed the original agreement, or their authorized representatives. %I.6. No Partnership, Joint Venture, or Fiduciary Relationship Created Hereby: Nothing contained in this agreement shall be interpreted as creating a partnership, jaint venture, or relationship of prinaipal and aqent between the City and River Boats. River Boats is prohibited from expressing or implying any suah relationship or using any City of St. Paul logos in any advertisements, brochures or other medium. %I.7. severable Provisions: Each provision, section, sentence, clause, phrase, and word of this agreement is intended to be severable. If any provision, section, sentence, clause, phrase, and word hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the legality or validity of the remainder of this agreement. XI.B. Eminent Domain: If the premises or any part thereof, or any abutting property resulting in lack of access to the premises, are taken by virtue of eminent domain, this agreement shall terminate on the date title vests pursuant to the taking. Nothing herein sha11 in any way abrogate River Boats' rights with respect to eminent domain, including the right to just compensation, if any, in the event of a taking. %I.9. Captions: All captions, headings, or titles in the articles, paragraphs or sections of this agreement are inserted for convenience of reference only and shall not constitute a part of this agreement as a limitation of the scope of the particular paragraphs or sections to which they apply. � � %I.10. Force Majeure: This aqreement shall automaticaZly terminate upon any act of God, civil riot or disturbance, war, or natural ealamity which renders the premises or either party incapable of performing their obligations under this agreement. If the Force Majeure event is temporary in nature, such event shall 15 a8 -8'to act to suspend, rather than terminate performance. IN WITNESS WHEREOF, the parties hereto have signed this agreement the day and year first above written. APPROVED AS TO FORM: Assistant City Attorney River Boats Inc. B . ri�.2t�tG , ITS • ` � CITY OF SAII3T PAUL Mayor, City of St. Paul Director, Finahce & Management Services City Clerk 16 ��i. i� � � "i �� . m _._%� _,_.-� -' i � Admin� �� maink. ♦ ♦� . � .. � , . � - ... , .. .. E�R r ' ; ' �� F"— 'l' _ . � !FL ''-1 „� -_-�=� �-' ,,,,' � ` 'SERVICE ACCESS ; � .�r: , , �,-, ,�,��,,�� ;�. �4���, r � R,:, I 1 I� l( l . b ' �l �i ° " ���St_�1 �,' � � U WATERGATE MARINA L��� ���yu U Ll)WER HARBf1R � ���..� - '�, , �'C � f J r �, y . ....----- , . - � MISSISSIPPI RIVER �' r, ( ^, ��j IJ �! `' �� �� ACCESS .. e� STATI�NARY D�CKING SUPP�RT FACILITY :R VESSEL AREA NAVIGATION PARKING t�T ACCESS. PARKING AREAS `, ;';� ; ; '_� �x- : . =ti ._ =`; ` iy _ ' ��., ~'�. _ ���r....---- �---- � NaRht , APPRCIX. LOCATId� RIVER LE`� ��� � BANK �j pLtd� ELEVA7ION. Ct]N'tRa� n so� �oo� �sa aso� SCALE �'r OATS 1NC. L�.AS� :�XHlt�i i H 6/2/98 B. Tourtefotte Council File # � p - 8�� ORlGINAL Presented By Referred to Committee: Date 1 WHEREAS, Riverboats Inc. desires to operate a passenger vessel 2 service on navigable waters and to make the vessels available for 3 hire by the public for trips, cruises, charters, dining, 4 entertainment and food and beverage services, and agrees to 5 locate and operate from a portion of Watergate Marina, located in 6 Saint Pau1 and owned and operated by the City of Saint Paul, and; 7 WHEREAS, the City recognizes that this operation would provide a 8 benefit to the public by expanding opportunities for enjoyment of 9 the Mississippi River and the City of Saint Paul�s river front 10 environment, and; 11 12 13 14 15 16 WAEREAS, the entering into this agreement is part of settling the law suit filed by Riverboats Inc, against the City and Robert P. Piram, Superintendent of Parks and Recreation. NO THEREFORE BE IT RESOLVED, that the proper City officials and staff are hereby directed and authorized to enter into the attached lease agreement with Riverboats Inc. Yeas Nays Absent 8enanav � BZakey_ � Bostrom � � f Xarris '! Col eman � Lantry_ � Rezter � � � Adopted by Council: Date � Adoption Certified by Council Secretary By �C'��'S', � RESOLUTit?N CI'fY OF SAINT PAUL, MINNESOTA Green Sheet # tp a�t 3� as aequested by: ' ision of Par s and e ation � By . �+--�._ `� Form Approved by city Attorney By: � �-.'i-Y,-'���� r Mayor e � :� to _ ....,.�crv ilOFflCE/COUNCII Parks and Recreation COWTACT PERSON ANp PHONE �ATE INRIATED July 30, 7998 Vic Wittgenstein (226-6409) q ��� p HUMeEPFDq� MUST BE Ofi COUNCIL AGENDA BY I�Aip aOtrtING OfiDEH ASAP TOTAL J OF SIGNANNE PAGES � (CLIP ALL LOCA710NS FOH SIONANflE) ACiION fiEQUESTED: a�-810 GREEN SHEET � 5� NO. 62731 INfTiAUDATE INITIAVDATE � OEPnRTMENT OIRECTOR �I CT' fAUNC1L Z CRY A7TORNEY _CfiY CtERK _FINANCiaL SERVICES OIR, 3 MAVOR (OR ASSISTANA 5 Parks & Recreation Signatures of the Superintendent of Parks and Recreation, City Attorney, and Mayor and passage of the attached Council Resolution by the City Council. AECOMMENDATIONS: Appruve {A) ot Rejsct (FI _PLANNIN6 LOMMISSION __CIVIL SEflvICE COMMISSIDN _C16 CoMM1Ti'EE _ A srAr-� _ __OISTRICTCOUNGiI __ SUPPDqTS WHICH COUNdL O&lECTIVE? INRIATING PpO61.EM. ISSUE, OPPORTUNRY iH'ho, LVhat. When. YVhere, YVhy�: PERSON0.l SERVICE CANiRACTS MUST ANSWER THE WLIOWING QUESTIONS: L Has thrs personitirm ever worketl untler a cmttact for [his tlepartment? Y£5 NO 2. Has this persoNfirm ever 6een e ciry empbyee? YES NO 3. Does th�s persoNfirtn possess a sWll nat normalry possessetl by any current ciry em0�oyee? YE$ NO Explain all yas answaes on saparate 5heet and attach to grean aheet. Riverboats Inc. desires to operate a passenger vessel service out of Watergate Marina. This activity can add to the recreational use of the river by the public. ��'�NEf� \�VANTAGE5IF APPflOVED: � 3 199� Adds an etement to the City`s recreation arena. ei�j , is part ot the settlement of the law suit between Riverboats Inc. and the C�y���Q�` YDVANTAGES IF APPROVEO: ne ✓ANTAGES IF NOT APPROVED: aw suit against the City wili go forward. Counc°s3 Researcti Cen+er � � � "� ADUNTOFTRANSACTION S �L.�JOO - F +ouece Wateroate Marina COST/REVENUE BUUGEfED ICtliCLE ONEI YES NO acrrvrtv Hnme�t � 23160 INFDflMAT1ON: �EXPLAIN) Riverboats Inc. shall pay the City SZ,500 annually or 5°h of its gross revenues derived trom t passenqers in 1998-2Q00 and 5% of its gross revenue from all sources in 2001 & 2002. �t � '`��° 0 This agreement is made and executed on this day of , 1998, by and between River Boats Inc., a corporation organized and existing under the laws of the State of Minnesota, having its principal office at 495 Kenny Rd., St. Paul, MN 55101 (hereafter River Boats), and the City of Saint Paul, a municipal corporation (hereafter the City). ARTICLE I RECZTALS WHEREAS, River Boats desires to operate a passenger vessel service on navigable waters and ta make the vessels available for hire by the public for trips, cruises, charters, dininq, entertainment and food and beverage services, and agrees to locate and operate from a portion of Watergate Marina, located in St. Paul and owned and operated by the City of St. Paul, and; wHEREAS, the City recognizes that this operation would provide a benefit to the public by expanding opportunities for enjoyment of the Mississippi River and the City of Saint Paul's riverfront environment. NOA, THEREFORE, in consideration of the promises and mutual covenants herein contained, it is agreed as follows: ARTFCLE II DESCRZPTION OF PREMISES II.1. City shall permit River Boats, for the limited purpose more fully described in Article V, and here generally described as the conducting a passenger vessel service, upon that certain area of the land and harbor space, located at Watergate Marina, situated in the City of St. Paul, County of Ramsey, State of Minnesota, as that certain area is more particularly described in Exhibit A, attached hereto and made a part of this agreement by incorporation. Z2.2. As used in this agreement, the term "premises" shall refer to the real property as we11 as the areas used, traversed or occupied by River Boats upon the waters within the Lower Harbor of Watergate Marina, all as more particularly described in Exhibit A. IZ.3. It is the intent of the parties that River Boats locate at and operate fr��m the Northwe_;tern most portion of the Lower Harbor, as that area is more part�cularly described in Exhihit A. However, to that end, the City agrees to make its best effort to promptly dredge that location, at its expense, to make the location suitable for River Boats' operation. Should the location, by the agreement of both parties, be otherwise unsuitable, the City will 1 �Y-��a allow River Boats to relocate to another location adjacent to the western bank inside the Lower Harbor, provided that such relocation can be accomplished without impeding other marina traffic. Any such relocation of River Boats' operation shall be made at River Boats' expense unless River Boats has already completed extension of services to the Northwestern portion of the Lower Harbor and otherwise put in all ramps, docks, and vandaZ liqhts at that location. If River Boats has already completed extension of services to the Northwestern portion of the Lower Harbor and otherwise put in all ramps, docks, and vandal lights at that location, the relocatian expenses shall be borne by the City. ARTICLE IZI TERM OF AGREEMENT IZI.1. The term of this agreement shall be for five (5) years, commencing on May 1, 1998, or when the agreement is authorized and executed in accordance with the provisions of the City of 5aint Paul Administrative Code, Chapter 86, whichever last occurs, and ending on October 31, 2002; unless earlier terminated in the manner provided for in this agreement. III.2. This agreement shall not be construed as providing, either explicitly or implicitly, for any right to renewal or at- will tenancy, upan the expiration of its term or upon termination. However, if there has been no uncured breaah of this agreement, for which the City has given written notice or if the agreement has not been terminated due to a breach, the City shall provide River Boats with an option to renew the Agreement for another four-year term, at rates to be negotiated, at Watergate Marina or another location suitable to River Boats if Watergate Marina will no longer be used for commercial Passenger Vessel Services. III.3. River Boats has no right to enter, locate at, operate from, remain or possess the premises prior to or after the term of this agreement, or its termination. River Boats shall vacate the premises thirty (30) days following termination of the agreement or thirty (30) days following the end of the term on october 31, 2002, whichever occurs first. Should River Boats fail to vacate the premises in the time provided for in this agreement, the City shall be entitled to reasonable liquidated damages in an amount of $150.00 per day, which sum is believed to be a fair pre-estimate of such damages and is agreed between the parties to be a fair amount, reasonable in the light of the anticipated harm whiah could be caused by the breach, the difficulty of proof of lo'ss, and the inconvenience or non-feasibility of otherwise obtaining an adequate remedy. ART�CLE IQ PAYMENTS ID.1. In consideration for the use of the Premises by River 2 R�.�� b Boats under this Agreement, River Boats agrees to pay the City the following sums: A. Base Payment: River Boats agrees to deliver, without prior demand, to the Manager of Special Services, Parks & Recreation Division o£ Saint Paul, at 300 City Hall Annex, 25 W. 4th Street, St. Paul, M13 55102, or such other address as the City may from time to time designate in writing, a base payment of Two Thousand Five Hundred Dollars ($2,500.00), in lawful money of the United States, per year. The first year's base payment shall be delivered to the City upon final execution of this agreement. Each year's base payment thereafter shall be delivered to the City in two equal installments of $1,250 on July 1 and October l of each year. 8, Percentage Payment: 1. During the first three years of this agreement (1498, 1999, 2000) River Boats agrees to pay the City five percent (5%j per annum, of its gross proceeds derived from the lease, rental, license, charter or other use of its vessels for the carrying of passengers. This percentage payment shall be appliaable to all uses of River Boats' vessels for the carrying of passengers which either originate or terminate at watergate Marina or any other park, parkway, landing, public space, open space, or other public property, owned and operated by the City of St. Paul, per annum. This five percent (5%) per annum payment shall be due and payable only to the extent that it exceeds the Base Payment of Two Thousand Five Hundred Dollars ($2,500.00), per annum. The amount of the Percentage Payment shall be the difference between the Base Payment and the five percent (5°s} of River Boats' gross proceeds derived from the lease, rental, license, charter, or other use of its vessels for the carrying of passengers only, per annum. Payments shall be made to the City no later than February 15th of the year following the year in which the gross proceeds were generated. (For example, all percentage payments due for the calender year 1998 are due no later than February 15th, 1999.) Payment shall be made in the manner provided for in Article IV. A. 1., of this agreement. Should the agreement be terminated prior to the end of the term, the City shall be entitled to the five percent (50) per annum payment on all proceeds generated up to the date when River Boats vacates the Premises. Any such payment shall be due and payable no later than thirty (30) days following River Boats.vacation of the premises. 2. During the last two years oE this agreement (2001, 2002) , River Boats agrees to pay the �.ity five perce�nt (5%) per annum, of its qross proceeds derived from all sourcES. "Gross proceeds derived from all sources" means the agqregate dollar amount received from any and all sales, leases, rentals, or other services by River Boats from activities arisinq out of this agreement, whether such sales, leases, rentals, or services be 3 G �� _plU evidenced by check, credit, charge aocount, exchange, or otherwise, and shall include, but not be limited to, the amounts received from the sale, lease or rental of services, qoods, wares, merchandise, beverages, food, or entertainment. "Gross proceeds derived from all sources" shall also be construed to include all proceeds derived from the lease, rental, license, charter, or other use vf River Boats' vessels for the carrying of passengers. This percentage payment shall be applicable to all uses of River Boats' vessels which either originate or terminate at Watergate Marina or any other park, parkway, landing, public space, open space, or other public property which is owned and operated by the City oP St. Paul, per annum. This five percent (5�) per annum payment shall be due and payable only to the extent that it exceeds the Base Payment of Two Thousand Five Hundred Dollars ($2,500�, per annum. The amount of the Percentage Payment in years four and five of this agreement shall be the differenae between the Base Payment and the five percent (5°s) of River Boats "gross proceeds derived from all sources". Payments shall be made to the City prior to the last day of the year in which the "gross proceeds derived from all sources" were generated. Payment shall be made in the manner provided for in Article TV. A. 1., of this agreement. Should the aqreement be terminated prior to the end of the term, the City shall be enkitled to the five percent (5%) per annum payment on "gross proceeds derived from all sources" generated up to the date when River Boats vacates the Premises. Any such payment shall be due and payable no later than thirty (30} days following River Boats vacation of the premises. 3. Excluded Business Activities: Nothing contained in Article IV. shall require River Boats to pay the City a Percentage Payment for revenue generated Prom (a) vessels not covered in this agreement; (b) vessels which are not moored at Watergate Marina and do not operate from Watergate Marina; or (c) vessels covered by this agreement which are removed from Watergate Marina and no longer operate or moor at locations owned or operated by the City. C. Records: River Boats shall keep at the premises, or at 495 Kenny Road, St. Paul, Minnesota, a permanent accurate set of books and records of all sales, leases, rentals, arid charters, and all transactions producing revenue derived from any business conducted by River Boats or arising from the use of the base of operations or vessels during each day of the term of this aqreement which are subject to the percentage payment, and all supporting documents, including cash register ribbons, sales slips, sales checks, state sales and use tax reports, and business and: occupation tax reports. All such pertinent records shall be kept, retained, and preserved for at least three (3) years after the ex�iration of each fiscal year or until the completion of any litiqation �in which they are relevant, whichever is later. A11 such records shall be open to inspection by the City and its agents, upon reasonable notice at all reasonable times during River Boats ordinary business hours. River Boats_shall also be required to keep records of disposal of sewage or other waste stored or 4 a�-�ro produced on its vessels, appurtenant structures andjor "the premises", as defined in Article II.2.. D. Audit: The acceptance by the City of payments of Base Payments and Percentage Payments shall be without prejudice to the City's riqht to an examination of River Boats books and records of its transactions at the premises, 495 Kenny Road, or other locations, in order to verify the amount of Percentage Payments received by the City. The City may, at any reasonable time during River Boats business hours, cause a complete audit to be made of River Boats entire business affairs and records relating to its business which arises out of its operations under this agreement during the years of this agreement's Term, by a reputable licensed accountant of the City's choice, at the City's cost. If such audit discloses an overpayment of five percent (5%) or more by River Boats to the City, the City shall refund the overpayment within thirty (30) days of written demand. If such audit discloses an error of five percent (50) or more in River Boats Percentage Payment to the City as required by IV.A.5, of this agreement, (i) River Boats shall pay the City the resultinq deficiency in the Percentage payment as well as the cost of said audit, all within thirty (30) days, and (ii) in addition, the City may, at its option, terminate this Agreement on fifteen (15) days written notice to River Boats. E. Periodic Statements: River Boats sha11, no later than February 15 of the year following the year in which the gross proceeds were generated, deliver to the City a written statement of all transactions which are subject to this ac3reement, occurring during the fiscal year. (For example, the report due for the calendar year 1998 is due no later than February 15, 1999.) This Periodic Statement sha11 be prepared in accordance with generally accepted accountinq principles consistently applied or other method approved by the City's Chief Accountant, and satisfactory to accurately account for all revenues which are subject to the Percentage Fayment. This Periodic Statement shall be delivered, whether or not a Percentage Payment is due and payable. F. Rate Approval: Sixty (60) days prior to River Boats commencement of operations during each year of the term it shall deliver to the City a copy of all fees and charges that it intends to make in conjunction with it operations. The City shall have the right to approve such fees and charges before River Boats implements them. For'the first year of this agreement the sixty (60) day requirement is not applicable and River Boats agrees to promptly deliver its rates upon execution of this agreement. ARTICLE V PERMITTED IISE _ V.1. Generally: The premises may be used by River Boats only as a base of operations and point of departure and/or return for 5 98.g�o passengers utilizing its vessels for cruises, charters, dining, entertainment, and food and beverage services. River Boats sha11 not use or occupy the premises for any business or purpose other than those set forth explicitly in this agreement. River Boats shall not occupy any land at Watergate Marina, nor shall it make any land based improvements or erect any structures, except for those explicitly provided for in this agreement, or those permitted in writinq by the City. River Boats shall not store any materials of any kind on any land at Watergate Marina without the written permission of the Watergate Marina Manager. A. Base of Operations: River Boats may employ a loading barge (hereinafter Barge) which is currently at the premises, as a base of operations for its business at Watergate Marina. The Barge shall be moored within the Lower Harbor in a location more specifically described in Exhibit A. The Barge shall be utilized as the embarkation point for passengers coming aboard or disembarking from River Boats vessels. No other loading or unloading point shall be allowed, unless necessary to load or unload handicapped gassengers or unless first approved by the Watergate Marina Manager. The Barge may also be utilized for administrative purposes and for storaqe of supplies and material secandary to River Boats operations at Watergate Marina. No other use of the Barge shall be allowed. No service of any food or beverages shall be made on the Barge. River Boats shall be entitled to replace the Barge with another vessel of the same or smaller size, upon written approval of the City, which approval sha11 not be unreasonably denied. If River Boats decides not to use the Barge as a base of operations, it may locate the Magnolia Blossom at the same location and use it as both a base of operations and passenger vessel. B. Vessels: River Boats shall be allowed to operate ohly those two vessels which are specifically identified and named the "Magnolia Blossom" and "Maggie". River Boats shall not utilize or allow any other vessels to operate from or pick up or drop off passengers at the premises or its base of operations at Watergate Marina. River Boats shall be entitled to replace either vessel with another vessel of the same or smaller size, upon approval of the City, which approval shall not be unreasonably denied. Any replacement vessel shall be of the same general kind and quality with similar passenger capacities and other accommodations and offering the same manner of passenger transportation. In no event shall River Boats be allowed to operate more than two (2) vessels. Furthermore, any replacement of vessels shall not be allowed unless and until this agreement is amended to reflect such repiacement. The vessel "Magnolia Blos�aos." is to be moored on the west bank of the Lower Harbor, immediat�ly behind the Barge, as that location is more specifically delineated in Attachment A. The "Maggie" is to be moored at a slip in Watergate Marina at no additional charge. Alternatively, with the written permission of the City, the Maggie may moor immediately behind the Magnolia Blossom. � [7 �s -8tio C. Hours of ogeration: River Boats shall be allowed to operate its business at Watergate only during the times from sunrise to Midnight, on any particular day. D. Parking: The City shall provide 50 parking spaces which spaces may be used by River Boats customers and by other members of the public. Parking shall be provided in the lot adjacent to the Watergate Administration Building. The use of these parking spaces by River Boats customers is not exclusive. To the extent that the lot may be legitimately occupied by other vehicles owned by park or marina users, River Boats customers shall be allowed to park along the shore at the north end of the Lower Harbor. River Boats' employees shall be permitted to park no more than five (5) of their own vehicles and support vehicles at the north end of the Lower Harbor as well. These locations are more specifically delineated in Attachment A, and specifically incorporated herein. All River Boats parking shall be done in an orderly manner and under the general direction of the Manaqer of Watergate Marina. Parking for River Boats customers shall be allowed only during River Boats Aours of Operation. No parking for River Boats' customers or employees shall be allowed on the peninsula located between the two harbors or along the east shore of the Lower Harbor at Watergate Marina without first obtaining written permission from the Watergate Marina Manager. However, River Boats may temporarily park no more than two (2) support vehicles at those locations, if necessary to service its operations. In no event, may any support vehicles be left at those locations overnight without first obtaining the written permission of the Watergate Marina Manager. E. Compliance with Law: 1. River Boats shall use and occupy the premises solely for the purposes described in this agreement and will not use or occupy the Premises for any unlawful purpose. 2. River Boats agrees to comply with all duly enacted laws, ordinances, regulations and orders of all g4vernmental units having jurisdiction over the Premises and its vessels and base of operations. 3. River Boat specifically agrees to comply with and observe a11 laws, ordinances, rules and regulations of the City, State and federal government pertaining to discrimination in employment, housing, education, and public accommodations on grounds of race, color, creed, national origin or ancestry. A. River Boats shall provide worker's compensation � insurance for employees during the term of this agreement, if required. A current certificate of insurance or an exemption certificate, if required, shall be furnished to the City prior to commencement of oparations. 7 atg - �'tti 5. River Boats shall comply with all rules and regulations established hy the U.S. Coast Guard governing craft on navigable waters, and shall provide the City with a copy of the USCG Certificate of Inspection of the vessels prior to any commencement of River Boats ogerations. These Certificates shall be maintained, updated and renewed as required by the U.S. Coast Guard and River Boats shall provide the City with any updates or renewals, in a timely fashion. 6. River Boats sha11 not cause or permit any unreasonable noise, vibrations, odors or nuisance in or about the premises or on its vessels or Barge which interferes with the quiet enjoyment of the Marina or the navigable waters by slip lessees or other lawful visitors or users. Zt is recognized that River Boats will be offering entertainment, including musical bands, on its vessels. However, no such entertainment sha11 be allowed within Waterqate Harbor or upon the barge or base of operations, if the Watergate Marina Manager determines that it is interfering with the quiet enjoyment of the Marina by others. 7. River Boats shall, prior to operation, secure all required permits and licenses pertaining to the sale or furnishing of intoxicating liquors, beer, food, cigarettes, and any other items River Boats intends to sell or of£er to its customers. River Boats will further comply with any applicable licensing provisions including, but not limited to, access for inspection and record keeping. F. Day to Day Operations: 1. River Boats shall maintain its vessels, base of operations,barge, and any and all docks, ganq-planks, or other methods of egress and ingress to its vessels and base of operations in a well-kept, clean, sanitary, safe, lawful and comfortable condition. 2. River Boats wi11, at a11 times, make its passenger boat services available to the qeneral public. 3. River Boats will not allow its passenqers to leave the vessels, barqe or the base of operations with any beverages or food purchased from River Boats. It is recognized that passengers f'or some charters may provide their own food and beverages and, in those instances, the passengers may leave with those items. 4. River Boats will not hawk, peddle, or sell any merchandise from Watergate Marii�a land. ` Souvenirs or other merchandise may be sold from the vessels. 5. With respect to refuse or rubbish generated by or resulting out of River Baats' operations, River Boats will use its 0 q$ •gto best efforts to maintain the land around the base of operations and paths or common courses of exit and entry from parking areas to the base of operations in a clean and sanitary condition, and free from refuse or rubbish which accumulates on its vessels, base of operations, land around the base of operations, or which otherwise is generated or results from River Boats' operations. 6. River Boats shall be responsible for providing for and paying the costs related to the collection and disposition of any trash or refuse that accumulates on its vessels, base of operations, land around the base of operations, or is otherwise generated or results from River Boats' operations. 7. River Boats shall not install, use, generate, store or dispose of in or about the premises or any waters of the State of Minnesota any hazardous substance, toxic chemical, pollutant, waste material, or other material regulated by the Comprehensive Environmental Response, Compansation and Liability Act of 1985 or the Minnesota Environmental Response and Liability Act or any other similar law or regulation, including without limitation any material containinq asbestos or PCB, excepting normal waste that is lawfully contained in the septic systems of the vessels and base of operations, or normal bilge. 8. River Boats shall take all necessary precautivns and exercise such supervision as may be necessary to ensure the safety of passenqers, visitors, employees, and all others while on the vessels, base of operations, during boarding and disembarking and ta and from passenger's parking locations. 9. River Boats shall be responsible for securing any necessary construction permits, archeological surveys, U.S. Coast Guard, Minnesota Dept. of 23atural Resources or U.S. Army Corps of Engineers permits or licenses, and any needed State or Local licenses, permits or authorizations. 10. River Boats shall be responsible for any and all applicable taxes, levies or assessments which may be assessed against its operations. 11. River Boats shall be responsible for all day to day operating expenses of the operation. 12. The City shall maintain the areas bf Watergate Marina used for parking of River Boats' customers in a well-kept, clean, sanitary, safe and lawful condition. G. z�ignage: 1. River Boats may post and maintain signs, at its own expense, at three locations: (i)up to two (2) signs at the entrance to Hidden Falls/Crosby Farm Park at the intersection of Shepard Road and Crosby Farm Road; (ii) at the entrance to Watergate 7 qg-$►b Marina as it leads ofP of Crosby Farm Road; and (iii) at the shore line abutting the premises and visible from the parking location. 2. All proposed signage sha11 first be approved by the City, as to size, content, and location, and must be approved by the Minnesota Department of Transportation if necessary and otherwise comply with all applicable federal, state, municipal and local statutes, laws, ordinances and regulations. A11 progosed signage shall comply with the requirements £ound in the Minnesota Manual on Uniform Traffic Control Devices, Part II-I, §2I-a through 2I-7. The City agrees to provide specifications to River Boats to assist it in complying with this provision within 15 days of the execution of this agreement. ARTICLE VI INDEMNIFICATION VI.1. River Boats aqrees to indemnify, defend, save and hald harmless the City of St. Paul and any agents, officers and employees thereof from any loss, injury, death, ar damages to persons or property and all claims, demands, actions or causes of action of whatsoever nature or character which may be suffered or sustained by any person, or other legal entity who may at any time be using, occupying, visiting or otherwise present on River Boats' vessels, base of operations, or the premises, if the loss, injury, death, or damages shall be caused by or in any way result from or arise out af any act, omission, or negliqence of River Boats, its owners, operators, employees, agents, or any visitors, passengers, customers or any other person or legal entity present on the premises, vessels, or base of operations. VI.2. Furthermore, River Boats agrees to hold the City harmless and indemnify it for any and all charges, penalties, or assessments imposed for any violation of any laws, ordinances, or regulations arising out of actions or omissions of River Boats or its agents, operatars, or employees. ARTICLE VII LIABILITY COVERAGE VII.1. In orde.r to honor its duty to indemnify the City, River Boats shall provide, at its own expense, a general liability insurance policy from an insurance carrier licensed to do business in Minnesota in which the City shall be named a�� an additio��al insured, which policy shall cover the entire term of this agreemeiit and any edditional time during which River Boats may be located at or operating from City property, and shall cover injury to persons or property arising out of the operations or activities of River Boats in amounts of not less than Three Hundred Thousand Dollars l0 s ` � �' ($300,000.00) where the claim is one for injury or death by wrongful act or omission and Seven Hundred and Fifty Thousand Dollars ($?50, 000.00) for any number of claims arising out oP a single occurrence. If the maximum liability is modifiad by the legislature, River Boats shall be required to provide coverage adequate to cover up to the limits of the City's maximum liability. VZI.2. To the extent that River Boats intends and desires to be held privately responsible for claims up to Two Hundred Thousand Dollars ($200,000.00), River Boats sha11 be allowed to self-insure up to this amount, provided first that it maintains a general liability golicy for claims sxceeding this amount up to the limits addressed above and, further, that it maintains at all times a certificate of deposit or treasury savings account as collateral in the amount of self-insurance it decides to self insure itself for. River Boats shall at all times guarantee and maintain the certificate of deposit or treasury savings account in the full amount of self-insurance provided pursuant to this agreement for the purpose of satisfying any judgment against the City. Prior to this agreement becoming effective, River Boats shall execute a written agreement with a federally insured Bank or other financial institution, lawfully doing business in the State of Minnesota, and issuing the certifiaate of deposit or treasury savings account, which requires the bank to notify, in writinq, the City of St. Paul through its Manager of Special Services, Parks & Recreation Divisian of St. Paul, at 300 City Hall Annex, 25 W. 4th Street, St. Paul, MN 55162, not less than thirty (30) days before the certificate of deposit or treasury savings account is transferred, encumbered, posted as collateral for any other debt or obligation, gifted, devised, or otherwise compromised. However, if there are pending claims against the City, the agreement, shall provide that there is to be no such transfer or other compromise of the Certificate of Degosit or treasury savings account without first obtaining the City's express written consent. Any transfer or compromise of the Certificate of Deposit or treasury savings account, without the City of St. Paul's express written consent, will automatically work an immediate termination of this agreement. River Boats shall exclusively be entitled to any interest earned on said certificate of deposit or treasury savings account. Concomitant with the duty to indemnify, River Boats also aqrees ta apply the funds held as self-insurance to any claimant who secures a judgment against River Boats or the City arising out of any claim for damages in connection with River Boats operations, subject to the terms of the obligation to indemnify. Furthermore, River Boats expressly agrees to cooperate fully with the City in investigating any and all claims for damages brought by the City or third partie:.�. To this end, River 3oats agreas to provide the City with any and all documents relating to any claims including, without limitation, insurance forms, written reports, records of repairs or damages, any and a12 statement of witnesses, photographs, drawings or other related visual or audio recordings or depictions. River Boats shall also make available its officers, employees and agents li °18 - 8 t�o for oral interviews or depositions and shall timely comply with all discovery requests. ARTICLE V2II ASSIGNMENT VIII.1. River Boats shall not assign, transfer, sublet, pledge, mortqage or otherwise transfer rights and responsibilities (hereinafter referred to as an "assignment"), delegated to it under this agreement to any third party; nor shall any assignment of the rights and responsibilities designated to River Boats under this agreement be effectuated by operation of law or otherwise, without in each such case obtaining the prior written consent of the City, which consent shall not be denied unless the City makes a good faith fletermination that the proposed assignee lacks sufficient financing or experience to assume ar maintain a passengar vessel operation, has a felony criminal conviction in the past ten {10) years, or otherwise has a history of past business practices or experiences indicating unsuccessful ventures or poor business practices or business judgment. vIII.2. If River Boats desires to make an assignment, it shall first notify the City of its desire to do so and shall submit in writing to the City (i) the name of the proposed assignee, (ii) the nature of the proposed assignee's business, (iii) a copy oP the proposed assignment agreement and any other agreements to be entered into concurrently with such assignment, including full disclosure of all financial terms, and (iv) such financial infarmation as the City may reasonably request concerning the proposed Assignee. River Boats shall pay the City a reasonable fee for the City's expenses, including attorneys' fees, in reviewing such proposed assignment and in reviewing the proposed assignee's financial ability to assume the agreement, said fee not to exceed $500.00. VIII.3. If, at any time during the term of this agreement, there shall occur any change in the identity of any of the persons, including Harry Euqene Cassidy, (excepting his immediate family), presently having power to participate in or control the day to day operations of the corporation River Boats, or any other change in the corporate structure of River Boats, or the transfer or alteration in the method of control or decision making regarding River Boats, such change or alteration shall be deemed to be an assignment. Any such change shall wo'rk an immediate termination of this agreement unless such change is tirst approved by the City in the manner provided above for other assignments. ARTICLE IR IMPRODEMENTS Z%.1. River Boats shall be responsible for all costs incurred in establishing and maintaining services to its operation, 12 . ; � • � including site preparations and improvements and the establishment or extension of any necessary water and electrical services from existinq locations. Any proposed improvements shall first be approved by the City. Site improvements shall be limited to those necessary to qain access to the base of operations and vessels via stairs, ramp, dock andJor gangplank. River Boats shall be entitled to install no more than two vandal lights, without prior written consent of the City. The kind and quality of said lights sha11 be first approved by the Manager of Watergate Marina and s/he may refuse any lights which s/he reasonably believes would interfere with the enjoyment of other slip lessees. The City will permit River Boats to obtain water from Waterqate Marina via the use of hoses for the vessels and base of operations. IB.2. All site improvements and extension or establishment of services shall comply with all applicable federal, state, county and local laws, regulation, ordinances or other lawful requirements or limitations. Al1 improvements and extensions shall be done in an orderly and workmanlike manner and shall not materially alter the appearance of or limit access to Watergate Marina. River Boats shall be required, at the City's option, to remove any and all improvements upon termination. I%.3. River Boats shall bear the cost and shall fully and promptly pay Por all gas, heat, light, power, telephone service, and other public utilities of every kind furnished to the premises, with the exception of water used via hoses, throughout the term of this agreement. IX.4. Should the City expand Watergate Marina or alter its configuration so as to displace River Soats' location of operations the City shall bear all costs in relocating, including the extension of necessary services to River Boats within Watergate Marina at a location acceptable to both parties. ARTICLE X TERMINATION R.1. If either party shall fail or neglect to observe, keep, or perform any of the terms, conditions, requirements or obligations contained in this agreement on its part to be observed, kept or performed, and the default shall continue for a period of thirty (30) days following delivery of written notice specifically describing the alleged default and a demand that it be cured, then the party not in dafault shall have the right at its option, on written notice, delivered to the defaulting party, to terminate this agreemsnt, effective�immediately. If eithEr party fails or neglects to observe, keep or perform any of the tarms, conditions, requirements or obligations contained in the aqreement on its part to be observed, kept or performed, on two (2) or more separate occasions, then the party not in default shall have the right, at _ its option, on written notice, delivered to the defaulting party, 13 q�-8�o to terminate this agreement, effective immediately, regardless of whether or not either or both of the breaches have been cured. x.2. Upon termination of the agreement, in the manner provided in Article X.1, River Boats shall vacate the premises within sixty (60) days. If River Boats fails to timely vacate, the City may, without further notice to River Boats, have the right immediately to enter and take possession of the premises with or without process of law and to remove all of River Boats property and improvements from the premises and all persons occupying the premises and to use all necessary force therefor and in all respects to take the actual, full, and exclusive possession of the premises without incurring any liability to River Boats due to repossession. Zn furtherance of any repossession, the City may have the base of operations, barge, and vessels removed £rom the premises. Furthermore, the City shall be entitled to Percentage Payments accrued up to the date of repossession. If it is later determined by a court of competent jurisdiction that there was no basis for termination resulting in the exercise of the City's rights under this paragraph than the City will be responsible for damages resulting from any repossession, as provided for by law. 5.3. With the exception of removable docks and improvements to vessels, upon termination of this agreement the City shall become the owner of any and all improvements made to the premises and River Boats is prohibited from removing or destroying any such improvements. %.4. Termination of this agreement, in the method provided for, shall not operate as a bar to any other lawful action or process available to either party. X.S. The City, at its expense, shall promptly remove any navigational obstructions such as cable, pipes, stumps and other debris along the West shore of the harbor, which interfere with the navigation or mooring of River Boats' vessels in the harbor. %.6. The City shall be responsible for designating the original and any subsequent placements and locations of the River Boat's vessels and base of operations. River Boats shall bear the cost of the original placement and location, subject to Article I2.3, above. ARTICLE XI ADDITIONAL PROVISIONS � %I.1. waiver: A waiver by either party of any breach of this agreem��nt is not a waiver of any other or subsequent breach of this agreement. XI.3. Attorneys' Fees: In the event that any action is filed in relation to this agreement, the_unsuccessful party in the action sha11 pay to the successful party, in addition to all the sums that 14 a g-�'� o either garty may be caZied on to pay, a reasonable sum for the success£ul party's attorney fees. This provision does not apply to legal fees for outside counsel who represent the City. %2.4. Entire Agzeement: This agreement constitutes the entire aqreement between the parties. No representatians, warranties, undertakings, or promises, whether oral, implied, written, or otherwise, have been made by either party hereto to the other unless expressly stated in this agreement or unless reduced to an amendment executed in the fashion provided for below. SI.S. Amendments: Any amendments or modifications to this agreement shall be in writing, shall be attached to and made a part of this agreement, and sha11, if necessary, be first approved, as to form, by the St. Paul City Attorney's Office and executed by the same parties who executed the original agreement, or their authorized representatives. %I.6. No Partnership, Joint Venture, or Fiduciary Relationship Created Hereby: Nothing contained in this agreement shall be interpreted as creating a partnership, jaint venture, or relationship of prinaipal and aqent between the City and River Boats. River Boats is prohibited from expressing or implying any suah relationship or using any City of St. Paul logos in any advertisements, brochures or other medium. %I.7. severable Provisions: Each provision, section, sentence, clause, phrase, and word of this agreement is intended to be severable. If any provision, section, sentence, clause, phrase, and word hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the legality or validity of the remainder of this agreement. XI.B. Eminent Domain: If the premises or any part thereof, or any abutting property resulting in lack of access to the premises, are taken by virtue of eminent domain, this agreement shall terminate on the date title vests pursuant to the taking. Nothing herein sha11 in any way abrogate River Boats' rights with respect to eminent domain, including the right to just compensation, if any, in the event of a taking. %I.9. Captions: All captions, headings, or titles in the articles, paragraphs or sections of this agreement are inserted for convenience of reference only and shall not constitute a part of this agreement as a limitation of the scope of the particular paragraphs or sections to which they apply. � � %I.10. Force Majeure: This aqreement shall automaticaZly terminate upon any act of God, civil riot or disturbance, war, or natural ealamity which renders the premises or either party incapable of performing their obligations under this agreement. If the Force Majeure event is temporary in nature, such event shall 15 a8 -8'to act to suspend, rather than terminate performance. IN WITNESS WHEREOF, the parties hereto have signed this agreement the day and year first above written. APPROVED AS TO FORM: Assistant City Attorney River Boats Inc. B . ri�.2t�tG , ITS • ` � CITY OF SAII3T PAUL Mayor, City of St. Paul Director, Finahce & Management Services City Clerk 16 ��i. i� � � "i �� . m _._%� _,_.-� -' i � Admin� �� maink. ♦ ♦� . � .. � , . � - ... , .. .. E�R r ' ; ' �� F"— 'l' _ . � !FL ''-1 „� -_-�=� �-' ,,,,' � ` 'SERVICE ACCESS ; � .�r: , , �,-, ,�,��,,�� ;�. �4���, r � R,:, I 1 I� l( l . b ' �l �i ° " ���St_�1 �,' � � U WATERGATE MARINA L��� ���yu U Ll)WER HARBf1R � ���..� - '�, , �'C � f J r �, y . ....----- , . - � MISSISSIPPI RIVER �' r, ( ^, ��j IJ �! `' �� �� ACCESS .. e� STATI�NARY D�CKING SUPP�RT FACILITY :R VESSEL AREA NAVIGATION PARKING t�T ACCESS. PARKING AREAS `, ;';� ; ; '_� �x- : . =ti ._ =`; ` iy _ ' ��., ~'�. _ ���r....---- �---- � NaRht , APPRCIX. LOCATId� RIVER LE`� ��� � BANK �j pLtd� ELEVA7ION. Ct]N'tRa� n so� �oo� �sa aso� SCALE �'r OATS 1NC. L�.AS� :�XHlt�i i H 6/2/98 B. Tourtefotte Council File # � p - 8�� ORlGINAL Presented By Referred to Committee: Date 1 WHEREAS, Riverboats Inc. desires to operate a passenger vessel 2 service on navigable waters and to make the vessels available for 3 hire by the public for trips, cruises, charters, dining, 4 entertainment and food and beverage services, and agrees to 5 locate and operate from a portion of Watergate Marina, located in 6 Saint Pau1 and owned and operated by the City of Saint Paul, and; 7 WHEREAS, the City recognizes that this operation would provide a 8 benefit to the public by expanding opportunities for enjoyment of 9 the Mississippi River and the City of Saint Paul�s river front 10 environment, and; 11 12 13 14 15 16 WAEREAS, the entering into this agreement is part of settling the law suit filed by Riverboats Inc, against the City and Robert P. Piram, Superintendent of Parks and Recreation. NO THEREFORE BE IT RESOLVED, that the proper City officials and staff are hereby directed and authorized to enter into the attached lease agreement with Riverboats Inc. Yeas Nays Absent 8enanav � BZakey_ � Bostrom � � f Xarris '! Col eman � Lantry_ � Rezter � � � Adopted by Council: Date � Adoption Certified by Council Secretary By �C'��'S', � RESOLUTit?N CI'fY OF SAINT PAUL, MINNESOTA Green Sheet # tp a�t 3� as aequested by: ' ision of Par s and e ation � By . �+--�._ `� Form Approved by city Attorney By: � �-.'i-Y,-'���� r Mayor e � :� to _ ....,.�crv ilOFflCE/COUNCII Parks and Recreation COWTACT PERSON ANp PHONE �ATE INRIATED July 30, 7998 Vic Wittgenstein (226-6409) q ��� p HUMeEPFDq� MUST BE Ofi COUNCIL AGENDA BY I�Aip aOtrtING OfiDEH ASAP TOTAL J OF SIGNANNE PAGES � (CLIP ALL LOCA710NS FOH SIONANflE) ACiION fiEQUESTED: a�-810 GREEN SHEET � 5� NO. 62731 INfTiAUDATE INITIAVDATE � OEPnRTMENT OIRECTOR �I CT' fAUNC1L Z CRY A7TORNEY _CfiY CtERK _FINANCiaL SERVICES OIR, 3 MAVOR (OR ASSISTANA 5 Parks & Recreation Signatures of the Superintendent of Parks and Recreation, City Attorney, and Mayor and passage of the attached Council Resolution by the City Council. AECOMMENDATIONS: Appruve {A) ot Rejsct (FI _PLANNIN6 LOMMISSION __CIVIL SEflvICE COMMISSIDN _C16 CoMM1Ti'EE _ A srAr-� _ __OISTRICTCOUNGiI __ SUPPDqTS WHICH COUNdL O&lECTIVE? INRIATING PpO61.EM. ISSUE, OPPORTUNRY iH'ho, LVhat. When. YVhere, YVhy�: PERSON0.l SERVICE CANiRACTS MUST ANSWER THE WLIOWING QUESTIONS: L Has thrs personitirm ever worketl untler a cmttact for [his tlepartment? Y£5 NO 2. Has this persoNfirm ever 6een e ciry empbyee? YES NO 3. Does th�s persoNfirtn possess a sWll nat normalry possessetl by any current ciry em0�oyee? YE$ NO Explain all yas answaes on saparate 5heet and attach to grean aheet. Riverboats Inc. desires to operate a passenger vessel service out of Watergate Marina. This activity can add to the recreational use of the river by the public. ��'�NEf� \�VANTAGE5IF APPflOVED: � 3 199� Adds an etement to the City`s recreation arena. ei�j , is part ot the settlement of the law suit between Riverboats Inc. and the C�y���Q�` YDVANTAGES IF APPROVEO: ne ✓ANTAGES IF NOT APPROVED: aw suit against the City wili go forward. Counc°s3 Researcti Cen+er � � � "� ADUNTOFTRANSACTION S �L.�JOO - F +ouece Wateroate Marina COST/REVENUE BUUGEfED ICtliCLE ONEI YES NO acrrvrtv Hnme�t � 23160 INFDflMAT1ON: �EXPLAIN) Riverboats Inc. shall pay the City SZ,500 annually or 5°h of its gross revenues derived trom t passenqers in 1998-2Q00 and 5% of its gross revenue from all sources in 2001 & 2002. �t � '`��° 0 This agreement is made and executed on this day of , 1998, by and between River Boats Inc., a corporation organized and existing under the laws of the State of Minnesota, having its principal office at 495 Kenny Rd., St. Paul, MN 55101 (hereafter River Boats), and the City of Saint Paul, a municipal corporation (hereafter the City). ARTICLE I RECZTALS WHEREAS, River Boats desires to operate a passenger vessel service on navigable waters and ta make the vessels available for hire by the public for trips, cruises, charters, dininq, entertainment and food and beverage services, and agrees to locate and operate from a portion of Watergate Marina, located in St. Paul and owned and operated by the City of St. Paul, and; wHEREAS, the City recognizes that this operation would provide a benefit to the public by expanding opportunities for enjoyment of the Mississippi River and the City of Saint Paul's riverfront environment. NOA, THEREFORE, in consideration of the promises and mutual covenants herein contained, it is agreed as follows: ARTFCLE II DESCRZPTION OF PREMISES II.1. City shall permit River Boats, for the limited purpose more fully described in Article V, and here generally described as the conducting a passenger vessel service, upon that certain area of the land and harbor space, located at Watergate Marina, situated in the City of St. Paul, County of Ramsey, State of Minnesota, as that certain area is more particularly described in Exhibit A, attached hereto and made a part of this agreement by incorporation. Z2.2. As used in this agreement, the term "premises" shall refer to the real property as we11 as the areas used, traversed or occupied by River Boats upon the waters within the Lower Harbor of Watergate Marina, all as more particularly described in Exhibit A. IZ.3. It is the intent of the parties that River Boats locate at and operate fr��m the Northwe_;tern most portion of the Lower Harbor, as that area is more part�cularly described in Exhihit A. However, to that end, the City agrees to make its best effort to promptly dredge that location, at its expense, to make the location suitable for River Boats' operation. Should the location, by the agreement of both parties, be otherwise unsuitable, the City will 1 �Y-��a allow River Boats to relocate to another location adjacent to the western bank inside the Lower Harbor, provided that such relocation can be accomplished without impeding other marina traffic. Any such relocation of River Boats' operation shall be made at River Boats' expense unless River Boats has already completed extension of services to the Northwestern portion of the Lower Harbor and otherwise put in all ramps, docks, and vandaZ liqhts at that location. If River Boats has already completed extension of services to the Northwestern portion of the Lower Harbor and otherwise put in all ramps, docks, and vandal lights at that location, the relocatian expenses shall be borne by the City. ARTICLE IZI TERM OF AGREEMENT IZI.1. The term of this agreement shall be for five (5) years, commencing on May 1, 1998, or when the agreement is authorized and executed in accordance with the provisions of the City of 5aint Paul Administrative Code, Chapter 86, whichever last occurs, and ending on October 31, 2002; unless earlier terminated in the manner provided for in this agreement. III.2. This agreement shall not be construed as providing, either explicitly or implicitly, for any right to renewal or at- will tenancy, upan the expiration of its term or upon termination. However, if there has been no uncured breaah of this agreement, for which the City has given written notice or if the agreement has not been terminated due to a breach, the City shall provide River Boats with an option to renew the Agreement for another four-year term, at rates to be negotiated, at Watergate Marina or another location suitable to River Boats if Watergate Marina will no longer be used for commercial Passenger Vessel Services. III.3. River Boats has no right to enter, locate at, operate from, remain or possess the premises prior to or after the term of this agreement, or its termination. River Boats shall vacate the premises thirty (30) days following termination of the agreement or thirty (30) days following the end of the term on october 31, 2002, whichever occurs first. Should River Boats fail to vacate the premises in the time provided for in this agreement, the City shall be entitled to reasonable liquidated damages in an amount of $150.00 per day, which sum is believed to be a fair pre-estimate of such damages and is agreed between the parties to be a fair amount, reasonable in the light of the anticipated harm whiah could be caused by the breach, the difficulty of proof of lo'ss, and the inconvenience or non-feasibility of otherwise obtaining an adequate remedy. ART�CLE IQ PAYMENTS ID.1. In consideration for the use of the Premises by River 2 R�.�� b Boats under this Agreement, River Boats agrees to pay the City the following sums: A. Base Payment: River Boats agrees to deliver, without prior demand, to the Manager of Special Services, Parks & Recreation Division o£ Saint Paul, at 300 City Hall Annex, 25 W. 4th Street, St. Paul, M13 55102, or such other address as the City may from time to time designate in writing, a base payment of Two Thousand Five Hundred Dollars ($2,500.00), in lawful money of the United States, per year. The first year's base payment shall be delivered to the City upon final execution of this agreement. Each year's base payment thereafter shall be delivered to the City in two equal installments of $1,250 on July 1 and October l of each year. 8, Percentage Payment: 1. During the first three years of this agreement (1498, 1999, 2000) River Boats agrees to pay the City five percent (5%j per annum, of its gross proceeds derived from the lease, rental, license, charter or other use of its vessels for the carrying of passengers. This percentage payment shall be appliaable to all uses of River Boats' vessels for the carrying of passengers which either originate or terminate at watergate Marina or any other park, parkway, landing, public space, open space, or other public property, owned and operated by the City of St. Paul, per annum. This five percent (5%) per annum payment shall be due and payable only to the extent that it exceeds the Base Payment of Two Thousand Five Hundred Dollars ($2,500.00), per annum. The amount of the Percentage Payment shall be the difference between the Base Payment and the five percent (5°s} of River Boats' gross proceeds derived from the lease, rental, license, charter, or other use of its vessels for the carrying of passengers only, per annum. Payments shall be made to the City no later than February 15th of the year following the year in which the gross proceeds were generated. (For example, all percentage payments due for the calender year 1998 are due no later than February 15th, 1999.) Payment shall be made in the manner provided for in Article IV. A. 1., of this agreement. Should the agreement be terminated prior to the end of the term, the City shall be entitled to the five percent (50) per annum payment on all proceeds generated up to the date when River Boats vacates the Premises. Any such payment shall be due and payable no later than thirty (30) days following River Boats.vacation of the premises. 2. During the last two years oE this agreement (2001, 2002) , River Boats agrees to pay the �.ity five perce�nt (5%) per annum, of its qross proceeds derived from all sourcES. "Gross proceeds derived from all sources" means the agqregate dollar amount received from any and all sales, leases, rentals, or other services by River Boats from activities arisinq out of this agreement, whether such sales, leases, rentals, or services be 3 G �� _plU evidenced by check, credit, charge aocount, exchange, or otherwise, and shall include, but not be limited to, the amounts received from the sale, lease or rental of services, qoods, wares, merchandise, beverages, food, or entertainment. "Gross proceeds derived from all sources" shall also be construed to include all proceeds derived from the lease, rental, license, charter, or other use vf River Boats' vessels for the carrying of passengers. This percentage payment shall be applicable to all uses of River Boats' vessels which either originate or terminate at Watergate Marina or any other park, parkway, landing, public space, open space, or other public property which is owned and operated by the City oP St. Paul, per annum. This five percent (5�) per annum payment shall be due and payable only to the extent that it exceeds the Base Payment of Two Thousand Five Hundred Dollars ($2,500�, per annum. The amount of the Percentage Payment in years four and five of this agreement shall be the differenae between the Base Payment and the five percent (5°s) of River Boats "gross proceeds derived from all sources". Payments shall be made to the City prior to the last day of the year in which the "gross proceeds derived from all sources" were generated. Payment shall be made in the manner provided for in Article TV. A. 1., of this agreement. Should the aqreement be terminated prior to the end of the term, the City shall be enkitled to the five percent (5%) per annum payment on "gross proceeds derived from all sources" generated up to the date when River Boats vacates the Premises. Any such payment shall be due and payable no later than thirty (30} days following River Boats vacation of the premises. 3. Excluded Business Activities: Nothing contained in Article IV. shall require River Boats to pay the City a Percentage Payment for revenue generated Prom (a) vessels not covered in this agreement; (b) vessels which are not moored at Watergate Marina and do not operate from Watergate Marina; or (c) vessels covered by this agreement which are removed from Watergate Marina and no longer operate or moor at locations owned or operated by the City. C. Records: River Boats shall keep at the premises, or at 495 Kenny Road, St. Paul, Minnesota, a permanent accurate set of books and records of all sales, leases, rentals, arid charters, and all transactions producing revenue derived from any business conducted by River Boats or arising from the use of the base of operations or vessels during each day of the term of this aqreement which are subject to the percentage payment, and all supporting documents, including cash register ribbons, sales slips, sales checks, state sales and use tax reports, and business and: occupation tax reports. All such pertinent records shall be kept, retained, and preserved for at least three (3) years after the ex�iration of each fiscal year or until the completion of any litiqation �in which they are relevant, whichever is later. A11 such records shall be open to inspection by the City and its agents, upon reasonable notice at all reasonable times during River Boats ordinary business hours. River Boats_shall also be required to keep records of disposal of sewage or other waste stored or 4 a�-�ro produced on its vessels, appurtenant structures andjor "the premises", as defined in Article II.2.. D. Audit: The acceptance by the City of payments of Base Payments and Percentage Payments shall be without prejudice to the City's riqht to an examination of River Boats books and records of its transactions at the premises, 495 Kenny Road, or other locations, in order to verify the amount of Percentage Payments received by the City. The City may, at any reasonable time during River Boats business hours, cause a complete audit to be made of River Boats entire business affairs and records relating to its business which arises out of its operations under this agreement during the years of this agreement's Term, by a reputable licensed accountant of the City's choice, at the City's cost. If such audit discloses an overpayment of five percent (5%) or more by River Boats to the City, the City shall refund the overpayment within thirty (30) days of written demand. If such audit discloses an error of five percent (50) or more in River Boats Percentage Payment to the City as required by IV.A.5, of this agreement, (i) River Boats shall pay the City the resultinq deficiency in the Percentage payment as well as the cost of said audit, all within thirty (30) days, and (ii) in addition, the City may, at its option, terminate this Agreement on fifteen (15) days written notice to River Boats. E. Periodic Statements: River Boats sha11, no later than February 15 of the year following the year in which the gross proceeds were generated, deliver to the City a written statement of all transactions which are subject to this ac3reement, occurring during the fiscal year. (For example, the report due for the calendar year 1998 is due no later than February 15, 1999.) This Periodic Statement sha11 be prepared in accordance with generally accepted accountinq principles consistently applied or other method approved by the City's Chief Accountant, and satisfactory to accurately account for all revenues which are subject to the Percentage Fayment. This Periodic Statement shall be delivered, whether or not a Percentage Payment is due and payable. F. Rate Approval: Sixty (60) days prior to River Boats commencement of operations during each year of the term it shall deliver to the City a copy of all fees and charges that it intends to make in conjunction with it operations. The City shall have the right to approve such fees and charges before River Boats implements them. For'the first year of this agreement the sixty (60) day requirement is not applicable and River Boats agrees to promptly deliver its rates upon execution of this agreement. ARTICLE V PERMITTED IISE _ V.1. Generally: The premises may be used by River Boats only as a base of operations and point of departure and/or return for 5 98.g�o passengers utilizing its vessels for cruises, charters, dining, entertainment, and food and beverage services. River Boats sha11 not use or occupy the premises for any business or purpose other than those set forth explicitly in this agreement. River Boats shall not occupy any land at Watergate Marina, nor shall it make any land based improvements or erect any structures, except for those explicitly provided for in this agreement, or those permitted in writinq by the City. River Boats shall not store any materials of any kind on any land at Watergate Marina without the written permission of the Watergate Marina Manager. A. Base of Operations: River Boats may employ a loading barge (hereinafter Barge) which is currently at the premises, as a base of operations for its business at Watergate Marina. The Barge shall be moored within the Lower Harbor in a location more specifically described in Exhibit A. The Barge shall be utilized as the embarkation point for passengers coming aboard or disembarking from River Boats vessels. No other loading or unloading point shall be allowed, unless necessary to load or unload handicapped gassengers or unless first approved by the Watergate Marina Manager. The Barge may also be utilized for administrative purposes and for storaqe of supplies and material secandary to River Boats operations at Watergate Marina. No other use of the Barge shall be allowed. No service of any food or beverages shall be made on the Barge. River Boats shall be entitled to replace the Barge with another vessel of the same or smaller size, upon written approval of the City, which approval sha11 not be unreasonably denied. If River Boats decides not to use the Barge as a base of operations, it may locate the Magnolia Blossom at the same location and use it as both a base of operations and passenger vessel. B. Vessels: River Boats shall be allowed to operate ohly those two vessels which are specifically identified and named the "Magnolia Blossom" and "Maggie". River Boats shall not utilize or allow any other vessels to operate from or pick up or drop off passengers at the premises or its base of operations at Watergate Marina. River Boats shall be entitled to replace either vessel with another vessel of the same or smaller size, upon approval of the City, which approval shall not be unreasonably denied. Any replacement vessel shall be of the same general kind and quality with similar passenger capacities and other accommodations and offering the same manner of passenger transportation. In no event shall River Boats be allowed to operate more than two (2) vessels. Furthermore, any replacement of vessels shall not be allowed unless and until this agreement is amended to reflect such repiacement. The vessel "Magnolia Blos�aos." is to be moored on the west bank of the Lower Harbor, immediat�ly behind the Barge, as that location is more specifically delineated in Attachment A. The "Maggie" is to be moored at a slip in Watergate Marina at no additional charge. Alternatively, with the written permission of the City, the Maggie may moor immediately behind the Magnolia Blossom. � [7 �s -8tio C. Hours of ogeration: River Boats shall be allowed to operate its business at Watergate only during the times from sunrise to Midnight, on any particular day. D. Parking: The City shall provide 50 parking spaces which spaces may be used by River Boats customers and by other members of the public. Parking shall be provided in the lot adjacent to the Watergate Administration Building. The use of these parking spaces by River Boats customers is not exclusive. To the extent that the lot may be legitimately occupied by other vehicles owned by park or marina users, River Boats customers shall be allowed to park along the shore at the north end of the Lower Harbor. River Boats' employees shall be permitted to park no more than five (5) of their own vehicles and support vehicles at the north end of the Lower Harbor as well. These locations are more specifically delineated in Attachment A, and specifically incorporated herein. All River Boats parking shall be done in an orderly manner and under the general direction of the Manaqer of Watergate Marina. Parking for River Boats customers shall be allowed only during River Boats Aours of Operation. No parking for River Boats' customers or employees shall be allowed on the peninsula located between the two harbors or along the east shore of the Lower Harbor at Watergate Marina without first obtaining written permission from the Watergate Marina Manager. However, River Boats may temporarily park no more than two (2) support vehicles at those locations, if necessary to service its operations. In no event, may any support vehicles be left at those locations overnight without first obtaining the written permission of the Watergate Marina Manager. E. Compliance with Law: 1. River Boats shall use and occupy the premises solely for the purposes described in this agreement and will not use or occupy the Premises for any unlawful purpose. 2. River Boats agrees to comply with all duly enacted laws, ordinances, regulations and orders of all g4vernmental units having jurisdiction over the Premises and its vessels and base of operations. 3. River Boat specifically agrees to comply with and observe a11 laws, ordinances, rules and regulations of the City, State and federal government pertaining to discrimination in employment, housing, education, and public accommodations on grounds of race, color, creed, national origin or ancestry. A. River Boats shall provide worker's compensation � insurance for employees during the term of this agreement, if required. A current certificate of insurance or an exemption certificate, if required, shall be furnished to the City prior to commencement of oparations. 7 atg - �'tti 5. River Boats shall comply with all rules and regulations established hy the U.S. Coast Guard governing craft on navigable waters, and shall provide the City with a copy of the USCG Certificate of Inspection of the vessels prior to any commencement of River Boats ogerations. These Certificates shall be maintained, updated and renewed as required by the U.S. Coast Guard and River Boats shall provide the City with any updates or renewals, in a timely fashion. 6. River Boats sha11 not cause or permit any unreasonable noise, vibrations, odors or nuisance in or about the premises or on its vessels or Barge which interferes with the quiet enjoyment of the Marina or the navigable waters by slip lessees or other lawful visitors or users. Zt is recognized that River Boats will be offering entertainment, including musical bands, on its vessels. However, no such entertainment sha11 be allowed within Waterqate Harbor or upon the barge or base of operations, if the Watergate Marina Manager determines that it is interfering with the quiet enjoyment of the Marina by others. 7. River Boats shall, prior to operation, secure all required permits and licenses pertaining to the sale or furnishing of intoxicating liquors, beer, food, cigarettes, and any other items River Boats intends to sell or of£er to its customers. River Boats will further comply with any applicable licensing provisions including, but not limited to, access for inspection and record keeping. F. Day to Day Operations: 1. River Boats shall maintain its vessels, base of operations,barge, and any and all docks, ganq-planks, or other methods of egress and ingress to its vessels and base of operations in a well-kept, clean, sanitary, safe, lawful and comfortable condition. 2. River Boats wi11, at a11 times, make its passenger boat services available to the qeneral public. 3. River Boats will not allow its passenqers to leave the vessels, barqe or the base of operations with any beverages or food purchased from River Boats. It is recognized that passengers f'or some charters may provide their own food and beverages and, in those instances, the passengers may leave with those items. 4. River Boats will not hawk, peddle, or sell any merchandise from Watergate Marii�a land. ` Souvenirs or other merchandise may be sold from the vessels. 5. With respect to refuse or rubbish generated by or resulting out of River Baats' operations, River Boats will use its 0 q$ •gto best efforts to maintain the land around the base of operations and paths or common courses of exit and entry from parking areas to the base of operations in a clean and sanitary condition, and free from refuse or rubbish which accumulates on its vessels, base of operations, land around the base of operations, or which otherwise is generated or results from River Boats' operations. 6. River Boats shall be responsible for providing for and paying the costs related to the collection and disposition of any trash or refuse that accumulates on its vessels, base of operations, land around the base of operations, or is otherwise generated or results from River Boats' operations. 7. River Boats shall not install, use, generate, store or dispose of in or about the premises or any waters of the State of Minnesota any hazardous substance, toxic chemical, pollutant, waste material, or other material regulated by the Comprehensive Environmental Response, Compansation and Liability Act of 1985 or the Minnesota Environmental Response and Liability Act or any other similar law or regulation, including without limitation any material containinq asbestos or PCB, excepting normal waste that is lawfully contained in the septic systems of the vessels and base of operations, or normal bilge. 8. River Boats shall take all necessary precautivns and exercise such supervision as may be necessary to ensure the safety of passenqers, visitors, employees, and all others while on the vessels, base of operations, during boarding and disembarking and ta and from passenger's parking locations. 9. River Boats shall be responsible for securing any necessary construction permits, archeological surveys, U.S. Coast Guard, Minnesota Dept. of 23atural Resources or U.S. Army Corps of Engineers permits or licenses, and any needed State or Local licenses, permits or authorizations. 10. River Boats shall be responsible for any and all applicable taxes, levies or assessments which may be assessed against its operations. 11. River Boats shall be responsible for all day to day operating expenses of the operation. 12. The City shall maintain the areas bf Watergate Marina used for parking of River Boats' customers in a well-kept, clean, sanitary, safe and lawful condition. G. z�ignage: 1. River Boats may post and maintain signs, at its own expense, at three locations: (i)up to two (2) signs at the entrance to Hidden Falls/Crosby Farm Park at the intersection of Shepard Road and Crosby Farm Road; (ii) at the entrance to Watergate 7 qg-$►b Marina as it leads ofP of Crosby Farm Road; and (iii) at the shore line abutting the premises and visible from the parking location. 2. All proposed signage sha11 first be approved by the City, as to size, content, and location, and must be approved by the Minnesota Department of Transportation if necessary and otherwise comply with all applicable federal, state, municipal and local statutes, laws, ordinances and regulations. A11 progosed signage shall comply with the requirements £ound in the Minnesota Manual on Uniform Traffic Control Devices, Part II-I, §2I-a through 2I-7. The City agrees to provide specifications to River Boats to assist it in complying with this provision within 15 days of the execution of this agreement. ARTICLE VI INDEMNIFICATION VI.1. River Boats aqrees to indemnify, defend, save and hald harmless the City of St. Paul and any agents, officers and employees thereof from any loss, injury, death, ar damages to persons or property and all claims, demands, actions or causes of action of whatsoever nature or character which may be suffered or sustained by any person, or other legal entity who may at any time be using, occupying, visiting or otherwise present on River Boats' vessels, base of operations, or the premises, if the loss, injury, death, or damages shall be caused by or in any way result from or arise out af any act, omission, or negliqence of River Boats, its owners, operators, employees, agents, or any visitors, passengers, customers or any other person or legal entity present on the premises, vessels, or base of operations. VI.2. Furthermore, River Boats agrees to hold the City harmless and indemnify it for any and all charges, penalties, or assessments imposed for any violation of any laws, ordinances, or regulations arising out of actions or omissions of River Boats or its agents, operatars, or employees. ARTICLE VII LIABILITY COVERAGE VII.1. In orde.r to honor its duty to indemnify the City, River Boats shall provide, at its own expense, a general liability insurance policy from an insurance carrier licensed to do business in Minnesota in which the City shall be named a�� an additio��al insured, which policy shall cover the entire term of this agreemeiit and any edditional time during which River Boats may be located at or operating from City property, and shall cover injury to persons or property arising out of the operations or activities of River Boats in amounts of not less than Three Hundred Thousand Dollars l0 s ` � �' ($300,000.00) where the claim is one for injury or death by wrongful act or omission and Seven Hundred and Fifty Thousand Dollars ($?50, 000.00) for any number of claims arising out oP a single occurrence. If the maximum liability is modifiad by the legislature, River Boats shall be required to provide coverage adequate to cover up to the limits of the City's maximum liability. VZI.2. To the extent that River Boats intends and desires to be held privately responsible for claims up to Two Hundred Thousand Dollars ($200,000.00), River Boats sha11 be allowed to self-insure up to this amount, provided first that it maintains a general liability golicy for claims sxceeding this amount up to the limits addressed above and, further, that it maintains at all times a certificate of deposit or treasury savings account as collateral in the amount of self-insurance it decides to self insure itself for. River Boats shall at all times guarantee and maintain the certificate of deposit or treasury savings account in the full amount of self-insurance provided pursuant to this agreement for the purpose of satisfying any judgment against the City. Prior to this agreement becoming effective, River Boats shall execute a written agreement with a federally insured Bank or other financial institution, lawfully doing business in the State of Minnesota, and issuing the certifiaate of deposit or treasury savings account, which requires the bank to notify, in writinq, the City of St. Paul through its Manager of Special Services, Parks & Recreation Divisian of St. Paul, at 300 City Hall Annex, 25 W. 4th Street, St. Paul, MN 55162, not less than thirty (30) days before the certificate of deposit or treasury savings account is transferred, encumbered, posted as collateral for any other debt or obligation, gifted, devised, or otherwise compromised. However, if there are pending claims against the City, the agreement, shall provide that there is to be no such transfer or other compromise of the Certificate of Degosit or treasury savings account without first obtaining the City's express written consent. Any transfer or compromise of the Certificate of Deposit or treasury savings account, without the City of St. Paul's express written consent, will automatically work an immediate termination of this agreement. River Boats shall exclusively be entitled to any interest earned on said certificate of deposit or treasury savings account. Concomitant with the duty to indemnify, River Boats also aqrees ta apply the funds held as self-insurance to any claimant who secures a judgment against River Boats or the City arising out of any claim for damages in connection with River Boats operations, subject to the terms of the obligation to indemnify. Furthermore, River Boats expressly agrees to cooperate fully with the City in investigating any and all claims for damages brought by the City or third partie:.�. To this end, River 3oats agreas to provide the City with any and all documents relating to any claims including, without limitation, insurance forms, written reports, records of repairs or damages, any and a12 statement of witnesses, photographs, drawings or other related visual or audio recordings or depictions. River Boats shall also make available its officers, employees and agents li °18 - 8 t�o for oral interviews or depositions and shall timely comply with all discovery requests. ARTICLE V2II ASSIGNMENT VIII.1. River Boats shall not assign, transfer, sublet, pledge, mortqage or otherwise transfer rights and responsibilities (hereinafter referred to as an "assignment"), delegated to it under this agreement to any third party; nor shall any assignment of the rights and responsibilities designated to River Boats under this agreement be effectuated by operation of law or otherwise, without in each such case obtaining the prior written consent of the City, which consent shall not be denied unless the City makes a good faith fletermination that the proposed assignee lacks sufficient financing or experience to assume ar maintain a passengar vessel operation, has a felony criminal conviction in the past ten {10) years, or otherwise has a history of past business practices or experiences indicating unsuccessful ventures or poor business practices or business judgment. vIII.2. If River Boats desires to make an assignment, it shall first notify the City of its desire to do so and shall submit in writing to the City (i) the name of the proposed assignee, (ii) the nature of the proposed assignee's business, (iii) a copy oP the proposed assignment agreement and any other agreements to be entered into concurrently with such assignment, including full disclosure of all financial terms, and (iv) such financial infarmation as the City may reasonably request concerning the proposed Assignee. River Boats shall pay the City a reasonable fee for the City's expenses, including attorneys' fees, in reviewing such proposed assignment and in reviewing the proposed assignee's financial ability to assume the agreement, said fee not to exceed $500.00. VIII.3. If, at any time during the term of this agreement, there shall occur any change in the identity of any of the persons, including Harry Euqene Cassidy, (excepting his immediate family), presently having power to participate in or control the day to day operations of the corporation River Boats, or any other change in the corporate structure of River Boats, or the transfer or alteration in the method of control or decision making regarding River Boats, such change or alteration shall be deemed to be an assignment. Any such change shall wo'rk an immediate termination of this agreement unless such change is tirst approved by the City in the manner provided above for other assignments. ARTICLE IR IMPRODEMENTS Z%.1. River Boats shall be responsible for all costs incurred in establishing and maintaining services to its operation, 12 . ; � • � including site preparations and improvements and the establishment or extension of any necessary water and electrical services from existinq locations. Any proposed improvements shall first be approved by the City. Site improvements shall be limited to those necessary to qain access to the base of operations and vessels via stairs, ramp, dock andJor gangplank. River Boats shall be entitled to install no more than two vandal lights, without prior written consent of the City. The kind and quality of said lights sha11 be first approved by the Manager of Watergate Marina and s/he may refuse any lights which s/he reasonably believes would interfere with the enjoyment of other slip lessees. The City will permit River Boats to obtain water from Waterqate Marina via the use of hoses for the vessels and base of operations. IB.2. All site improvements and extension or establishment of services shall comply with all applicable federal, state, county and local laws, regulation, ordinances or other lawful requirements or limitations. Al1 improvements and extensions shall be done in an orderly and workmanlike manner and shall not materially alter the appearance of or limit access to Watergate Marina. River Boats shall be required, at the City's option, to remove any and all improvements upon termination. I%.3. River Boats shall bear the cost and shall fully and promptly pay Por all gas, heat, light, power, telephone service, and other public utilities of every kind furnished to the premises, with the exception of water used via hoses, throughout the term of this agreement. IX.4. Should the City expand Watergate Marina or alter its configuration so as to displace River Soats' location of operations the City shall bear all costs in relocating, including the extension of necessary services to River Boats within Watergate Marina at a location acceptable to both parties. ARTICLE X TERMINATION R.1. If either party shall fail or neglect to observe, keep, or perform any of the terms, conditions, requirements or obligations contained in this agreement on its part to be observed, kept or performed, and the default shall continue for a period of thirty (30) days following delivery of written notice specifically describing the alleged default and a demand that it be cured, then the party not in dafault shall have the right at its option, on written notice, delivered to the defaulting party, to terminate this agreemsnt, effective�immediately. If eithEr party fails or neglects to observe, keep or perform any of the tarms, conditions, requirements or obligations contained in the aqreement on its part to be observed, kept or performed, on two (2) or more separate occasions, then the party not in default shall have the right, at _ its option, on written notice, delivered to the defaulting party, 13 q�-8�o to terminate this agreement, effective immediately, regardless of whether or not either or both of the breaches have been cured. x.2. Upon termination of the agreement, in the manner provided in Article X.1, River Boats shall vacate the premises within sixty (60) days. If River Boats fails to timely vacate, the City may, without further notice to River Boats, have the right immediately to enter and take possession of the premises with or without process of law and to remove all of River Boats property and improvements from the premises and all persons occupying the premises and to use all necessary force therefor and in all respects to take the actual, full, and exclusive possession of the premises without incurring any liability to River Boats due to repossession. Zn furtherance of any repossession, the City may have the base of operations, barge, and vessels removed £rom the premises. Furthermore, the City shall be entitled to Percentage Payments accrued up to the date of repossession. If it is later determined by a court of competent jurisdiction that there was no basis for termination resulting in the exercise of the City's rights under this paragraph than the City will be responsible for damages resulting from any repossession, as provided for by law. 5.3. With the exception of removable docks and improvements to vessels, upon termination of this agreement the City shall become the owner of any and all improvements made to the premises and River Boats is prohibited from removing or destroying any such improvements. %.4. Termination of this agreement, in the method provided for, shall not operate as a bar to any other lawful action or process available to either party. X.S. The City, at its expense, shall promptly remove any navigational obstructions such as cable, pipes, stumps and other debris along the West shore of the harbor, which interfere with the navigation or mooring of River Boats' vessels in the harbor. %.6. The City shall be responsible for designating the original and any subsequent placements and locations of the River Boat's vessels and base of operations. River Boats shall bear the cost of the original placement and location, subject to Article I2.3, above. ARTICLE XI ADDITIONAL PROVISIONS � %I.1. waiver: A waiver by either party of any breach of this agreem��nt is not a waiver of any other or subsequent breach of this agreement. XI.3. Attorneys' Fees: In the event that any action is filed in relation to this agreement, the_unsuccessful party in the action sha11 pay to the successful party, in addition to all the sums that 14 a g-�'� o either garty may be caZied on to pay, a reasonable sum for the success£ul party's attorney fees. This provision does not apply to legal fees for outside counsel who represent the City. %2.4. Entire Agzeement: This agreement constitutes the entire aqreement between the parties. No representatians, warranties, undertakings, or promises, whether oral, implied, written, or otherwise, have been made by either party hereto to the other unless expressly stated in this agreement or unless reduced to an amendment executed in the fashion provided for below. SI.S. Amendments: Any amendments or modifications to this agreement shall be in writing, shall be attached to and made a part of this agreement, and sha11, if necessary, be first approved, as to form, by the St. Paul City Attorney's Office and executed by the same parties who executed the original agreement, or their authorized representatives. %I.6. No Partnership, Joint Venture, or Fiduciary Relationship Created Hereby: Nothing contained in this agreement shall be interpreted as creating a partnership, jaint venture, or relationship of prinaipal and aqent between the City and River Boats. River Boats is prohibited from expressing or implying any suah relationship or using any City of St. Paul logos in any advertisements, brochures or other medium. %I.7. severable Provisions: Each provision, section, sentence, clause, phrase, and word of this agreement is intended to be severable. If any provision, section, sentence, clause, phrase, and word hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the legality or validity of the remainder of this agreement. XI.B. Eminent Domain: If the premises or any part thereof, or any abutting property resulting in lack of access to the premises, are taken by virtue of eminent domain, this agreement shall terminate on the date title vests pursuant to the taking. Nothing herein sha11 in any way abrogate River Boats' rights with respect to eminent domain, including the right to just compensation, if any, in the event of a taking. %I.9. Captions: All captions, headings, or titles in the articles, paragraphs or sections of this agreement are inserted for convenience of reference only and shall not constitute a part of this agreement as a limitation of the scope of the particular paragraphs or sections to which they apply. � � %I.10. Force Majeure: This aqreement shall automaticaZly terminate upon any act of God, civil riot or disturbance, war, or natural ealamity which renders the premises or either party incapable of performing their obligations under this agreement. If the Force Majeure event is temporary in nature, such event shall 15 a8 -8'to act to suspend, rather than terminate performance. IN WITNESS WHEREOF, the parties hereto have signed this agreement the day and year first above written. APPROVED AS TO FORM: Assistant City Attorney River Boats Inc. B . ri�.2t�tG , ITS • ` � CITY OF SAII3T PAUL Mayor, City of St. Paul Director, Finahce & Management Services City Clerk 16 ��i. i� � � "i �� . m _._%� _,_.-� -' i � Admin� �� maink. ♦ ♦� . � .. � , . � - ... , .. .. E�R r ' ; ' �� F"— 'l' _ . � !FL ''-1 „� -_-�=� �-' ,,,,' � ` 'SERVICE ACCESS ; � .�r: , , �,-, ,�,��,,�� ;�. �4���, r � R,:, I 1 I� l( l . b ' �l �i ° " ���St_�1 �,' � � U WATERGATE MARINA L��� ���yu U Ll)WER HARBf1R � ���..� - '�, , �'C � f J r �, y . ....----- , . - � MISSISSIPPI RIVER �' r, ( ^, ��j IJ �! `' �� �� ACCESS .. e� STATI�NARY D�CKING SUPP�RT FACILITY :R VESSEL AREA NAVIGATION PARKING t�T ACCESS. PARKING AREAS `, ;';� ; ; '_� �x- : . =ti ._ =`; ` iy _ ' ��., ~'�. _ ���r....---- �---- � NaRht , APPRCIX. LOCATId� RIVER LE`� ��� � BANK �j pLtd� ELEVA7ION. Ct]N'tRa� n so� �oo� �sa aso� SCALE �'r OATS 1NC. L�.AS� :�XHlt�i i H 6/2/98 B. Tourtefotte