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Literary Feast Cafe ~ LE1650001 ~ Tigard Library Coffee Cafe CITY OF TIGARD,OREGON AMENDMENT TO FACILITY LEASE AGREEmEN T TIGARD LIBRARY COFFEE CAF]t AMENDMENT#1 The Lease between the City of Tigard,a municipal corporation of the State of Oregon,hereinafter called City, and Literary Feast Cafe,hereinafter referred to as Lessee,entered into on the 9'b day of November, 2015,is hereby amended as follows: EXHIBIT A-LEASE DETAILS C. SIZE 3. Seafla�Brea, The site shall include the use of the Tigard Public Library's lobby sufficient enough for the seating described in Section D.of this Exhibit. D. SEATING The City shall identify and lease l*s#a.- 4 three bistro tables end with three chairs each in the lobby to tlx.:: _4;:s"- for use by Cafe patrons during the Cafe's open hours-*ud-die-gener blie. The City and Cafe shall agree upon the placement of these pieces prior to use by cafe patrons. Cafe patrons are also able to utilize the City's additional tables, chairs, and benches in the Lobby along with general Library attendees. During the Cafe's non-operating hours,the leased seating shall be made Mailable to the general public. Should non-Cafe customers use the leased tables and chairs during the cafe's open hours, Lessee may inform non-cafe patrons that the tables and chairs so designated are intended for patrons. However, Lessee may not require non-customers to move. In the event the non-customer remains at the leased table or chair, Lessen shall contact the City designated contact to address the issue as the City deems appropriate in its sole discretion,including permitting the patron to continue to use the chair or table. Lessee shall not discriminate in providing service and products to any person on account of race,religion, nado'zal origin,seK,sexual orientation,marital status,disability,veteran's status,citizenship status,age(18 and older) or other characteristics protected by federal or state law. In addition to the indemnification provisions under section 13 of the Lease, Lessee shall indemnify, defend,and hold harmless the City,its City Council,officers,employees,and agents from and against all liability arising from actions,suits,claims,or demands arising or related to Lessee's leasing or reservation of the specific tables and chairs for cafe patrons and any interaction by Lessee with parsons regarding same. The City reserves the right, at its sole discretion, to immediately terminate the provision of this lease amendment allowing Lessee to use the leased tables and chairs during the cafe's open hours if the City determines it is in the City's best interest to do so. The indemnification and nondiscrimination provisions of this amendment shall survive termination of this lease amendment. During the summer months,the City may provide outdoor seating that may also be used by Cafe patrons. Additional seating may be provided by Lessee at Lessee's expense only after prior City approval of seating style, quality and placement. Such Cafe-provided seating would be designated for Cafe use during Cafe hours by signage consistent with that on the leased seating above. Lessee will be responsible for bussing the Lobby area and immediately cleaning up any spills or messes in the Lobby. E. MENU PROFILE The City will strongly deter any soda or candy sales at the Goffee•Eafe. Absolutely no alcoholic beverage sales shall be permitted. There will be no food preparation permitted on site which may violate any food handling regulations or permits. A&' . J. PROVIDED BY CITY 3. Lobby Area a. Tables(3 bistro tables-leased to Cafe during Cafe's operating hours along with 1 additional bistro table open to use by all,including the general public.) b. Chairs(9 bistro chairs—leased to Cafe during Cafe's operating hours along with 3 additional bistro chairs open to use by all,.including the general public.) IN WITNESS WHEREOF, City has caused this Amendment to be executed by its duly authorized undersigned officer and Contrac s executed this Amendment upon signature and date listed below. �\ LTTE CAFE (ignaj� Signature zst, EMIT, .fi. ted Nam Printed Nam aq t a� � Date Date Y �'l • (3.201 � Lease # � 0 U U I CITY OF TIGARD FACILITY LEASE AGREEMENT TIGARD LIBRARY COFFEE CAFE THIS LEASE is made and entered into this 9"'day of November, 2015,by and between the City of Tigard,an Oregon municipal corporation,hereinafter called"City",Literary Feast Cafe,hereinafter called"Lessee." WITNESSETH: In consideration of the covenants, agreements and stipulations herein contained on the part of Lessee to be paid, kept and faithfully performed, City does hereby lease to Lessee and Lessee hereby leases from the City the premises, including all improvements located thereon, as is, situated in the City of Tigard, County of Washington and State of Oregon, known and described as the Coffee Cafe located inside the Tigard Library at 13500 SW Hall Blvd.,Tigard, Oregon 97223 (the"Premises'. In consideration of the above,each party hereto does hereby covenant and agree as follows: 1. TERM OF LEASE The term of this Lease shall be for a period of one (1) year commencing on the 1st day of December, 2015, and terminating of the 30'h day of November, 2016, subject however to any extension as hereinafter provided, and further subject however to termination as hereinafter provided. This Lease shall be subject to two (2) additional terms of five (5) years each, provided the City and Lessee agree in writing to so extend the Lease no less than ninety (90) days prior to the date of expiration of term. 2. PAYMENT OF RENT In return for the privilege to construct, operate, and manage a coffee cafe on City property, the Lessee agrees to pay the described hereinafter. Any rates described hereinafter shall be reviewed and possibly adjusted with each addition term to the Lease that is enacted. All amounts payable by Lessee to City are collectively referred to as"Rent." A. Base Rent Lessee agrees to pay .City monthly rent in the amount of Five Hundred and 00/100 Dollars ($500.00) ("Base Rent"). The City and Lessee agree to a "Base Rent Waiver"period during first six (6) months of the Lease. Such a`vaiver period shall include all rent and utilities being waived so the vendor can establish themselves in the location to the benefit of both Parties. C The Base Rent shall be due on the tenth (10`h) day of each month during the term of this Lease for use of the Library during the month of payment. The City and Lessee will evaluate the base rent figure annually on the Lease's anniversary and negotiate a figure that best meets the revenue traffic of the space. The Base Rent figure shall have a floor of$500 per month and a ceiling of$800 per month. B." Late Payment Any and all Rent not paid by the date due shall accrue interest at the rate of twelve percent (12%) per annum, calculated and compounded on a daily basis,beginning on.the fifteenth (15r'') day of the month in which delinquent and ending on the day on `which the delinquency and accrued interest are paid in full. The accruing of, or paying by Lessee of late payment,interest shall not be deemed to be a substitute for prompt payment by Lessee and Lessee shall be in default upon failure of Lessee to pay any fee or other charges within ten (10) days after the same becomes due. i 3. LESSEE'S ACCEPTANCE OF LEASE Lessee accepts said letting and agrees to pay to the order of City the Rent stated herein for the full term of this Lease,in the manner aforesaid. 4. USE OF PREMISES Lessee represents that it has been granted all necessary licenses and permits required by the Federal Government, State of Oregon, Washington County, and the City of Tigard which may be necessary for operating and managing a coffee cafe and covenants and agrees that it will use the Premises solely for the purpose of operating and managing a coffee cafe and for other uses normally incidental thereto. Lessee further covenants and agrees that it will not use or allow the use of the Premises for any purpose which, in the exclusive discretion of City, constitutes a public or private nuisance or that interferes with Library operations. The City reserves the right to monitor, inspect, and review the Lessee's business practices, including providing.input into the quality of foods sold by Lessee, the prices charged by Lessee, and quality of Lessee's employees. Lessee will not make any unlawful,improper or offensive use of the Premises;nor suffer, strip or waste thereof. Lessee will not permit anything to be done upon or about said Premises in any way tending to create a nuisance,be that at common law or by ordinance or by statute. Lessee will not allow the Premises at any time to fall into such a state of disrepair or disorder so as to increase the fire hazard thereon; nor install any power machinery on the Premises except under the supervision and with written consent of City. Lessee shall not store gasoline or other highly combustible materials on the Premises at any time nor use the Premises in such a way or for such purposes that the fire insurance rate is thereby increased or that would prevent City from taking advantage of reduced premium rates for long-term fire insurance policies. Lessee shall comply, at Lessee's own expense, with all laws and regulations of any municipal, county, state, federal or other public authority respecting the use of said premises. Lessee shall regularly occupy and use the Premises for the conduct of Lessees business, and shall not abandon or vacate the premises for more than ten (10) days without written approval of City. 5. USE OF CITY'S NAME ' Lessee shall not use the City's name or any other name,logo,graphic work, artwork, or trademark used by City in connection with the Library in its advertising or in any other capacity without written approval from the City. 6. UTILITIES/MAINTENANCE Lessee covenants and agrees to make all necessary repairs for damage to existing City facilities caused by Lessee's maintenance or use of the premises. Lessee shall also be responsible for the maintenance responsibilities detailed in Exhibit A. The Base Rent paid by the Lessee shall include all electric, water, sewerage and storm drain, and sanitary services utility fees. The Lessee shall be responsible for the payment of direct electric and water usage during any"Base Rent Waiver" period that is agreed upon by City and Lessee. 2016 Library Coffee Cafe Lease 2 1 Page The Lessee shall be responsible for any telephone utility fees used in the operation of the Coffee Cafe and Coffee Cafe Storage Area. Lessee shall be responsible for regular maintenance of the Coffee Cafe and for the routine bussing of the lobby area tables. 7. TAXES Lessee agrees to pay all taxes and assessments which during the term of the Lease may become due, become a lien or that may be levied by the state, county, city,or any other tax-levying body upon the Premises. Furthermore, Lessee agrees to pay all taxes and assessments on any taxable interest obtained by Lessee through this Agreement or on any taxable possessory interest,which Lessee may have in or to the Premises by reason of its occupancy. Furthermore, Lessee agrees to pay all taxes on all taxable property, real or personal, owned by it in or about the Premises. Upon making such payments,Lessee shall give the City a copy of the receipts and vouchers showing payment. Lessee understands that City property is exempt from property taxation until leased to a taxable entity. In the event that the term of the Lease extends beyond June 30 of any year, Lessee shall be responsible for payment of all property taxes for the entire tax year without proration, or, in the event of any change in property tax law, for any taxes due under such law. With respect to assessments for public improvements that are or may be payable in Bancroft installments, Lessee shall be required to pay only those installments that become due during the term of the Lease or this Amendment. 8. REPAIRS AND IMPROVEMENTS City shall not be required to make any repairs, alterations, additions or improvements to or upon the Premises during the term of this Lease, except those hereinafter specifically provided for. Lessee hereby agrees to maintain and keep the Premises in good order and repair during the entire term of this Lease at Lessee's own cost and expense. Lessee further agrees it will make no alteration, addition or improvements to or upon the Premises without the prior written consent of the City. City agrees to maintain the exterior and interior walls of the Library, 1JVAC system, roof, gutters, downspouts and foundations of the building and the sidewalks thereabouts. It is understood and agreed that City reserves to itself(and its successors and assigns) the right to alter,repair or improve the Premises, or to add thereto and for that purpose at any time may erect scaffolding and all other necessary structures about and upon the Premises, and City and City's representatives, contractors and their respective employees and agents for that purpose may enter in or about the Premises with such materials as may be necessary. If the repairs or improvements result in a significant,negative impact on the Lessee's sales figures, the City and Lessee shall negotiate an appropriate waiver of Base Rent owed by Lessee to the City. Lessee shall keep inconvenience to the City and its Library patrons at a minimum during periods of alterations to the premises. 9. SIGNAGE Lessee may erect, at its own expense, signage within the area of the Coffee Cafe. Signage is subject to the terms and conditions set forth in Exhibit A and further subject to approval by the City. Additional signage may possibly be placed in the western or southern facing portion of the Library's glass lobby entrance. Power will be provided by the Library for an electric or lighted sign at this location. The intention of this sign is to provide the coffee cafe with exposure to Hall Boulevard 2016 Library Coffee Cafe Lease 3 1 1' r �' I and the ability to send notice to vehicle and pedestrian traffic that the cafe is open for business. Any signage posted in the lobby windows must be approved by the City and meet the City's installation and fastening requirements. The Lessee may also, at their own expense, place a sandwich board or A-frame type sign alongside the entrance walk to the Library from Hall Boulevard. This sign would need to meet City code as well as be taken down each night by the Lessee's staff and stored in the Coffee Cafe. 10. CITY'S RIGHT OF ENTRY It shall be lawful for the City,its agents and representatives,at any reasonable time to enter into or upon the Premises for the purpose of examining the condition and use thereof. 11. GROSS REVENUE INFORMATION The Lessee shall provide the City with a quarterly detailed gross revenue report for the proceeding quarter's revenue figures. The City and Lessee will use these reports to evaluate if the established Base Rent needs to be adjusted during any future term of the lease. 12. TERMINATION OF LEASE At any time during the term of this Lease, City may, with due cause and through the City Manager, or designee, upon thirty (30) days written notice to Lessee, terminate the Lease and require that Lessee vacate the Premises and return the premises to the City in the condition prior to Lessee occupation of Premises. This termination of Lease will be at the discretion of the City should it be determined that the facility is needed for the location of a City function, including storage, or for any or all other reasons. A. Termination For Use Of Premises for Uses Not Directly Permitted: If at any time during the term of this Lease,Lessee uses the Premises for other than the intended purposes set out in this Lease and the attached Exhibit A,the City may,through its City Manager, or designee,upon ten (10) days written notice to Lessee, terminate the Lease and require that Lessee vacate the Premises and return the Premises to the City in their condition prior to Lessee's occupation of Premises. Lessee shall have the right to appeal any adverse decision by the City Manager to the City Council by filing a written request with the City Recorder, describing with particularity the decision of the City Manager from which Lessee appeals. The decision of the Council, as determined by a majority of the members voting, shall be final. 13. LIENS Lessee will not permit any lien of any kind, type or description to be placed or imposed upon the building in which the Premises are situated,or any part thereof,or the real estate on which it stands. 14. OVERLOADING OF FLOORS Lessee will not overload the floors of the Premises in such a way as to cause any undue or serious stress or strain upon the Library building, and the City shall have the right, at any time, to call upon any competent engineer or architect whom the City may choose, to decide whether or not the floors of the Premises are being properly used. The decision of said engineer or architect shall be final and binding upon Lessee; and in the event that the engineer or architect decides that the stress or strain is such as to imperil the Library building in whole or in part,Lessee agrees to immediately relieve said stress or strain in a manner satisfactory to the City. 2016 Library Coffee Cafe Lease 4 I' a g e E 15. NO USE OF HAZARDOUS SUBSTANCES No handling, storage, generation, creation, disposal, transportation or discharge of any Hazardous Substances shall be permitted on or about the Premises by Lessee, its employees, agents, customers or contractors. This restriction does not apply to ordinary office and janitorial supplies available over the counter for common use by members of the general public. Nor shall this prohibition apply to substances fully contained inside of motor vehicles if they are used in accordance with all applicable legal requirements. As used in this section, "Hazardous Substances" shall mean any substance,material or product defined or designated as hazardous, toxic,radioactive, dangerous or regulated wastes by any federal, state or local regulatory agency. 16. LIGHT AND AIR This Lease does notant any g g rights of access to light and air over the Premises or the Library building. � 17. DAMAGE BY FIRE OR OTHER CASUALTY In the event of any damage to the property by fire or other casualty, either party hereto may terminate this Lease as of the date of said fire or casualty. 18. INDEMNIFICATION Lessee agrees to indemnify, defend and hold harmless the City, its City Council, officers and employees from and against all liability arising from actions, suits,claims or demands attributable solely and exclusively to acts or omissions of Lessee,its employees, or agents during the Lessee's use and/or occupancy of the Premises during this Lease. City agrees to indemnify, defend and hold harmless the Lessee for all liability, arising from actions, suits, claims or demands attributable solely and exclusively to acts or omissions of City, in performance of this contract. The City shall give Lessee prompt and reasonable notice of any such claims or actions known to the City, and Lessee shall have the obligation to investigate, compromise and defend same, provided such claim is not caused by the negligence of the City,its employees or agents. In the event that there is any bodily injury at, or property damage to, any portion of the Premises caused by Lessee or any third party, Lessee shall immediately notify the City's Risk Manager and cooperate in the City's investigation of said incident. Lessee shall make all reports or documents concerning the incident, whether in its possession or the possession of its insurance carrier available ' to the City and will cooperate with the City in investigating, compromising or litigating the claim against such third parties. For any damage done to the Library property of the Premises and caused by the fault of Lessee, Lessee shall be given the option of repairing the damage or having the City repair the damage at Lessee's expense. The City shall give written notification to Lessee of any damage requiring repair and give Lessee thirty (30) days to commence repair. If within that period or such other period as may be mutually agreed upon, no effort has been made to effect repairs, then the repairs will be performed'-by the City and billed to Lessee. For damage done to or at the Library property or premises by third parties for which Lessee is not responsible, the City shall bear the initial cost of investigating, compromising or litigating the claim, but may recover such costs if otherwise permitted by law or this Agreement. 2016 Library Coffee Cafe Lease 5 !' a C 19. INSURANCE REQUIREMENT Insurance requirements set forth below do not in any way limit the amount or scope of liability of Lessee under this Agreement. The amounts listed indicate only the minimum amounts of insurance coverage the City will accept to help insure full performance of all terms and conditions of this Agreement. All insurance required by Lessee under this Agreement shall meet the following minimum requirements: A. Certificates: Notice of Cancellation. On or before the Effective Date, Lessee shall provide the City with certificates of insurance establishing the existence of all insurance policies required under this Section. Thereafter, the City must receive notice of the expiration or renewal of any policy at least thirty (30) days prior to the expiration or cancellation of any insurance policy. No insurance policy may be canceled, revised, terminated or allowed to lapse without at least thirty (30) days prior written notice being given to the City. Insurance must be maintained without any lapse in coverage during the entire initial Term and any extension thereof Insurance canceled without City consent shall be deemed an immediate Event of Default under this Agreement. The City shall also be given certified copies of Lessee's policies of insurance, upon request. B. Additional Insured. The City shall be named as an additional insured in each required policy and, for purposes of damage to the Premises, as a loss payee. Such insurance shall not be invalidated by any act,neglect or breach of contract by Lessee. i C. Primary Coverage. The required policies shall provide that the coverage is primary, and will not seek any contribution from any insurance or carried by the City. D. Company Ratings. All policies of insurance must be written by companies having an A.M. Best rating of "A" or better, or equivalent. The City may, upon thirty (30) days written notice to Lessee, require Lessee to change any carrier whose rating drops below an A rating. E. Required Insurance. At all times during this Agreement, Lessee shall provide and maintain the following types of coverage: 1) General Liability Insurance. Lessee shall maintain an occurrence form commercial general liability policy, personal injury liability, for the protection of Lessee and the City, insuring Lessee and the City against liability for damages because of personal injury, bodily injury, death, or damage to property (including the loss of use thereto and occurring on or in any way related to the premises or occasioned by'reason of the operations of Lessee. Such coverage shall name the City as an additional insured. Coverage shall be in an amount of not less than Two Million and No/100 Dollars ($2,000,000) combined single limit per occurrence for bodily injury and property damage for all coverage specified herein. 2) Fire Legal Liability Insurance. The City shall insure the building space and all improvements affixed thereto considered to be part of Premises. Lessee is responsible to insure all of its own personal property, which items shall not be covered by City insurance. Furthermore, Lessee must at all times carry Fire Legal Liability insurance coverage in an amount not less than One Hundred'Thousand and No/100 Dollars ($100,000). 3) Workers' Compensation Insurance. Lessee shall maintain in force Workers' Compensation insurance for all of its employees. In lieu of such insurance, Lessee may maintain a self- insurance program meeting the requirements of the State of Oregon. 2016 Library Coffee Cafe Lease 6 1 1' a �c F. Periodic Review. The City shall have the right to periodically review the types, limits and terms of insurance coverage. In the event the City determines in its exclusive discretion that such types,limits, and/or terms should be changed, the City will give Lessee a minimum of thirty (30) days notice of such determination and Lessee shall modify its coverage to comply with the new insurance requirements of the City. Lessee shall also provide the City with proof of such compliance by giving the City an updated certificate of insurance within said thirty (30) days. G. Subrogation. Except as limited by this subsection, the parties hereto waive any right of action that they might have against the other for loss or damage, to the extent that such loss or damage is covered by any insurance policy or policies and to the extent that proceeds (which proceeds are free and clear of any interest of third parties) are received by the parties claiming the loss or damage. This waiver of subrogation shall not extend to any applicable deductibles under such policy or policies. 20. DELIVERING UP PREMISES ON TERMINATION At the expiration of said term or upon any sooner termination,Lessee will quit and deliver up the leased Premises to City or those having City's estate in the Premises, peaceably, quietly, and in as good order and condition, reasonable use and wear thereof, damage by fire, unavoidable casualty and the elements alone excepted,as the same are now in or hereafter may be put in by City. 21. BREACH OF LEASE TERMS Except for failure to pay Rent in a timely manner (which shall not require notice of default by City) if Lessee fails to keep,perform or observe any of the terms and/or conditions imposed on it by this Lease for a period of ten (10) or more days after written notice of said failure by the City, or Lessee fails to surrender possession of the Premises at the Lease's conclusion, then, and in either event the City may I!, terminate the Lease at any time thereafter without further notice or demand on Lessee, enter the Premises and lawfully repossess it, expel Lessee (as well as any others claiming through Lessee) and remove/store Lessee's effects (all at Lessee's expense) without prejudice to any other remedy, action or suit which the City may be entitled to for arrearage, damage to property or City interests and/or breach of this Lease. Neither the termination of this Lease by forfeiture nor the taking or recovery of possession of the Premises shall deprive City of any other action, right, or remedy against Lessee for possession or damages,nor shall any omission by City to enforce any forfeiture,right or remedy to which City may be entitled be deemed a waiver by City of the right to enforce the performance of all terms and conditions of this Lease by Lessee. 22. HOLDING OVER In the event Lessee for any reason shall hold over after the expiration of this Lease, such holding over shall not be deemed to operate as a renewal or extension of this Lease, but shall only create a tenancy from month to month at a Base Rent equal to one hundred fifty percent (150%) of the last Base Rent payable during the Lease term,which may be terminated at will at any time by City. 23. NOTICES All notices, bills and payments shall be made in writing and may be given by personal delivery or certified mail, return receipt requested. Payments may be made by personal delivery, mail, or electronic transfer. The following addresses shall be used to transmit notices, bills, payments, and other information: 2016 Library Coffee Cafe Lease 7 1 ll a g c CITY of TIGARD LITERARY FEAST CAFE Attn: Joe Barrett, Sr. Management Analyst Attn: Joslyn Webster Address: 13125 SW Hall Blvd. Address: 13510 SW Ash Avenue, #2 i Tigard, Oregon 97223 Tigard, Oregon 97223 Phone: (503) 718-2477 Phone: (503) 432-0434 Email Address: joseph@tigard-or.gov Email Address: joslynwebsterL&gmail.com When so addressed, such communication shall be deemed given upon deposit in the United States mail, postage prepaid. In all other instances, notices,bills and payments shall be deemed given at the time of actual delivery. Changes may be made in the names and addresses of the person to whom notices,bills and payments are to be given by giving written notice pursuant to this paragraph. 24. HEIRS AND ASSIGNS All rights, remedies, and liabilities herein given to or imposed upon either of the parties hereto shall extend to, inure to the benefit of and bind, as the circumstances may require, the heirs, executors, administrators, successors and, so far as this Lease is assignable by the term hereof, to the assigns of such parties. 25. ASSIGNMENT No part of this Lease may be assigned, nor may a right of use to any portion of the Premises or property be conferred on any third person by any means, without the prior written consent of City that may be granted, conditioned or withheld in the City's exclusive discretion. Any assignment or attempted assignment without the City's prior written consent shall be void. 26. CONDEMNATION If the Premises or any interest therein is taken as a result of the exercise of the right of eminent domain, this Agreement shall terminate as to such portion as may be taken. 27. NON-WAIVER Waiver by either party of strict performance of any provision of this Agreement shall not be a waiver of or prejudice the party's right to require strict performance of the same provision in the future or of any other provision. 28. ADHERENCE TO LAW Lessee shall adhere to all applicable federal, state and local laws, rules, regulations and-ordinances, including laws governing its relationship with its employees, including but not limited to, laws, rules, regulations and policies concerning Workers' Compensation, minimum and prevailing wage requirements and occupational safety and health requirements. 29. TIME OF ESSENCE It is mutually agreed that time is of the essence in the performance of all covenants and conditions to be kept and performed under the terms of this Agreement. 1 5- 30. WARRANTIES/GUARANTEES Except for those warranties specifically set forth herein, the City makes no warranty, guarantee or averment of any nature whatsoever concerning the physical condition of premises, and it is agreed that the City will not be responsible for any loss, damage or costs which may be incurred by Lessee by reason of any such physical condition.. 2016 Library Coffee Cafe Lease 8 1 Page 31. HEADINGS The article and section headings contained herein are for convenience in reference and are not iintended to define or limit the scope of any provision of this Agreement. 32. CONSENT OF THE CITY Whenever consent approval or direction by the City is required under the terms contained herein, all such consent, approval or direction shall be received in writing from the City Manager, or designee. 33. MODIFICATION Any modification of this Agreement shall be mutually agreed upon and reduced to writing, and to the extent it does not affect a major business term of the Agreement, may be done for the City, by its City Manager, or designee. 34. GOOD FAITH The terms and conditions set forth in this Agreement are for the benefit of both parties. The parties further agree and understand that time is of the essence. In the performance of the duties and obligations set forth herein, there is an obligation and duty of reasonable diligence and good faith imposed on the parties to fulfill the terms, conditions and covenants in this Agreement. 35. ATTORNEY FEES In the event of a dispute between the parties as to the interpretation or applicability of any of the provisions of this Lease, and a suit or action is instituted in connection therewith, the prevailing party shall be entitled to recover in addition to costs and disbursements (including expert's fees and all costs associated with discovery), such sum as the court may adjudge reasonable as attorney fees, or in the event of appeal or review, such fees as may be as allowed by the court. Washington County Circuit Court shall be the venue for an action or suit concerning the terms of this Agreement. 36. ENTIRE AGREEMENT It is understood and agreed that this instrument contains the entire agreement between the parties relating to the subject matter hereof. It is further understood and agreed by Lessee that the City and its agents have made no representations or promises with respect to this Lease or the making or entry into this Lease, except as expressly set forth in this Lease. 37. WARRANT OF AUTHORITY The City and Lessee warrant that all actions required to authorize entry by the parties into this Lease have been performed, and the individuals executing this Agreement warrant that they have full authority to execute this Agreement on behalf of the entity for whom they are acting herein. IN WITNESS WHEREOF, City has caused this Lease Agreement to be executed by its duly authorized undersigned officer and Lessee has executed this Lease Agreement on the date hereinabove first written. CITY OF TIGARD, O ON LITEJJARY FEAST E By. ' B5 Marty Wine,City Manager ;Au riz d epresentative Date: �2� (5— Date: 2016 Library-Coffee Cafe Lease 9 I' NOTICE&WRITTEN CONSENT REQUIREMENTS-TIGARD LIBRARY COFFEE CAFE LEASE Use of Premises ➢ Regularly occupy and use premises—cannot abandon or vacate for more than ten (10) days without written approval of City. Repairs & Improvements ➢ Lessee will make no alteration,addition or improvements without prior written consent of the City. Termination of Lease ➢ If Lessee'uses premises for other than intended purposes (as stated in lease), the City can terminate Lease with ten (10) days written notice. Lessee can appeal decision of City Manager to City Council. Signs ➢ Lessee may erect, at its own expense, signage within the area of the Coffee Cafe. Signage is subject to the terms and conditions set forth in Exhibit A and further subject to approval by the City. ➢ Additional signage, specifically a neon or lighted sign, may possible be placed in the western or southern facing portion of the Library's glass lobby entrance. Power will be provided by the Library for such a sign. ➢ The Lessee may also, at their own expense, place a sandwich board or A-frame type sign alongside the entrance walk to the Library from Hall Boulevard. This sign would need to meet City code as well as be taken down each night by the Lessee's staff and stored in the Coffee Cafe. Damage by Fire or Other Casualty ➢ If Property is damaged by fire or other casualty, either party may terminate the Lease as of the date of casualty. Indemnification ➢ The City must give Lessee thirty (30) days written notification to commence repair of damage caused by Lessee. Insurance Certificates ➢ City must receive notice thirty (30) days before expiration or cancellation of insurance policies. ➢ City can give Lessee thirty(30) days notice to change insurance carrier if drops below an"A"rating. ➢ City can give thirty (30) days notice to Lessee to modify coverage. ➢ Lessee provides certificate of insurance fifteen (15) days after change. , Breach of Lease Terms ➢ If Lessee fails to perform/observe terms/conditions of Lease for ten (10) days or more after written notice of said failure by the City,the City may terminate the Lease at any time without further notice. Notices Written notice sent in the mail is deemed delivered after forty-eight (48) hours after the deposit in mail system. 2016 Library Coffee Cafe Lease 10 1'a r c. i EXHIBIT A LEASE DETAILS The scope of the required services consist of the operation and management of a specialty coffee caf6 located in the entrance lobby of the Tigard Public Library. Details on the scope of services are as follows: A. SERVICE PROGRAM Lessee shall operate and manage a specialty coffee cafe designed to enhance the Library environment and meet the desires of the community. The Coffee Caf6 should be open for business as close to the Library's open hours as possible. Special consideration will be considered for opening the Coffee Caf6 earlier than the Library as well as closing prior to the Library's closing. B. LOCATION The location of the Coffee Caf6 will be in the NE corner of the Library's main entrance lobby. The Library is located at 13500 SW Hall Boulevard,Tigard, Oregon 97223. C. SIZE 1. Coffee Caf6 The size of the Coffee Caf6 is approximately 190 square feet. The dimensions of the Coffee Cafe are approximately 14 feet x 16 feet- 4 inches. 2. Coffee Caf6 Storage Area The site includes approximately 51 square feet of attached storage space. The dimensions of the Coffee Caf6 Storage Area are approximately 6 feet x 8 feet- 6 inches with a 3-foot door. D. SEATING The City has furnished tables and chairs in the lobby for use by Coffee Cafe patrons and the general public. During the summer months, the City may provide outdoor seating that may also be used by Coffee Caf6 patrons. Additional seating may be provided by Lessee at Lessee's expense only after prior City approval of seating style, quality and placement. Lessee will be responsible for bussing the Lobby area and immediately cleaning up any spills or messes in the Lobby. E. MENU PROFILE The City intends to have a menu that follows the traditional coffee house menu. Menu items the City envisions include,but are not necessarily limited to, the following: Espresso Drinks (including decaffeinated and sugar-free options); M' Brewed Coffee (with typical condiments); Z7 Tea (including Chai); I' Non-Dairy alternatives (i.e. soy milk), I' Bottled Juices (no red juices); Z7 Smoothies and Blended Coffee Drinks; Donuts; Fresh Pastries; Cookies; "I Bagels; Ty Fruit; Salads; Soup; and Panni and Deli Sandwiches. 2016 Library Coffee Caf6 Lease 11 Ila ;� �: The City will strongly deter any soda or candy sales at the Coffee Cafe. Absolutely no alcoholic beverage sales shall be permitted. There will be no food preparation permitted on site which may violate any food handling regulations or permits. All baked goods must be prepared off-site. The City reserves the right to review and shall have final approval of the menu prior to posting to the public. The City further reserves the right to review any changes to the menu prior to the change is posted to the public. F. RETAIL SALES Lessee will have the option of conducting retails sales if they so choose, i.e. whole bean coffee, mugs, etc. Retail products must be located inside the Coffee Cafe's location and must not flow outside into the Library lobby. The City reserves the right to review and shall have final approval on any item prior to sale to the public. G. PRICING The City will require the Lessee to charge reasonable prices for all food and beverages. The City reserves the right to review and approve menu prices and any changes made to pricing prior to posting to the public. H. HOURS OF OPERATION The Library's current hours of operation are as follows: Open Close Monday 10:00 AM 9:00 PM Tuesday 10:00 AM 9:00 PM Wednesday 10:00 AM 9:00 PM Thursday* 10:00 AM 9:00 PM Friday 10:00 AM 9:00 PM Saturday 10:00 AM 6:00 PM Sunday 12:00 PM 6:00 PM There is the potential for the Coffee Cafe to be open earlier than the Library on certain days and possible close before the Library on other days. The City and the Lessee will determine the hours of operation on an as needed basis. *The Library will be closed on Thursday at the onset of the Lease. The Library will reinstate Thursday hours beginning on January 7, 2016. I. GENERAL CONSIDERATIONS 1. The Coffee Cafe area is limited, and special attention must be given to the organization of each element necessary to Coffee Cafe operation. 2. The equipment and its placement are important visual elements of the overall design and appearance of the Coffee Cafe. Careful attention must be given'-to each piece of equipment and how it is viewed by the public. All equipment is subject to design review. 3. All utilities, cords, and the like shall be concealed; surface mounted or exposed utilities are not permitted. 4. Structures such as sneeze guards and canopies are not permitted. 2016 Library Coffee Cafe Lease 12 1' a n e i i i 5. The City reserves the right to review and approve the name the Lessee gives the Coffee Cafe prior to posting in public view. 6. The City will not be responsible for any damage, loss, or theft of property in Coffee Cafe. The City will provide a simple motion sensor in the Coffee Cafe but will not provide security for the area. The Lessee will be responsible for ensuring that the proper equipment and consumables are properly secured when the Coffee Cafe is not open for business. J. PROVIDED BY CITY The City shall provide the following (this represents a partial list, particularly for electrical, please refer to the detailed plans for a more accurate total): 1. Coffee Cafe a. Coffee Cafe area measuring approximately 14 feet x 16 feet- 4 inches. b. Counter area with sinks c. Point of sale location d. Pastry display case e. 208v jbox electrical outlets L Undercounter refrigerator g. Undercounter ice machine h. Undercounter dishwasher i. In-sink Disposer j. Locking storage cabinets (undercounter and wall) k. Painted gypsum walls 1. Cold/Hot Water M. Drains n. Phone jack o. Lighting p. Signage and menu board areas q. Local motion sensor with local sounding alarm r. Additional Amenities 1) Wi Fi Connection for patron use 2) Courtyard adjacent to Lobby 3) Access to Fanno Creek Trail system 4) Observation platform,gazebo, and outdoor seating on 14 acres of natural setting. 5) Art Work 2. Coffee Cafe Storage Area a. Coffee Cafe Storage Area measuring approximately 6 feet x 8 feet - 6 inches with a 3-foot door. b. 220v AC electrical outlet 3. Lobby Area a. Tables (currently 4 bistro tables are in the Lobby proper) b.. Chairs (currently 12 bistro chairs & 3 oversized plush chairs are located in the Lobby proper). 2016 Library Coffee Cafe Lease 13 K. PROVIDED BY LESSEE The Lessee shall provide the following standard Coffee Cafe equipment: 1. Coffee Cafe a. Espresso machine (2, 3, or 4-group) b. Coffee brewer/maker e. Coffee grinder d. Microwave oven e. Toaster or toaster oven L Blender g. Cash register h. Signage and menu boards L Any other equipment not provided by the City as listed above, including installation, that is required for the successful operation of a specialty coffee cafe. j. All consumable items, including but not limited to: cups, coffee, pastries, and other food items. All cups and lids must meet approval by the City to minimize spill damage to the Library and all materials. 2. Coffee Cafe Storage Area a. Shelving Units b. Reach-in refrigerator 3. Any permits required to operate a specialty coffee cafe. 4. A City of Tigard Business Tax License. 5. Lessee will be required to provide all equipment not listed in this packet that is necessary to the operation of the Coffee Cafe. O. OPERATING STANDARDS The following operating standards must be met and followed on a.daily basis by the Lessee and all employees at the Coffee Cafe: 1. Health Standards The Lessee shall be responsible for meeting all federal, state, and local health standards that may be associated with the operation of a specialty coffee cafe. 2. Service Standards Lessee's service shall be timely, attentive and friendly. Service shall be conducted in a professional manner in accordance with the standards of the City and the Library. 3. Employee Standards Lessee staff shall ensure timely, attentive, and friendly service. Beverage and food orders shall be taken in a prompt, friendly, and courteous manner. The Lessee will be required to recruit, train, supervise, direct, and deploy the optimum number of employees to match the requirements of the work. Employees should be clean, neat, well-groomed, be free from offensive body odor, professional, courteous and friendly. The City may, at its sole discretion, require that the Lessee require all Coffee Cafe employees wear apparel which includes the vendor's name and or logo. Aprons would be the City's preferred logoed apparel. The logoed 2016 Library Coffee Cafe Lease 14 1 P a r c i s apparel would serve to distinguish Lessee's employees from City's employees, benefiting both parties. All employees working at the Coffee Cafe must possess a current Oregon Food Handler's Certificate. Lessee will be required to have a drug testing program in place for all their employees. i 4. Food Quaft a. Lessee shall comply with all heath regulations related to the processing, preparing, serving, storing, and disposal of food items,including but not limited to: 1). Regulations for the handling of food waste; 2). Monitoring; 3). Adjusting and maintenance of temperature controls for refrigeration equipment; 4). Testing and reusing of unrefrigerated items;and 5). Items accessible to customers. b. Lessee shall make every effort to ensure that only the highest quality of food is sold in the Library. Efforts should include, but are not limited to: 1). Coffee shall be ground on demand from whole beans from a quality roaster, competitive in quality with the best roasters in the Northwest for flavor, aroma, body, and acidity; 2). Espresso beans shall be appropriate for industry-recognized professional espresso use; 3). Unopened packages of coffee beans should be used within two months and open packages used within ten (10) days; 4). Butter, milk, and milk products shall be USDA Grade "A", 5). Pastries shall be fresh daily. 5. Delivery First-of-the-morning deliveries shall be made at least thirty (30) minutes prior to Library opening and may be made only through the front Lobby doors. There will be no loading dock available on site for Lessee use. Deliveries must be carried or hand-trucked into the site,vehicles may not drive on the Library's Plaza area. Small deliveries made be made throughout the day as needed so long as they do not interfere with Library patrons or parking lot traffic. 6. Maintenance Obligations The following maintenance obligations will be required of the Lessee: a. Daily Maintenance Lessee will be responsible for keeping the Coffee Cafe area clean, neat, and in good working order. Lessee will also be responsible for bussing the Lobby area as needed and immediately cleaning up any spills and messes in the Lobby. No boxes, cartons, bags, or similar items may remain in view of public areas. b. Trash Trash shall be disposed of in the Library trash bins located at the east end of the Library. Lessee shall not carry any garbage, trash, other refuse, or recyclable material through the Library, but shall transport all such materials to the trash receptacles and recycling containers by the pathways outside of the building. Refuse that may create a hazard or which may be unsightly or objectionable shall be immediately removed. 2016 Library Coffee Cafe Lease 15 1 1' a r, e 7. Access Lessee shall exercise extreme caution and care with respect to the handling and use of access to the Library and of any access devises (i.e. keys, security cards, etc.) provided by the City for entry to the Library. Lessee shall immediately report any lost or missing access devises to the City and will pay the City any fees requested by the City for replacement of such devises. 8. Non-Compliance Failure to comply with any of these Operating Standards may result in a fine of One Hundred and No/100 Dollars ($100.00) per day if the issue is not addressed within seven (7) days of receiving a formal letter of notice from the City. If the issue continues unaddressed beyond fifteen (15) days, the City reserves the right to terminate the Agreement. 4 2016 Library Coffee Cafe Lease 16 P a