SR 05:097 - Laserfiche WebLink

6.0 START-UP INVESTMENT. 6.01 Start-Up Supplies and Furnishings and Equipment. LIFETIME TENNIS has agreed to procure additional Supplies, Furnishings and Equipment at the start of this Agreement term to upgrade operations at the Facilities. These upgrades include Equipment for tennis play (approximate cost of $12,000-$17,000) and Furnishings for the clubroom (approximate cost of $6,000-$8,000), as described in LIFETIME TENNIS's proposal. These purchases shall be approved in advance by CITY. 6.02. Use of Furnishings and Equipment. The Furnishings and Equipment purchased by LIFETIME TENNIS shall remain the property of LIFETIME TENNIS, but shall be available for general, public use throughout the term of the Agreement, including Furnishings in the clubroom. CITY shall not be responsible for damage caused by such public use. 7.0 COMPENSATION. 7.01 Transactions. A CITY employee shall run all financial transactions through a point of sale ("POS") system with the Pro Shop cash register. CITY shall deposit all cash and check receipts daily. 7.02 Tips and Gratuities. LIFETIME TENNIS, its employees and approved subcontractors shall not accept tips or gratuities. 7.03 Fixed Management Fee. Tennis Revenues are defined as: court rentals, lesson fees, leagues fees, toumaments fees and ball hopper rentals ("Tennis Revenues"). Tennis Revenues exclude Pro Shop Revenues. The fixed management fee to be paid to LIFETIME TENNIS shall be 80% of the Tennis Revenues ("Fixed Management Fee"). Compensation to LIFETIME TENNIS for lessons shall be based on the resident rate, regardless of a player's resident or nonresident status. 7.04 Incentive Management Fee. In addition to the Fixed Management Fee, CITY shall pay LIFETIME TENNIS an incentive fee equal to $2,500 for every $25,000 (not prorated) in Tennis Revenues generated above $300,000 in an Operating Year, starting with the first complete Operating Year beginning on July 1 (the "Incentive Management Fee"). 7.05 Pro Shop. LIFETIME TENNIS shall pay CITY a monthly rental for the Pro Shop of $500 per month, with annual increases each Operating Year often percent (10%). LIFETIME TENNIS shall be entitled to all of the revenues of the Pro Shop, including the sate of tennis equipment and related items, food and beverages ("Pro Shop Revenues"). 7.06 Payment. 7.06.1 Payment of Incentive Management Fee. At the end of each month, LIFETIME TENNIS shall submit a check request with acceptable documentation showing revenue for the prior month, including Tennis Revenues. Within thirty (30) days of approval by CITY, 14