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HomeMy WebLinkAboutRES 16-225RESOLUTION NO. 16-225 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a two (2) year Consignment Agreement with Games People Play, Inc. (GPP), of Beaumont, Texas, for the sale of golf merchandise at the golf pro shop located at Henry Homberg Golf Course. The agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 8th day of November, 2016. I*Zbkrl� &'IIAII"� - Ma or Becky ArWes - CONSIGNMENT AGREEMENT BETWEEN THE CITY OF BEAUMONT, TEXAS AND GAMES PEOPLE PLAY, INC. Pursuant to this agreement, the "consignee" hereby known as the City of Beaumont (COB), a home -rule municipality in the State of Texas and the "consignor" hereby known as Games People Play, Inc. (GPP) both agree to the terms of this agreement as it is set forth below: I. OBLIGATIONS OF GAMES PEOPLE PLAY 1. Games People Play, Inc. (GPP) hereby agrees to provide the City of Beaumont (COB) with a list of merchandise or goods to be displayed at the location of 5490 Babe Zaharias Drive,Beaumont, Texas 77705. This list shall include a physical description along with the quantity of merchandise provided. GPP agrees to provide this list to COB each and every time it brings merchandise to the City of Beaumont. Both parties agree that the aforementioned merchandise will only be sold at 5490 Babe Zaharias Drive. 2. Games People Play, Inc. agrees to "refresh" or provide new or additional merchandise to the City of Beaumont every 45 days. This shall be known as the "refresher period." GPP agrees to provide only new and or high-quality merchandise to the City of Beaumont. 3. GPP shall be responsible for organizing, showing, displaying, or otherwise presenting merchandise that they deliver to the City of Beaumont. The City of Beaumont shall provide staff for assisting in this endeavor. 4. GPP agrees to transport merchandise to 5490 Babe Zaharias Drive, and display merchandise at 5490 Babe Zaharias Drive at no cost to the City of Beaumont. 5. Merchandise provided by GPP to COB will at all times remain the property of GPP. The City of Beaumont shall not make or suppose claim to property provided by GPP, unless provided for by a specific provision of this agreement. 6. GPP retains all rights to set the price of merchandise provided by them to the City of Beaumont. The City of Beaumont shall have no right or prerogative to amend, alter, reduce, increase, or in any way change the price of merchandise provided by GPP without the express written consent of GPP. II. OBLIGATIONS OF THE CITY OF BEAUMONT 7. City of Beaumont agrees to display merchandise received by GPP in an area of high visibility which can be readily discernible to an average customer. Page 1 of 3 EXHIBIT "A" 8. The City of Beaumont or its employees shall be responsible for selling merchandise provided by GPP. 9. COB or its employees agree to forward any and all special order to GPP by email or phone. 10. The City of Beaumont will be responsible for general maintenance related to the shop located at 5490 Babe Zaharias Drive. III. REPORTING REQUIREMENTS & PAYMENT PROVISION 11. GPP agrees to provide the City of Beaumont with a detailed listing of merchandise it will provide to COB. GPP agrees to provide this listing every time it provides merchandise to COB. 12. The City of Beaumont or its employees shall be responsible for keeping a detailed listing or report of each GPP item sold on a monthly basis. COB agrees to remit this report to GPP on a monthly basis. All items received by COB from GPP must be reconciled to this report each month. 13. The City of Beaumont shall be responsible for tabulating the total sales of all GPP items sold during a given month. The City of Beaumont shall be allowed to retain 10% of this amount and shall remit 90% of this amount to GPP by the 5t' day of each month in accordance with the previous month's sales. Any amount not received by GPP on the 30'b of said month shall be subject to an additional finance charge not to exceed 1% per month. 14. City of Beaumont shall electronically remit payment due to GPP. GPP shall provide banking information for this purpose. IV. MERCHANDISE STATUS 15. GPP merchandise not sold by the end of each "refresher period" shall be evaluated by COB staff. Any merchandise not likely to be sold shall be returned to GPP and GPP shall incur any such costs associated with accepting the returned merchandise. 16. The City of Beaumont agrees to be responsible for an amount not to exceed fifty percent (50%) of the replacement cost of merchandise or inventory lost due to "shrinkage," which is commonly defined as the loss of inventory for reasons including, but not limited to, theft, fraud, damage in transit, deterioration, or cashier error. The City of Beaumont agrees to report any items lost due to shrinkage to GPP and GPP agrees to report any items lost due to shrinkage to the City of Beaumont. This provision shall only apply to (1) merchandise or inventory located at 5490 Babe Zaharias Drive, Beaumont, Texas 77705 or (2) merchandise or inventory in transit to 5490 Babe Zaharias Drive, Beaumont, Texas 77705. V. TERMS OF AGREEMENT 17. This agreement shall become effective for a period of two (2) years from the date of execution. 18. This agreement can be cancelled by either party, with or without cause, upon providing a 30 - day written notice to the other party. Page 2 of 3 19. In the event that the City of Beaumont terminates or cancels this contract, with or without cause, the City of Beaumont agrees to return any and all merchandise on -hand or on order to GPP. 20. This consignment agreement constitutes the sole and entire agreement of the parties with respect to the subject matter hereof and supersedes any prior understandings or written or oral agreement between the parties respecting such subject matter. 21. Games People Play, Inc and the City of Beaumont do hereby understand and agree to the terms set forth above by their signature found below. City of Beaumont Name: Position: Date: Page 3 of 3 Games People Play Name: Position: Date: