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HomeMy WebLinkAboutRES 19-024RESOLUTION NO. 19-024 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 Consignment Agreement between the City of Beaumont and Clarke Distribution, Inc., of Houston, for one year, with an additional one year renewal option, for the sale of high quality tennis merchandise at the Tennis Center. The Agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 29th day of January, 2019. i CONSIGNMENT AGREEMENT BETWEEN THE CITY OF BEAUMONT, TEXAS AND CLARKE DISTRIBUTING COMPANY 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 Clarke Distributing Company (CDC) both agree to the terms of this Agreement as it is set forth below: I. OBLIGATIONS OF CLARKE DISTRIBUTING COMPANY 1. Clarke Distributing Company (CDC) hereby agrees to provide the City of Beaumont (COB) with a list of merchandise or goods to be displayed at the location of 6455 College Street, Beaumont, Texas 77707. This list shall include a physical description along with the quantity of merchandise provided. CDC agrees to provide this list to COB each and every time it brings merchandise to the COB. Both parties agree that the aforementioned merchandise will only be sold at 6455 College Street, Beaumont, Texas 77707. 2. CDC agrees to "refresh" or provide new or additional merchandise to the COB every forty-five (45) days. This shall be known as the "refresher period." CDC agrees to provide only new and/or high-quality merchandise to the COB. 3. CDC shall be responsible for organizing, showing, displaying, or otherwise presenting merchandise that they deliver to the COB. The COB shall provide staff for assisting in this endeavor. 4. CDC agrees to transport merchandise to 6455 College Street, Beaumont, Texas 77707, and display merchandise at 6455 College Street at no cost to the COB. 5. Merchandise provided by CDC to COB will at all times remain the property of CDC. COB shall not make or suppose claim to property provided by CDC, unless provided for by a specific provision of this Agreement. Page 1 of 4 0:1:111-111 _N 6. \CDC retains all rights to set the price of merchandise provided by them to the COB. COB shall have no right or prerogative to amend, alter, reduce, increase, or in any way change the price of merchandise provided by CDC without the express written consent of CDC. II. OBLIGATIONS OF THE CITY OF BEAUMONT 7. COB agrees to display merchandise received by CDC in an area of high visibility which can be readily discernible to an average customer. 8. COB or its employees shall be responsible for selling merchandise provided by CDC. 9. COB or its employees agree to forward any and all special order to CDC by email or phone. 10. COB will be responsible for general maintenance related to the shop located at 6455 College Street, Beaumont, Texas 77707. III. REPORTING REQUIREMENTS & PAYMENT PROVISION 11. CDC agrees to provide the COB with a detailed listing of merchandise it will provide to COB. CDC agrees to provide this listing every time it provides merchandise to COB. 12. COB or its employees shall be responsible for keeping a detailed listing or report of each CDC item sold on a monthly basis. COB agrees to remit this report to CDC on a monthly basis. All items received by COB from CDC must be reconciled to this report each month. 13. COB shall be responsible for tabulating the total sales of all CDC items sold during a given month. COB shall be allowed to retain ten percent (10%) of this amount and shall remit ninety percent (90%) of this amount to CDC by the fifth (51h) day of each month in accordance with the previous month's sales. Any amount not received by CDC on the thirtieth (30`h) of said month shall be subject to an additional finance charge not to exceed one percent (1%) per month. 14. COB shall electronically remit payment due to CDC. CDC shall provide banking Page 2 of 4 information for this purpose. IV. MERCHANDISE STATUS 15. CDC 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 CDC and CDC shall incur any such costs associated with accepting the returned merchandise. 16. COB 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, deterioration, or cashier error. COB agrees to report any items lost due to shrinkage to CDC and CDC agrees to report any items lost due to shrinkage to COB. This provision shall only apply to (1) merchandise or inventory located at 6455 College Street, Beaumont, Texas 77707. V. TERMS OF AGREEMENT 17. This Agreement shall become effective for a period of one (1) year from the date of execution. COB may elect to renew this Agreement for an additional one (1) year period, by sending written notice to CDC of its intent to do so. 18. This Agreement can be cancelled by either party, with or without cause, upon providing a thirty (3 0) day written notice to the other party. 19. In the event that COB terminates or cancels this contract, with or without cause, the COB agrees to return any and all merchandise on -hand or on -order to CDC. 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. Clarke Distributing Company and the City of Beaumont do hereby understand and agree to the terms set forth above by their signature found below. Page 3 of 4 CITY OF BEAUMONT CLARKE DISTRIBUTING COMPANY Signature: Signature: Printed Name: Kyle Hayes Printed Name: Position: City Manager Position: Date: Date: Page 4 of 4