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HomeMy WebLinkAboutOrdinance No. 02-1362 CITY OF THE COLONY, TEXAS ORDINANCE NO. 0g~ I ~ AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH JT'S, INC. FOR A CONCESSION OPERATION AT HIDDEN COVE PARK; ATTACHING THE APPROVED FORM OF CONTRACT AS EXHIBIT "A"; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the City Manager of the City of The Colony, Texas is hereby authorized to execute on behalf of the City a contract with J.T.'s, Inc. for a concession operation at Hidden Cove Park. The approved form of contract is attached hereto as Exhibit "A", and made a part hereof for such purposes. SECTION 2. This Ordinance shall take effect immediately from and after its passage by the City Council of the City of The Colony, Texas. DULY PASSED AND APPROVED by the City Council of the City of The Colony, Texas this 1st day of April 2002. x~~ROVED: ~ll~e Sh a~on~, May~r~'-x~ ATTEST: Patti A. Hicks, Deputy City Secretary APPROVED AS TO FORM: ~Hikel,~Cit~dk'~O~ey/ STATE OF TEXAS HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT COUNTY OF DENTON This agreement, entered into this day of ,2002, by and between the City of The Colony, a Home Rule municipal corporation of the State of Texas, hereinafter called "City," and JT's, Inc., hereinafter called "Concessionaire." Witnesseth WHEREAS, the City desires to have provided quality food and beverage service through concession operations in the following facilities, described herein, leased by the City of The Colony and operated by the City; WHEREAS, the Concessionaire is willing and able to provide such food and beverage services, park and camping supplies, rental of boats, bicycles and other recreational equipment in said buildings and facilities; WHEREAS, City is the Lessor of the premises commonly known as Hidden Cove Park; WHEREAS, the Concessionaire agrees to the use of Hidden Cove Park pursuant to "Proposal for Hidden Cove Park Recreational Development" attached as Exhibit "B;" and WHEREAS, Concessionaire is desirous of leasing said concession building to operate for a food and beverage concession and provide park and camping supplies, rental of boats, bicycles and other recreational equipment on such leased premises. NOW, THEREFORE, in consideration of the promises, covenants, terms and conditions herein contained, the parties mutually agree: I. Demised Premises Hidden Cove Park located at , The Colony, Texas. II. Term of Agreement The term of this agreement shall be for a period of five (5) years, commencing on ., 2002, and terminating on , 2007, unless sooner terminated as hereinafter provided. Furthermore, Concessionaire shall have an option to renew this agreement for one or more additional term(s) of five (5) years (60 months) (the "Renewal Term"). HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT Page 1 C:\WINDOWS\Temporary Internet Files\OLK2362\Concessionaire Agreement03-27fin.doc III. Renewal Terms (a) During each Renewal Term the lease will continue as written except that the base rent will be adjusted to reflect increases in the Consumer Price Index for "Dallas Fort Worth Area, All Items," issued by the Bureau of Labor Statistics of the Unites States Department of Labor. (b) The option to extend for the Renewal Term(s) must be exercised by written notice delivered to the Assistant Director of The Colony Parks and Recreation Department ninety days before the Termination Date. IV. Rental Terms Concessionaire shall pay as rental: (a) The base rent of $400.00 a month to cover costs of utilities and use of building from April 1-October 31of each year of this agreement; $200.00 per month from November 1-March 31 each year of this agreement. (b) 2% of the total gross sales for each month, to be paid quarterly. (c) "Gross Sales" means the entire amount of the sales price, whether for cash or otherwise, of alt sales of merchandise (including gift and merchandise certificates), services, and all other receipts of all business conducted in or from the Premises. Each sale on installment or credit will be treated as a sale for the full price in the month during which the sale was made, irrespective of when Tenant receives payment from its customer. Gross Sales, however, will not include any sums collected and paid out for any sales or excise tax. (d) Such rentals shall be paid at the office located at Hidden Cove Park. (e) The base rent shall be payable in advance on the first day of each and every month. (f) "Gross-Up": In the event that during the calendar year in which the commencement date occurs the City incurs an increase in cost for electricity, wastewater and water, then the base rent shall be grossed up to include all additional costs and expenses that the City determines in good faith it is obligated to pay the providers for these services. (g) All checks shall be made payable to Hidden Cove Park and any overdue rentals shall bear interest at the rate of 10% per month. (h) Failure to pay the rental when due shall constitute a breach of the agreement and shall be grounds for termination of the agreement by City. HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT Page 2 C:\WINDOWS\Temporary Internet Files\OLK2362\Concessionaire Agreement03-27fin.doc V. Gross Income Statement Concessionaire shall present a statement of the gross income of the concession on a quarterly basis to the office of Hidden Cove Park. Failure to comply shall constitute a breach of this agreement. VI. Inspection of Records Concessionaire shall keep accurate records of all sales and receipts in accordance with such bookkeeping systems as City may approve; and City shall have the right to inspect the books, records and inventories of the Concessionaire at any scheduled reasonable time for the purpose of ascertaining the correct amounts due the City under the terms of this agreement. VII. Performance Security Concessionaire shall deposit with the director of finance, without interest, legal tender or a certified or cashier's check in an amount equal to two months' base rent as security for the full and faithful performance of this agreement by Concessionaire and which may be used by City for the purpose of remedying any default in the performance of any of the terms of this agreement. In lieu thereof, Concessionaire may post bond in said sum, executed by a surety or sureties approved in writing by the director of finance and the office of the corporation counsel, naming City as obligee and Concessionaire as principal. Said security or the balance thereof shall be returned to Concessionaire only after Concessionaire has fully performed this agreement. VIII. Scope of Concession (a) Concessionaire shall comply with all requirements, rules and guidelines set forth in the lease agreement between the City of The Colony and the United States Army Corps of Engineers outlined in Department of the Army Lease to Non-State Governmental Agencies for Public and Recreational purposes, Lewisville Lake, Denton County, Texas NO. DACW63-1-00-0816, a copy of which is attached to this agreement as Exhibit "B." (b) Concessionaire will have exclusive right to provide services outlined in the agreement at Hidden Cove Park and rights of first refusal to provide similar services at Stewart Creek Park. (c) Concessionaire watercraft may not be tied to existing courtesy dock. Plans and specifications for alternate courtesy dock must be submitted to the City and is subject to Corps approval. (d) The prices charged by Concessionaire for services, food and drinks shall be reasonable and shall not be in excess of prices prevailing elsewhere for the same kind and quality of service. (e) At no time shall Concessionaire sell or give away any alcoholic beverages or tobacco products on the premises. HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT Page 3 C:\WINDOWS\Temporary Internet Files\OLK2362\Concessionaire Agreement03-27fin.doc (f) Concessionaire shall not allow any person to live or sleep on the premises, nor shall he permit disorderly persons to remain upon or loiter within the demised premises. (g) Concessionaire shall not use or permit the premises to be used for any other purpose, or for any unlawful, immoral or indecent activity. Concessionaire shall confine his activities to the area rented by him under the terms of this agreement. (h) Concessionaire shall obtain and maintain current health/food handler permits, as required by law. (i) The Assistant Director of The Colony Parks and Recreation Department or his designee must approve all information contained on hiddencovepark.com website and any other marketing materials created/distributed by Concessionaire. IX. Alteration, Repairs or Improvements (a) Concessionaire shall not make any alterations, repairs, or improvements to the concession building or to the area immediately surrounding said building without obtaining the prior written consent of the Assistant Director of The Colony Parks and Recreation Department or his designee. Requests to make any alterations, repairs or improvements shall be in writing. Any such permitted alterations, repairs or improvements shall be made at the expense of Concessionaire and shall become the property of City. (b) Concessionaire shall not post any signs without obtaining the prior consent of the Assistant Director of The Colony Parks and Recreation Department or his designee. (c) Concessionaire shall submit a five-year plan of development, maintenance and operation, to be reviewed and updated each year. X. Maintenance of Concession Area (a) Concessionaire shall be responsible for the reasonable and proper care of the concession building. He shall repair, or cause to be repaired, any damages to said property caused by himself, his employees, agents, guests or patrons. (b) Concessionaire shall keep and maintain the building and the said area in a clean and sanitary condition and shall comply with the rules and regulations of the board of health. (c) Concessionaire shall provide adequate garbage and refuse containers, if more are needed beyond what the city has provided, which shall conform in appearance to the existing containers in the park area. Concessionaire shall empty trash receptacles and clean-up ground/shorelines trash resulting from their customers' use into dumpsters provided by the City. (d) Concessionaire shall maintain proper Material Safety Data Sheets ("MSDS") on-site for all hazardous materials. Concessionaire shall provide the City with a detailed hazardous material storage and handling plan. HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT Page 4 C:\WINDOWS\Temporary Internet Files\OLK2362\Concessionaire Agreement03-27fin.doc (e) All interior and exterior insect/pest control measures must be handled by a licensed chemical applicator. XI. Utilities, Taxes and Other Charges Concessionaire shall contract for and pay for its own telephone services, taxes, or other charges incurred or assessed against the operation of the concession herein granted. The City shall provide water, sewer, electricity and trash disposal to the Concessionaire, as part of the monthly rental payments for the sole purpose of operating said concession. XII. Compliance With Laws Concessionaire shall observe and comply with all laws, statutes, ordinances, rules and regulations of the United States Government, the State of Texas, the City and County of Denton, or any department or agency of the above. The City will notify Concessionaire in writing of any infraction(s) and permit Concessionaire 30 days to correct any such violation(s). XIII. Equipment Concessionaire shall furnish and install at his own expense any equipment, materials, furniture, supplies, etc., required by him for the proper operation of the concession. Concessionaire's equipment shall be placed and installed only upon the written approval of the Assistant Director of The Colony Parks and Recreation Department or his designee. The City is not responsible for the security of equipment/supplies provided by the Concessionaire for their operations. The City is responsible for ensuring that existing security lighting at the facility is maintained. XIV. Obligations of the City City shall provide the following: · Use of the concession building and adjacent grounds for operation of Concessionaire's business. · Water, electric, sewer service for the building. · Maintenance to the building and grounds that are not the responsibility of the Concessionaire as a result of improvements/modifications made by the Concessionaire. · Dumpster use for Concessionaire and customers' trash. · Listing of services provided by Concessionaire in City's marketing materials for the Park whenever feasible. XV. Hours of Operation Concessionaire may operate said concession only during the established hours for Hidden Cove Park. Concessionaire may be able to operate said concession before and beyond these hours, but only upon written approval of the Assistant Director of The Colony Parks and Recreation Department or his designee. HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT Page 5 C:\WINDOWS\Temporary Internet Files\OLK2362\Concessionaire Agreement03-27fin.doc XVI. Destruction of Premises If during the term of this agreement the demised premises are destroyed or damaged by acts of God, war or other catastrophe, so that the same is unfit for occupancy or use, the rentals shall abate until such time that said premises shall have been duly repaired and restored by City, whereupon the lessee at his option may terminate this lease or continue thereunder pursuant to the terms and conditions of this agreement. A prorated portion of any rental prepaid, prior to such destruction or damage as is contemplated by this paragraph, shall be refunded for the period Concessionaire was not allowed the use of the premises. XVII. Subletting and Assignments Concessionaire shall not sublet the whole or any part of the premises, nor assign, hypothecate, or mortgage the lease and concession agreement, or any or all of its rights hereunder without the prior written consent of the City Council. XVIII. Indemnity Concessionaire shall so conduct his activities upon the premises so as not to endanger any person lawfully thereon; and shall indemnify, save and hold harmless the Army Corps of Engineer and the City and all of its officers, agents and employees from any and all claims for losses, injuries, damages and liabilities to persons or property occasioned wholly or in part by the acts or omissions of Concessionaire, his agents, officers, employees, guests, patrons, or any person or persons admitted to said premises while said premises are used by or under the control of Concessionaire. XIX. Indemnification Liability Insurance The Concessionaire agrees to hold and save the Army Corps of Engineer and the City harmless during the term of this agreement from all claims, loss, or damage of any kind or nature whatsoever which may be sustained by reason of any act or omission on the part of the Concessionaire, its employees, agents, and/or subcontractors, or by anyone directly or indirectly employed by any of them, or by anyone for whose acts or omissions any of them may be liable, and further covenants and agrees to furnish to the City at the Concessionaire's sole cost and expense, a good and sufficient Comprehensive General Liability Insurance Policy which will include Premises-Operations, Owners and Contractors Protective, Products, Completed Operations, Liquor Liability (not Host Liquor), Personal Injury, Broad Form Property Damage, Medical Payments ($1,000 per person), Fire Legal Liability, Incidental Malpractice Liability, Employees as Additional Insureds, Advertising and Contractual Liability, in favor of the City, such insurance to afford protection to the limit of not less than $1,000,000 in respect to bodily injury or death to any one person, and to the limit of not less than $1,000,000 in respect to bodily injury or death to any number of persons in any one accident, and to the limit of not less than $1,000,000 in respect to property damage. Such policy shall name the Army Corps of Engineer and the City as additional insureds and provide that it cannot be modified nor cancelled without 30 days written notice to the City. The policy or certificate evidencing the policy shall be filed HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT Page 6 C:\WINDOWS\Temporary Internet Files\OLK2362\Concessionaire Agreement03-27fin.doc with the Assistant Director of The Colony Parks and Recreation Department or his designee before the commencement of the contract. XX. Breach of Contract In the event of any breach of any of the terms or provisions of this agreement, City or the Concessionaire shall have, in addition to any other recourse, the fight to terminate this agreement, after 30 days written notice of breach, to enter and obtain possession of the entire premises, to remove and exclude any and all persons from the premises, and to remove and exclude all property of Concessionaire therefrom, all without service of notice or resort to legal process and without any legal liability on its part. XXI. Local Rules and Regulations (a) The Concessionaire agrees to abide by all municipal, county, state and federal laws, ordinances, rules and regulations to obtain all necessary and proper licenses, permits and authorizations, and to comply with the requirements of any duly authorized person acting in connection therewith. The Concessionaire shall pay all taxes of every nature and description arising out of or in any manner connected with the sale of its products. (b) In addition to other rights granted to the City herein, Concessionaire agrees that should its operation or any portion thereof be shut down for its failure to comply with the requirements of the Health Department of the State of Texas, and such shutdown could have reasonably been averted by Concessionaire, its agents or employees, Concessionaire shall pay to the City as liquidated damages, and not as any penalty therefor, the sum of $100.00 per day for each day said shutdown continues. XXII. Inspection by City City shall have the right to make inspections at any reasonable time to insure compliance with this agreement. XXIII. Surrender of Premises Upon Termination Upon the termination of this agreement Concessionaire shall peaceably surrender and deliver up possession to City of the demised premises, including all improvements or additions on them, in good order and condition, reasonable wear and tear excepted. XXIV. No Fault Termination of Agreement In the event the facility shall be destroyed by fire or so much damaged as to render it untenantable without the fault of the Concessionaire, or its employees, agents, and/or subcontractors, or by anyone directly or indirectly employed by any of them, or by anyone for whose acts or omissions any of them may be liable, either the Concessionaire or the City may, within 30 days thereafter, elect to terminate the agreement and the term hereby granted by giving the other written notice of the same by registered or certified mail, such notice to the City to be HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT Page 7 C:\WINDOWS\Temporary Internet Files\OLK2362\Concessionaire Agreement03-27fin.doc directed to the City and to the Concessionaire at its business address, and thereupon the rent to cease upon the Concessionaire paying all rent that has accrued. ("Rent" is defined as the monthly payment outlined in paragraph IV of this agreement.) In the event of termination by reason of fire, neither Concessionaire nor the City shall be liable to the other for damages resulting from such fire unless the same was caused by the willful or negligent act or misconduct of one of the parties or its employees, agents, and/or subcontractors, or by anyone directly or indirectly employed by any of them, or by anyone for whose acts or omissions any of them may be liable, and the City shall not be liable to the Concessionaire for the purchase of any equipment in the amortization account. XXV. Cancellation of Agreement Upon consultation with the City Manager and the Assistant Director of The Colony Parks and Recreation Department or his designee, the City shall have the right to cancel this agreement at its sole option, for any reason whatsoever, upon at least 90 days written notice by registered or certified mail to the Concessionaire. Concessionaire shall also have the right to terminate this agreement by giving the City ninety (90) days written notice. XXVI. Surrender of Concession Premises At the expiration or earlier termination of this agreement, the Concessionaire shall promptly surrender possession of the premises to the City and shall deliver to the City all keys that it may have to any and all parts of the concession premises. XXVII. Holding Over If Concessionaire shall, with the consent of the City, hold over after the expiration or sooner termination of the term of this agreement, the resulting agreement shall, unless otherwise mutually agreed, be for an indefinite period of time on a month-to-month basis. During such month-to-month occupation, Concessionaire shall pay to the City the sum hereinbefore set forth, unless a different rate shall be agreed upon, and shall be bound by all of the additional provisions of this agreement insofar as they may be pertinent. XXVlII. Advances by City for Concessionaire If Concessionaire shall fail to do anything required to be done by it under the terms of this agreement (other than a failure to make the payments herein required) the City may, at its sole option but without' any obligation to do so, do or perform such act or thing upon behalf of the Concessionaire and, upon notification to Concessionaire of the cost thereof incurred by the City the Concessionaire shall promptly pay to the City the full amount of costs or expenses incurred. XXIX. Liens and Encumbrances The Concessionaire shall keep the concession premises, facilities and nonrental equipment free and clear of any liens and encumbrances not arising or growing out of the use of the facilities, equipment, and/or trade fixtures in or on the concession premises and/or the occupancy of the HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT Page 8 C:\WINDOWS\Temporary Internet Files\OLK2362\Concessionair¢ Agreement03-27fin.doc said concession premises by Concessionaire. At the request of the City, Concessionaire shall furnish the City with written proof of payment of any item, which would or might constitute the basis for such lien on the concession premises if not paid. XXX. Notices All notices hereunder shall be sent by registered or certified mail to the respective addresses or to such addresses as the parties may hereafter require in writing. Notices shall be deemed to have been given when deposited in the United States Mail with postage prepaid and addressed as above set forth. XXXI. Joint and Several Liability Each and every party who signs this agreement as Concessionaire, other than in a representative capacity, shall be jointly and severally liable hereunder. XXXII. Waiver Failure of the City to enforce at any time any of the provisions of this agreement, or to require at any time performance by Concessionaire of any of the provisions hereof, shall in no way be construed to be a waiver of such provisions nor in any way to affect the validity of this agreement or any part thereof, or the right of the City to thereafter enforce each and every such provision. XXXIII. Approval or Consent Whenever by the terms of this agreement, the approval or consent of the City is required, such approval or consent shall be ineffective unless given in writing, signed by the City Manager of the City of The Colony, his authorized representative or other party duly authorized by the City. XXXIV. Complete Agreement in Written Contract This written agreement, including Exhibit "A" attached hereto and made a part hereof as if set out herein verbatim, embodies the whole agreement between the parties, and there are no inducements, promises, terms, conditions, or obligations made or entered into by either City or Concessionaire other than contained herein, and no further modification or amendment shall be binding unless reduced to writing and signed by the parties or their duly authorized representatives. XXXV. Severability Provision Should any part, term, or provision of this agreement be by the courts decided to be illegal or in conflict with any law of the state, the validity of the remaining portions or provisions shall not be affected thereby. HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT Page 9 C:\WINDOWS\Temporary Intemet Files\OLK2362\Concessionaire Agreement03-27fin.doc XXXVI. Law Governing This agreement shall be governed by the laws of the State of Texas and the City of The Colony, both as to interpretation and performance. XXXVII. Process Agent Concessionaire agrees to take whatever action is necessary to qualify to do business in the City of The Colony and to further designate a resident of Denton County, State of Texas, as process agent for the respective corporation or in lieu thereof designate the Secretary of State of the State of Texas as process agent. XXXVIII. Provisions To Be Binding City and Concessionaire agree to be bound by any and all provisions, requirements, duties, andIor responsibilities as set out in this document and as set out in Exhibit "A," which exhibit is attached hereto and incorporated herein and made a part of this agreement as if they were fully set out herein verbatim. XXXIX. Nondiscrimination Concessionaire hereby agrees that it (a) will not discriminate against any employee or applicant for employment because of race, color, religion or national origin; (b) will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion or national origin; (c) will in all solicitations or advertisements for employees placed by or on behalf of the Concessionaire state that all qualified applicants will receive consideration for employment without regard to race, color, religion or national origin; and (d) will include these provisions in every subcontract or sublease let by or for it. CITY: JT's, INC.: City of The Colony, Texas By: By: Manager 6800 Main Street Title: The Colony, Texas 75056 Address: HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT Page 10 C:\WINDOWS\Temporary Internet Files\OLK2362\Concessionaire Agreement03-27fin.doc Attest: Attest: City Secretary City Manager Approved as to Form: Approved as to Content: City Attorney The Colony Parks and Recreation Department Director HIDDEN COVE PARK CONCESSIONAIRE AGREEMENT Page 11 C:\WINDOWS\Temporary Internet Files\OLK2362\Concessionaire Agreement03-27fin.doc Proposal for Hidden Cove Park Recreational Development 1.0 - Executive Summary 1.1- Objectives 1.2- Mission 1.3- Keys to Success 2.0 - Company Summary 2.1 - Start-up Summary 2.2 - Company Location 2.3 - Times of Operation 2.4 - Employees 2.5 - Restrictions 2.6 - Financial and Personal References 3.0- Products and Services 3.1 - Rental Equipment and Estimated Prices 3.2 - Foods and Estimated Prices 4.0- Improvement of Existing Areas 4.1 - Future Expansion 4.2 -Additional Purchases of Rental Boats 4.3 - Additional Products and/or Services 4.4 - Expansion to other City Park Locations 4.5 - Future Improvement in Services 4.6 - Sponsoring of Races/Events 5.0 - Proposed Benefits to The Colony 6.0 - Detail of Start-Up Expenses 7.0- Sales Projection Charts, Maps, Statistics 8.0 - Rental Agreement Draft, Insurance Attachments 9.0 - Personal Information 10.0 - Closing Remarks 1.0 EXECUTIVE SUMMARY JT Services will be located at Hidden Cove Park in The Colony, Texas, and will be the focal point of the park and surrounding areas on Lake Lewisville. It will provide groceries, general merchandise, and boat/bicycle rentals to make the park a fully functional campground and recreational facility. By providing needed services to the park, JT's will help increase attendance and revenue for future improvement and maintenance of the park. JT's will promote the park on a worldwide level by creating and maintaining a web-site for posting of upcoming events and other points of interest about the park. JT's will pay for start-up and yearly maintenance costs of the web-site as long as JT's is in business. However, the rights to the site will be The Colony's even if JT's does not continue to operate, but the city would pay the yearly cost (currently $300). Together with The Colony, we can build a safe and fun place for all ages to enjoy the lake and park without destroying the peaceful surroundings. 1.1 OBJECTIVES A. Purchase a web-site address, acquire web space, design and publish a complete web presence for the park and the store. The web-site would allow for rental reservations and advertising for future events and growth of services. JT's will provide, maintain and update the web-site in collaboration with the city. B. Launch an advertising campaign in March (newspapers, flyers, etc.) for the opening o£the store to be held April 1, 2002. C. Increase the general store merchandise to optimize sales by the end of the £u'st quarter. The initial store sales projection will be approximately $0.50 per car utilizing the park's statistics of visitors. D. Implement bicycle rentals in April and watercraft rentals in May. E. Provide a courteous, fi'iendly, and safe atmosphere to enjoy the park's facilities. 1.2 MISSION Our mission is to provide a safe, responsible and fun atmosphere for all ages to enjoy the lake and wildlife without destroying the natural beauty and tranquility. JT's General Store will be located in Hidden Cove Park, The Colony, Texas to provide service to the N.E. section of Lake Lewisville. The general store will be located next to a 3-lane boat ramp inside the park. The first-year plan is for the store to sell general merchandise for picnickers, campers, fishermen, scouts, cyclists, and boaters with an emphasis on advertising for the public to learn of the great amenities the park has to offer. We will also provide a complete web-site for the park, at no expense to The Colony, which is akeady operational. Initially, one Coke vending machine will be available for 24-hr. service. Bicycle rentals will begin in April and in May, select watercrafts for rent will be located on the shore facing the store. The third-year plan includes more available watercrafts for rent (possibly ski boat, deck/pontoon boat, more pedal boats, canoes, jet skis, kayaks, rowboats), open-air bistro tables to enjoy the sunset with possibly entertainment on special occasions, dinner cruises with Italian food or BBQ, and a miniature golf course. Our five-year plan includes negotiating with developers for an Italian or BBQ restaurant on a floating dock at the future marina and expansion of JT's to other parks. If the marina were developed, JT's would negotiate with developers for a courtesy dock or private slips to house rental boats for increased convenience of customers to access the watercrafts. 1.3 KEYS TO SUCCESS JT's will operate as a small, simple necessities type store which will offer various items needed to enjoy recreational activities. The store services will focus and capitalize on the unique surroundings of a large park with bike trails, camping, picnicking and boating facilities. Currently, JT's will be the only facility servicing the N.E. section of the lake which boasts the adjacent, fastest-growing cities. 2.0 COMPANY INFORMATION JT's is a privately-held Texas corporation managed by Toni and Joe Watson, Sr. Toni Watson has two undergraduate degrees in Biology and Physical Therapy with a graduate degree in Human Relations and Business. She has 26 years of experience as a Physical Therapist whose main concern was the safety and health of those people entrusted to her care. She has first-aid and CPR training along with managerial experience. Joe Watson, Sr. has 26 years of experience in automotive repair, customer relations, and sales. His knowledge of mechanics, sales incentives, and customer satisfaction has earned him accolades of General Motors' highest-rated service consultant in Texas for two of the past five years. 2.1 START-UP SUMMARY Initially, the general store will be opened in April, 2002 to provide services to fishermen, campers, picnickers and boaters. Breakfast foods, candy, chips, hamburgers, hotdogs, sandwiches, soup, stew, ice cream, shakes, gum, nuts, fishing/camping supplies, cold/hot drinks, and pastries will be sold. Bicycles can be rented for enjoyment of the new bike trails. WatercraRs will also be provided for rent. By April 1, 2002 JT's will have new, blue Pelican boats: 5 pedal boats, 3 canoes, 2 kayaks, 1 rowboat. Later, a windsurfer, one 16' Hobie catamaran, one Laser (1-person) sailboat, two Polaris, Yamaha, or Kawasaki jet skis will also be available. 2.2 COMPANY LOCATION JT's General Store will be located in Hidden Cove Park, The Colony, Denton Co., Texas. The web-site will be located at the address ofwww.hiddencovepark.com The boat rentals will be beached on the shore in front of the general store. 2.3 TIMES OF OPERATION April 1, 2002 to October 31, 2002 from 9 a.m. to sunset, closed Tuesdays and Wednesdays initial year; subsequent years' operational times to be modified if needed for peak periods. 2.4 EMPLOYEES Toni Watson will be the sole employee when store initially opens in April and May until business warrants additional personnel. Her salary will be dependent on sales but is estimated at $32,000-48,000 fi'om January through December, 2002. When watercrafts are available for rental in April or May, another person will be hired for $6/hr. to aid with sales and rental preparation if required. In June, if rental sales are strong, Joe Watson, Jr. (who will be 17 in July) will be hired at $6/hr from 9 a.m. to sunset for the remainder of the summer. Joe Watson, Sr. will be available as needed for jet-ski repairs and maintenance. Additional personnel would be hired, if needed, to assist store or rental sales. 2.5 RESTRICTIONS Boat renters must be at least 18 yrs. old, have a current and valid TDL, sign a release form/rental contract, give a deposit, and view a safety course video prior to all rentals. Renter will be liable for all damages to watercraft, property, or personal injury. 2.6 FINANCIAL AND PERSONAL REFERENCES Citibank Business Account #5588 3280 0142 0938 at 1-800-732-6000 Community Credit Union at (972) 578-5000 Bank of America at 1-800-789-7587 Tom and Carol Johnson at (972) 625-4642 Cathy and Chuck Green at (972) 335-2642 Note: No loans will be acquired for start-up expenditures as personal funds are initially available to purchase ali products and services. For the purpose of financial breakdowns, "loan repayment" is for replenishment of personal savings, including interest. Some funds will also be held for capital expenditures to purchase additional watercrafts as needed to increase rental sales. It is also hoped that a percentage of the city's increased park revenue might be allocated and held for future park development. '3.0 'PRODUCTS AND SERVICES General supplies and merchandise £or campers, picnickers, boaters, fishermen, bicyclists will be available at the £ollowing costs: Charcoal briquets, lighter fluid $3-5.00 Matches, Shoelaces $0.50-1.00 Sandals $5.00 First-aid and personal hygiene supplies $1-3.00 Paper Products $1.00 Sunscreen (various kinds for adults and children) $3-5.00 Insect Repellant $3.00 Lip Balm, Carmex, Lipstick, etc. $2.00 Beach Towel $10.00 Beach Ball/Floats $5-10.00 Hats (straw, ball caps, visors) $5-10.00 Sunglasses $5.00 Bait (worms, lures, fi'ozen) $3-10.00 1 vending machine (Coke cans) $0.75-1.00 3.1 ALL RENTAL EQUIPMENT REQUIRES 18 Y/O, TDL, AND DEPOSIT: Fishing pole/hour $10.00 Croquet/Ping Pong/hour $5.00 Badminton/Basketball~o lleyball/Baseball/Bat/Glove/hour $5.00 Bicycle & Helmet/hour $10.00 Pedal (paddle) boat/first hour $20.00 Each hour thereafter $15.00 Canoe/Rowboat/Sailboat/first hour $25.00 Each hour thereafter $20.00 Kayak (sit on)/first hour $15.00 Each hour thereafter $10.00 16-foot Hobie Catamaran/first hour $30.00 Each hour thereafter $25.00 Windsurfer or Laser Sailboat/hour $15.00 Personal Watercraft (Jet ski)/hour $50.00 Kneeboard/hour $5.00 Renter must also sign a release form that no alcohol will be consumed while renting boat. 3.2 FOODS AND ESTIMATED SALE PRICES Bread, loaf/Milk/Hamburger $2.00 Sandwiches (Ham/Cheese/Peanut Butter/Salami/Chicken/Turkey) $2-4.00 Egg biscuits with sausage or bacon $1.75 Egg/Pancake/Waffie/Donut/Bagel/French Toast $0.75 Eggs, dozen carton $2.00 Chips/Crackers/Gum/Breath Mints/Candy Bars $0.75 Hot Dog/Popsicles/Ice Cream Cone/Yogurt/Sherbet $1.00 Ice Cream, 4-6 oz./Sundae/Milkshake/Slush Puppie (sm/lg) $1.50-2.50 Peanuts/Popcorn/Pickle/Baked Potato/Tacos/Tamales $1.00 Bottled (plastic) Sodas, Water, Gatorade, Juices $2.00 Orange Juice/Lemonade/Tea/Coffee/Cocoa, cup $1.00 Soup/Stew/Chili/Nachos, small or large bowl $1-2.00 Nc, added shelving is required with all ciisplay cases, refrigerator, freezer, microwave, etc. to be l:,rovidcd by JT's. However, repair/~eplacement of screen doors, back door lock, and broken windows need to be completed by '['he Colony's ~fintenance crew before Mar. 15, 2002 so that stocking of merchandise can tx,' initiated and completed. Installation of a phone line and 220-volt sockets (for ice cream machine) should occta' in M~xrch at JT's expense along with metal bars to ensure that future breakage of windows :md theft of merchandise does not occur. Other utilities (electricity, gas and water) are to be provklecl and paid for by the city. General cleaning/trash removal of JT's building will be perfbrmed by YF's as the Health Dept. requires. It is requested that grounds around JT's General Store be maintained and groomed by the city to allow croquet/horseshoes/children's ring toss and other grass games to be playe, d. Shoreline use (below store) for storage of the rental boats is needed. Securing of boats by cables into ground supports will be furnished by JT's to avoid theft and will be fi~shioned according to k~ny Corps of Eng., the city, and JT's requirements. The city's security light would also be on at night to prevent theft or vandalism. It is requested that the city remove the grease bmrel sheltered behind the store so that 4 plastic five-gallon gas tanks can be secured with a lock and suitable met.al top fi~r appropriate aeration to avoid any safety hazards. Gas/oil will only be added to jet skis when out of the water to avoid any possible water contamination spills. Two bicycle racks, bicycles, and cable locks will be provided by JT's and secured in front of the store. It is also requested thal the "NO WP~KE ZONE" be extended to include the boat rental area. 4.1 FUTURE EXPANSION When the marina is developed at I-[idden Cove Park, JT's would negotiate for several boat slips or a separate courtesy dock to artchor rental boats foradded customer convenience in launching. 4.2 ADDITIONAL PURCHASES, OF RENTAL BOATS OR EQUIPMENT %~en rental sales increase and customers are not adequately provided for, additional watercra~ or equipment would be purchased. 4.3 ADDITIONAL PRODUCTS AND/OR SERVICES As customer dermmds change, products and/or services will be altered to provide for needs not initially anticipated, e.g. fishing license sales, parasailing (booking only), ski boat rental, etc. 4.4 EXPANSION' TO OTHER CITY PARK LOCATIONS If The Colony desires services in Stewart Creek or other parks maintained by the city or addkional concessions/services at Hidden Cove Park, it is requested that JT's have first right of refusal to provide similar products and rentals. 4.5 FUTURE IMPROVEMENT liN SERVICES If salesgdemand warran'ts group caterhag, or restaurant services, it is requested that JT's have first right of refusal to provide special dinners, lunches, brunches, or breakfasts as needed. Or JT's may purchase a barge/pontoo:rffdeck boat for dinner parties or sunset/night cruises if funds allow. A miniature golf course and putting green could also be fabricated ~ and managed by JT's to increase revenue. The volleyball area could be enhanced with sand by the city with league/toumamen! play scheduled by .rI"s along with baseball diamond bookings and all needed rental equipment to be arranged through JT Services. 4.6 FUTURE SPONSORING OF RACES/EVENTS For group activities, canoe/pedal boat/kayak/bike races or volleyball/basketball tournaments with entry fbes can be,. held with advertising to promote The Colony's involvement in community aflkh:s. '5.0 PROPOSED BENEFITS TO THE COLONY The Colony will benefit financially by the sales override, 2% of the gross sales, along with payment of monthly utility charges. It would behoove the city to publish information regarding the web-site for maximizing publicity for the park. The city's image will be improved by a perceived interest in community involvement and citizen participation along with increased services available to the public to encourage increased attendance and thus additional entry fees. Mrs. Watson has also planted free iris and lily bulbs to beautify JT's area. Later, bulbs and wildlife flowers could also be planted along the bike trail to enhance its appeal and beauty. IT's rental reservations will be available on the Internet with pictures and descriptions of the park with the future possibility of arranging camping reservations also. 6.0 DETAIL OF START-UP EXPENSES The following costs are to be taken from the Watsons' personal banking accounts as a 10% business loan to IT Services with repayment monthly as profits allow: 6.1 CPA and filing fees to incorporate as IT Services, Inc. $975 6.2 Attorney fees to formulate rental contract/release form $500 6.3 Watercrafts & store commercial liability $1 mil/occurrence ins. $7,078 6.4 Purchase of watercrafts, cable, locks, concrete and wood supports $15,000 6.5 Purchase of 10 bicycles, helmets, cable locks and 2 bike racks $1,100 6.6 General Store supplies $3,500 6.7 Monthly utilities/rent, telephone line $400 6.8 Freezer, refrigerator, microwave, George Foreman grill $2,000 6.9 Installation of telephone line, 220-volt sockets and credit card machine $1,000 6.10 Purchase of anti-theft metal bars on windows and doors $1,000 6.11 Miscellaneous purchases (life vests, games, balls, etc.) $1,000 6.12 Office/store equipment (computer, calculator, coffee pots, etc.) $1,500 6.13 Web-site formation and yearly fee, newspaper/misc, advertising $1.500 Total: $36,553 7.0 SALES PROJECTION CHARTS, PARK ATTENDANCE STATS., LOCATION MAPS Please refer to attached sheets for specific information. General store anticipated revenue would be $7,090 and rentals $6,010 for the 1~t quarter (March-May), increasing the 2nd qtr. (June-August) to $8,392 and $28,660 respectively, but down the 3rd quarter (September-November) to $4,990 and $8,150. Three other areas on Lake Lewisville rent jet skis--Just for Fun (972-370-7700) at Pier 121, Lake Cities Polaris (940-321-4988) and Carl's Hydro-Sports (972-317-9527) on IH 35. All charged $55- 65/first hour and $45-55/hour thereal~er. Carl (Carl's Hydro-Sports) and John Lemley (Just for Fun) stated the 2002 rental rates would increase to $65-70/first hr. Brian Page and Chris Kephart (Lake Cities Polaris) are in the process of selling their rental business and feel the new owner would raise 2002 prices also to $65-70/first hr. due to high, seasonal demand. Currently, there are no known areas on Lake Lewisville that rent pedal boats, canoes, kayaks, rowboats, catamarans, sailboats, or windsurfers. IT's food and beverage prices are consistently below those of Charlie's Restaurant at Pier 121 and Sneaky Pete's Restaurant at IH35. The concessionaire at Lakewood Marina by Nick's Italian Restaurant could not be contacted for comparison of prices, but no boat rentals occur there. The Corinthian Yacht Club also does not have boat rentals available to the public. JT's will be providing a unique and welcomed service for water sports, wildlife and nature enthusiasts to enjoy Lake Lewisville. n STORE PRICES STRATEGY 1st Quarter 4/1/2002 - 5/31/2002 (CLOSED MARCH) Total amount of vehicles (per city stats) 14,180 Estimated amount of people (veh x 3.5) 49,630 Estimate $.50 per veh $7,090 2nd Quarter 6/1/02 - 8/31/02 Total amount of vehicles (per city stats) 16,784 Estimated amount of people (veh x 3.5) 58,744 Estimate $.50 per veh $8,392 3rd Quarter 9/1/2002 - 10/30/2002 (CLOSED NOVEMBER) Total amount of vehicles (per city stats) 9,985 Estimated amount of people (veh x 3.5) 34,947 Estimate $.50 per veh $4,990 4th Quarter Closed 12/1/2002 - 2/28/2003 Estimated Year's Total Store Sales $20,472 April 1 - May 30, 2002 1ST QTR EST RENTAL SALES lEst Hrs To ITotal I# of ITotal Hrs IAvg Sale lEst Sales Iper I~r Qtr Items lBs Rented IWks ]Items Iper Qtr IPer I per Wk I per Qtr Baseball 1 Hr 8 1 8 5 $40.00 Bat 1 Hr 8 1 8 5 $40.00 Glove 1 Hr 8 1 8 5 $40.00 Volleyball 1Hr 8 1 8 5 $40.00 Football 1Hr 8 1 8 5 $40.00 Basketball 1 Hr 8 1 8 5 $40.00 Fishing Pole 1Hr 8 1 8 5 $40.00 Ping pong Table 1Hr 8 1 8 5 $40.00 Croquet Set 1 Hr 8 1 8 5 $40.00 Bicycle w/Helmet 2Hrs. 8 10 160 10 $1,600.00 Pedal Boat 2Hrs 8 5 80 15.62 $1,250.00 Canoe 2Hrs 8 3 48 20.62 $990.00 Row Boat 2Hrs 8 1 16 20.62 $330.00 Kayak 2Hrs 8 2 32 10.62 $340.00 Wi nd su rfe r 2Hrs 8 1 16 15 $240.00 Hobie Cat 2Hrs 8 2 32 25.62 $820.00 Knee Board 1 Hr 8 1 8 5 $40.00 Tube 1Hr 8 1 8 5 $40.00 PWC/Jet Ski N/A N/A N/A N/A N/A N/A TOTAL EST $6,010.00 June 1 - Aug 31, 2002 2ND QTR EST RENTAL SALES lEst Hrs To ITotal # of ITotal Hrs IAvg Sale [Est Sales Iper Qtr [per Items IBe Rented J Wks Items Qtr Jper Wk Iper Qtr IPer I1~r Baseball 1 Hr 14 1 14 5 $70.00 Bat 1 Hr 14 1 14 5 $70.00 Glove 1 Hr 14 1 14 5 $70.00 Volleyball 1 Hr 14 1 14 5 $70.00 Football 1Hr 14 1 14 5 $70.00 Basketball 1Hr 14 1 14 5 $70.00 Fishing Pole 1Hr 14 1 14 5 $70.00 Ping pong Table 1Hr 14 1 14 5 $70.00 Croquet Set 1Hr 14 1 14 5 $70.00 Bicycle w/Helmet 4Hrs 14 10 560 10 $5,600.00 Paddle Boat 4Hrs 14 5 280 15.62 $4,374.00 Canoe 4Hrs 14 3 168 20.62 $3,465.00 Row Boat 4Hrs 14 1 56 20.62 $1,155.00 Kayak 4Hrs 14 2 112 10.62 $1,190.00 Windsurfer 4Hrs 14 1 56 15 $840.00 Hobie Cat 4Hrs 14 2 112 25.62 $2,865.00 Knee Board 1 Hr 14 1 14 5 $70.00 Tube 1Hr 14 1 14 5 $70.00 PWC/Jet Ski 8Hrs 14 2 224 37.5 $8,400.00 TOTAL EST $28,660.00 Sept 1 - Oct 31, 2002 3RD QTR EST RENTAL SALES Est Hrs To ITotal I# of ITotal Hrs IAvg Sale lEst Sales Qtr per Otr Items Be Rented IWks [Items Iper per Wk I per Qtr Baseball 1 Hr 8 1 8 5 $40.00 Bat 1 Hr 8 1 8 5 $40.00 Glove 1 Hr 8 1 8 5 $40.00 Volleyball 1 Hr 8 1 8 5 $40.00 Football 1 Hr 8 1 8 5 $40.00 Basketball 1 Hr 8 1 8 5 $40.00 Fishing Pole 1 Hr 8 1 8 5 $40.00 Ping pong Table 1Hr 8 1 8 5 $40.00 Croquet Set 1 Hr 8 1 8 5 $40.00 Bicycle w/Helmet 2Hrs 8 10 160 10 $1,600.00 Paddle Boat 2Hrs 8 5 80 15.62 $1,249.00 Canoe 2Hrs 8 3 48 20.62 $990.00 Row Boat 2Hrs 8 1 16 20.62 $330.00 Kayak 2Hrs 8 2 32 10.62 $340.00 Windsurfer N/A 0 0 0 15 $0.00 Hobie Cat N/A 0 0 0 25.62 $0.00 Knee Board 1 Hr 8 1 8 5 $40.00 Tube 1 Hr 8 1 8 5 $40.00 PWC/Jet Ski 4Hrs 8 2 64 37.5 $2,400.00 TOTAL EST $7,350.00 Mon Tues Wed Thum Fri Sat Sun. Carsx3.5= People March 82 84 95 67 172 256 112 155 91 103 94 181 362 107 89 106 148 116 138 95 156 103 75 75 93 148 269 429 356 421 370 639 982 375 3572 12502 April 385 94 101 96 99 160 265 284 116 121 111 158 382 579 855 139 110 121 121 198 269 211 104 121 159 127 250 508 461 113 566 453 487 505 990 1621 2196 6818 23863 May 115 112 148 185 279 222 130 135 117 138 241 430 365 140 133 139 150 180 594 340 77 140 149 170 340 536 742 497 135 134 149 844 658 651 755 946 1839 1669 7362 25767 1839 1467 1559 1630 2575 4442 4240 17752 62132 June 253 418 328 106 129 115 133 215 507 310 96 97 111 132 275 487 403 118 111 135 106 242 483 327 133 118 121 171 174 246 453 455 482 542 1159 2141 1368 6600 23100 July 310 121 219 745 137 178 320 313 88 91 105 100 163 400 122 175 88 76 108 131 286 236 83 88 143 543 100 100 190 71 99 538 585 1069 888 572 1106 1171 5929 20751 Aug ~5 229 100 240 212 86 86 97 79 110 209 223 83 72 122 98 114 235 230 71 90 89 85 108 293 247 44 77 80 140 231 284 325 463 631 663 977 912 4255 14892 1275 1365 2014 2061 2394 4224 3451 16784 58744 34536 120876 Sept 256 358 368 65 61 93 229 205 159 80 79 97 119 177 216 119 65 70 73 87 227 450 622 61 89 85 290 230 346 199 574 303 316 589 863 1473 1457 5575 19512 Oct 88 94 95 92 167 293 184 94 85 80 93 154 287 145 74 67 92 91 158 257 145 61 101 87 105 332 436 125 125 69 65 69 442 416 419 450 811 1273 599 4410 15435 9985 34947 8mo. 44521 155823 Lewisvill~ ~ ~ Piano 8.0 RENTAL/RELEASE AGREEMENT DRAFT, INSURANCE ATTACHMENTS Please refer to attached sheets for draft of rental agreement/release of liability forms. Each piece of equipment will have separate rental agreement with liability releases for JT's, The Colony, and A.C.E. Note insurance attachments for comparable business practices and A.C.E. insurance requirements. . 9.0 PERSONAL INFORMATION Toni Watson has lived in Wynnewood Haven across from Hidden Cove Park since June of 1986. She is an avid sports enthusiast, enjoying water skiing, snow boarding, snow skiing, tennis, racket ball, volley ball, bowling, weightlifting, marathon running, triathlon and quadathlon competition (winning 1~t place in Dallas' 1989 event). As a Physical Therapist for 26 years, Toni has helped people regain their health and physical abilities. Safety is of utmost concern in health care, and she brings this knowledge to JT's business plans along with a sincere desire to assist people to live life to its fullest. As a neighbor across the water, Mrs. Watson is also concerned that any development of Hidden Cove preserve its natural beauty, wildlife, and tranquility which influenced her to live on Lake Lewisville. Her husband of 10 years, Joe Watson, Sr. started as a mechanic, progressed to sales, and is now a service consultant at a Chevrolet dealership. He also is a sports enthusiast, has a love of the water, and interacts well with people. Joe will maintain/repair all equipment; when JT's income is sufficient to sustain another employee, then he will join the business full-time. 10.0 CLOSING REMARKS JT Services is eager to provide recreational development to a lovely park while preserving its natural resources. The Watsons have an excellent rapport with the Army Corp of Engineers over the past 16 years due to the 4 waterfi'ont lake lots they have owned, and the 2 they still own. Their positive, happy, and fun outlook on life is contagious, but they teach responsibility and accountability to the environment. With Lake Lewisville as the source for Dallas' drinking water, it is crucial to maintain the purity of the water as much as possible without polluting it. That is one of the reasons that nonmotorized boats were chosen to be the prominent rental choice, and the 2-3 power watercral~s (PWCs) will only be rented to mature individuals, 18 yrs. of age or older. It is believed that JT Services, the city of The Colony, and the A.C.E. will have a mutually satisfying business relationship because the Watsons have the same ideals of maximizing the park's attendance without sacrificing its natural features. By being able to rent bicycles, pedal boats, canoes, kayaks, rowboats, catamarans, sailboats or windsurfers, more people should visit the park and enjoy its beauty and serenity. Because of the park's sheltered cove with land not far from shore in any direction, it is a perfect place for nonmotorized watercraft to be utilized in a safe manner. When the marina is developed, JT Services would like to expand its business by working closely with the city and the A.C.E. for appropriate development. TONI WATSON " JOE A. WATSON, SR. ~,.. 10619 Buccaneer Point Frisco, TX 75034-9265 (972) 625-5358 J-T's RENTAL CONTRACT/RELEASE OF LIABILITY THIS IS A BINDING, LEGAL DOCUMENT. PLEASE READ ALL ITEMS CAREFULLY. BY SIGNING TI{IS AGREEMENT, YOU ARE RELINQUISHING CERTAIN LEGAL RIGHTS TO SUE JT SERVICES, INC., ITS AGENTS, EMPLOYEES, THE COLONY, AND A.C.E. YOU UNDERSTAND THAT WATER SPORTS ARE HAZARDOUS, YOU ARE VOLUNTARILY PARTICIPATING WITH FULL KNOWLEDGE OF DANGERS INVOLVED, AND YOU HEREBY AGREE TO ANY AND ALL RISKS (INCLUDING DAMAGES, INJURY, AND/OR DEATH). $ CREDIT CARD OR $__ CASH SECURITY DEPOSIT REQUIRED FOR RENTAL EQUIPMENT X signature DATE NAME(S) DEPART TIME ADDRESS DUE-IN TIME PHONE EMERG. NAME/# RETURN TIME DRIVER'S LIC. EXP. Item Instructed (X) Initials hrs. ~ $ /hr. SUBTOTAL: Fire Extinguisher hrs. ~ $ /hr. TAX: B.W.I. hrs. overtime ~ $ Pm-. TOTAL: Ski Vests VIDEO SEEN LESS DEPOSIT: Rope & Anchor VIDEO DECLINED AMOUNT DUE: 50 ft. Rule PWC MUST STAY IN 4 FT. WATER (NO BEACHING). IF No wake/Swim area DAMAGE OCCURS OR WATER IN ENGINE & DOES NOT No throttle/No turn__ RUN~ $300 MANDATORY ADDITIONAL CHARGE Initials indicate renter's acceptance of eonditions~ assumption of liabili~, ~ and agreement to indemni ,fy and hold harmless JT Serviees~ Inc. The Colony~ or A.C.E. of~ from~ and against any and all claims for loss of or damage to property, or injury, to persons (including death) resultinE from use~ operation~ or possession of rental craft. Driver(s) has not been drinking nor will drink alcoholic beverages or use drugs while operating watercraft. Renter must be at least 18 yrs. old, give a deposit, and have a current TDL which will be held until watercraft is returned. Damages will be subtracted l~om deposit, and any additional costs exceeding deposit will be renter's responsibility to pay with payment arrangement made prior to leaving. All repair or replacement costs for physical damages and loss of rental revenue is solely renter's responsibility. Damage and/or injury caused by driver other than renter are also renter's responsibility. Damage/injury to passenger(s) are renter's sole responsibility and not rental establishment's fault. Damage/injury to any other craft(s) or individual(s) are renter's sole responsibility. Renter represents that all riders are in good physical health and do not have any physical or mental conditions that would interfere with safe boating practices. Jet ski must stay 50' from boats/people. Power watercraft will not turn without throttle. Always turn head and look over shoulder before making a turn. Never panic by cutting off engine or throttle to slow craft as no steering results. Make a eirele while slowing if needed as ,[et skis do not have brakes! If engine fails, get someone to register the time & tow craft in so renter will not be charged rental time for mechanical failure. Life vests must be worn at all times. Whistle to be used in case of emergency to summon help. DRIVER MUST WEAR CUT-OFF SWITCH BRACELET ON WRIST AT ALL TIMES. NO WAKE ZONE MEANS NO FASTER THAN 5 M.P.H. DRIVER IS RESPONSIBLE FOR ANY TICKETS/FINES GIVEN BY LAW ENFORCEMENT OFFICERS. Renter and riders agree not to hold JT Services, The Colony, or the A.C.E. liable for any loss, theft, damage (caused by tn'e, water, wind, hail or any cause whatsoever) to personal belongings, bodily injury nor loss of time/inconvenience due to weather, accident, breakdown, malfunction, running out of gas/oil or any defect. Any such occurrence must be reported immediately, and use of craft discontinued. Reservation is contingent upon and subject to craft return by previous renter, or any causes-natural (weather) or others beyond JT's control. Submerged dangers exist--caution is required at ali times!