EXHIBIT C OPERATIONAL TERMS AND CONDITIONS
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1 EXHIBIT C OPERATIONAL TERMS AND CONDITIONS I. CONTRACTOR AGREES TO: Establish and operate a Coffee Bar and cafeteria in the Department of Child Support Services complex to provide fresh high quality food and various pre-packaged food items in accordance with all terms and conditions, as specified herein. SERVICES SHALL BE PERFORMED AT: Department of Child Support Services Complex International Drive Rancho Cordova, Ca See floor plan, Exhibit A. II. HOURS OF SERVICE A. Schedule Services will be provided five (5) days per week, Monday through Friday, except for all official State holidays and State furlough days, when applicable, as follows: Breakfast AM Break Lunch PM Break 7 AM to 9 AM 9 AM to 11 AM 11 AM to 1 PM 1 PM to 3 PM B. Schedule Modification Adjustments of operating days and hours necessitated by building conditions may be made between the STATE and the Contractor, by an Amendment to this Agreement. However, any adjustments initiated by the Contractor will require thirty (30) days written notification, with a justification for the proposed change, and be approved by the on-site Facilities Manager in writing before implementation. C. Any arrangement for use of the cafeteria outside of the hours stated in this Agreement shall be handled through a separate agreement with the on-site Facilities Manager, which will require the Contractor to pay all associated costs, including, but not limited to: utilities, security services, additional custodial services, etc. III. CONTRACT REPRESENTATIVES DURING THE TERM OF THIS AGREEMENT WILL BE: State Agency: DGS, Real Estate Services Div. Contractor: TBA Name: State Owned Leasing and Development Name: Phone: (916) Phone: Fax: (916) Fax: Name: Building/Agency Contact: Dennis Mayoral Phone: Fax: Page 1 of 7
2 IV. DETAILED DESCRIPTIONS OF FOOD AND SERVICES TO BE PROVIDED Contractor shall serve high quality food under clean and sanitary conditions, in accordance with both the provisions and recommendations contained in the most current Food Code, U.S. Public Health Service, Publication No. (FDA) PB CEH, during the entire term of this Sublease Agreement. A. Contractor shall: 1. Provide prompt, efficient and courteous service and avoid undue interference with the operation of the building in which services are provided. 2. Allow all employees and visitors to the building access to and use of the public dining room, which is not a part of the subleased space included in this Agreement. 3. Maintain all licenses and permits as required by all STATE and local authorities and all applicable building, health, sanitary ordinances and other regulations and laws. 4. Employ a full-time, on-site Manager responsible for all cafeteria functions, catering services and personnel. The Manager must have a minimum of five (5) years of consecutive employment in a similar operation with comparable responsibilities. 5. Employ sufficient and suitable personnel, secure and maintain insurance, maintain records, submit reports and observe other Contract requirements, all as more specifically detailed herein. 6. Contractor shall conduct his/her operations as to offer the least possible obstruction and inconvenience to the public and to building tenants, with due regard to the rights of the public and to building tenants. Any person that the STATE deems incompetent or disorderly shall be promptly removed and may not return to the Premises. 7. Contractor, and the agents and employees of Contractor, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the STATE. 8. The Contractor Certification Clauses contained in the document CCC-304 (Exhibit C1) are hereby incorporated by reference and made a part of this Agreement. 9. POTENTIAL SUBCONTRACTORS: Nothing contained in this Agreement or otherwise shall create any contractual relation between the STATE and any subcontractors, and no subcontract shall relieve the Contractor of its responsibilities and obligations hereunder. The Contractor agrees to be as fully responsible to the STATE for the acts and omissions of its subcontractors and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the Contractor. The Contractor's obligation to pay its subcontractors is an independent obligation from the STATE s obligation to make payments to the Contractor. As a result, the STATE shall have no obligation to pay or enforce the payment of any moneys to any subcontractor. Page 2 of 7
3 10. Comply with the Rules and Regulations of Food Service Waste Reduction Ordinance , San Francisco Environment Code Chapter 16. B. Menus and Pricing 1. Contractor shall provide services, sell food items and meet the minimum standards for this cafeteria, as identified in Exhibit D and Exhibit E. During each serving period, easy-to-read menus with prices listed, shall be prominently displayed for customers. 2. The menu, prices and portions as submitted in the Contractor s proposal shall be binding upon the Contractor for at least the first year of operation. Any change in menu, prices or portions, including additional items for sale, shall be submitted in writing and receive written approval from the STATE prior to implementation. 3. Contractor shall complete the pricing in Exhibit E, Cafeteria Menu. All pricing shall be based on fair market value. If the STATE elects to use Exhibit E for its daily menu, then it shall be binding upon the Contractor for at least the first year of operation. C. Contractor s Equipment, Utensils, and Supplies 1. All required equipment and utensils not provided by the STATE under the provisions of Exhibit B, shall be provided by the Contractor and replaced when necessary due to loss, wear, breakage or obsolescence. Equipment and utensils provided by the Contractor shall be of a quality consistent with that provided by the STATE. All items provided by the Contractor shall be of good quality, suitable for the purposes intended and consistent with the quality of the various items provided by the STATE. All equipment furnished by the Contractor shall be subject to STATE approval. 2. Provide all necessary expendable items and consumable supplies such as, but not limited to, paper cups, paper plates, napkins, condiments, etc. D. Equipment, Maintenance, Repairs and Service 1. Provide the necessary maintenance, repair and replacement of all cafeteria equipment. Repair means to repair or replace a component of the entire piece of equipment. Replace means to provide a new or different piece (in good working order) of equipment that is comparable in quality. 2. Maintain equipment provided by the STATE listed in Exhibit B in good working order by normal servicing and repair. Contractor shall be responsible for all costs associated with servicing and repairs. Contractor will provide STATE with a list of authorized subcontractors and service providers that will perform various services. 3. If Contractor elects to replace the STATE s equipment, Contractor shall obtain prior written authorization from the STATE. At no time shall any piece of STATE equipment be disposed of without prior written authorization. This authorization shall also provide precise instructions for the removal and disposition of this equipment. Contractor shall be responsible for all costs associated with the delivery and placement of new equipment and removal of the old equipment. 4. If Contractor elects to replace said piece of STATE s equipment, ownership of the new piece of equipment shall remain with the Contractor. 5. Contractor shall be responsible for cleaning and proper maintenance of equipment in all areas of the cafeteria. The Contractor shall correct to the STATE s satisfaction, all damage suffered by the STATE due to improper maintenance of equipment, including plumbing blockages. Page 3 of 7
4 6. Provide monthly pest control service in the cafeteria, specifically, the serving area, kitchen area, dishwashing room, all storage areas and other areas of the cafeteria not accessible to customers. E. Preventive Maintenance, Testing and Report 1. Contractor is required to perform a preventive maintenance program pursuant to the manufacturer s specifications and requirements on all State-owned equipment. In the event the Contractor does not have a maintenance department or qualified maintenance personnel, the Contractor is required to contract with a qualified equipment maintenance source. 2. At the beginning of each month, Contractor will forward to the on-site Facilities Manager a report of the preventive maintenance schedule and work actually performed providing the dates that each job was completed. 3. Failure of the Contractor to perform preventive maintenance on the equipment may result in the STATE obtaining maintenance company services and shall then bill the Contractor for such services. 4. Arrange for a qualified, licensed contractor to certify the fire suppression systems semiannually, as required by State law. Contractor is required to coordinate and schedule the inspection with the on-site Facilities Manager. Contractor shall be responsible for all costs associated with the suppression system inspection. F. Sanitation and Food Quality 1. All foods served shall be of good quality, wholesome and free from spoilage or misbranding, and safe for human consumption. Any food that is recalled will be excluded from the menu until deemed safe to consume. 2. All employees assigned by the Contractor to perform work under this Agreement shall be physically able to do their assigned work and shall be free from communicable diseases, as certified by a medical examination done at no cost to the STATE. All current Federal, State and local codes and regulations relating to food service sanitation and procedures shall be adhered to by the Contractor, its personnel and subcontractors at all times. G. Contractor s Personnel 1. Contractor shall provide examination and test reports for its personnel (all food handlers), if required by existing laws, regulations, statutes and local ordinances. 2. Contractor shall employ sufficient personnel to maintain sanitary conditions and satisfactory service which will ensure prompt and efficient service at all times. All employees shall be sober, conscientious, neat and courteous. Contractor must at all times provide an adequate staff of food service employees to perform the varied and essential duties inherent to a successful food service operation. All employees shall be capable of performing the type of work for which they are employed. 3. Provide adequate, trained relief personnel to substitute for the absent regular employees, in order to ensure that a high quality food service operation will be maintained at all times. 4. Require all personnel to comply with any instruction pertaining to conduct and building regulations that are in effect for the control of persons in the building, or as may be issued for that purpose by the STATE during the duration of this Agreement. 5. All agents, employees, and/or representatives of the Contractor shall be professionally and appropriately attired. Contractor s employees shall wear a distinctive item of clothing such as Page 4 of 7
5 a badge, cap, armband, blouse or uniform as a means of identification during the time they are in the Building. Contractor s employees shall wear proper sanitation attire (to include hair nets and/or head covers and professional food service type gloves) when handling food, during the time they are performing their duties in the cafeteria. Legible name plates identifying each employee shall be provided by the Contractor and displayed as part of the uniform. 6. All articles found by the Contractor, its personnel or subcontractors, or by patrons and given to Contractor s personnel shall be turned in to the on-site Facilities Manager immediately. 7. Notify the STATE of any changes in those personnel allowed access to the cafeteria premises, for the purpose of providing services outlined herein. Upon each personnel change, the STATE reserves the right to conduct fingerprinting and clearance through the Department of Justice, Bureau of Criminal Identification and Information, prior to being permitted access to the premises. 8. Contractor and its personnel shall be responsible for the security of all areas under the jurisdiction of the Contractor. Designated employees shall have the responsibility for determining that all equipment, lights and fans are turned off and doors locked when the cafeteria is closed. H. Licensing and Permits Comply with all applicable laws and regulations governing the operation of a cafeteria and secure all licenses, permits, and food handlers cards required by law, in Contractor s name, and at no cost to the STATE. Contractor shall post within the cafeteria area such permits, licenses, or notices as are required by law. All permits, licenses and notices shall be maintained current for the entire duration of this Agreement. I. Cleaning and Custodial Services 1. Provide custodial services in accordance with LEED Best Practices, Exhibit F and Exhibit G and any other applicable codes or regulations. 2. Provide trash and garbage removal in the cafeteria kitchen, serving, public dining and storage areas. Garbage shall be placed in the designated area pursuant to Paragraph IX (A6). 3. Make arrangements to clean any grease traps on a monthly basis and clean the exhaust vent hood system on a quarterly basis during normal business hours. Contractor is required to coordinate and schedule the cleaning with the on-site Facilities Manager. Furthermore, Contractor shall be responsible for all costs associated for cleaning the grease trap and exhaust vent hood system, which are attributable to its daily operation. V. SAFETY A. All of the services shall be performed in a safe, professional and competent manner and in accordance with all applicable Federal, State, and local laws, code regulations and ordinances including, but not limited to, the Fair Labor Standards Act, General Industry Safety Orders, the State and Federal Occupational Safety and Health Act and any and all applicable Environmental Laws. B. Contractor is responsible for completing the Safety Check List (Exhibit I) pursuant to local ordinances, State, and Federal laws and regulations. C. All services shall meet or exceed local industry standards and practices. Contractor is also aware that the State Division of Industrial Relations (DIR/Cal OSHA) has offices on site. Page 5 of 7
6 VI. VII. VIII. KEYS AND ACCESS CARDS: Keys and access key cards will be issued by the on-site Facilities Management. Key or card issuance will require a Contractor employee s driver s license or other form of State-approved picture identification given at time of key issuance. Lost key cards and door lock keys must be reported to the on-site Facilities Manager s office immediately. The current charge for a lost key card is $10.00; however, the State reserves the right to adjust this amount. Other than expressly provided in this Agreement, the STATE does not contract for or desire the right of directing, controlling or interfering with the means and methods by which the Contractor shall conduct the cafeteria. The parties hereby agree to the following definitions: (1) Cafeteria shall be defined as the kitchen area, prep area, serving area, dishwashing room and storage areas. (2) Public Dining Area shall be defined as the open seating area adjacent to the cafeteria. IX. STATE S RESPONSIBILITIES A. The STATE shall: 1. Grant the Contractor the exclusive right and privilege to operate the cafeteria and to sell and dispense food items listed in Exhibit D and Exhibit E, or other such products as may be permitted by the STATE to be sold within the cafeteria. 2. Notify the Contractor in writing of any conduct that the STATE deems to be contrary to this Contract, or any other reason for which the STATE is dissatisfied with the operation of the cafeteria. Contractor shall, if appropriate, take corrective action. 3. Not direct, control or interfere with the methods of operation utilized by the Contractor in charge of the cafeteria, other than to assert its rights under this Agreement. 4. Designate an agent or representative upon whom Contractor may serve any and all complaints, demands or notices of any kind. If STATE desires to change its designated agent or representative, STATE agrees to notify Contractor. 5. Provide custodial service to maintain the cleanliness of the floors, walls, ceilings, fixtures, and windows in the public dining area of the cafeteria. 6. Provide a designated trash and garbage collection area for the Contractor to dispose of waste. 7. Make arrangements for removal of trash and garbage from the designated collection area at the STATE s expense. 8. Provide the premises to Contractor in its as-is condition, broom-swept and free of debris. X. SETTLEMENT OF DISPUTES: In the event of a dispute, Contractor shall file a Notice of Dispute with Department of General Services Director, or designee, within ten (10) days of discovery of the problem. Within ten (10) days, the Director or designee shall meet with the Contractor and Project Manager for purposes of resolving the dispute. The decision of the Director or designee shall be final. In the event of a Page 6 of 7
7 dispute, the language contained within this Agreement shall prevail over any other language including that of the proposal. Contractor shall continue with the responsibilities under this Agreement during any dispute. XI. XII. AGENCY LIABILITY: The Contractor warrants by execution of this Agreement, that no person or selling agency has been employed or retained to solicit or secure this Agreement upon agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty, the STATE shall, in addition to other remedies provided by law, have the right to annul this Agreement without liability, paying only for the value of the work actually performed, or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee. CONTRACT EXTENSION: This Agreement may be extended by mutual agreement, by way of a signed and approved amendment to this Agreement. Page 7 of 7
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