Request for Service (RQS): Convention/Exposition Services Rental Concessionaire Purpose:

KY Horse Park wishes to secure a Convention/Exposition Services Rental Concessionaire Master Agreement for the Kentucky Horse Park (KHP) for use by January 1, 2019. The successful vendor will need to be able to provide the following items; including but not limited to: pipe and drape, freight and material handling, electrical connectivity per event specification, tables and chairs, and décor/furniture, for events such as weddings, horse shows, trade fairs, and hospitality.

This concessionaire can be awarded to up to six (6) vendors.

Background:

The Kentucky Horse Park is owned by the Commonwealth of Kentucky. The KHP is an equine tourist attraction with a Smithsonian affiliated Museum which also includes venues for local, regional, national and international events to include, but is not limited to: horse shows, conventions, consumer and trade shows, conferences, community functions, banquets, meetings, seminar, sporting events, and weddings. Each year, over 100 events are held at the KHP and approximately 800,000 people visit the Park.

Period of Performance This Agreement shall be for one (1) year from the awarded date with four (4) one-year renewal periods with the approval of all parties involved. All prices and rates shall remain firm during the initial one-year period.

Renewal Periods If a renewal option is exercised for an additional one-year contract period, the KHP may unilaterally increase the percentage commission due to the KHP for each successive year, not to increase more than two percent (2%) per year from the prior year.

Vendor Requirements Locations, load in, and strike schedule must be coordinated through the Special Events Office and Mechanical Maintenance Office at KHP.

Trailer storage is available at KHP at an additional fee.

The vendor must adhere to the National Electrical Code (NEC) and all Occupational Safety and Health requirements. All electrical connectivity must be in good repair. There should be no service hookups without prior approval from KHP staff. At any time, KHP reserves the right to inspect and decline use of electrical connectivity materials.

The Vendor will provide the Kentucky Horse Park with the name, address, phone number, etc., of the contact person to handle questions and issues from the KHP.

The rental will be secured by the customer directly through the Vendor.

Commissions and Sales Records The awarded vendor(s) will pay a 10% commission to the Kentucky Horse Park based on gross sales per event. This includes all fees (excludes taxes and cost of repair due to renter negligence).

The awarded vendor will set their own rental fees and supply that fee schedule to KHP. No changes will be allowed during the first contract period. Upon subsequent renewals, the vendor may change rental fees, with approval of KHP.

The Vendor shall submit their Gross Sales Summary Statement and commission due to KHP by the 15th day of the month. In the event that the Vendor’s Gross Sales Summary Statement and commission are past due more than twenty-one (21) calendar days, a late payment penalty of $50.00 shall be charged by the KHP per month. The aforementioned penalty shall be in addition to any interest fees that may be charged under the Accounting System and Reports section.

Checks will be made payable to the Kentucky Horse Park, Attn: Jill Lee, 4089 Iron Works Parkway, Lexington, KY 40511. The Commonwealth reserves the right to accept electronic payments when such payment methods are available, and advantageous to the Commonwealth.

Accounting System and Reports Each month during the term of the contract, the Vendor shall submit to the KHP Business Office by the 15th day of the month, a written Gross Sales Summary Statement on a form approved by the KHP and subscribed to by the Vendor's on-site general manager. This Gross Sales Summary Statement shall include a separate itemization of gross sales generated from the Vendor’s KHP operation during the preceding monthly accounting period. The gross sales on this statement will be the basis for the percentage return to the KHP. The percentage return to the KHP calculation shall be shown on this Gross Sales Summary Statement by the Vendor.

The Vendor shall maintain an accounting system, which shall provide a clear understanding of how gross sales are determined. This accounting system shall provide detailed support for the Gross Sales Summary Statement. This support shall consist, at a minimum, of cash register receipts, and shall be organized to provide easy reconciliation to the Gross Sales Summary Statement. This support shall be maintained for a minimum of two (2) years for KHP staff auditing purposes. Failure to comply with the aforementioned requirement shall be considered grounds for default of this agreement.

The Vendor agrees to permit the KHP and its agents and representatives, at reasonable intervals, at any and all times during the Vendor's usual business hours, to inspect all books, records, supporting documentation and accounts of the Vendor showing gross sales from all business conducted under this contract, provided that such inspections do not interfere unduly with the Vendor's operations hereunder. Further, the Vendor shall, within sixty (60) calendar days after June 30 of each year under this contract, supply a statement of gross sales for the previous 12 months certified in writing by its chief financial officer.

If any such verification or inspection of the Vendor's books or any such annual certified report reveals that the Vendor has understated gross sales during any monthly accounting period, then the Vendor shall immediately pay the KHP any additional revenue due and owing plus interest on such revenue found to be payable to the KHP from the date such sums were due until paid at three percent (3.0%) per month. If such verification, inspection or certified report reveals that the Vendor has overstated gross sales during any monthly accounting period, the amount overpaid shall be deducted from the Vendor's next monthly accounting period payment.

Licenses, Taxes, Etc.:

Any taxes, licenses, or fees required due to the fulfilling of the contract will be the responsibility of the Vendor.

Insurance:

Throughout the term of this Agreement, the Vendor shall carry liability insurance for their Tent Concession in the minimum amounts of $500,000 per person and an aggregate of $1,000,000 per accident and $500,000 property damage. Said insurance shall cover all manners of services that may be provided by Vendor including operations of vehicles and equipment by the Vendor and their employees on or off the KHP. Said insurance shall contain a non-cancellation clause requiring notification to the KHP at least thirty (30) days in advance of any proposed cancellation. Said insurance shall be of the level and scope which is standard to the industry. KHP shall be named as an additional insured. A copy of the Vendor’s insurance policy shall be submitted at the commencement the resulting agreement between the Vendor and the KHP. Copies of all insurance policies pertaining to this agreement shall be submitted annually for review and approval to:

XXXXXXXXXXXX

XXXXXXXXXXXX

XXXXXXXXXXXX

A copy of Vendor’s insurance policy is due within twenty-one (21) days of the prior year’s expiration date. Failure to provide a copy of the Vendor’s insurance policy may be grounds for default of this agreement.

Damage:

The Commonwealth will not be responsible for damage to convention/exposition items, or loss of monies due to vandalism, robbery, or any other action or cause.