STAFF REPORT
City of Lancaster
CC 7
3/12/2024
JC
Date:March 12, 2024
To: Mayor Parris and City Council Members
From: Sonya Patterson, Director – Parks, Arts, Recreation & Community Services Subject:Amend Operating Agreement for the Management of Zelda’s 750 West and Lancaster Performing Arts Center East End Concessions
Recommendation:
1. Approve Amendment No. 4 to the Operating Agreement for the Management of Zelda’s 750 West and Lancaster Performing Arts Center East End Concessions.
2. Authorize City Manager or designee to execute contract amendment.
Fiscal Impact:
City to receive $2,000 per month in operating fees, resulting in an annual revenue of $24,000.
Background:
On December 14, 2021 City Council awarded the operating agreement for the management of Zelda’s 750 West and Lancaster Performing Arts Center East End Concessions through Solicitation for Offers 744-22O to Fusion Food Concepts (Operator). Amendment No. 1 was approved by City Council on August 9, 2022 to revise the Operators insurance limits. Amendment No. 2 was effective on December 1, 2022 to amend the compensation schedule as allowed by the original operating agreement. Amendment No. 3 was effective on April 18, 2023 to amend the Operators name. Amendment No. 4 to the Operating Agreement will amend the compensation schedule and establish the process for the Operator’s alcohol sales tax remittance.
The agreement requires the Operator’s sale of alcoholic beverages upon and within the operating areas to be pursuant and subject to all the terms, conditions, and restrictions of the Lancaster Community Services Foundation (LCSF) liquor license. Therefore, the operator must purchase alcohol utilizing the LCSF sellers permit, as well as report alcohol sales and pay sales tax due to the California Department of Tax and Fee Administration (CDTFA). Amendment No. 4 outlines the process the Operator must follow to report and pay alcohol sales tax.
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Attachment:
Zelda’s Operating Agreement Amendment No. 4