2003/04/09 Council Agenda Packet

• 6 O. Taxes and Fees. BCG agrees to pay all federal, state and local taxes together with any interest and penalties including leasehold excise tax, sales and use taxes, business and occupation tax, and license fees associated with operating the Facility, which are now imposed, or may hereafter be imposed. Further, BCG hereby authorizes the Tax Division of the State of Washington to release to the City a statement of receipts from sales made at those concessions, as filed during the term of this contract. Under no circumstances shall BCG be responsible for payment of any federal, state, or local income taxes attributable to the City's ownership of or operation of the Facilities. Furthermore, Gross Revenues deposited in the Operating Account shall be inclusive of all sales,use, and admissions taxes as collected from customers. BCG shall, as part of its providing the City a monthly reconciliation of Gross Revenues for determination of the Variable Fee as set forth in Paragraph 7B, receive from the City with each monthly requisition an amount equal to all sales, use, and admission taxes deposited in the Operating Account; BCG shall pay to the taxing authorities all sales, use, and admissions taxes attributable to Gross Revenues. BCG and City acknowledge that the intent of this Paragraph is to allow the collection and payment of these taxes to be treated as `economically neutral' and therefore, a complete `pass-through' to both parties. i. Leasehold Tax Payments. Leasehold excise tax will be calculated on the City's share of all revenue generated by this Facility that is subject to leasehold excise tax limited to BCG's restaurant, pro-shop and rental hall operation of the Facility. Leasehold excise tax will be billed within fifteen (15) days after the end of each quarter and paid to the City by BCG within ten (10) days following the billing. All leasehold excise tax, both past and current, is due and payable within thirty (30) days following termination of this contract. P. Accounting. BCG shall provide all budgeting, bookkeeping, and reporting services to City for the Facility (it being understood that copies of all books and records shall be kept at the Facility and shall remain the property of City and shall be available for review by City at reasonable times when requested by City; and further, that all software, programs, manuals and the like related to the point-of- sale, accounting, and electronic tee sheet systems shall remain the property of BCG pursuant to any licensing, use, or purchase agreements entered into by BCG as part of its requirement to provide these services): i. BCG agrees to maintain accurate daily records of gross sales, and the City's duly designated agents and/or employees shall have the right at all times during the regular business hours to inspect, examine, copy and take notes, extract memoranda from the point of sale records, accounts, books, records or other evidence of the gross receipts of BCG, or any other person, firm, corporation, association, receiver, or trustee occupying the Facility under the terms of this Agreement. 8