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Exhibit 7 <br />damaged or destroyed Facility. If the Operator so notifies the City, then this Agreement <br />shall immediately terminate. <br />Operator and City agree that if the cost of repair is less than $3,000.00, Operator <br />will be solely responsible for the repairs. In the event that the cost of repairs is over <br />$3,000.00, the City and Operator will share in the cost of repairs. The percentage of <br />shared cost will be on a case -by -case basis, based on the cause and extent of the damage. <br />All maintenance/repair shall commence within thirty (30) days of the need thereof <br />and diligently prosecuted to completion of same, except where the state of disrepair is <br />such that an emergency or hazard is created thereby in which event there shall be an <br />immediate correction thereof. <br />7.0 CITY RESPONSIBILITIES <br />7.1 City's Right to Enter. The Executive Director and City staff shall have the <br />right to enter the Facilities at all times for the purpose of inspection, evaluation, and <br />observation of Operator's operation. During these inspections, they shall have the right to <br />photograph, film, or otherwise record conditions and events taking place upon the <br />Facilities. Inspections may be made for the purposes set forth below, and for any other <br />lawful purpose for which the City or another governmental entity with jurisdiction is <br />authorized to perform inspections of the Facilities: <br />• To determine if the terms and conditions of the Agreement are <br />being complied with. <br />• To observe transactions between the Operator and <br />patrons in order to evaluate the quality and quantities of services <br />provided or items sold or dispensed. <br />7.1.1 Should Operator, after ten (10) day notice from City of the <br />need thereof, fail to perform its maintenance service obligations <br />required herein, City in addition to all other available remedies <br />may, but shall not be obligated to, exercise its Right of Entry as <br />provided herein. City may enter upon the Facilities and perform <br />perform Operator's failed obligations and Operator shall <br />forthwith on demand reimburse City for its costs so incurred including <br />direct and indirect overhead costs as determined by the Executive <br />Director. <br />8.0 INSURANCE AND INDEMNIFICATION <br />8.1 INSURANCE COVERAGE. <br />A. Commercial General Liability. In addition to the Operator's covenant to <br />indemnify and hold harmless City, Operator shall obtain and furnish to City, a policy of <br />general public liability insurance, commercial general liability insurance covering the <br />#20089v2 <br />25F912 <br />