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HomeMy WebLinkAbout15.C.4. Renewal of Concession Stand Agreements IS: c. ~ CITY OF SHAKO PEE MEMORANDUM CO~s~aIT .. .. f' 'tj~, To: Mayor and City Council Mark McNeill, City Administrator From: Mark Themig, Facilities and Recreation Director Meeting Date: March 16, 2004 Subject: Renewal of Concession Stand Agreements INTRODUCTION City Council is asked to renew the concession stand agreements for Joe Schleper Stadium. BACKGROUND The City has an agreement with the Coyotes and Indians baseball teams to operate Joe Schleper Stadium concession stand. Both agreements expired in 2003. Terms of the agreement specify that the organizations are responsible for the overall operation of the concession stands, including staffing, inventory, food preparation, and day-to day cleaning and upkeep. The City's primary responsibility is to obtain the food license for each operation, since the City owns the stands, and maintain the building. Each agreement specifies that the teams pay the City 15% of net sales (excluding beer sale), which is returned to the Park Reserve Fund for stadium improvements. Total 2003 commission was $534.91. The only change being recommended at this time is a change in wording for the insurance requirement (the standard City amounts apply). However, we have been meeting with users of Schleper Stadium over the past year, and future agreements could be with an umbrella amateur baseball association. RECOMMENDATION Having experience operating concession stands for another employer, I have found that the salary and supply costs typically exceed the revenue produced, unless you have consistently high volume. Both of these operations have significant low-volume periods. The advantage these organizations have is the ability to staff the operation with volunteers, eliminating a significant cost. The agreements with these organizations are working well, and I recommend renewing each of them for a one-year period with the changes noted above (included in the agreements being presented). REQUESTED ACTION If City Council concurs, move to authorize renewal of the agreements with Shakopee Coyotes Baseball Team and Shakopee Indians Baseball Team to operate Joe Schleper Baseball Stadium concession stand through August 31,2004. ~c..&~ Mark Themig Facilities and Recreation Director SHAKOPEE INDIANS BASEBALL TEAM CONCESSIONS AGREEMENT 2001-20043 I - This agreement, made and entered into this day of , 20014-, by I and between the City of Shakopee, a Minnesota municipal corporation, located at 129 Holmes Street, Shakopee, in the County of Scott, State of Minnesota (hereinafter referred to as "CITY") and the Shakopee Indians Baseball Team, (hereinafter referred to as "TEAM"). WITNESSETH: Whereas the CITY is desirous of providing efficient concession services to patrons of the Joe Schleper Baseball Stadium; and Whereas the TEAM wishes to provide concession services at the Joe Schleper Baseball Stadium in order to raise funds for the ongoing support of TEAM expenses; and Whereas the CITY desires to designate at least a portion of the concessions earnings to go into the Park Reserve fund, which is used in part to fund improvements at the Joe Schleper Baseball Stadium, which is a benefit to the CITY; Now, therefore, in consideration of the promises, terms and conditions stated herein, the parties agree as follows: I. DUTIES AND RIGHTS OF TEAM A. The TEAM agrees to provide full and complete services for the sales of food concessions at the Joe Schleper Baseball Stadium concession stand on the dates that it plays its home games. The CITY may request to provide these services at additional times and the TEAM may meet those requests, if given two weeks notice. B. The TEAM agrees to pay the CITY an amount equal to Fifteen Percent (15%) of the net profits from concessions at the Joe Schleper Baseball Stadium. C. Payment shall be made annually, on or before August 31st of each year. Net profits shall be defined as gross sales less the cost of products, materials, and sales taxes to be paid. D. The TEAM agrees to purchase and maintain all food goods, materials and supplies necessary for the concession stand. The TEAM may sell souvenirs and other hard goods not sold by the CITY, as approved by the CITY in writing. TEAM souvenirs and other hard good sales and beer sold in the concession stand under the licenses of a separate organization, shall not be subject to the commission specified in I.B., above. E. The TEAM agrees to provide, maintain and repair facilities and equipment as necessary for the sale of concessions. The TEAM will be responsible for the cost of any losses resulting from spoilage of frozen or refrigerated foods due to a power outage or equipment failure. The TEAM shall thoroughly document such losses. If equipment is needed, either in replacement of or addition to the existing equipment, the equipment must meet appropriate NSF standards. F. The TEAM agrees to provide all manager(s), supervisor(s) and attendant(s) and other personnel for its concession operations. The TEAM also agrees and understands that nothing contained herein creates or establishes the relationship of copartners between itself and the CITY and that it is an independent contractor and its officers, managers, supervisors, volunteers, attendants and other employees are not employees, agents or representatives of the CITY with respect to any services performed under this agreement. Such personnel or other personal associated with the TEAM shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever from the CITY, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, Worker's Compensation, Unemployment Compensation, disability or severance pay and PERA. G. The TEAM agrees to maintain in internal control system, which includes a Cash Report, on forms approved by the CITY. Such reports shall be submitted along with each annual remittance of the CITY's share of the net receipts. In accordance with Minnesota Statutes 168.06, Subdivision 4, the TEAM further agrees to allow the CITY or the State Auditor or their agents to review, upon request, all records associated with the performance of the agreement, including invoices for concession goods and supplies, all canceled checks for payment of such invoices, all inventory records, and to be present at the taking of inventories, and to verify inventory shrinkage records. H. On or before August 31 sf of each year, the TEAM shall provide the CITY with a copy of the season's concession financial report prepared by the TEAM. I. The TEAM shall conduct its activities upon the premises so as not to endanger any person lawfully thereon; and shall indemnify, save and hold harmless the CITY and all of its officers, agents and employees from any and all claims, losses, injured, damages and liabilities to persons or property occasioned wholly or in part by the acts or omissions of the TEAM, it agents, officers, employees, volunteers, patrons, or any persons associated with or served by the TEAM's concessions operations. J. The TEAM agrees to provide a certificate of insurance showinq proof of qeneral liability in the minimum amount of $1 ,000,000 per occurrence, and fire/property damaqe in the amount of $100,000 per occurrence. The required insurance certificate must name City of Shakopee, its officials, aqents, employees, and volunteers as additional insured's. carry a certific3te of insur3nco for comprehensive goneralli3bility in the minimum 3mount of $1,000,000 per occurrence, $1,000,000 gener31 aggreg3te, $1,000,000 food product liability per occurrence, 3nd fire/property dam3ge in the 3mount of $100,000 per occurrence. Tho required insur3nco certific3te must n3mo City of Sh3kopee, its officials, agents, employees, and volunteers as additional insured's. A copy of the certificate must be submitted to the City Clerk, and all policies shall provide and the certificates issued evidence that the CITY will be notified at least 30 days prior to cancellation or modifications of coverage. Renewal certificates shall be provided to the CITY 30 days prior to the expiration date of coverage. All insurance must be provided at the TEAM's expense and at no costs to the CITY. K. The TEAM or the CITY may terminate this agreement upon thirty (30) days written notice to the other party. In the event of such termination by either party, the TEAM agrees to pay the CITY the full remittance owed as of the date of termination. L. The TEAM, agrees to comply with Minnesota Statutes 181.59 and other related state and federal laws prohibiting discrimination in performance of this agreement on the basis of race, color, creed, religion, national origin, sex, martial status, disability and status with regard to public assistance, age or familial status. The TEAM agrees to hold harmless and indemnify the CITY from costs including but not limited to damages, attorney fees and staff time in any action or proceeding alleging illegal discrimination. M. The TEAM agrees to comply with the Americans With Disabilities Act and not to discriminate on the basis of disability in the admission or access to, or treatment of employment in its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all services, programs, and activities. The CITY has designated coordinators to facilitate compliance with the Americans Disabilities Act of 1990 (ADA), as required by Section 35.107 of the U.S. Department of Justice regulations, and to coordinate compliance with Section 504 of the Rehabilitation Act of 1973, as mandated by Section 8.53 of the U.S. Department of Housing and Urban Development regulations. The TEAM agrees to hold harmless and indemnify the CITY from costs including but not limited to damages, attorney fees and staff time in any action or proceeding alleging a violation of the ADA. L. The TEAM agrees to abide by all applicable State laws and requirements, including but not limited those of the Minnesota Department of Health. II. DUTIES AND RIGHTS OF THE CITY A. The CITY agrees to obtain and maintain all licenses and permits necessary to operate a concession stand as required by any and all governmental agencies. B. The CITY agrees to provide, maintain and repair the stadium and real property as necessary for the sale of concessions for use by the TEAM. The CITY further agrees to provide storage for TEAM inventories, subject to the limitations of available space at the Concession Stand. The CITY assumes no liability for lost, stolen or damaged merchandise or equipment left or stored in the Concession Stand. C. The CITY may immediately terminate this agreement in the event that the TEAM fails to perform its duties under this agreement. D. The CITY may terminate this agreement upon thirty (30) days written notice to the TEAM f()f any reason other than stated in II.C. III. JOINT DUTIES AND RIGHTS A. The TEAM and the CITY agree to work to develop a security plan for controlling access to the concession area. This plan will designate which TEAM personnel will be issued keys to the concession stand. Individuals on this list may not transfer their keys to other individuals without prior approval by the CITY. The plan will also designate which CITY staff have access to the concession area for conducting building maintenance, inspections, etc. B. The TEAM and the CITY agree that the types, serving sizes, prices and packaging of concession items sold by the TEAM shall be mutually agreed upon by the Shakopee Facilities and Recreation Director and the TEAM. C. The TEAM and the CITY agree that in the event a tournament sponsored by a local sports association is held in at the facility during the terms of this agreement, that the TEAM will pass on a share of its concession revenue generated during the tournament to the CITY if it operates the concession stand. The amount of share shall be mutually agreed by the TEAM and the CITY. D. It is mutually understood and agreed that this Agreement represents the entire agreement between the parties and supersedes and all prior agreements or proposals, written or oral, and that no alternation, modification or addenda to the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto. E. This Agreement shall commence upon execution by both parties, and shall terminate on August 31st, 2001,a, unless otherwise provided for as in Section (H). I F. This Agreement shall not be assignable except by the written consent of the CITY. G. This Agreement shall be governed by the laws of the State of Minnesota. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their proper officers, thereunto duly authorized, as of the day and year first above written. CITY OF SHAKOPEE SHAKOPEE INDIANS BASEBALL TEAM Mayor President City Administrator City Clerk SHAKOPEE COYOTES BASEBALL TEAM CONCESSIONS AGREEMENT 2001-20043 I - This agreement, made and entered into this day of , 200~+, by I and between the City of Shakopee, a Minnesota municipal corporation, located at 129 Holmes Street, Shakopee, in the County of Scott, State of Minnesota (hereinafter referred to as "CITY") and the Shakopee Coyotes Baseball Team, (hereinafter referred to as "TEAM"). WITNESSETH: Whereas the CITY is desirous of providing efficient concession services to patrons of the Joe Schleper Baseball Stadium; and Whereas the TEAM wishes to provide concession services at the Joe Schleper Baseball Stadium in order to raise funds for the ongoing support of TEAM expenses; and Whereas the CITY desires to designate at least a portion of the concessions earnings to go into the Park Reserve fund, which is used in part to fund improvements at the Joe Schleper Baseball Stadium, which is a benefit to the CITY; Now, therefore, in consideration of the promises, terms and conditions stated herein, the parties agree as follows: I. DUTIES AND RIGHTS OF TEAM A. The TEAM agrees to provide full and complete services for the sales of food concessions at the Joe Schleper Baseball Stadium concession stand on the dates that it plays its home games. The CITY may request to provide these services at additional times and the TEAM may meet those requests, if given two weeks notice. B. The TEAM agrees to pay the CITY an amount equal to Fifteen Percent (15%) of the net profits from concessions at the Joe Schleper Baseball Stadium. C. Payment shall be made annually, on or before August 31st of each year. Net profits shall be defined as gross sales less the cost of products, materials, and sales taxes to be paid. D. The TEAM agrees to purchase and maintain all food goods, materials and supplies necessary for the concession stand. The TEAM may sell souvenirs and other hard goods not sold by the CITY, as approved by the CITY in writing. TEAM souvenirs and other hard good sales and beer sold in the concession stand under the licenses of a separate organization, shall not be subject to the commission specified in I. R, above. E. The TEAM agrees to provide, maintain and repair facilities and equipment as necessary for the sale of concessions. The TEAM will be responsible for the cost of any losses resulting from spoilage of frozen or refrigerated foods due to a power outage or equipment failure. The TEAM shall thoroughly document such losses. If equipment is needed, either in replacement of or addition to the existing equipment, the equipment must meet appropriate NSF standards. F. The TEAM agrees to provide all manager(s), supervisor(s) and attendant(s) and other personnel for its concession operations. The TEAM also agrees and understands that nothing contained herein creates or establishes the relationship of copartners between itself and the CITY and that it is an independent contractor and its officers, managers, supervisors, volunteers, attendants and other employees are not employees, agents or representatives of the CITY with respect to any services performed under this agreement. Such personnel or other personal associated with the TEAM shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever from the CITY, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, Worker's Compensation, Unemployment Compensation, disability or severance pay and PERA. G. The TEAM agrees to maintain in internal control system, which includes a Cash Report, on forms approved by the CITY. Such reports shall be submitted along with each annual remittance of the CITY's share of the net receipts. In accordance with Minnesota Statutes 168.06, Subdivision 4, the TEAM further agrees to allow the CITY or the State Auditor or their agents to review, upon request, all records associated with the performance of the agreement, including invoices for concession goods and supplies, all canceled checks for payment of such invoices, all inventory records, and to be present at the taking of inventories, and to verify inventory shrinkage records. H. On or before August 31 st of each year, the TEAM shall provide the CITY with a copy of the season's concession financial report prepared by the TEAM. /. The TEAM shall conduct its activities upon the premises so as not to endanger any person lawfully thereon; and shall indemnify, save and hold harmless the CITY and all of its officers, agents and employees from any and all claims, losses, injured, damages and liabilities to persons or property occasioned wholly or in part by the acts or omissions of the TEAM, it agents, officers, employees, volunteers, patrons, or any persons associated with or served by the TEAM's concessions operations. J. The TEAM agrees to provide a certificate of insurance showinq proof of qeneral liability in the minimum amount of $1 ,000,000 per occurrence, and fire/property damaqe in the amount of $100,000 per occurrence. The required insurance certificate must name City of Shakopee, its officials, aqents, employees, and volunteers as additional insured's. carry 3 certific3te ofinsur3nce for comprehensivG generalli3bility in the minimum 3mount of $1,000,000 per occurrence, $1,000,000 general 3ggregatc, $1,000,000 food product liability per occurrence, 3nd fire/property d3m3ge in the 3mount of $100,000 per occurrence. The required insur3nce certificate must name City of Sh3kopee, its offici3ls, agents, employees, 3nd volunteers 3S 3dditional insured's. A copy of the certificate must be submitted to the City Clerk, and all policies shall provide and the certificates issued evidence that the CITY will be notified at least 30 days prior to cancellation or modifications of coverage. Renewal certificates shall be provided to the CITY 30 days prior to the expiration date of coverage. All insurance must be provided at the TEAM's expense and at no costs to the CITY. K. The TEAM or the CITY may terminate this agreement upon thirty (30) days written notice to the other party. In the event of such termination by either party, the TEAM agrees to pay the CITY the full remittance owed as of the date of termination. L. The TEAM, agrees to comply with Minnesota Statutes 181.59 and other related state and federal laws prohibiting discrimination in performance of this agreement on the basis of race, color, creed, religion, national origin, sex, martial status, disability and status with regard to public assistance, age or familial status. The TEAM agrees to hold harmless and indemnify the CITY from costs including but not limited to damages, attorney fees and staff time in any action or proceeding alleging illegal discrimination. M. The TEAM agrees to comply with the Americans With Disabilities Act and not to discriminate on the basis of disability in the admission or access to, or treatment of employment in its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all services, programs, and activities. The CITY has designated coordinators to facilitate compliance with the Americans Disabilities Act of 1990 (ADA), as required by Section 35.107 of the U.S. Department of Justice regulations, and to coordinate compliance with Section 504 of the Rehabilitation Act of 1973, as mandated by Section 8.53 of the U.S. Department of Housing and Urban Development regulations. The TEAM agrees to hold harmless and indemnify the CITY from costs including but not limited to damages, attorney fees and staff time in any action or proceeding alleging a violation of the ADA. L. The TEAM agrees to abide by all applicable State laws and requirements, including but not limited those of the Minnesota Department of Health. II. DUTIES AND RIGHTS OF THE CITY A. The CITY agrees to obtain and maintain all licenses and permits necessary to operate a concession stand as required by any and all governmental agencies. B. The CITY agrees to provide, maintain and repair the stadium and real property as necessary for the sale of concessions for use by the TEAM. The CITY further agrees to provide storage for TEAM inventories, subject to the limitations of available space at the Concession Stand. The CITY assumes no liability for lost, stolen or damaged merchandise or equipment left or stored in the Concession Stand. C. The CITY may immediately terminate this agreement in the event that the TEAM fails to perform its duties under this agreement. D. The CITY may terminate this agreement upon thirty (30) days written notice to the TEAM for any reason other than stated in II.C. III. JOINT DUTIES AND RIGHTS A. The TEAM and the CITY agree to work to develop a security plan for controlling access to the concession area. This plan will designate which TEAM personnel will be issued keys to the concession stand. Individuals on this list may not transfer their keys to other individuals without prior approval by the CITY. The plan will also designate which CITY staff have access to the concession area for conducting building maintenance, inspections, etc. B. The TEAM and the CITY agree that the types, serving sizes, prices and packaging of concession items sold by theTEAM shall be mutually agreed upon by the Shakopee Facilities and Recreation Director and the TEAM. C. The TEAM and the CITY agree that in the event a tournament sponsored by a local sports association is held in at the facility during the terms of this agreement, that the TEAM will pass on a share of its concession revenue generated during the tournament to the CITY if it operates the concession stand. The amount of share shall be mutually agreed by the TEAM and the CITY. D. It is mutually understood and agreed that this Agreement represents the entire agreement between the parties and supersedes and all prior agreements or proposals, written or oral, and that no alternation, modification or addenda to the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto. E. This Agreement shall commence upon execution by both parties, and shall terminate on August 31 st, 20013, unless otherwise provided for as in Section (H). I F. This Agreement shall not be assignable except by the written consent of the CITY. G. This Agreement shall be governed by the laws of the State of Minnesota. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their proper officers, thereunto duly authorized, as of the day and year first above written. CITY OF SHAKOPEE SHAKOPEE COYOTES BASEBALL TEAM Mayor President City Administrator City Clerk