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HomeMy WebLinkAbout4.E.1. Approval of the Shakopee Youth Hockey Association Advertising and Concessions Stand Agreements for the 2014 and 2015 seasons �� Consent Business 4. E. 1. S H:�K()1'F:I_: TO: Mayor and City Council Mark McNeill, City Administrator FROM: Josh Barrick, Recreation Supervisor DATE: 08/20/2013 SUBJECT: Approval of the Shakopee Youth Hockey Association Advertising and Concessions Stand Agreements for the 2014 and 2015 seasons (D) Action Sought The City Council is asked to approve the Shakopee Youth Hockey Association Advertising and Concessions Stand Agreements for the 2014 and 2015 seasons. Background In 2011, City Council authorized a two-year agreement with the Shakopee Hockey Association (SYHA) to have the Association coordinate the advertising in the arena. The current agreement will end on December 31, 2013. Also in 2011, the City Council authorized a two-year agreement with the Shakopee Hockey Association to operate the concessions stand in the arena with that agreement ending on August 31, 2013. Discussion Since 2002 the SYHA has done a good job operating the concessions stand in the Ice Arena. Per the agreement the City receives a portion of the revenue from the concession stand operations. The amount is typically between $1,200.00- $2,500.00 annually.The SYHA has also done a good job in attracting new adverting contracts during the economic down turn with revenues coming back to the city in the amount of$2,500.00 annually. The agreements with SYHA are working well, and staff recommends the renewal of the agreements for a two-year period with no significant changes. The SYHA has been presented with the agreements and supports a renewal. Relationship to Vision D. Maintain improve and create strong partnerships with other public and private sector entities. Requested Action The City Council is asked to approve the Shakopee Youth Hockey Association Advertising and Concessions Stand Agreements for the 2014 and 2015 seasons. Attachments: SYHA Concession A�reement 2014-15 SYHA Advertisin� Agreement 2014-15 SHAKOPEE YOUTH HOCKEY ASSOCIATION CONCESSION AGREEMENT 2013-2015 This agreement made and entered into this day of , 2013, by 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 Shakopee Youth Hockey Association, a nonprofit corporation in the County of Scott, State of Minnesota (hereinafter referred to as "SYHA"). WITNESSETH: Whereas, the CITY of Shakopee is desirous of providing efficient concession services to Shakopee Ice Arena patrons, and generate revenue; and Whereas, SYHA wishes to provide concession services at the Shakopee Ice Arena in order to raise funds for the ongoing support of youth hockey in the community; and Whereas, SYHA uses concession earnings to rent ice time at the Shakopee Ice Arena, which is beneficial 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 SYHA A. SYHA agrees to provide full and complete services for the sales of food concessions at the Shakopee Ice Arena concession stand during High School Games, Tournaments and in season Saturdays and Sundays between the times of 9:OOAM to 9:OOPM, excluding holidays unless otherwise agreed upon. The CITY may request SYHA to provide these services at additional times and SYHA shall meet these requests, if given two weeks notice. B. The SYHA agrees to obtain and maintain all licenses and permits necessary to operate a concession stand as required by any and all governmental agencies. C. SYHA agrees to pay the CITY an amount equal to Fifteen Percent(15%) of the net receipts from concessions at the Shakopee Ice Arena for the use of Arena concession stand facilities and equipment. Net profits shall be defined as gross sales less the cost of products, materials, and sales taxes to be paid. D. Payments shall be made annually on or before August 315t E. SYHA agrees to purchase and maintain all food goods, materials and supplies necessary for the Ice Arena concession stand. SYHA may sell souvenirs and other hard goods not sold by the Ice Arena, as approved by the CITY in writing. SYHA souvenirs and other hard good sales shall not be subject to the commission specified in I.C., above. F. SYHA agrees to provide, maintain and repair facilities and equipment as necessary for the sale of concessions. SYHA 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. SYHA 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. G. SYHA agrees to provide all manager(s), supervisor(s), attendant(s), and other personnel for its Ice Arena concession operations, and train those personnel in food preparation and handling procedures as required by any and all government agencies. SYHA 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 personnel associated with SYHA shall not 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. H. SYHA agrees to maintain an internal control system which includes Cash Demand System and a Cash Report, on forms approved the CITY. Such reports shall be submitted along with each monthly remittance of the CITY's share of the net receipts. In accordance with Minnesota Statutes 16B.06, Subdivision 4, SYHA 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. Gross receipts shall be agreed upon by the CITY Finance Director. SYHA will maintain a separate checking account for concessions operations. I. On or before August 31St of each year, SYHA shall provide the CITY with a copy of the year-end Ice Arena Concession financial report prepared by SYHA for its Board of Directors. J. SYHA 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 SYHA, its agents, officers, employees, volunteers, patrons, or any persons associated with or served by SYHA concessions operations. K. SYHA agrees to carry a certificate of insurance for comprehensive general liability in the minimum amount of$1,000,000 per occurrence, $1,000,000 general aggregate, $1,000,000 food product liability per occurrence, and fire/property damage in the amount of$100,000 per occurrence. The required insurance certificate must name the City of Shakopee, its officials, agents, employees, and volunteers as additional insured's. A copy of the certificate must 2 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 SYHA expense and at no costs to the CITY. L. SYHA may terminate this agreement upon thirty (30) days written notice to the other party, except as outlined in II.B. In the event of such termination by either party, SYHA agrees to pay the CITY the fuil remittance owed as of the date of termination. M. SYHA 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, marital status, disability and status with regard to public assistance, age or familial status. SYHA 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. N. SYHA 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. SYHA 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. II. DUTIES AND RIGHTS OF THE CITY OF SHAKOPEE A. The CITY agrees to provide storage for SYHA inventories, subject to the limitations of available space at the Ice Arena. The CITY assumes no liability for lost, stolen or damaged merchandise or equipment left or stored in the concession stand. B. The CITY may immediately terminate this agreement in the event that SYHA fails to provide concession services in accordance with Shakopee Ice Arena schedule of events or otherwise fails to perform its duties under this agreement. C. The CITY may terminate this agreement upon thirty (30) days written notice to SYHA for any reason other than stated in II.B. III. JOINT DUTIES AND RIGHTS A. SYHA and the CITY agree to work to develop a security plan for controlling access to the concession area. This plan will designate which SYHA 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 3 plan will also designate which CITY staff will have access to the concession area for conducting building maintenance, inspections, etc. B. SYHA and the CITY agree that the types, serving sizes, prices and packaging of concession items sold by SYHA shall be mutually agreed upon by the Shakopee Facilities and Recreation Director and SYHA. C. SYHA and the CITY agree that in the event a tournament sponsored by a local sports association is held in the Community Center during the terms of this agreement that SYHA 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 SYHA and the CITY. D. It is mutually understood and agreed that this Agreement represents the entire agreement between the parties and supersedes 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, 2015, unless otherwise provided for as in Section (H). 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 YOUTH HOCKEY ASSOCIATION Mayor City Administrator President City Clerk 4 SHAKOPEE HOCKEY ASSOCIATION ADVERTISING AGREEMENT 2014& 2015 This Agreement is made and entered into this day of 2013, by 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 Shakopee Hockey Association, a nonprofit corporation in the County of Scott, State of Minnesota (hereinafter referred to as "SHA"). WITNESSETH: Whereas, the City of Shakopee is desirous of generating revenue through the use of dasher board and banner advertising; and Whereas, SHA wishes to sell dasher board and banner advertising at the Shakopee Ice Arena in order to raise funds for the ongoing support of youth hockey in the community; and Whereas, SHA uses dasher board and banner advertising revenue to rent ice time at the Shakopee Ice Arena, 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 SHA A. SHA shall use its best efforts to locate advertisers for available advertising space in the Shakopee Ice Arena and to negotiate advertising contracts for the arena, provided that ail the advertising contracts are subject to the following: (1) advertising rates shall be at the rates approved by the CITY; (2)the advertiser is satisfactory to CITY. All advertisements shall be based on the Shakopee Ice Arena Advertising Program. (Exhibit A) B. SHA shall designate one representative that will act as the association's liaison in coordinating activities with the CITY. C. SHA agrees to pay the CITY an amount equal to Twenty Five Percent (25%) gross annually from the sale of dasher board and banner advertising. A minimum annual payment of$2,500 is to be made to the City in the event that (25%)of gross sales is to be less than $2,500. It is understood that SHA will invoice all advertisers, and advertisement payments will be made to SHA at its mailing address. Payments due to the CITY will be made to the CITY on an annual basis before December 31. Cash flow reports and inventory lists will be forwarded to the CITY at time of payment. D. SHA shall be responsible for working with advertisers on design and production of advertising panel and/or artwork. SHA shall review all artwork and ensure that it meets the standards set forth by the CITY. SHA shall obtain CITY approval of artwork prior to production. The CITY reserves the right to reject any copy, pictorial, or graphic, that (1) is inappropriate for children or young adults (no sex, drugs, alcohol or tobacco are permitted); (2) is a violation of existing laws; or(3) in any way reflects negatively on the character, integrity or standing of any individual, group, firm or corporation. E. On or before December 1 of each year, SHA shall provide the CITY with a copy of the year-end Advertising Sales financial report prepared by SHA for its Board of Directors. F. SHA 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, marital status, disability and status with regard to public assistance, age or familial status. SHA 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 i�legal discrimination. G. SHA 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. SHA 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. II. DUTIES AND RIGHTS OF THE CITY OF SHAKOPEE A. The CITY may terminate this Agreement upon thirty (30) days written notice in the event that SHA fails to locate advertisers, or otherwise fails to perform its duties under this Agreement provided however that all contracts with advertisers shall remain in full force and effect. SHA agrees to pay the CITY the full remittance owed as of the date of termination. B. The City is to designate one representative that will act as the city's liaison in coordinating activities with the SHA. C. The CITY will coordinate installation of advertising within agreed upon time frame. In the event that specialized skills, equipment, or tools are needed for installation, it is understood that SHA will be responsible for these costs. III. JOINT DUTIES AND RIGHTS A. SHA and the CITY agree to prepare, or have prepared, advertising and promotional materials to be used by SHA in the solicitation of advertisers. Any costs for professional design or printing services shall be responsibility of SHA. 2 B. SHA and the CITY agree to coordinate the administration of advertising contracts, including production, and securing signatures. C. SHA and the CITY agree to mutually research, interview, and select a business (or businesses) to produce advertisements. It is understood that all costs associated with the design, production, installation (when beyond the ability of CITY staff), and repair/upkeep of advertisements shall be the responsibility of SHA. D. It is mutually understood and agreed that this Agreement represents the entire agreement between the parties and supersedes 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 not be assignable except by the written consent of the CITY. F. This Agreement shail be governed by the laws of the State of Minnesota. G. The term of this agreement shall be through December 31, 2015, unless earlier terminated by the City pursuant to Paragraph II.A. 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 HOCKEY ASSOCIATION Mayor President City Administrator City Clerk 3