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HomeMy WebLinkAbout5.A.1. Concession Stand Agreements s. A. ,. CITY OF SHAKOPEE MEMORANDUM To: Mayor and City Council CONSE'JT Mark McNeill, City Administrator From: Sherry Dvorak, Recreation Supervisor MeetingDate: April 17, 2007 Subject: Concession Stand Agreements INTRODUCTION City Council is asked to approve concessions stand agreements for the operations of Joe Schleper Stadium, Tahpah Softball Complex and the 1 th Avenue Sports Complex. BACKGROUND In 2006, the City had a concession agreement with the Shakopee Jaycees for the operation of the Tahpah Softball Complex and the Shakopee Coyotes and Shakopee Indians for the operation of Joe Schleper Stadium. These three agreements expired at the end of the 2006 playing season. With the completion of the 17th Avenue Sports Complex support building, the Shakopee Soccer Association is interested in operating the concession stand for their games and tournaments. The Shakopee Soccer Association is also taking an active role in the purchase of concession equipment for the facility. If Council approves the agreements, the organizations will operate the concessions to help raise funds for their organization, as well as some financial support for the facility. The Shakopee Jaycees generally donate most of their proceeds back to Tahpah Park. The 2006 concession payments were as follows: Shakopee Coyotes $311.00 Shakopee Indians $160.65 Shakopee Jaycees $811.70 (Plus $25,000 donated toward Tahpah project) General terms of the agreements specify that each organization is responsible for the overall operation of the concession stand, including staffing, inventory, food preparation and day-to-day cleaning and upkeep. Each organization is also responsible for securing the food license and providing a certified food handler to oversee the operation. The City's primary responsibility is to maintain the buildings and pay utility costs. Each agreement is for one year and requires a commission payment of 10 percent of gross receipts. The Coyotes and I ndians have typically sold beer at their games as part of an agreement with the Jaycees, and the City has not required a percentage of that revenue. The Jaycees do not sell beer at the softball concession stand. It should be noted that the City currently has another agreement with the Shakopee Hockey Association for the operation of the Ice Arena concession stand. This agreement has been a two year agreement and will expire in August 2007. When renewing the concession agreement with the Shakopee Hockey Association, Council will need to consider whether the revenue sharing in this agreement (15% of net) is equitable. VISIONING RELATIONSHIP F. Housekeeping Item RECOMMENDATION The agreements with these organizations have worked well and staff recommends concession agreements as follows: REQUESTED ACTION If City Council concurs, move to authorize appropriate city officials to execute the following agreements: 1. Shakopee Coyotes Baseball Team to operate Joe Schleper Baseball Stadium concession stand for all home Coyote games. 2. Shakopee Indians Baseball Team to operate Joe Schleper Baseball Stadium concession stand for all home Indian and Shakopee High School games. 3. Shakopee Jaycees to operate Tahpah Softball Complex concession stand. 4. Shakopee Soccer Association to operate the 1 ih Avenue Sports Complex concession stand. Sample Agreement AttacIaent A SHAKOPEEJAYCEES CONCESSIONS AGREEMENT I 20076 I This agreement, made and entered into this _ day of , 200Ze, 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 the Shakopee Jaycees, P.O. Box 133, Shakopee, in the County of Scott, State of Minnesota (hereinafter referred to as "ORGANIZATION"). WITNESSETH: Whereas the CITY is desirous of providing efficient concession services to patrons of the Tahpah Park Softball Complex; and Whereas the ORGANIZATION wishes to provide concession services at the Tahpah Park Softball Complex in order to raise funds for the ongoing support of the future improvements of Tahpah Park; 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 future improvements at the Tahpah Park Softball Complex, 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 ORGANIZATION A. The ORGANIZATION 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 ORGANIZATION agrees to provide full and complete services for the sales of food concessions at the Tahpah Park Softball Complex concession stand on the dates that adult softball plays its league games. The CITY may request to provide these services at additional times and the ORGANIZATION may meet those requests, if given two weeks notice. C. The ORGANIZATION agrees to pay the CITY an amount equal to Ten Percent (10%) of the gross receipts from concessions at the Tahpah Park Softball Complex. I D. Payment shall be made annually, on or before December 31 October 15lRill of each year. E. The ORGANIZATION agrees to purchase and maintain all food goods, materials and supplies necessary for the concession stand. The ORGANIZATION may sell souvenirs and other hard goods not sold by the CITY, as approved by the CITY in writing. ORGANIZATION 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.C., above. F. The ORGANIZATION agrees to provide, maintain and repair equipment as necessary for the sale of concessions. The ORGANIZATION 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, If equipment is needed, either in replacement of or addition to the existing equipment, the equipment must meet appropriate NSF standards. G. The ORGANIZATION agrees to provide all manager(s), supervisor(s) and attendant(s) and other personnel for its concession operations. The ORGANIZATION 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 ORGANIZATION 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. H. The ORGANIZATION agrees to maintain an 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 shafe of the gross receipts. In accordance with Minnesota Statutes 16B.06, Subdivision 4, the ORGANIZATION 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. I I. On or before December 31 October 1StR-st -_of each year, the ORGANIZATION shall provide the CITY with a copy of the season's concession financial report prepared by the ORGANIZATION. J. The ORGANIZATION 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 ORGANIZATION, it agents, officers, employees, volunteers, patrons, or any persons associated with or served by the ORGANIZATION's concessions operations. K. The ORGANIZATION agrees to provide a certificate of insurance showing proof of general liability in the minimum amount of $1 ,000,000 per occurrence, and fife/property damage in the amount of $100,000 per occurrence. The required insurance certificate must name City of Shakopee, 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 ORGANIZATION's expense and at no costs to the CITY. L. The ORGANIZATION 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 ORGANIZATION agrees to pay the CITY the full remittance owed as of the date of termination. M. The ORGANIZATION, 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 ORGANIZATION 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. The ORGANIZATION 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 ORGANIZATION 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. O. The ORGANIZATION 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 provide and maintain the concession stand building necessary for the sale of concessions for use by the ORGANIZATION. The CITY further agrees to provide storage for ORGANIZATION 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. B. Should the building become unsuitable for the sales of concessions, due to - vandalism, fire, weather related events, etc, the CITY reserves the right to terminate this agreement. C. The CITY may immediately terminate this agreement in the event that the ORGANIZATION fails to perform its duties under this agreement. D. The CITY may terminate this agreement upon thirty (30) days written notice to the ORGANIZATION for any reason other than stated in II.B or II.C. III. JOINT DUTIES AND RIGHTS A. The ORGANIZATION and the CITY agree to work to develop a security plan for controlling access to the concession area. This plan will designate which ORGANIZATION 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 ORGANIZATION and the CITY agree that in the event a tournament sponsored by a local sports association or other organization is held in at the Tahpah Park during the terms of this agreement, that the ORGANIZATION will: 1) Provide all concession services with a percentage going to the tournament coordinator. The amount to be negotiated between the ORGANIZATION and tournament coordinator. 2) Allow the tournament coordinators to independently operate concession operations. The tournament coordinators would not have access to equipment, supplies and inventory that the ORGANIZATION owns. C. 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. I D. This Agreement shall commence upon execution by both parties, and shall terminate on December 31 st, 2007 July 31 st , 2006, unless otherwise provided for as in Section (I). E. This Agreement shall not be assignable except by the written consent of the CITY. F. 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 SHAKOPEEJAYCEES ORGANIZATION Mayor President City Administrator City Clerk