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HomeMy WebLinkAbout5.B.1. Consession Stand Agreements s: 6-/, CITY OF SHAKOPEE MEMORANDUM C~,. A., '."~' r-.... "'.~. '"('I, . .'1 \' ,..J 4' . ., ~ l!;, t... ,-' ", "..c ! <,:, I 'U'Ii~~)ll....~" To: Mayor and City Council Mark McNeill, City Administrator From: Sherry Dvorak, Recreation Supervisor Meeting Date: April 22,2008 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 2007, the City had a concession agreement with the Shakopee Coyotes and Shakopee Indians for the operation of Joe Schleper Stadium. These agreements expired at the end of the 2007 playing season. Concession agreements were not executed with the Shakopee Jaycees and the Shakopee Soccer Association due to the construction delays at the 1 th Avenue Sports Complex and Tahpah Softball Complex. Both of these organizations are interested in the concession operations in 2008. 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 2007 concession payments were as follows: Shakopee Coyotes $243.00 Shakopee Indians $202.40 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 necessary food license and providing a certified food handler to oversee the operation if license requires one. Each organization is required to sell the product of the City's contracted vendor for all beverage services. The City's primary responsibility is to maintain the buildings and pay utility costs. Each organizations agreement requires a commission payment of 10 percent of gross receipts. The agreements for Joe Schleper Stadium expire at the end of the play-off season. A separate special use permit will be developed for the 2008 State Amateur Baseball Tournament. 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 17'h Avenue Sports Complex concession stand. CONCESSIONS AGREEMENT 2008 This agreement, made and entered into this _ day of , 2008, 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 , (hereinafter referred to as "TEAM/ORGANIZA TI ON"). WITNESSETH: Whereas the CITY is desirous of providing efficient concession services to patrons of the -; and Whereas the TEAM/ORGANIZATION wishes to provide concession services at the in order to raise funds for the ongoing support of TEAM/ORGANIZA nON 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 , 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/ORGANIZATION A. The TEAM/ORGANIZA nON 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 TEAM/ORGANIZATION agrees to provide full and complete services for the sales of food concessions at the concession stand on the dates that it plays its home/league games. The CITY may request to provide these services at additional times and the TEAM/ORGANIZATION may meet those requests, if given two weeks notice. C. The TEAM/ORGANIZA nON agrees to pay the CITY an amount equal to Ten Percent (10%) of the gross receipts from concessions at the D. Payment shall be made annually, on or before of each year. E. The TEAM/ORGANIZATION agrees to purchase and maintain all food goods, materials and supplies necessary for the concession stand. The TEAM/ORGANIZATION agrees to sell the product of the CITY's contracted vender for all beverage services. The TEAM/ORGANIZATION may sell souvenirs and other hard goods not sold by the CITY, as approved by the CITY in writing. TEAM/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 TEAM/ORGANIZATION agrees to provide, maintain and repair facilities and equipment as necessary for the sale of concessions. The TEAM/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. The TEAMlORGANIZA TION 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. The TEAM/ORGANIZATION agrees to provide all manager(s), supervisor(s) and attendant(s) and other personnel for its concession operations. The TEAM/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 TEAM/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 TEAM/ORGANIZATION 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 gross receipts. In accordance with Minnesota Statutes 16B.06, Subdivision 4, the TEAM/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. On or before November 30th of each year, the TEAMlORGANIZA TION shall provide the CITY with a copy of the season's concession financial report prepared by the TEAM/ORGANIZATION. J. The TEAM/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 TEAM/ORGANIZATION, it agents, officers, employees, volunteers, patrons, or any persons associated with or served by the TEAM/ORGANIZATION's concessions operations. K. The TEAM/ORGANIZATION agrees to provide a certificate of insurance showing proof of general liability in the minimum amount of $1 ,200,000 per occurrence, and fire/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 TEAM/ORGANIZATION's expense and at no costs to the CITY. L. The TEAM/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 TEAM/ORGANIZATION agrees to pay the CITY the full remittance owed as of the date of termination. M. The TEAM/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 TEAM/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 TEAM/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 ofthe Rehabilitation Act of 1973, as mandated by Section 8.53 of the U.S. Department of Housing and Urban Development regulations. The TEAM/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 TEAM/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, maintain and repair the complex and real property as necessary for the sale of concessions for use by the TEAM/ORGANIZATION. The CITY further agrees to provide storage for TEAM/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. The CITY may terminate this agreement upon thirty (30) days written notice to the TEAM/ORGANIZATION for any reason other than stated in n.B. C. The CITY will provide beverage refrigerator units through the CITY's beverage supplier. III. JOINT DUTIES AND RIGHTS A. The TEAM/ORGANIZATION and the CITY agree to work to develop a security plan for controlling access to the concession area. This plan will designate which TEAM/ORGANIZA TION 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 and inspections, etc. B. The TEAM/ORGANIZATION and the CITY agree that the types, serving sizes, prices and packaging of concession items sold by the TEAM/ORGANIZATION shall be mutually agreed upon by the Shakopee Parks Recreation and Natural Resources Director and the TEAM/ORGANIZATION. C. The TEAM/ORGANIZATION 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/ORGANIZATION 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/ORGANIZATION 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 ofthis 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 , unless otherwise provided for as in Section (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 ofthe day and year first above written. CITY OF SHAKOPEE Mayor City Administrator City Clerk TEAM/ORGANIZATION President