HomeMy WebLinkAbout5.B.1. Concession Stand Agreements
CITY OF SHAKOPEE s. 8. J.
MEMORANDUM
To: Mayor and City Council cn'lsr-~~T
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Mark McNeill, City Administrator ., 'TVQ ~j,jJ"
From: Sherry Dvorak, Recreation Supervisor
Meeting Date: April 21, 2009
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 ih Avenue Sports Complex.
BACKGROUND
In 2008, the City had concession agreements with the Shakopee Coyotes and Shakopee Indians
for the operation of Joe Schleper Stadium, Shakopee Soccer Association for the 1 ih Avenue
Sports Complex and the Shakopee Jaycees for Tahpah Softball Complex. These agreements
expired at the end of the 2008 playing season.
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 2008
concession payments to the City were as follows:
Shakopee Coyotes $191.00
Shakopee Indians $271.30
Shakopee Soccer Association $612.25
Shakopee Jaycees $238.50
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
organization's agreement requires a commission payment of 10 percent of gross receipts.
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 1ih Avenue Sports Complex concession stand.
CONCESSIONS AGREEMENT
2009
This agreement, made and entered into this _ day of ,2009, 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/ORGANIZATION").
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/ORGANIZATION 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/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 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/ORGANIZATION 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 TEAM/ORGANIZATION 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/ORGANIZA TION 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.
1. On or before November 30th of each year, the TEAM/ORGANIZATION shall provide
the CITY with a copy of the season's concession financial report prepared by the
TEAM/ORGANIZATION.
1. 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 arid 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 ORGANIZATION agrees to provide a certificate of insurance showing proof of
comprehensive general liability in the minimum amount of $1 ,500,000 per occurrence,
products liability in the minimum amount of $1,500,000 per occurrence, and fire/property
damage in the amount of $1 00,000 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 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 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/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. 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.
E. 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/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 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 TEAMlORGANIZA TION 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 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
, unless otherwise provided for as in Section (1).
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
Mayor
City Administrator
City Clerk
TEAM/ORGANIZATION
President