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HomeMy WebLinkAbout15.D.1. Tahpah Park Concession Stand Agreement IS. {).I. CITY OF SHAKOPEE MEMORANDUM CONSE~IT To: Mayor and City Council Mark McNeill, City Administrator From: Mark Themig, Facilities and Recreation Director Meeting Date: May 6,2003 Subject: Tahpah Park Concession Stand Agreement INTRODUCTION City Council is asked to renew an agreement with Theis Concessions for operation of the concession stand at the Tahpah Park softball complex. BACKGROUND The City building that provides restrooms and storage for the Tahpah Park softball complex also contains a concession area. In 2001, staff issued a RFP to solicit vendors to operate this facility during softball league play (Mondays-Thursdays), since it was primarily only being used for weekend special events. As part of that process, we contacted local civic organizations, youth and adult sports associations, and other community groups. No one submitted a proposal. We replicated the process for 2002 and received a proposal in April from a local vendor. However, the vendor was unable to arrange staffing and withdrew his proposal. In mid-May 2002, Ben Theis of Theis Concessions contacted Parks and Recreation regarding the possibility of concessions in the park during softball games. Initially, Mr. Theis was interested in using his portable concession vehicle. However, we asked Mr. Theis to consider using the concession facility instead. Mr. Theis agreed, and the City entered into an agreement with him for the 2002 season. Mr. Theis provided concession service during league play from mid-June through the end of the softball season. He provided a varied menu that included the typically concession standards such as candy, ice cream, pop, and popcorn, plus novelties like snow cones and cotton candy. From a staff perspective, he was very good to work with. Commission payments to the City (15% of net profits) totaled $417.40. Although it's not a large sum of money, I believe his service was well received by the players and spectators, and at relatively little cost to the City. DISCUSSION Terms of the renewal agreement (Attachment A) are similar to the agreements in place for the Coyotes and Indians baseball teams' operation of Joe Schleper Stadium Concession, as well as the agreement with the Shakopee Hockey Association for the operation of the Ice Arena Concession stand. The agreement specifies that the concessionaire is responsible for the overall operation of the concession stands, including staffing, inventory, food preparation, liability, and day-to day cleaning and upkeep. The agreement specifies that Theis Concessions will pay the City 15% of net sales. One issue that Mr. Theis and I discussed this year was the use of the concession stand for tournaments. As you may know, from May through July, Tahpah Park is used almost every weekend for some type of tournament. The tournament coordinators typically provide the concession service as part of their fundraising efforts. Last year, Mr. Theis was asked to move his equipment and supplies out of the concession stand for the tournaments, which created a considerable amount of additional work. This year, we proposed to the tournament coordinators that Mr. Theis provide the concession service for their event, and he would receive a small compensation (15% of net profits) for this service. However, most of the coordinators have existing concession supply lines and systems in place, and were not interested in this service. Therefore, one option we are proposing in the new agreement with Mr. Theis is to allow the use of his concession trailer instead of the concession stand. In this case, he would move the concession trailer into the park on Mondays and out on Thursdays. This may be more efficient for him than moving the equipment in and out of the concession stand; however, we haven't come to a final decision with him on this. In either using our concession stand or his trailer, the agreement specifies that Mr. Theis assumes the liability. Finally, since there will be a number of different organizations using the concession stand in addition to Mr. Theis, I am recommending that the City obtain the state-required food license. Each organization would sign a hold-harmless agreement. This is consistent with how the food licenses are handled for the Arena, Joe Schleper Stadium, and Aquatic Park concession stands. RECOMMENDATION I recommend approval of the agreement as proposed. REQUESTED ACTION If City Council concurs, move to authorize entering into an agreement with Theis Concessions for providing concession service at Tahpah Park through September 30, 2003. ~~ Mark Themig Y Facilities and Recreation Director TAHPAH PARK SOFTBALL CONCESSIONS AGREEMENT 2003 This agreement, made and entered into this _ day of , 2003, 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 Theis Concessions, Benedict Theis, 503 West Fourth Avenue, Shakopee, Minnesota 55379, (hereinafter referred to as "CONCESSIONAIRE"). WITNESSETH: Whereas the CITY is desirous of providing efficient concession services to patrons of the Tahpah Park; and Whereas the CONCESSIONAIRE wishes to provide concession services at Tahpah Park Concession Stand; Now, therefore, in consideration of the promises, terms and conditions stated herein, the parties agree as follows: I. DUTIES AND RIGHTS OF CONCESSIONAIRE A. The CONCESSIONAIRE agrees to provide full and complete services for the sales of food concessions at the Tahpah Park concession stand or mobile concession trailer through September 30, 2003 at the following times: Mondays and Tuesdays: 6:00 p.m.-9:00 p.m. Wednesdays and Thursdays: 6:00 p.m.-10:00 p.m. The CONCESSIONAIRE may request additional times, which the CITY must approve. Likewise, the CITY may request services at additional times and the CONCESSIONAIRE shall attempt to meet those requests. B. The CONCESSIONAIRE agrees to pay the CITY an amount equal to Fifteen Percent (15%) of the net profits from concessions at Tahpah Park. C. Payment shall be made annually, on or before October 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 CONCESSIONAIRE agrees to purchase and maintain all food goods, materials and supplies necessary for the concession stand. The CONCESSIONAIRE may sell souvenirs and other hard goods not sold by the CITY, as approved by the CITY in writing. All sales are subject to the commission payment specified in LB. E, The CONCESSIONAIRE agrees to provide, maintain and repair equipment as necessary for the sale of concessions. The CONCESSIONAIRE 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 CONCESSIONAIRE 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 CONCESSIONAIRE agrees to provide all manager(s), supervisor(s) and attendant(s) and other personnel for its concession operations. The CONCESSIONAIRE 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 CONCESSIONAIRE 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 CONCESSIONAIRE 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 CONCESSIONAIRE 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 October 31st of each year, the CONCESSIONAIRE shall provide the CITY with a copy of the season's concession financial report prepared by the CONCESSIONAIRE. I. The CONCESSIONAIRE 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 CONCESSIONAIRE, it agents, officers, employees, volunteers, patrons, or any persons associated with or served by the CONCESSIONAIRE's concessions operations. J. The CONCESSIONAIRE agrees to provide a certificate of insurance showing proof of commercial 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 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 CONCESSIONAIRE's expense and at no costs to the CITY. K. The CONCESSIONAIRE shall provide proof of Workers Compensation Insurance. L. The CONCESSIONAIRE shall provide their Federal Employer Identification Number. M. The CONCESSIONAIRE 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 CONCESSIONAIRE 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 CONCESSIONAIRE 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 CONCESSIONAIRE 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 CONCESSIONAIRE 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 concession stand and real property as necessary for the sale of concessions for use by the CONCESSIONAIRE. The CITY further agrees to provide storage for CONCESSIONAIRE 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 agrees to obtain and the facility food license necessary to operate a concession stand. C. The CITY may immediately terminate this agreement in the event that the CONCESSIONAIRE fails to perform its duties under this agreement. III. JOINT DUTIES AND RIGHTS A. The CONCESSIONAIRE and the CITY agree to work to develop a security plan for controlling access to the concession area. This plan will designate which CONCESSIONAIRE 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 CONCESSIONAIRE and the CITY agree that the types, serving sizes, prices and packaging of concession items sold by the CONCESSIONAIRE shall be mutually agreed upon by the CITY and the CONCESSIONAIRE. C. The CONCESSIONAIRE and the CITY agree that in the event a tournament or other type of event is held in Tahpah Park and is sponsored by an organization that has been permitted by the CITY, during the terms of this agreement, the CONCESSIONAIRE will work with the organization to accommodate their concession needs. This may include providing the concession service and passing on a share of the revenue to the organization in lieu of commission payment to the CITY, or accommodating the organization's use the concession stand facilities. The CONCESSIONAIRE is not required to allow use of the CONCESSIONAIRE'S equipment or product, only the concession facility space. The decision as to the level of involvement of the CONCESSIONAIRE in these events is up to the organization permitted to use the facility. 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 October 315\ 2003. F. The CONCESSIONAIRE or the CITY may terminate this agreement upon thirty (30) days written notice to the other party for any reason other than stated in II.B. G. This Agreement shall not be assignable except by the written consent of the CITY. H, 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 SHAKO PEE THEIS CONCESSIONS Mayor Benedict Theis City Administrator City Clerk