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HomeMy WebLinkAbout5.A.1. Renewal of Concession Stand Agreement S.fJ./~ CITY OF SHAKOPEE MEMORANDUM To: Mayor and City Council CONSENT Mark McNeill, City Administrator From: Joshua Barrick, Recreation Supervisor/Arena Operations Meeting Date: August 18, 2009 Subject: Renewal of Concession Stand Agreement INTRODUCTION City Council is asked to renew the concession stand agreement for the Shakopee Ice Arena. BACKGROUND The City has a joint agreement with Shakopee Youth Hockey Association to operate the Shakopee Ice Arena concession stand. Terms of the agreement specify that the organization is responsible for the overall operation of the concession stands, including staffing, licenses, inventory, food preparation, and day-to day cleaning and upkeep. The agreement specifies that the organization pay the City 15% of net sales. Recent commissions paid to the City have been $1,100 to $2,100 annually since 2002 and profits have gone into the Recreation Fund. RECOMMENDATION The agreement with Shakopee Hockey Assoc. is working well, and I recommend renewing the agreement for a two-year period with no significant changes. The Shakopee Hockey Assoc. has been presented with the agreement and supports a renewal. VISIONING RELATIONSHIP This insures a high quality of services to the community center. With this in mind, this action appears to meet the following aspects of the City's vision: Goal: Financially Strong Strategies: Ensure City's Fiscal Health REQUESTED ACTION If City Council concurs, move to authorize: 1. Renewal and execution of the agreement with Shakopee Youth Hockey Association to operate the Shakopee Ice Arena concession stand through August 31, 2011. Joshua Barrick Recreation Supervisorllce Arena Operations . SHAKOPEE YOUTH HOCKEY ASSOCIATION CONCESSION AGREEMENT 2009-2011 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 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 9:00AM to 9:00PM, 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 31st. 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 full 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. SYHAand 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 31 st, 2011, 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