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Home My WebLink About4.B.1. Renewal of Ice Arena Advertising Agreement , � y. �.1 . CITY OF SHAKOPEE MEMORANDUM � ;:� � � �- �� -:,.� �, , ; � ; �r, � �..,% `�.,� � � �, � W � d To: Mayor and City Council � Mark McNeill, City Administrator From: Joshua Barrick, Recreation Supervisor & Arena Operations Meeting Date: January 17, 2012 Subject: Renewal of Arena Advertising Agreement i i ; INTRODUGTION City Council is asked to consider renewal of the Arena advertising agreement with i Shakopee Hockey Association for two additional years. � BACKGROUND AND D(SCUSSION ; In 2009, City Council authorized a two-year agreement with Shakopee Hockey , Association to have the Association coordinate the advertising in the arena. The current , agreement has ended on December 31, 2011. Terms of the previous agreement include a minimum annual payment of $5,000 in the event that (25%) of gross sales is to be less than $5,000. Due to the economic down turn the association has struggled to get retain and attract new advertisers. The result of � this down turn has resulted in the association paying the city 50-90% of its gross sales. The original intent of the agreement was to provide a revenue source for Shakopee ' Hockey Association that would help control per participant costs for ice rented at the ' � Arena, while heiping the City meet its revenue projections. In addition, it required that � � SYHA conduct the majority of administrative work associated with the program. � � i i In order to achieve the intent of the agreement the new terms of the proposed ' ' agreement include a minimum annual payment of $2,500 in the event that (25%) of ' i gross sales is to be less than $2,500. � The City will still retain full control over approval of the ad content and design. The ; Association is responsible for all sales, design, production, and billing. � i � Relationship to Vision ' This insures a high quality of services to the Ice Arena. With this in mind, this action i appears to meet the following aspects af the City's vision: , This item relates to Goal D: Maintain, improve and create strong partnership with other � Public and Private sector entities. i i I � i �, �i ALTERNATIVES 1. Extend the agreement with Shakopee Hockey Association for two additional years. 2. Allow the current agreement to expire and direct City staff to assume the advertising I program. �; RECOMMENDATION ; I would recommend Alternative #1, that the agreement be renewed for two additional j yea rs. i REQUESTED ACTION ; If Council concurs, move to authorize the appropriate city officials fo sign a two-year ! agreement with Shakopee Hockey Association for Arena Advertising. i i i Joshua Barrick � Recreation Supervisor & Arena Operations i i i i I I � � i i I ' I � I ,I ! ! � I i i i � I i � I � li � f I� i j � � i i i � � � � � � SHAKOPEE HOCKEY ASSOCIATION � � ADVERTISING AGREEMENT � � I 20'12 8� 2013 ! I � I This Agreement is made and entered into this day of � i 2012, 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 � i referred to as "CITY") and Shakopee Hockey Association, a nonprofit corporation in the i I County of Scott, State of Minnesota (hereinafter referred to as "SHA"). � I � WITNESSETH: � I � I Whereas, the City of Shakopee is desirous of generating revenue through the use of , dasher board and banner advertising; and , Whereas, SHA wishes to sell dasher board and banner advertising at the Shakopee Ice , Arena in order to raise funds for the ongoing support of youth hockey in the community; and I Whereas, SHA uses dasher board and banner advertising revenue to rent ice time at the � Shakopee (ce Arena, which is a benefit to the CITY. , � Now, therefore, in consideration of the promises, terms and conditions stated herein, the � parties agree as follows: � � L DUTIES AND RIGHTS OF SHA � ' A. SHA shall use its best efforts to locate advertisers for available advertising space ' � in the Shakopee Ice Arena and to negotiate advertising contracts for the arena, I provided that all the advertising contracts are subject to the following: (1) � advertising rates shall be at the rates approved by the CITY; (2) the advertiser is ' satisfactory to CITY. All advertisements shall be based on the Shakopee Ice � I� Arena Advertising Program. (Exhibit A) i I B. SHA shall designate one representative that will act as the association's liaison in � coordinating activities with the CITY. � I C. SHA agrees to pay the CITY an amount equal to Twenty Five Percent (25%) � gross annually from the sale of dasher board and banner advertising. A minimum � annual payment of $2,500 is to be made to the City in the event that (25%) of � gross sales is to be less than $2,500. It is understood that SHA will invoice all ' � advertisers, and advertisement payments will be made to SHA at its mailing i � address. Payments due to the CITY will be made to the CITY on an annual basis i I before December 31. Cash flow reports and inventory lists will be forwarded to i I the GTY at time of payment. � i , � D. SHA shall be responsible for working with advertisers on design and production i of advertising panel and/or artwork. SHA shall review all artwork and ensure that � + it meets the standards set forth by the CITY. SHA shafl obtain CITY approval of � �, I artwork prior to production. The CITY reserves the right to reject any copy, � � I � I i I ' �I , i � i � � pictorial, or graphic, that (1) is inappropriate for children or young adults (no sex, I drugs, alcohol or tobacco are permitted}; (2) is a vio(ation of existing laws; or (3} in any way reflects negatively on the character, integrity or standing of any � individual, group, firm or corporation. ! E. On or before December 1 of each year, SHA shall provide the CITY with a copy of the year-end Advertising Sales financial report prepared by SHA for its Board of Directors. F. SHA 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. SHA ' agrees to hold harmless and indemnify the CITY from costs including but not limited to dama es, attorne fees and staff time in an action or roceedin Y P 9 Y 9 alleging illegal discrimination. I G. SHA 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 compfiance with the Americans Disabifities 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. SHA agrees to hold harmless and indemnify the CITY I from costs including but not limited to damages, attorney fees and staff time in � any action or proceeding alleging a violation of the ADA. I i II. DUTIES AND RIGHTS OF THE CITY OF SHAKOPEE ' � A. The CITY may terminate this Agreement upon thirty (30) days written notice in ' the event that SHA fails to locate advertisers, or otherwise fails to perform its i duties under this Agreement provided however that all contracts with advertisers i shall remain in full force and effect. SHA agrees to pay the CITY the full , remittance owed as of the date of termination. I � , B. The City is to designate one representative that will act as the city's liaison in I coordinating activities with the SHA. C. The CITY will coordinate installation of advertising within agreed upon time ; frame. In the event that specialized skills, equipment, or tools are needed for installation, it is understood that SHA will be responsible for these costs. � i III. JOINT DUTIES AND RIGHTS i A. SHA and the CITY agree to prepare, or have prepared, advertising and promotional materials to be used by SHA in the solicitation of advertisers. Any costs for professional design or printing services shall be responsibility of SHA. i I 2 ' i � I i ' B. SHA and the CITY agree to coordinate the administration of advertising contracts, including production, and securing signatures. i C. SHA and the CITY agree to mutually research, interview, and select a business (or businesses) to produce advertisements. It is understood that all costs associated with the design, production, installation (when beyond the ability of CITY staff), and repair/upkeep of advertisements shall be the responsibility of SHA. 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 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. G. The term of this agreement shall be through December 31, 2013, unless earlier terminated by the City pursuant to Paragraph II.A. 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 I written. CITY OF SHAKOPEE SHAKOPEE HOCKEY ASSOCIATION Mayor President I � City Administrator I City Clerk � � I I I I 3 I � I I �