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HomeMy WebLinkAbout6.g. Arena Concessions Agreement EXECUTIVE SUMMARY City Council Regular Meeting: October 6, 2015 AGENDA ITEM: Arena Concessions Agreement AGENDA SECTION: Consent PREPARED BY: Dan Schultz, Parks and Recreation Director AGENDA NO. 6.g. ATTACHMENTS: Proposed Agreement APPROVED BY: ddj RECOMMENDED ACTION: Motion to approve the attached lease agreement between the City of Rosemount and the Rosemount Area Hockey Association for use of the Ice Arena Concession Stand. ISSUE For the past several years, the City of Rosemount has leased the concession stand in the Ice Arena to the Rosemount Area Hockey Association (RAHA). RAHA has one of their members oversee the operations of the concession stand. For the past five years, the City and RAHA have had an agreement for RAHA to pay the City $650 per month for use of the concession stand. The agreements have been for six months (Oct – April) and a total of $3,900 has been collected by the City. Recently, RAHA has requested that they rent for the concession stand rent be lowered. RAHA is suggesting that the rent be lowered from $650 per month down to $250 per month. RAHA has indicated that in 2014 they made a net profit of $5,200, while using 1,250 volunteer hours in the concession stand. If approved, this would lower the total rent paid form $3,900 to $1,500 for the six month rental period. We would collect $2,400 less in revenue from RAHA but we will make up that rental revenue in additional ice rentals we have on the schedule for 2015 and 2016. Staff feels that having a concession stand in the ice arena adds to the positive experience that visitors to the rink will have. Staff does not feel the City is currently staffed to operate the concession stand and also feels that if the City operated the stand that we could possibly lose money on the operations due to using paid staff. SUMMMARY Staff feels that RAHA has done a good job in coordinating the use of the concession stand and overseeing the maintenance and cleaning of the area. Staff is recommending the City Council approve a new lease agreement between the City of Rosemount and the Rosemount Area Hockey Association (RAHA) for the hockey association to lease the concession stand in the Rosemount Ice Arena for $250 per month for six months. ROSEMOUNT COMMUNITY CENTER CONCESSIONS AGREEMENT AGREEMENT made this __ day of October, 2015, by and between the City of Rosemount ("City") and Rosemount Area Hockey Association ("RAHA"). WITNESSETH: The following terms and conditions constitute an agreement between the City and RAHA to operate the arena concession stand at the Rosemount Community Center located at 13885 South Robert Trail, Rosemount Minnesota, for the period commencing October 7, 2015 and ending March 31, 2016, to wit: 1. The City and RAHA mutually agree for RAHA to manage and operate the arena concession stand. 2. RAHA will manage and provide adequate staffing for the operation of the arena concession stand. 3. RAHA agrees to compensate the City $250.00 per month ($1,500.00 total for 6 months. Payment during the term of this Agreement shall be made on or before the fifteen (15th) day of the month succeeding the period for which accounting and payment of fees are made. 4. The City agrees to provide all utilities for the operation of the arena concession stand and the equipment set forth in Exhibit A. RAHA will be responsible for repair and maintenance of equipment set forth in Exhibit A. RAHA agrees to return all equipment provided by the City at the commencement of the term of this Agreement, reasonable wear and tear excepted. 5. RAHA agrees to maintain the arena concession stand in a clean and orderly manner, and in accordance with procedures for the safe handling of food as directed by any applicable local and State health agency. The City will conduct random cleaning inspections to determine the degree of cleaning compliance. RAHA will use a washing/rinsing/sanitizing system when washing dishes. RAHA agrees to use no tape on stainless steel and not to store any items within 30 inches of any electrical panel. 6. RAHA will provide general liability insurance to insure against liabilities up to $500,000 for each claimant and $1,500,000 for each single occurrence. 7. RAHA shall indemnify and hold harmless the City, all its officers, agents, and employees, of and from any and all claims, demands, actions, or causes of actions of whatsoever nature of character arising out of or by any reason of the services and obligations provided for herein and further agrees to defend at its sole cost and expense any action or proceeding commenced for the purpose of asserting any claims of whatsoever character arise hereunder. 8. The Agreement may be terminated by either party hereto by thirty (30) days written notice to the other party. 9. RAHA is retained only for the purposes and to the extent set forth in this Agreement, and its relationship to the City shall be that of an independent contractor. As such, RAHA shall not be entitled to any pension, health or similar benefits which are available to employees of the City. IN WITNESS WHEREOF, the City and RAHA have hereunto affixed their signatures this ____ day of __________, 2015. CITY OF ROSEMOUNT ROSEMOUNT AREA HOCKEY ASSOCIATION ________________________ ____________________________ Mayor RAHA President ________________________ ________________________ City Clerk RAHA Attachment A Amana 1000 Microwave Fridge Base 2 door (True) Freezer stand up 1 door (True) Stainless steel 3 sink wash station (Lamberton) Stainless steel hand wash sink (Eagle) 15 Stainless steel mesh shelves (Eagle) 1 Stainless steel microwave shelf 1 paper towel dispenser 1 Wall mounted first aid kit 1 Telephone (651-322-6008) 1 Fire extinguisher 2 cash registers (Sam4s - 53) 7 Grey Storage Shelves Pretzel Warmer (Star)