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HomeMy WebLinkAboutOES 55-09 j 00 REPORT TO EXECUTIVE COMMITTEE ICKERING Report Number: OES 55-09 5 Date: December 14, 2009 From: Everett Buntsma Director, Operations & Emergency Services Subject: Dan Beer Arena Snack Bar Concession - Lease Renewal - Pickering Hockey Association - File: A-1440-001-09 Recommendation: 1. That Report OES 55-09 of the Director, Operations & Emergency Services regarding the Lease Renewal - Pickering Hockey Association be received; and 2. That the Mayor and the Clerk be authorized to execute a renewal Concession Licence Agreement to permit the Pickering Hockey Association to continue to operate the snack bar concession facility at Don Beer Arena from September 1, 2009 to April 30, 2010 that is in the form and substance acceptable to the Director, Operations & Emergency Services and the City Solicitor, with the option of mutually extending this licence agreement for a further two years. Executive Summary: The Pickering Hockey Association have an existing Licence Agreement to operate the snack bar concession facilities at Don Beer Arena. The Pickering Hockey Association have requested to renew this agreement for a further year. The Operations & Emergency Services Department recommend that a renewal agreement be initiated with the Pickering Hockey Association. Financial Implications: The revenue to be generated through 2009 and 2010 is $1,100 monthly from September 1, 2009 to April 2010 for a total of $8,800.00. I Sustainability Implications: Allowing a community organization such as the Pickering Hockey Association to run the snack bar at Don Beer Arena to support their initiatives fits within the City's sustainable vision. Report OES 55-09 December 14, 2009 Subject: Don Beer Arena Snack Bar Page 2 3 - Lease Renewal - Pickering Hockey Association Incorporated Background: On August 3, 1999, Council enacted By-law #5540/99 to authorize the execution of a Licence Agreement with the Pickering Hockey Association Incorporated for the operation of the Don Beer Arena Snack Bar Concessions. This agreement was subsequently extended to April 30, 2009 The Pickering Hockey Association have requested to renew this agreement again for a further year. The renewal agreement allows the Pickering Hockey Association to continue to operate the Don Beer Snack Bar Concession from September 1, 2009 to April 30, 2010. The. Pickering Hockey Association are currently paying the monthly fee of $1,100.00 per month for 8 months per year and have operated the. Concession since the additional third ice pad opened. The renewal agreement also allows for a mutually agreed extension of two years subject to an inflation allowance for rent increases. The Director, Operations & Emergency Services and the Division Head, Culture & Recreation recommend that a renewal agreement be initiated with the Pickering Hockey Association. Attachments: 1. Draft Agreement Prepared By: Approved/Endorsed BY: Tony Prevedel Everett Buntsma Division Head, Facilities Operations Director, Operations & Emergency Services TP:mld Copy: Chief Administrative Officer Recommended for the consideration of Pickeri it Council C~J v Tho as J. Q6-inn, DMR, CMM III Chief Administrate a Officer CORP0227-07/01 revised 54 THIS CONCESSION LICENCE AGREEMENT is made as of September 1, 2009. BETWEEN: PICKERING HOCKEY ASSOCIATION ("PHA") - and - THE CORPORATION OF THE CITY OF PICKERING (the "City") WHEREAS the City is the owner of the Don Beer Arena which contains a snack bar concession facility; and WHEREAS the City wishes to retain the PHA to operate the concession on its behalf. NOW THEREFORE the parties agree as follows: Definitions 1. In this. Agreement, (a) "Concession" means the snack bar concession facility located in the Don Beer Arena owned by the City located at 940 Dillingham Road in the City of Pickering; (b) "Director" means the Director of the City's Operations and Emergency Services or a designate; and (c) "term" means the term of this Agreement, including any renewal, as set out in Section 2. Term 2. (1) The City grants to the PHA the right to operate the Concession for the purpose of providing snack bar services during the months of September to April, both inclusive, for the period beginning September 1, 2009 and ending April 30, 2010. Pickering Hockey Association Concession Agreement Page 2 55 (2) If both parties agree, this Agreement may be extended on the same terms and conditions for a further period beginning September 1, 2010 and ending April 30, 2012. The monthly rental rate increase will be mutually agreed upon prior to this extension. 3. Either the PHA or the City may terminate this Agreement prior to its expiry by giving 90 days written notice to the other. Fees 4. The PHA shall pay to the City monthly installments on the first day of each month in the amount of $1,100 for a total of $8,800.00. Operations 5. The PHA and all of its servants, agents and employees shall, (a) comply strictly with all applicable by-laws, rules and regulations governing the conduct and operation of its business in the Concession; (b) operate the Concession during the times and on the'days agreed to by the Director; (c) keep accurate books and records of the operation of the Concession and allow the Director to inspect the books and records; (d) obtain all necessary permits, licenses and approvals that may be required in connection with the operation of the Concession; (e) PHA shall pay all realty, business or other taxes or rates that may be levied against the lands upon which the Don Beer Sports Arena is located, against the Arena Concession operation or against PHA as a result of its operation of the Arena Concession. (f) maintain in good repair the Concession and the equipment in it; (g) maintain' the Concession in a clean, sanitary and attractive condition satisfactory to the Director throughout the term and, at the end of the term, repair or replace any damages to the Concession except reasonable wear and tear; (h) provide a good standard of service to the public patronizing the Concession; (i) keep and offer for sale the types of refreshments and food ordinarily offered in community recreation centres and such other refreshments and food as may be reasonably requested by the City to promote a healthy lifestyle; and I 2 Pickering Hockey Association Concession Agreement Page 3 56 0) comply with the provisions of the agreement dated September 1, 2003 between the City and Coca-Cola Bottling Ltd. set out in Schedule A to this Agreement. 6. The PHA shall obtain the approval of the Director before altering, adding to or varying in any way all or any part of the Concession. Any approved alteration, addition or variation shall be undertaken at the PHA's sole expense and shall become the property of the City at the end of the term. Insurance 7. Prior to occupying the Concession, the PHA, at its own expense, shall provide, (a) comprehensive general public liability insurance, identifying the City as an additional insured, including coverage for personal injury, contractual liability, tenant's legal liability, non-owned automobile liability, death and property damage, on an occurrence basis with respect to the business carried on at the Concession and the PHA's use and occupancy of the Concession, with coverage for any one occurrence or claim of not less than $2,000,000, which insurance shall protect the City in respect of claims by the PHA as if the City was separately insured; (b) insurance in respect of fire and other perils covering the leasehold improvements, trade fixtures, furniture and equipment in the Concession for not less than the full replacement cost thereof; and (c) a certificate of insurance coverage in a form satisfactory to the City, prior to the PHA occupying the Concession, which insurance coverage shall be kept in full force and effect throughout the term. 8. The PHA shall not do or omit or permit to be done anything which causes any insurance premium of the City to be increased, and if any insurance premium shall be so increased, the PHA shall pay to the City forthwith upon demand the amount of such increase. If notice of cancellation or lapse shall be given respecting any insurance policy of the City or if any insurance policy shall be cancelled or refused to be renewed by an insurer by reason of the use or occupation of the Concession, the PHA shall forthwith remedy or rectify such use or occupation upon being requested to do so in writing by the City and if the PHA shall fail to do so the City may, at its option, terminate this Agreement forthwith by notice to the PHA and the PHA shall immediately vacate the Concession. Liability of the City 9. The City shall not be liable to the PHA-for any loss of or damage to the Concession or any equipment or inventory in it, whether caused by fire, theft, burglary or otherwise, unless 3 Pickering Hockey Association Concession Agreement Page 4 57 such loss or damage was caused by the negligence of the City, its servants, agents or employees. 10. The PHA shall indemnify the City and each of its servants, employees and agents from and against all actions, suits, claims and demands which may be- brought against any of them, and from and against all losses, costs, charges, damages and expenses which may be sustained by any of them as a result of PHA's use and occupation of the Concession. Default 11. If at any time the PHA is in default in the performance of any of the obligations under this Agreement and such default continues for 15 days after the receipt by the PHA of notice from the Director setting out the particulars of such default, the City shall have the right to terminate this Agreement forthwith and thereupon all the rights of the PHA under this Agreement shall immediately cease and the City shall not be liable for payment to the PHA of any moneys whatsoever by reason of such termination. 12. If any outstanding fees are not paid as required by this Agreement, the City shall be entitled to retain and dispose of any equipment installed in the Concession in order to satisfy the outstanding fees and the costs of collecting them. General 13. The Director shall have the right to enter the Concession at any time for any reason provided all reasonable efforts are made to minimize any disruption to the PHA's use of the Concession. 14. PHA shall not exhibit or allow to be exhibited in the Concession any sign, notice, notice board, painting, design or advertisement without the prior consent of the Director. 15. This Agreement shall not be assignable by the PHA without the consent of the City, which consent may be arbitrarily refused. 16. This Agreement shall ensure to the benefit of and be binding upon the parties and their respective successors and permitted assigns. 17. No amendment to this Agreement shall be effective unless it is in writing and signed by both parties. 18. (1) Any notice to the City under this Agreement shall be in writing and shall be delivered to the following address: Pickering Civic Complex One The Esplanade Pickering, Ontario L1V 6K7 4 I Pickering Hockey Association Concession Agreement Page 5 58 Attention: City Clerk (2) Any notice to the PHA under this Agreement shall be in writing and shall be delivered to the following address: Pickering Hockey Association 1737 Ada Court Pickering, Ontario L1 V 2Y9 Attention: , Gary Watters, President (3) Notice shall be sufficiently given if delivered in person or sent by registered mail or sent by facsimile transmission during normal business hours on a business day. (4) Each notice sent shall be deemed to have been received on the day it was. delivered or on the third business day after it was mailed. (5) The parties may change their address for notice by giving notice to the other in the manner provided in this section. IN WITNESS WHEREOF the parties have signed this Agreement. PICKERING HOCKEY ASSOCIATION THE CORPORATION OF THE CITY OF PICKERING David Ryan, Mayor Debbie Shields, (Acting) City Clerk i 5 59 SCHEDULE A Certain provisions of the Agreement dated September 1, 2003, between the CITY (herein referred to as the "CITY") and Coca-Cola Bottling Ltd., (therein referred to as the "Company") 1. For the purposes of this Agreement, (a) "Arenas" means the Arenas located at 940 Dillingham Road; (b) "Event" means any scheduled or rescheduled sporting event, sporting competition or sporting contest conducted in either of the Arenas; (c) "Soft Drink Beverages" means, (i) all carbonated and non-carbonated soft drink beverages; (ii) all syrups from which carbonated and non-carbonated soft drink beverages may be.prepared for immediate consumption by the addition of carbonated or non-carbonated water; and (iii) all carbonated and non-carbonated, fruit drinks, machine-vended fruit juices, potable waters and any other non-alcoholic beverages for immediate consumption, including all syrups and preparations from' which the same may be prepared; (d) "Soft Drink Beverages of the Company" means those Soft Drink Beverages ,which from time to time are manufactured, sold or distributed by the Company; (e) "Soft Drink Dispensing Equipment" means those devices for the dispensing or storage of soft drink beverages more particularly described in Schedule A hereto and such further similar devices supplied by the Company pursuant to this Agreement; (f) "Term" means the term of this Agreement which shall commence at 6:00 am on September 1, 2003 and shall expire at midnight on August 31, 2013. Pickering Hockey Association Concession Agreement Page 7 ADVERTISING - HOCKEY SCOREBOARD. TIME-OF-DAY CLOCK AND MENU BOARDS 2. (1) During the Term, the Company shall have the exclusive right to place advertising, at its cost, on the hockey scoreboard, the clock and the menu boards by decorating them in full. colour with advertising material for one or more of the Soft Drink Beverages of the Company and may change the advertising material from time to time during the Term. (2) The Company shall, at its cost, maintain and repair the advertising in good and attractive order, normal wear and tear only excluded. 3. The CITY shall not permit any commercial signage or messages other than the advertising material of the Company to be placed on the ice re-surfacing unit, the hockey scoreboard, the clock or the menu boards. 4. The CITY shall not permit any advertising, promotion or mention of any nature or description, whether visual or oral (including the public address system in the Arenas), of any Soft Drink Beverage which is not a Soft Drink Beverage of the Company in or about the Complex including its structures, hallways, concourses or at any outside entrances to the Complex and regardless of whether or not it is within the view or hearing of any existing or future spectator seat in the Complex, save and except where necessary to describe a team or a member of a team that is sponsored by a Soft Drink Beverage company other than the Company. 5. The CITY shall not grant to any manufacturer, bottler or supplier of Soft Drink Beverages, other than Soft Drink Beverages of the Company, the right to associate itself or its Soft Drink Beverages with the Complex or any part thereof in any manner directly or by implication. SOFT DRINK DISPENSING EQUIPMENT 6. The CITY, at its cost, shall keep the Soft Drink Dispensing Equipment in good repair, condition and working order and shall furnish any parts required to keep it in good mechanical and working order. 7. Without the prior written consent of the Company, the CITY shall not make any alterations, additions or improvements to the equipment; all alterations, additions and improvements made to the equipment shall belong to and become the property of the Company upon the making of the alteration, addition or improvement. 7 Pickerinq Hockey Association Concession Agreement Page 8 61 8. The Soft Drink Dispensing Equipment shall be used by the CITY only in the Complex and shall not be removed therefrom or otherwise disposed of without the prior written consent of the Company. 9. The Company may, at its cost, supply and install such additional or replacement Soft 'Drink Dispensing Equipment as the Company from time to time considers necessary to service the public demand for Soft Drink Beverages at the Complex at such locations within the Complex as are agreed upon by the Parties; such equipment shall be treated as Soft Drink Dispensing Equipment for the purposes of this Agreement. 10. The CITY shall at all times during the Term keep all syrup heads of the Soft Drink Dispensing Equipment properly identified with the appropriate trademarks of the Company relating to the Soft Drink Beverages of the Company actually dispensed through the heads. 11. No Soft Drink Beverages (other than fruit juices) may be supplied, sold or distributed in the Complex from soft drink dispensing equipment other than the Soft Drink Dispensing Equipment of the Company. COMPLEX SOFT DRINK BEVERAGE SUPPLY 12. (1) During the Term, the Company shall be the sole and exclusive supplier of Soft Drink Beverages for sale or complimentary distribution in the Complex and all parties from time to time selling or distributing Soft Drink Beverages in the Complex shall purchase for resale or distribution at the Complex only the Soft Drink Beverages of the Company at the Company's then prevailing wholesale prices and trade terms which from time to time may exist, provided always that the said wholesale prices of the Company shall remain competitive with the wholesale prices which are from time to time offered by other manufacturers or distributors of nationally known Soft Drink Beverages. (2) The Company shall provide such brands and quantities of Soft Drink Beverages as it considers necessary to service the public demand thereof at the Complex. 13. Notwithstanding any other provision contained herein, the Company shall not be liable hereunder for failure to supply Soft Drink Beverages due to government action, statute, ordinance or regulation; strike or other labour disturbance or disruption; fire damage; lack of or inability to obtain materials, labour, fuel or supplies; act of God; or any other cause, contingency or circumstance which is beyond the control of the Company. 8 Pickering Hockey Association Concession Agreement Page 9 62 GENERAL 14. The employees, representatives and agents of the Company, shall be permitted access to the Complex during normal business hours for any purpose provided for or contemplated in this Agreement. 9