HomeMy WebLinkAboutOES 02-11
City o~ Report To
Executive Committee
PICKERING Report Number: OES 02-11
223 Date: January 10, 2011
From: Everett Buntsma
Director, Operations & Emergency Services
Subject: Don Beer Arena Snack Bar Concession
- Lease Renewal Pickering Hockey Association
- File: A-1440-001-11
Recommendation:
1. That Report OES 02-11 of the Director, Operations & Emergency Services
regarding the Lease Renewal - Pickering Hockey Association be received;
2. That the monthly rent for the snack bar lease be reduced to $733.00 per month for
the 2010 - 2011 hockey season; and
3. That the appropriate City of Pickering Officials be authorized to take necessary
action to give effect thereto.
Executive Summary: The Don Beer Arena Pad 1 is presently closed for
rehabilitation. This has resulted in a 33% decrease in clientele for the snack bar
operation.
The Pickering Hockey Association have requested a reduction in the monthly rent. Staff
recommend that the rental be reduced by 33% from $1,100.00 per month to. $733.00
per month.
Financial Implications: The revenue through 2010/2011 season will be reduced
from $8,800.00 total to $5,864.00.
Sustainability Implications: Allowing a reduction in rent will enable the Pickering
Hockey Association to continue offering on site refreshments for participants and
spectators.
Report OES 02-11 January 10, 2011
Subject: Don Beer Snack Bar Concession Page 2
224
Background: Not Applicable
Attachments:
1. Report OES 55-09 (dated December 14, 2009)
2. Pickering Hockey Association Concession Licence Agreement
Approved Approved/Endorsed By:
Everett Buntsma Gillis Paterson
Director, Operations & Emergency Services Director, Corporate Services &
Treasurer
EB:mld
Copy: Chief Administrative Officer
Recommended for the consideration
of Pickering Cit ounc'I
~ - t5,2-010
Tony Preve el, P.Eng.
Chief Administrative Officer
CORP0227-07/01 revised
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225
REPORT TO
EXECUTIVE COMMITTEE
I ERI Report Number: OES 55-09
5 2 Date: December 14, 2009
From: Everett Buntsma
Director, Operations & Emergency Services
Subject: Don 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.
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.
ATTACHMENT# TO REPORT#6LSJ2 Z 6
Report OES 55-09 of,-~-- December 14, 2009
Subject: Don Beer Arena Snack Bar Page 2 53
- 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 B
Tony Prevedel Everett Buntsma
Division Head, Facilities Operations Director., Operations & Emergency
Services
TP:mld
Copy: Chief Administrative Officer
Recommended for the consideration
of Pickeri i Council
~~J v
Tho as J. Q inn, DMR, CMM III
Chief Administrate a Officer
CORP0227-07/01 revised
AIIA- RT# D~S~I
2 2 7 of....
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. j
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.
AO EPORT# d~S 6~fI
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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
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ATTACHMENT# T O REPORT#!6a-(I -
229 -a- Of
Pickering Hockey Association Concession Agreement Page 3
56
(j) 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
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ATTACHMENT#-- TO REPORT# 10E-S0a'f f
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Pickering Hockey Association Concession Agreement Pa_ e 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
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231
Hocke 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
L 1 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
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ATTACHMENT# TO
REPORT;- ~l
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59
SCHEDULE A
i
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;
i (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.
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' _ _.7 -TO REPORT# ~~S daff r
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Pickering Hockey Association Concession Agreement Page 7
60
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
i
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,
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ATTACH MENT#-L-/-- TO REPO
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Pickering 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
i
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.
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#6ES M-11
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Pickering Hockey Association Concession Agreement Page 9
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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.
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