HomeMy WebLinkAboutCR 18-13From: Marisa Carpino
Director, Culture & Recreation
Subject: Don Beer Arena Pro Shop Agreement
- XPRT Marketing & Promotions
- File: A -1400
Recommendation:
Report to
Executive Committee
Report Number: CR 18 -13
Date: July 2, 2013
That Report CR 18 -13 of the Director, Culture & Recreation regarding the
Concession License Agreement of the Don Beer Arena Pro Shop be received; and
2. That the Mayor and Clerk be authorized to execute the Concession License
Agreement pursuant to which XPRT Marketing & Promotions will be permitted to
operate the Don Beer Arena Pro Shop from September 1, 2013 to April 30, 2016,
that is in the form and substance acceptable to the Director, Culture & Recreation
and the Director, Corporate Services & City Solicitor.
Executive Summary: The Concession License Agreement permitting XPRT
Marketing & Promotions to operate the Don Beer Arena Pro Shop expired on April 30,
2012. As a result, the City of Pickering posted Proposal No. RFP -6 -2013 on the city's
website on May 22, 2013 inviting prospective proponents to submit proposals for the
operation by license of a Pro Shop at Don Beer Arena. One proposal from XPRT
Marketing & Promotions was submitted by the closing date and time.
The Concession License Agreement is for a 3 year term from September 1, 2013 to
April 30, 2016 inclusive (8 months per term for a total of 24 months) with an option to
extend the agreement for an additional 2 year term. Under the terms of the
Concession License Agreement, XPRT Marketing & Promotions is responsible to
operate the pro shop for the purposes of selling items and services related to ice
hockey, skating, figure skating and ringette. The Pro Shop will operate every day from 5
pm to 10 pm, Monday to Friday and from 7 am to 9pm on Saturday and Sunday.
XPRT Marketing & Promotions is the single highest ranking proponent of Proposal No.
RFP -6 -2013 with a flat monthly fee of $450 for the first eight month term (2013- 2014),
$500 for the second eight month term (2014 -2015) and $550 for the third eight month
term (2015 -2016) for the Don Beer Arena Pro Shop. Certificate of Insurance is
deemed acceptable to the (Acting) Manager, Budgets & Internal Audit. In conjunction
with staff's review of the company's previous work experience with the City of Pickering,
the Culture & Recreation Department recommends that the license agreement be
Report CR 18 -13
July 2, 2013
Page 2
initiated with XPRT Marketing & Promotions to operate the Don Beer Arena Pro Shop
for the period September 1, 2013 to April 30, 2016.
Financial Implications: The revenue. to be generated from XPRT Marketing &
Promotions will be $3,600 (plus HST) in year one of the agreement (2013- 2014), $4,000
(plus HST) in year two of the agreement (2014 -2015) and $4,400 (plus HST) in year
three of the agreement (2015- 2016). The total revenue over the 3 year term will be
$12,000.
The rental revenue generated from the expired September 1, 2009 to April 30, 2012
Concession License Agreement was $7,755.68 (plus HST) for the 3 year term.
Therefore, rental revenue will increase by $4,244.32 over the 3 year term of September
1, 2013 to April 30, 2016 (24 months inclusive).
Discussion: The Concession License Agreement permitting XPRT
Marketing & Promotions to operate was originally dated September 1, 2006 and was
extended on the same terms and conditions for a further period beginning September 1,
2009 and ending April 30, 2012 (a total of 24 further months) with no option for renewal.
As a result, the City of Pickering posted Proposal No. RFP -6 -2013 on the city's website
on May 22, 2013 inviting prospective proponents to submit proposals for the operation
by license of a Pro Shop at Don Beer Arena. One proposal from XPRT Marketing &
Promotions was submitted by the closing date and time.
The Concession License Agreement is for a 3 year term from September 1, 2013 to
April 30, 2016 inclusive (8 months per term for a total of 24 months) with an option to
extend the agreement on the same terms and conditions for an additional term of
September to April (inclusive) annually for a 2 year term. Under the terms of the
license agreement, XPRT Marketing & Promotions is responsible to operate the pro
shop for the purposes of selling items and services related to ice hockey, skating, figure
skating and ringette. The Pro Shop will operate every day from 5 pm to 10 pm, Monday
to Friday and 7 am to 9pm on Saturday and Sunday.
The Pro Shop is located on the first floor within Don Beer Arena and provides much
needed services to the users of the facility. The Pro Shop sharpens skates, silk
screens and embroiders jerseys, conducts skate and equipment repairs and sells ice
sports merchandise. Clearly, the services and products offered at the pro shop
enhance the operation of Don Beer Arena as a full service destination.
XPRT Marketing & Promotions is the single highest ranking proponent of Proposal No.
RFP -6 -2013 with a flat monthly fee of $450 for the first eight month term (2013- 2014),
$500 for the second eight month term (2014 -2015) and $550 for the third eight month
term (2015 -2016) for the Don Beer Arena Pro Shop. Certificate of Insurance is
deemed acceptable to the (Acting) Manager, Budgets & Internal Audit. In conjunction
with staff's review of the company's previous work experience with the City of Pickering,
Report CR 18 -13
July 2, 2013
Page 3
the Culture & Recreation Department recommends that the license agreement be
initiated with XPRT Marketing & Promotions to operate the Don Beer Arena Pro Shop
for the period September 1, 2013 to April 30, 2016.
Attachments:
1. Draft Concession License Agreement for XPRT Marketing & Promotions
(September 1, 2013 to April 30, 2016).
2. Memorandum from Supply & Services dated June 11, 2013.
3. Location Map.
Prepared By: Approved /Endorsed By:
C.
Marisa Carpino Paul Bi ' n
Director, Cultu e & Recreation Directo Corpo to Services &
City Soll for
MC:mc
Recommended for the consideration
of Pickering City/Cjouncjl ,,
t71 2.06
Tony Prevedel, P. Eng.
Chief Administrative Officer
ATTACHMENT # TO REPORT # 3
This Concession Licence Agreement is made as of August 1St 2013.
Between :
XPRT Marketing & Promotions
(hereinafter called the "Operator ")
and
The Corporation of the City of Pickering
(hereinafter called the "City ")
Whereas the City is the owner of the Don Beer Arena located at 940 Dillingham Road,
Pickering, Ontario (the "Arena ");
And Whereas the Operator wishes to operate a pro shop in the Arena.
Now Therefore the parties agree as follows:
Definitions
In this Agreement,
(a) "Arena Pro Shop" means the facility located in the Arena for the operation of
the Services as hereinafter defined ;
(b) "Director" means the Director of the City's Culture & Recreation Department
or a designate;
(c) "Services" means the supply, rent or sale of items and services relating to ice
hockey, skating, figure skating and ringette; and
(d) "Term" means the term of this Agreement, including any renewal, as set out
in Section 2.
Term
2. (1) The City grants to the Operator the right to operate the Services in the Arena Pro
Shop for the period beginning September 1, 2013 and ending April 30, 2016 (a total
of 24 months). The Operator shall provide the Services only during the months of
September to April, both inclusive, during the Term. The Operator shall not be
permitted to sell any products sold in the snack bar concession located in the
Arena.
Arena Pro Shop Agreement Page 2
(2) This Agreement may be extended at the end of the Term subject to the City being
satisfied with the provision of the Services by the Operator and subject to terms
mutually agreeable to the City and the Operator. Operator shall advise the City no
later than April 1, 2016 of its desire to extend the Term.
(3) Either the Operator or the City may terminate this Agreement prior to its expiry by
giving 90 days written notice to the other.
Fees
3. The Operator shall pay to the City the sum of $3,600 (plus HST) in equal monthly
installments of $450 (plus HST) on the first day of the month for the first eight month term
(September 2013 to April 2014); and
the sum of $4,000 (plus HST) in equal monthly installments of $500 (plus HST) on the first
day of the month for the second eight month term (September 2014 to April 2015); and
the sum of $4,400 (plus HST) in equal monthly installments of $550 (plus HST) on the first
day of the month for the third eight month term (September 2015 to April 2016).
Operation
4. (1) The Operator shall operate the Services during the Term, every day, between,
(a) 5:00 pm and 10:00 pm Monday through Friday; and
(b) 7:00 am and 9:00 pm Saturday and Sunday, subject to closing for holidays or
other reasons only with the prior written approval of the Director.
(2) In no event shall the Arena Pro Shop be open before 7:00 am or after 11:00 pm on
any day.
(3) The Operator shall supply all equipment required for the operation of the Services at
its expense.
(4) The City shall provide electrical power for the operation of the Arena Pro Shop at its
expense.
(5) The Operator shall pay all realty, business or other taxes or rates that may be levied
against the lands upon which the Arena is located, against the Arena Pro Shop or
against as a result of the Services.
(6) Shall comply with all reasonable standards set by the Director for the operation and
maintenance of the Arena Pro Shop in keeping with the standards set for the
operation and maintenance of the Arena.
N
Arena Pro Shop Agreement Page 3
(7) The Operator shall not alter any part of the Arena Pro Shop nor install any fixtures
thereto without the prior permission in writing of the Director.
(8) The Operator shall comply with all applicable statutes, laws, by -laws and regulations,
whether federal, provincial municipal or other wise at any time in effect during the
Term.
(9) The Operator shall maintain the Arena Pro Shop in a safe, clean and neat condition
and shall maintain all equipment used in providing the Services in good repair.
(10) The Operator shall operate the Services in a proficient way and with trained and
polite staff.
Insurance
5. Prior to occupying the Arena Pro Shop, the Operator, 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 Arena Pro Shop and the Operator's use and occupancy of the Arena Pro
Shop, 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
Operator 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 Arena Pro Shop
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
occupying the Arena Pro Shop, which insurance coverage shall be kept in
full force and effect throughout the Term and shall not be cancellable without
at least sixty days notice to the City.
6. The Operator 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 Operator 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 Arena Pro Shop, the Operator shall
forthwith remedy or rectify such use or occupation upon being requested to do so in writing
by the City and if shall fail to do so the City may, at its option, terminate this Agreement
forthwith by notice to the Operator and the Operator shall immediately vacate the Arena
Pro Shop.
Arena Pro Shop Agreement Page 4
Liability of the City
7. The City shall not be liable to the Operator for any loss of or damage to the Arena Pro
Shop or any equipment or inventory in it, whether caused by fire, theft, burglary or
otherwise, unless such loss or damage was caused by the negligence of the City, its
servants, agents or employees.
8. The Operator 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 the use and occupation of the Arena Pro
Shop by the Operator or those persons for who the Operator is responsible at law.
Default
9. If at any time the Operator 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 Operator 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 Operator
under this Agreement shall immediately cease and the City shall not be liable for payment
to the Operator of any moneys whatsoever by reason of such termination.
10. 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 Arena Pro Shop in order to
satisfy the outstanding fees and the costs of collecting them.
11. Notwithstanding the termination of this Agreement the provisions of Section 8 shall
continue to bind the Operator and the Operator shall continue to` be obligated to pay to the
City all monies due to the City.
General
12. The Director shall have the right to enter the Arena Pro Shop at any time for any reason
provided all reasonable efforts are made to minimize any disruption to the Operator's use
of the Arena Pro Shop.
13. The Operator shall not exhibit or allow to be exhibited in the Arena Pro Shop any sign,
notice, notice board, painting, design or advertisement without the prior consent of the
Director.
14. This Agreement shall not be assignable by the Operator without the consent of the City,
which consent may be arbitrarily refused.
15. This Agreement shall enure to the benefit of and be binding upon the parties and their
respective successors and permitted assigns.
4
Arena Pro Shop Agreement Page 5
16. No amendment to this Agreement shall be effective unless it is in writing and signed by
both parties.
16. (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 Esplande
Pickering, Ontario
L1 V 6K7
Attention: City Clerk
(2) Any notice to the Operator under this Agreement shall be in writing and shall be
delivered to the following address:
XPRT Marketing & Promotions
1161 Cedarcroft Cres.
Pickering, ON L1X 1 R9
Attention: Bill Dawson, Owner /Manager
(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.
Business day shall mean Monday to Friday both inclusive excluding statutory
holidays.
(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.
5
Arena Pro Shop Agreement Page 6
IN WITNESS WHEREOF the parties have signed this Agreement.
The Corporation of the City of Pickering
David Ryan, Mayor
Debbie Shields, City Clerk
We have authority to bind the Corporation
M
ATTACHMENT# TO REPORT# I %— 3
To: Marisa Carpino
Director, Culture & Recreation
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Supervisor, Facility Operations
Subject: Request for Proposal No. RFP -6 -2013, Don Beer Arena Pro Shop
- File: F- 5300 -001
Memo
June 11, 2013
The Evaluation Committee has completed its Stage II review consisting of evaluation of' Rated
Criteria and Pricing. A copy of the Evaluation Committee Summary of Average Scores Stage II
form is attached.
An Evaluation Committee meeting was held Thursday, June 6th, 2013 at 3:30 pm. A combined
average score for the single proposal received was determined. The combined average score of
the proposal then proceeded to Stage III of the evaluation process. Stage III consists of a scoring
of the pricing submitted. At the conclusion of Stage III, all scores from Stage II and Stage III of
proposals have been added. A copy of the Evaluation Form Stage III is attached.
The Certificate of Insurance has been approved. by the (Acting) Manager, Budgets & Internal
Audit. Workplace Safety and Insurance Board documentation and the acknowledgement of the
City's Health & Safety Regulation form is not required from a lessee as advised by the Co-
ordinator, Health & Safety.
XPRT Marketing & Promotions is the single highest ranking proponent with a flat monthly fee of
$450.00 for the first eight month term, $500.00 for the second eight month term and $550.00 for
the third eight month term for the Don Beer Arena Pro Shop.
In accordance with Purchasing Policy and Procedure PUR 010, Item 06.13, revenue generating
proposals for services are subject to the approval of Council prior to the Manager awarding the
contract.
Plea a do not disclose any information to proponents
Servi es.
VAF /jh
Attachments
Enquiries may be redirected to Supply &
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CAPITAL PROJECTS &
RECREATION REPORT CR' 18 -13
INFRASTRUCTURE
DON BEER ARENA PRO SHOP
SCALE:
DATE:
N.T.S
JUNE 07 /2013
AGREEMENT
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