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HomeMy WebLinkAboutCR 09-14 cite A. Report to Executive Committee I KERING Report Number: CR 09-14 Date: March 3, 2014 From: Marisa Carpino Director, Culture & Recreation Subject: Durham West Arts Centre Inc. - Licence Agreement - File: A-1440 Recommendation: 1. That Report CR 09-14 of the Director, Culture & Recreation regarding the Licence Agreement renewal of the Durham West Arts Centre Inc. be received; and 2. That the Mayor and the City Clerk be authorized to execute the Licence Agreement pursuant to which Durham West Arts Centre Inc. will be permitted to use the pottery studio at the Pickering Recreation Complex to operate pottery and art programs from April 1, 2014 to March 31, 2019 that is in the form and substance acceptable to the Director, Culture & Recreation and the Director, Corporate Services & City Solicitor; and, 3. That the appropriate officials of the City of Pickering be authorized to take the necessary action to give effect hereto. Executive Summary: Durham West Arts Centre Inc. ("DWAC Inc.") have an existing Licence Agreement with the City of Pickering that expires March 31, 2014. The Licence Agreement permits DWAC Inc. use of the pottery studio at the Pickering Recreation Complex for the purposes of providing art and pottery programs to the community. DWAC Inc. have operated the pottery studio since April 1, 2011 when the original Licence Agreement was executed by Council Resolution #36/11. For the duration of this 3 year term, DWAC Inc. have maintained an operation that provides a variety of affordable pottery and art programs to the community while meeting the City of Pickering rental payment schedule. As a result, the Culture & Recreation Department recommends that a Licence Agreement renewal be initiated with Durham West Arts Centre Inc. to operate the pottery studio at the Pickering Recreation Complex from April 1, 2014 to March 31, 2019. 40 Report CR 09-14 March 3, 2014 Subject: Durham West Arts Centre Inc. Page 2 Financial Implications: The rental revenue generated from DWAC Inc. during the term of the 5 year agreement will be $51,600 plus HST. Annual rental rates are as follows: April 1, 2014— March 31, 2015: $9,840 plus HST ($820 per month plus HST) April 1, 2015— March 31, 2016: $10,080 plus HST ($840 per month plus HST) April 1, 2016 — March 31, 2017: $10,320 plus HST ($860 per month plus HST) April 1, 2017— March 31, 2018: $10,560 plus HST ($880 per month plus HST) April 1, 2018.— March 31, 2019: $10,800 plus HST ($900 per month plus HST) The rental revenue generated from the Licence Agreement was a total of$16,800 (plus HST) (over the 3 year term) from April 1, 2011 to March 31, 2014. ' DWAC Inc. is responsible for the purchase and maintenance of their own property, equipment and supplies. Discussion: DWAC Inc. is an incorporated not for profit charitable organization that supports the arts and culture of Durham West through innovative programming and is focused on their mission to build and support a visual and performing arts centre in Pickering. On February 22, 2011, Council authorized the execution of a Licence Agreement with Durham West Arts Centre Inc. (DWAC Inc.) for the operation of the pottery studio at the Pickering Recreation Complex by Council Resolution #36/11. The Licence Agreement was for a 3 year term beginning April 1, 2011 and ending March 31, 2014. The total rental revenue to the City of Pickering for this 3 year agreement was $16,800 (plus HST). More specifically, DWAC Inc. was afforded rental relief in 2011 ($0 per year), partial annual rent of$4,800 plus,HST in 2012 ($400 per month), and full annual rent of$9,600 plus HST in 2013 ($800 per month). Through the operation of the pottery studio over the past 3 years, DWAC Inc. was successful in reaching hundreds of customers through a variety of arts and pottery programs. The compliment of programs include pottery, sculpting, multi-media art, camps, workshops, open studio time and birthday parties which are offered weekly from Monday to Saturday. In recent months, DWAC Inc. requested to renew the Licence Agreement. The renewal Licence Agreement permits DWAC Inc. to operate the pottery studio from April 1, 2014 to March 31, 2019. The rental revenue from DWAC Inc. over the 5 year term totals $51,600 (plus HST). The Director, Culture & Recreation recommend that a renewal Licence Agreement be initiated with Durham West Arts Centre Inc. 41 Report CR 09-14 March 3, 2014 Subject: Durham West Arts Centre Inc. Page 3 Attachments: 1. Draft Licence Agreement 2. Location Map Prepared/Approved/Endorsed By: Marisa Carpi*. • Director, Culture & Recreation MC:Ig • Recommended for the consideration of Pickering City Council / / /dice 7_4761. 14 2.014 Tony Prevedel, P.Eng. Chief Administrative Officer 42 ATTACHMENT Y __. 'OE"6EPORI # C9 This Licence Agreement is made as of April 1, 2014. Between: Durham West Arts Centre Inc. (DWAC) - and - The Corporation of the City of Pickering (the "City") Whereas the City owns the Pickering Recreation Complex located at 1867 Valley Farm Road in the City of Pickering which contains a pottery classroom, glaze room and kiln. room (collectively, the "Pottery facilities"); and Whereas DWAC wishes to use the pottery facilities for the purpose of operating a pottery studio and art programs; and Whereas the City is prepared to grant a licence to DWAC to use the pottery facilities for such purpose on the terms set out in this Licence. Now Therefore the City and DWAC agree as follows: Licence 1. The City grants to DWAC a licence to occupy and use the pottery facilities for the purpose of operating a pottery studio. Term 2. The term of this Licence shall be five (5) years commencing April 1, 2014 and ending March 31, 2019 unless • terminated earlier in accordance with the provisions of this Licence. 3. Either DWAC or the City may terminate this Licence (with or without cause) prior to the expiry of the term by giving 90 days written notice to the other. Fees 4. During the term, DWAC shall pay to the City the following fixed sum + HST payable on the first day of every month. April 1, 2014— March 31, 2015 - $820 per month plus HST April 1, 2015— March 31, 2016 - $840 per month plus HST April 1, 2016— March 31, 2017 - $860 per month plus HST April 1, 2017— March 31, 2018 - $880 per month plus HST April 1, 2018— March 31, 2019 - $900 per month plus HST 43 DWAC acknowledges that this licence fee does not include any additional tax imposed by any Federal, Provincial, Municipal or other governmental authority in relation to the licence fee (including, but not limited to Harmonized Sales Tax) and that DWAC shall be required to remit all such taxes to the City at the same time and in the same manner as the licence fee is paid should such additional taxes apply. Operation 5. DWAC shall, (a) comply strictly with all applicable laws, by-laws, rules and regulations governing the operation of the pottery facilities; (b) only operate the pottery facilities during the times and on the days agreed to by the City; (c) provide and pay for all personnel and supplies required for its purposes; (d) obtain all necessary permits, licenses and approvals that may be required in connection with the operation of the pottery facilities; (e) maintain the pottery facilities in a clean, sanitary and attractive condition satisfactory to the City throughout the term and, at the end of the term, repair or replace any damage to the pottery facilities save and except reasonable wear and tear; and (f) provide art programs that are not currently being offered by the City. • 6. DWAC shall keep and maintain the pottery facilities and all equipment owned by the City and set out below in a state of good maintenance, cleanliness and repair: Item(s) Serial Number 7 Shimpo Pottery Wheels 0830829 1 Triple Beam Scale 0830858 Cone Art Kiln (Model BX 2827D) 026642 Cone Art Kiln (Model BX 2327D) 057017 Cone Art Kiln (Model BX 2327D) 057016 4 Ware Trucks 0839860 1 20" Slabroller Dual Roller Dr. 0850622 1 Ware Truck— (8.5 shelves) 0860139 1 Glaze Screen (100m) 0870174 1 Bluebird Pottery Mixer N/A 3 Shimpo RK10 Wheels n/a 1 Lighted Display Case (with glass doors and shelves) n/a 1 Motorized Kickwheel n/a 2 44 7. DWAC shall be responsible for maintenance of its own property and equipment. 8. The City reserves the right to close all or parts of the pottery facility as required for maintenance from time to time. DWAC shall have no right to claim for any losses or damages arising from such closures by the City. 9. The City assumes no responsibility to DWAC for the temporary or unavoidable interruption of the supply of electrical power, 'heat or other utilities due to any cause whatsoever. The City shall use reasonable diligence to restore any such services whenever they are interrupted. Insurance • 10. DWAC, 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, non-owned automobile liability, death and property damage, with respect to the business carried on at the pottery facilities and DWAC's use and occupancy of the pottery facilities with coverage for any one occurrence or claim of not less than $2,000,000, which insurance shall protect the City as if the City was separately insured; and (b) a certificate of insurance coverage in a form satisfactory to the City, which insurance coverage shall be kept in full force and effect throughout the term. 11. DWAC shall not do or omit or permit to be done anything that causes any insurance premium of the City to be increased, and if any insurance premium shall be so increased, DWAC 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 pottery facilities, DWAC shall forthwith remedy or rectify such use or occupation upon being requested to do so in writing by the City and if DWAC shall fail to do so the City may, at its option, terminate this Licence forthwith by notice to DWAC and DWAC shall immediately vacate the pottery facilities. Liability and Indemnification 12. The City shall not be liable to DWAC for any loss of or damage to the pottery facilities 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. 13. DWAC 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 3 45 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 DWAC's use and occupation of the pottery facilities. Default • 14. If at any time DWAC is in default in the performance of any of the obligations under this Licence and such default continues for 15 days after the receipt by DWAC of notice from the City setting out the particulars of such default, the City shall have the right to terminate this Licence forthwith and thereupon all the rights of DWAC under this Licence shall immediately cease and the City shall not be liable for payment to DWAC of any moneys whatsoever by reason of such termination. Notwithstanding such termination, DWAC shall remain liable for the cost of remedying its default and for payment of any arrears of its licence fees. General • 15. The City shall have the right to enter the pottery facilities at any time for any reason provided all reasonable efforts are made to minimize any disruption to DWAC's use of the pottery facilities. 16. DWAC shall not exhibit or allow to be exhibited any sign, notice, notice board, painting, design or advertisement without the prior consent of the City. 17. DWAC shall not alter, add to or vary in any way any part of the pottery facilities without the prior approval of the City. 18. This Licence shall not be assignable by DWAC without the consent of the City, which consent may be arbitrarily refused. 19. This Licence shall enure to the benefit of and be binding upon the parties and their respective successors and permitted assigns. 20. No amendment to this Licence shall be effective unless it is in writing and signed by both parties. 21. (1) Any notice to the City under this Licence shall be in writing and shall be delivered to the following address: Pickering Civic Complex One The Esplanade Pickering, ON L1V 6K7 Attention: City Clerk • • 4 46 (2) Any notice to DWAC under this Licence shall be in writing and shall be delivered to the following address: Pickering Recreation Complex and/or Durham West Arts Centre Inc. 1867 Valley Farm Road PO Box 667 Pickering, ON L1V 3Y7 Pickering, ON L1V 3T3 Attention: Robert W. Jackson, Vice-Chair David R. Green, Treasurer (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 City and DWAC have signed this Licence. Durham West Arts Centre Inc. Robert W. Jackson, Vice-Chair David Green, Treasurer The Corporation of The City of Pickering David Ryan, Mayor • Debbie Shields, City Clerk • • 5 47 ATTACHMENT# 2 TO REPORT# (ej'f— i Li .. lir _,.*, iio,.,,741, V/(-7 t-71 1, 7I i . !,, II K, n , I yoA A �! .� WOOS . .'A i V 0104 17.1 . 1 I .1. , * � ► ; i WY UNA-a. It\'' 4100S, \'s\* , l''. -,..i i,,,,,, _._,,,,,,,,,, tai.lea•011i CAV 4° A * * .'''' 1 .,1011111111 U- 2111.A171 ,r /� REGREAiroN siuheouio 0 .,,,,\0 r CouP�x PARK 0 2,/ . 1 t zi \v ' v �� O ING / , WALES PARK O / BEACH �q 6 / lki, Ol COURTS VRECREATION �' REREATION i PICKERING COGRlPAVa\:ouPHE RECREATION mmw COMPL EX - f //, `^� :11111 K . 77 ,.___ ____G____O--0------:„..-, '; Ps� oER O oE,F�NOP`` SUBJECT �.-- °° , 0 BUILDING ''y \/-\ \ ,00#15 '°' LiC<‘ ' ' ..' s\ ��� Oro IA OOP. 014WS -IP,* illlec,VIN, , ,7 120 . 0100 6.00 40' ,1 f a.`1 �__AA" . ' *111P1 WO.* 1.51.11 Ila \ 4-IISt Adel. +`. 1` :'+T , � , � ENGINEERING&PUBLIC ATTACHMENT FOR CULTURE & WORKS DEPARTMENT Cilq 00 CAPITAL PROJECTS& RECREATION REPORT CR 09-14 w- ,1 ,:_�?__ •INFRASTRUCTURE DURHAM DURHAM WEST ARTS CENTRE INC. LICENCE SCALE: GATE: 3 M t-4 101 N.T.S February 03/2014 AGREEMENT 48 .