HomeMy WebLinkAboutCS 19-17 C4 Report to
PICKERINGExecutive Committee
Report Number: CS 19-17
Date: June 5, 2017
From: Marisa Carpino
Director, Community Services
Subject: Quotation No. Q-18-2017
- Quotation for Operation of the Don Beer Pro Shop
- File: A-1440
Recommendation:
1. That the Mayor and Clerk be authorized to execute the Don Beer Arena Pro Shop
Licence Agreement set out in Attachment 1 to which XPRT Marketing &
Promotions will be permitted to operate the Don Beer Arena Pro Shop for a 3 year
term beginning September 1, 2017 and ending April 30, 2020, with two optional 8
month term extensions, subject to minor revisions acceptable to the Director,
Community Services and the Director, Corporate Services & City Solicitor.
2. That the appropriate City officials be authorized to take the necessary actions as
indicated in this report.
Executive Summary: The Arena Pro Shop License Agreement permitting XPRT •
Marketing & Promotions to operate the Don Beer Arena Pro Shop expired on April 30,
2017. As a result, Quotation No. Q-18-2017 was posted on the City's website inviting
prospective proponents to submit proposals for the operation by license of a Pro Shop
at Don Beer Arena. Two proposals were received by the closing date and time.
The Don Beer Arena Pro Shop License Agreement is for a 3 year term beginning
September 1, 2017 and ending April 30, 2020 (8 months per term, for a total of 24
months), with two optional 8 month term extensions. Under the terms of the Arena Pro
Shop License Agreement, XPRT Marketing & Promotions is responsible to operate the
Pro Shop at Don Beer Arena for the purposes of selling items and services related to
ice hockey, skating, figure skating and ringette. The Don Beer Arena Pro Shop will
operate every day Monday to Friday from 5 pm to 10 pm and Saturday to Sunday from
7 am to 9 pm.
XPRT Marketing & Promotions is the top ranked respondent of Quotation No. Q-18-
2017 with a flat monthly fee of$575 (plus HST) for the first 8 month term (2017-2018
Year 1), $575 (plus HST) for the second 8 month term (2018-2019 Year 2), $575 (plus
HST) for the third 8 month term (2019-2020 Year 3) and $600 (plus HST) during the two
optional 8 month term extensions.
Report CS 19-17 June 5, 2017
Subject: Don Beer Arena Pro Shop Licence Agreement Page 2
Financial Implications: Yearly fees of$4,600 (plus HST) will be paid in 8 equal
payments at the first of each month made payable to the City of Pickering from
September 1 to April 30 each year for the period 2017 to 2020 inclusive. The total
revenue over the 3 year term of the licence agreement will be $13,800 (plus HST).
The rental revenue generated during the former 3 year term of the Arena Pro Shop
Licence Agreement from September 1, 2013 to April 30, 2016 was $12,000 (plus HST).
Therefore, rental revenue will increase by $1,800 over the new 3 year term of licence
agreement (September 1, 2017 to April 30, 2020).
Discussion: The Arena Pro Shop License Agreement permitting XPRT
Marketing & Promotions to operate the Don Beer Pro Shop was originally dated
September 1, 2006 and was renewed on the same terms and conditions for a further
period beginning September 1, 2013 and ending April 30, 2016, with option for a 1 year
extension ending April 30, 2017. As a result, Quotation No. Q-18-2017 on the City's
website on March 24, 2017 inviting prospective proponents to submit proposals for the
operation by license of a Pro Shop at Don Beer Arena. Two proposals were received
by the closing date and time.
The Arena Pro Shop License Agreement is for a 3 year term from September 1, 2017 to
April 30, 2020 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 two additional 8 month
term extensions being September 1st to April 30th inclusive of the calendar year. Under
the terms of the Arena Pro Shop License Agreement, XPRT Marketing & Promotions is
responsible to operate the Pro Shop for the purpose of selling items and services
related to ice hockey, skating, figure skating and ringette. The Pro Shop will operate
every day Monday to Friday from 5 pm to 10 pm and Saturday to Sunday from 7 am to
9 pm.
The Pro Shop is located on the first floor within the 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 top ranked respondent of Quotation No. Q-18-
2017 with a flat monthly fee of$575 (plus HST) for the first 8 month term (2017-2018
Year 1), $575 (plus HST) for the second 8 month term (2018-2019 Year 2), $575 (plus
HST) for the third 8 month term (2019-2020 Year 3), and $600 (plus HST) during the
two 8 month term extensions.
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Report CS 19-17 June 5, 2017
Subject: Don Beer Arena Pro Shop Licence Agreement Page 3
The signed Health & Safety Regulation Form submitted by XPRT Marketing and that
XPRT Marketing being a sole proprietor, 'does not need to obtain WSIB by application is
deemed acceptable to the Acting Coordinator, Health & Safety. Certificate of Insurance
deemed acceptable to the Manager, Budgets & Internal Audit.
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In conjunction with staff's review of the company's previous work experience with the
City of Pickering, the Community Service Department recommends that the Arena Pro
' Shop License Agreement set out in Attachment 1 be initiated with XPRT Marketing &
Promotions to operate the Don Beer Arena Pro Shop for a 3 year term beginning
September 1, 2017 and ending April 30, 2020, with an option for two additional 8 month
term extensions to the contract.
Attachments:
1. Draft Don Beer Arena Pro Shop License Agreement
2. Supply & Services Memorandum dated May 10, 2017
3. Supply & Services Memorandum dated May 8, 2017
Prepared By: '{I Approved/Endorsed By:
# .._______________s3,.______________.
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Mike Spatafora �� Marisa Carpino
Supervisor, Facilities Operations Director, Community Services
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Recommended for the consideration
of Pickering City Council
dP,Zi&ed �� 1g, 2ot7
Tony Prevedel, P.Eng.
Chief Administrative Officer
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ATTACHMENT# .TO REPORT#, CS.Ja•
Licence Agreement
This Licence Agreement is made as ofSeptember 1st 2017.
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Between:
XPRT Marketing & Promotions
(the "Operator")
and
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The Corporation of the City of Pickering
(the "City")
Whereas the City is the owner of the Don Beer Arena located at 940 Dillingham
Road, Pickering, Ontario, L1W 1Z6 (the "Arena");
And Whereas the Operator wishes to operate a Pro Shop in the Arena.
Now Therefore the parties agree as follows:
Definitions
1. 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 Community Services
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, 2017 and ending
April 30, 2020 (a total of 24 months), with the option to extend the
agreement for up to two additional one (1) year terms (a total of 16
months), ending April 30, 2022. The Operator shall provide the Services
only during the months of September to April, both inclusive, during each
term. The-Operator shall not be permitted to sell any products sold in the
snack bar concession located in the Arena.
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(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, 2020 of its desire to extend the
term.
(3) Either the Operator or the City may terminate this Agreement prior to its
expiry date by providing ninety (90) days' written notice to the other.
Fees
3. The Operator shall pay to the. City monthly installments on the first day of
each month in the amount of:
1. September 1, 2017 ending April 30, 2018, $575.00 plus HST fora total
of $4,600.00 plus HST.
2. September 1, 2018 ending April 30, 2019, $575.00 plus HST for a total
of $4,600.00 plus HST.
3. September 1, 2019 ending April 30, 2020, $575.00 plus HST for a total
of$4,600.00 plus HST.
If agreement is to be extended for a further term(s) (up to 16 months total), the
optional pricing submitted for each term shall be in effect until April 30, 2022:
4. September 1, 2020 ending April 30, 2021, $600.00 plus HST fora total
of $4,800.00 plus HST.
5. September 1, 2021 ending April 30, 2022, $600.00 plus HST for a total
of $4,800.00 plus HST.
Operation
4. (1) The Operator shall operate the Services during the term, seven days per
week, between:
(a) 5:00 pm and 10:00 pm Monday through Friday; and
(b) . 7:00 am and 9:00 pm Saturdays and Sundays, subject to closing for
statutory holidays or any 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 heat and electrical power for the operation of the
Arena Pro Shop at its expense.
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(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) The Operator 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.
(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 otherwise at any time
in effect during the term of the agreement.
(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 shall
employ trained and courteous 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
Operators' use and occupancy of the Arena Pro Shop, with
coverage for any one occurrence or claim of not less than
$2,000,000 CDN, which insurance shall protect the City in respect
of claims by The Operators as if the City was separately insured;
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(b) All Risk Property insurance coverage for all equipment, furniture
and property owned by the Operator while occupying the Arena Pro
Shop; i`
(c) The Operator shall provide proof of automobile insurance for any
and all vehicles used for the purpose of any works arising out of the
occupation of the Arena Pro Shop; and
(d) a certificate of insurance coverage in a form satisfactory to the City,
prior to the Operator occupying the Arena Pro Shop, which
insurance coverage shall be kept in full force and effect throughout
the term.
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.
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 contained therein, 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 fifteen (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 or Designate 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.
16. No amendment to this Agreement shall be effective unless it is in writing and
signed by both parties.
17. The Operator shall not sublet the management/services of the Pro Shop at any
time during this agreement.
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
L1 V 6K7
Attention: City Clerk
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(2) Any notice to the Operators under this Agreement shall be in writing and
shall be delivered to the following address:
Attention:
(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
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.
IN WITNESS WHEREOF the parties have signed this Agreement.
XPRT Marketing & Promotions
Bill Dawson, Owner/Manager
The Corporation of the City of Pickering:
David Ryan, Mayor
Debbie Shields, City Clerk
We have authority to bind the Corporation
ATTACHMENT# ' - TO REPORT# CS 11- )4-
c4
4'c
PICKERING Memo
To: Marisa Carpino May 10, 2017
Director, Community Services
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Administrative Assistant, Community Services
Supervisor, Supply & Services,;
Subject: Quotation No. Q-18-2017 �'
Quotation for Don Beer Arena Pro Shop
Closing: Thursday, April 27, 2017
File: F-5300-001
Further to the memo dated May 8, 2017, two quotations proceeded to Stage II evaluation.
A summary of the Stage II and III evaluation results for each quotation is attached.
XPRT Marketing & Promotions is the top ranked respondent with a submitted price of
$4,600.00 (HST excluded).
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Health & Safety documents and a Certificate of Insurance have been approved, as part of the
evaluation process.
In accordance with Purchasing Policy, Item 06.12:
Revenue generating proposals for services are subject to the approval of Council
prior to the Manager awarding the contract.
Please direct enquiries to Supply & Services. Respondents will be advised in due course.
If you require further information or assistance, do not hesitate to contact me or a member
of Supply & Services. •
VAF/sb
Attachments (1)
AT
ACHM ENT# TO REPORT#�. 1•• -i 1
coo/
PICKERING 0 Memo
To: Marisa Carpino May 8, 2017
Director, Community Services
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Administrative Assistant, Community Services
Supervisor, Supply & Services
Subject: Quotation No. Q-18-2017
Quotation for Don Beer Arena Pro Shop
Closing: Thursday, April 28, 2017
File: F-5300-001
Quotation Q-18-2017 was sent to eight (8) companies and advertised on the City's website, of
which two (2) companies have responded.
There are 2 stages in the evaluation process which are outlined in Part 2 — Evaluation of
Quotations of the quotation document.
Stage I determines which submissions satisfy all the mandatory submission requirements and
provides Respondents the opportunity to rectify deficiencies. One of the submissions was
provided the opportunity to rectify any deficiencies and has satisfied the mandatory
requirements within the rectification period. Two quotations proceeded to Stage II, which
consists of scoring each qualified quotation on the basis of the rated criteria outlined in Part 2 of
the quotation document.
Refer to Part 2 — Evaluation of Quotations, Item 2.3.2 — Rated Criteria, Page 5 for instructions
on how each of the quotations is to be evaluated by the Evaluation Committee. Each member
will review the submissions individually and carefully according to the criteria in the bid
document.
Upon completion of the individual scoring, return all Evaluation Committee score sheets with
signatures to Sue Burgess, Buyer. Pricing has been evaluated by Supply & Services, and a
score out of 30 points has been applied to the evaluation form. The completed evaluation
results will be provided to the Evaluation Committee for review and approval.
The following list of attachments has been provided to assist the Evaluation Committee to complete
their individual evaluations:
1. Stage Il—Evaluation of Rated Criteria;
2. Evaluation Form;
3. Spreadsheet showing points awarded for pricing;
4. Copy of the quotations received (2); and
5. Copy of Request for Quotation Document
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Hard copies of the submissions will be forwarded to the Director, Community Services,for
distribution to the Evaluation Committee.
Please direct all enquiries to Supply&Services. Respondents will be advised of the outcome when
the contract has been awarded.
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If you equire further information, please contact myself or a member of Supply & Services.
VAF/sb
Attachments (6) •
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Quotation No. Q-18-2017 Page 2 of 2
Don Beer Arena Pro Shop