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HomeMy WebLinkAboutOES 46-02 88 REPORT TO THE FINANCE & OPERATIONS COMMITTEE Report Number: OES 46-02 Date: November 6,2002 From: Stephen Reynolds Division Head, Culture & Recreation DATE: November 6, 2002 Subject: Don Beer Arena Snack Bar Concessions - Lease Renewal- Pickering Hockey Association Incorporated - File: CO3000 Recommendation: 1. That Report OES 46-02 be received by Council and; that 2. A by-law be enacted to authorize the execution of a renewal License Agreement to permit the Pickering Hockey Association Incorporated to continue to operate snack bar concession facilities at Don Beer Arena from January 1, 2003 to December 31,2005. 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 three years. The Operations and Emergency Services Department recommend that a renewal agreement be initiated with the Pickering Hockey Association. Financial Implications: Revenues: 2003 2004 2005 $1 ,200/month x 8 months $1 ,200/month x 8 months $1 ,200/month x 8 months $ 9,600 $ 9,600 $ 9,600 $28,800 $28,800 maximum over 3 years Report OES 46-02 Date: November 6, 2002 89 Subject: Don Beer Arena Snack Bar Concessions - Lease Renewal - Pickering Hockey Association Incorporated Page 2 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. The Pickering Hockey Association have requested to renew this agreement for the next three years. The renewal agreement allows the Pickering Hockey Association to continue to operate the Don Beer Snack Bar Concessions from January 1, 2003 to December 31, 2005. The Pickering Hockey Association have agreed to an increase in the monthly fee from $800 to $1,200 as a result of the additional third ice pad. The Director, Operations & Emergency Services and the Division Head, Culture & Recreation recommend that a renewal agreement be initiated with the Pickering Hockey Association. Enactment of the draft by-law attached will authorize the execution of a renewal Licence Agreement for a three year period in the form attached hereto as Schedule A (Authority - Municipal Act, RS.O 1990, c. M.45, Sections 191(1) and 207 (58)). Attachments: 1. 2. Draft By-Law Schedule A /7 E sm Director, Operations & Emergency Services .. ~/ ",'" Stephe Division SR:lg Attachments Copy: Chief Administrative Officer Director, Corporate Services & Treasurer City Solicitor Recommended for the consideration of Pickering City Cou cl ;1 90 ATTACHMENT#..LTOREPORT#Jl..ËS L{~ ~ ();)... THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. Being a by-law to authorize the execution of a License Agreement between the Corporation of the City of Pickering and the Pickering Hockey Association Incorporated for the operation of a Snack Bar at the Don Beer Arena. WHEREAS, the City is the owner of the Don Beer Arena which contains certain snack bar concession facilities; and WHEREAS, the Pickering Hockey Association has provided its services, on certain terms and conditions to the City to operate the snack bar concession facilities at Don Beer Arena and it is desirable to provide for the continued provision of such services; and WHEREAS, pursuant to the provisions of paragraph 207.58 and 191 of the Municipal Act, RS.O. 1990, chapter M.45, as amended, the Council of the Corporation of the City of Pickering may pass by-laws for maintaining, operating and managing community recreation centers and arenas, NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. The Mayor and Clerk are hereby authorized to execute a License Agreement, in the form attached hereto as Schedule A between the Corporation of the City of Pickering and the Pickering Hockey Association Incorporated for the continued use of the Don Beer Arena. BY-LAW read a first, second and third time and finally passed this 2nd day of December, 2002. Wayne Arthurs, Mayor Bruce Taylor, Clerk ATTACHMENT#LTOREPORT# OE~ '-f(o-ö 2 SCHEDULE A THIS CONCESSION LICENCE AGREEMENT made December 2, 2002, pursuant to the provisions of section 207.57 of the Municipal Act, RS.O. 1990, chapter M.45, 91 BETWEEN: THE PICKERING HOCKEY ASSOCIATION INCORPORATED herein called the "PHA", OF THE FIRST PART, - and - THE CORPORATION OF THE CITY OF PICKERING herein called the "City", OF THE SECOND PART. WHEREAS the City is the owner of the Don Beer Arena, which contains certain snack bar concession facilities; and WHEREAS, pursuant to the provisions of paragraph 207.57 of the Municipal Act, RS.O. 1990, chapter M.45, the CITY may operate and manage places or recreation, arenas and similar buildings; and WHEREAS the City wishes to retain the PHA to operate on its behalf certain snack bar concession facilities within the Don Beer Arena. NOW THEREFORE THIS AGREEMENT WITNESSETH that, in consideration of the mutual covenants and agreements contained herein, the Parties hereto agree as follows: DEFINITIONS 1. In this Agreement, the term, (a) Concessions means, the snack bar concession facilities located in the Don Beer Arena; (b) Department means the City's Operations and Emergency Services Department; and (c) Don Beer Arena means the Arena owned by the City and located at 940 Dillingham Road in the City of Pickering. TERM 2. FEE 3. 92 The City hereby grants to the PHA the right to operate an Arena Concession at the Don Beer Sports Arena in space allocated from time to time for that purpose by the Director during the months of September to April, both inclusive, for a period beginning January 1, 2003 and ending December 31,2005, herein called the "term" of this Agreement. For the right granted to it herein, the PHA shall pay to the City the sum of $28,800, payable in equal monthly installments of $1 ,200 on, OPERATION 4. the 1 st of each of January, 2003 to April 2003, both inclusive, the 1 st of each of September, 2003 to April, 2004, both inclusive, the 1 st of each of September 2004 to April 2005, both inclusive, the 1 st of each of September 2005 to December 2005, both inclusive, or as otherwise may be satisfactory to the Director. the PHA, its servants, agents and employees, shall, (a) (b) (c) (d) (e) (f) (g) comply strictly with all applicable by-laws, rules and regulations governing the conduct and operation of the business of the Company and of the City; operate the Concessions during the times and on the days agreed to by the Department; keep accurate books and records of the operation of the Concessions and allow a representative to the City to inspect the books and records; obtain all necessary permits, licenses and approvals; keep the Concessions in good repair and maintain the Concessions and equipment therein and related thereto at a high level of cleanliness; leave the Concessions in a neat and tidy condition at the end of the Term and repair or replace any damages to the Concessions except reasonable wear and tear; obtain the approval of the Department before altering, adding to or varying in any way all or any part of the Concessions, make any 2 INSURANCE 5. (1 ) (2) 93 approved alteration, addition or variation at the PHA's sole expense, and transfer ownership thereof to the City at the end of the Term; (h) provide a good standard of service to the public patronizing the Concessions, including but not limited to providing uniformed employees to operate the Concessions; (i) keep and offer for sale the types of refreshments and food ordinarily offered in community recreation centres and such other refreshments and food requested by the City to promote a healthy lifestyle, if such request is not unreasonable in the opinion of the PHA; and U) comply with and conform to certain provisions of the agreement dated June 21,1993 between the City and Coca-Cola Bottling Ltd., which provisions are set out in Schedule A hereto and form part of this Agreement. Prior to occupying the Premises, the Tenant shall, at its own expense, shall provide: (a) comprehensive general public liability insurance, identifying The Corporation of the City of Pickering 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 Premises and the Tenant's use and occupancy of the Premises, with coverage for anyone occurrence or claim of not less than $2,000,000, which insurance shall protect the Landlord in respect of claims by the Tenant as if the Landlord was separately insured; (b) insurance in respect of fire and other perils covering the leasehold improvements, trade fixtures, furniture and equipment in the Premises for not less than the full replacement cost thereof; and (c) a certificate of insurance coverage in a form satisfactory to the Landlord, prior to the Tenant taking possession of the Premises, which insurance coverage shall be kept in full force and effect throughout the Term of the Lease and any renewal(s) thereof. The Tenant covenants with the Landlord that the Tenant, in its use and occupation of the Premises, will not do or omit or permit to be done or omitted anything which shall cause any insurance premium of the Landlord to be increased, and if any insurance premium shall be so increased, the Tenant shall pay to the Landlord forthwith upon demand the amount of such increase. If notice of cancellation or 3 94 lapse shall be given respecting any insurance policy of the Landlord 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 Premises or any part thereof, the Tenant shall forthwith remedy or rectify such use or occupation upon being requested to do so in writing by the Landlord and if the Tenant shall fail to do so the Landlord may, at its option, terminate this Lease forthwith by notice in writing and the Tenant shall immediately surrender possession of the Premises to the Landlord and thereupon rent and all other amounts for which the Tenant is liable under this Lease shall be apportioned and paid in full to the date of surrender; provided that the Tenant shall have the right to replace such cancelled insurance at any time prior to the Landlord's notice of termination. LIABILITY OF THE CITY 6. The City shall not be liable to the PHA for any loss of or damage to the Concessions or any equipment or inventory therein or related thereto, 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. EARLY TERMINATION 7. (1 ) (2) (3) Either the PHA or the City may terminate this Agreement prior to its expiry by giving 90 days written notice to the other. If this Agreement is terminated by the City pursuant to subsection (1), all outstanding fees shall immediately become due as if the date of termination were the end of a calendar month. If any outstanding fees are not paid in accordance herewith on early termination or at any other time, the City shall be entitled to retain and dispose of any equipment installed in the Concessions in order to satisfy the outstanding fees and the costs of collecting same. ASSIGNMENT, BINDING NATURE AND BENEFIT HEREOF 8. (1 ) (2) This Agreement is not assignable by the PHA without the consent of the City, which consent may be arbitrarily refused. This Agreement shall ensure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns. 4 95 IN WITNESS WHEREOF the parties herein have hereunto affixed their respective corporate seals attested to by the hands of its authorized officers. SIGNED, SEALED AND DELIVERED THE PICKERING HOCKEY ASSOCIATION THE CORPORATION OF THE CITY OF PICKERING Wayne Arthurs, Mayor Bruce Taylor, Clerk 5 96 SCHEDULE A Certain provisions of the Agreement dated June 21, 1993, 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) (ii) all carbonated and non-carbonated soft drink beverages; 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 July 1, 1993 and shall expire at midnight on June 30, 2003. ADVERTISING - HOCKEY SCOREBOARD, TIME-OF-DA Y 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. 6 10. 97 (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. 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. The City shall at all times during the Term keep all syrup heads of the Soft Drink Dispensing Equipment properly identified with the appropriate trade marks of the 7 98 13. 14. 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. 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. GENERAL 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. 8