HomeMy WebLinkAboutCS 18-17 t ' tyj Report to
PICKERING Executive Committee
Report Number: CS 18-17
Date: June 5, 2017
From: Marisa Carpino
Director, Community Services
Subject: Quotation No. Q-17-2017
- Quotation for Pickering Recreation Complex Arena Concession
- File: A-1440
Recommendation:
1. That the Mayor and the City Clerk be authorized to execute a Concession Licence
Agreement set out in Attachment 1 to which Centro Food Services will be permitted to
operate the concession facility at Pickering Recreation Complex Arena from September 1,
2017 to April 30, 2020 with two optional 8 month term extensions, subject to minor
revisions as may be required by the Director, Community Services and the Director,
Corporate Services & City Solicitor.
2. That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
Executive Summary: A concession operator is required for the Pickering Recreation
Complex Arena concession facility beginning September 2017. The former licence agreement for
the Pickering Recreation Complex Arena concession facility has expired. Request for Quotation
No. Q-17-2017 was posted on the City's website and 2 proposals were received by the closing
date and time.
The Pickering Recreation Arena Concession License Agreement is for a 3 year term beginning
September 1, 2017 and ending May 31, 2020 (8 months per term, for a total of 24 months), with
two optional 8 month term extensions being September 1St to April 30th inclusive of the calendar
year. Under the terms of the Concession License Agreement, Centro Food Services is
responsible to operate the food concession at the Pickering Recreation Complex Arena for the
purposes of selling food and beverages related to ice hockey, skating, figure skating and ringette
events.
The Community Services Department recommends that a concession licence agreement be
initiated with Centro Food Services fora 3 year term beginning September 1, 2017 and ending
April 30, 2020 with two optional 8 month term extensions.
Financial Implications: The revenue to be generated from this licence agreement is
$12,000.16 (plus HST) for the first 8 month term (2017-2018 Year 1), $12,050.16 (plus HST) for
the second 8 month term (2018-2019 Year 2), and $12,100.16 (plus HST) for the third 8 month
term (2019-2020 Year 3). Yearly fees will be paid in 8 equal payments at the first of each month
CS 18-17 June 5, 2017
Subject: Quotation No. Q-17-2017 Page 2
made payable to the City of Pickering from September 1st to April 30th each year for the period
2017 to 2020 inclusive and would also be in effect for the optional 8 month term extensions at a
rate of$12,200.16 (plus HST) in 2020/2021 and $12,300.16 (plus HST) in 2021/2022.
Discussion: The Pickering Recreation Complex features a concession facility. The
season of operation is September to April each year and a concessions operator is required
beginning with the September 2017 arena season.
Quotation No. Q-17-17 was prepared and posted on the City's website. Two proposals were
received by the closing date and time. Centro Food Services is the top ranked respondent
receiving a satisfactory evaluation. References provided by.Centro Food Services have been
checked and are deemed acceptable.
The signed Health & Safety Regulation Form and a current WSIB Clearance Certificate issued by
Workplace Safety and Insurance Board (WSIB) as submitted by Centro Food Services have been
reviewed by the Acting Coordinator, Health & Safety and deemed acceptable. The Certificate of
Insurance has been reviewed by the Manager, Budgets & Internal Audit and is deemed
acceptable.
The Director, Community Services and Division Head, Operations recommends that a concession
licence agreement be initiated with Centro Food Services for a 3 year term beginning in
September 2017 and ending April 30, 2020, with an option for 2 additional 8 month term
extensions to the contract.
Attachments:
1. Concession Licence Agreement
2. Supply & Services Memorandum dated May 17, 2017
3. Supply & Services Memorandum dated April 20, 2017
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CORP0227-07/01 revised
CS 18-17 June 5, 2017.
Subject: Quotation No. Q-17-2017 Page 3
Prepared/Approved/Endorsed By:
Marisa Carpino
Director, Community Services
:mc
Recommended for the consideration
of Pickering City Council
O9JJ �j l
i�� 7
Tony Prevedel, P.Eng.
Chief Administrative Officer
CORP0227-07/01 revised
ATTACHMENT#-TO REPORT# C� is
Licence Agreement
THIS CONCESSION LICENCE AGREEMENT is made as of July 1, 2017.
BETWEEN :
Centro Food Services
(the "Operators")
- and -
The Corporation of the City of Pickering
(the "City")
WHEREAS the City is the owner of the Pickering Recreation Complex which
contains a concession facility; and
WHEREAS the City wishes to retain the Operators to operate the concession on
its behalf.
NOW THEREFORE the parties agree as follows:
Definitions
1. In this Agreement,
(a) "Complex" means the Pickering Recreation Complex, located at 1867
Valley Farm Road in the City of Pickering;
(b) "Concession" means the snack bar concession facility located in the
Complex;
(c) "Director" means the Director of the City's Community Services
Department or a designate; and
(d) "term" means the term of this Agreement, including any renewal, as set
out in Section 2.
Term
2. (a) The City grants to the Operators 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 on or about September 1, 2017 and ending April 30,
2020.
Page 1 of 9
(b) If both parties agree, this Agreement may be extended on the same
terms and conditions for up to two (2) one-year optional terms,
beginning September 1, 2020 and ending April 30, 2022.
3. Either the Operators or the City may terminate this Agreement prior to its
expiry by providing ninety (90) days' written notice to the other.
Fees •
4. 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, $1,500.02 plus HST for a
total of$12,000.16 plus HST.
2. September 1, 2018 ending April 30, 2019, $1,506.27 plus HST for a
total of$12,050.16 plus HST.
3. September 1, 2019 ending April 30, 2020, $1,512.52 plus HST for a
total of $12,100.16 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, $1,525.02 plus HST for a
total of$12,200.16 plus HST.
5. September 1, 2021 ending April 30, 2022, $1,537.52 plus HST for a
total of$12,300.16 plus HST.
Operation
5. The Operators and all of their 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) pay all realty, business or other taxes or rates that may be levied
against the lands upon which the Pickering Recreation Complex is
located, against the Arena Concession operation or against the
Operators as a result of its operation of the Arena Concession;
Page 2 of 9
(f) maintain in good repair the Concession and the equipment
contained therein;
(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) conduct Concession operations that are in compliance with the
Province of Ontario's Eat Smart!® program for Recreation Centres;
and
(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, or if the said agreement expires or
is terminated, then the vendor concession operator shall comply
with the new vendor/City agreement.
6. The Operators 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
Operators' sole expense and shall become the property of the City at the
end of the term.
Insurance •
7. Prior to occupying the Concession, the Operators, at their 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
Operators' use and occupancy of the Concession, 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;
(b) All Risk Property insurance coverage for all equipment, furniture
and property owned by the Operator while occupying the
Concession;
Page 3 of 9
(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 Concession; and
(d) a certificate of insurance coverage in a form satisfactory to the City,
prior to the Operator occupying the Concession, which insurance
coverage shall be kept in full force and effect throughout the term.
8. 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 Concessions, the
Operator shall forthwith remedy or rectify such use or occupation upon
being requested to do so in writing by the City and if the Operator 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
Concessions.
Liability of the City
9. The City shall not be liable to the Operator for any loss of or damage to
the Concession or any equipment or inventory in it, whether caused by
fire, theft, and burglary or otherwise, unless such loss or damage was
caused by the negligence of the City, its servants, agents or employees.
The City will not responsible for loss of equipment due to electrical power
surges.
10. 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 Operator's use and occupation of the Concession.
Default
11. 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.
Page 4 of 9
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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 Operator's use of the Concession.
14. The leased premises are subject to inspection at any time by the Durham
Region Health Department. The Company must fully comply with the
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Health Inspector's mandated rectification of any deficiencies.
15. The Operator shall not exhibit or allow to be exhibited in the Concessions
any sign, notice, notice board, painting, design or advertisement without
the prior consent of the Director.
16. This Agreement shall not be assignable by the Operator without the •
consent of the City, which consent may be arbitrarily refused.
17. This Agreement shall ensure to the benefit of and be binding upon the
parties and their respective successors and permitted assigns.
18. No amendment to this Agreement shall be effective unless it is in writing
and signed by both parties.
19. The Operator shall not sublet the manageri-ment/services of Concession
stands at any time during this agreement.
20. (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
Attention: City Clerk
Page 5 of 9
(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, courier or 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.
Centro Food Services:
Sabrina Rezaiy, Director of Operations
Same Rezaiy, Manager
The Corporation of the City of Pickering:
David Ryan, Mayor
Debbie Shields, Clerk
Page 6 of 9
SCHEDULE A
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 1867 Valley Farm 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;
(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;
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
Page 7 of 9
and may change the advertising material from time to time during the
Term. All advertising is subject to approval by the City.
(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
Page 8of9
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
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.
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.
Page 9 of 9
ATTACHMENT# o? TO REPORT#� 163
PICKERING Memo
To: Marisa Carpino May 17, 2017
Director, Community Services
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Administrative Assistant, Community Services
Supervisor, Supply & Services
Subject: Quotation No. Q-17-2017
Quotation for Pickering Recreation Complex Arena Concession
Closing: Tuesday, April 18, 2017 at 12:00 Noon
File: F-5300-001
Further to the memo dated April 26, 2017, two quotations proceeded to Stage II evaluation.
A summary of the Stage II and III evaluation results for each quotation is attached.
In accordance with Terms of Reference Item 3.2.4 —Verify, Clarify and Supplement, the City
requested further information from the top ranked Respondent to verify, clarify or supplement the
information provided in the Respondent's quotation. The City revisited and re-evaluated the
Respondent's response or ranking on the basis of any such information.
Centro Food Services remains the top-ranked Respondent with a revised submitted price of
$36,150.48 (HST excluded).
Health & Safetydocuments and Certificate of Insurance have been, approved, as part of the
PP
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.
Ple se direct enquiries to Supply & Services. Respondents will be advised in due course.
If y u require further information or assistance, do not hesitate to contact me or a member
of pply & Services.
VAF/sb
Attach ents (1)
ATTACHMENT#_. TO REPORT#c S 18- 14
Cita °1
PICKERING Memo
•
To: Marisa Carpino April 20, 2017
Director, Community Services
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Administrative Assistant, Community Services
Supervisor, Supply & Services
Subject: Quotation No. Q-17-2017 .
Quotation for Pickering Recreation Complex Arena Concession
Closing: Tuesday, April 18, 2017
File: F-5300-001 •
Quotation Q-17-2017 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 II— Evaluation of Rated Criteria;
2. Evaluation Form;
3. Copy of the quotations received (2); and
4. Copy of Request for Quotation Document
Hard copies of the submissions will be forwarded to th 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.
I
If youlrequire further information, please contact myself or a member of Supply•&Services.
VAF/sb
Attachments
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Quotation No. Q-17-2017
Rage 2 of 2
Pickering Recreation Complex Arena Concession