HomeMy WebLinkAboutCS 20-17 edy Report to
n - RING Executive Committee
Report Number: CS 20-17
Date: June 5, 2017
From: Marisa Carpino
Director, Community Services
Subject: Don Beer Arena Snack Bar Concession
- Licence Agreement Renewal
- File: A-1440
Recommendation:
1. That the Mayor and the City Clerk be authorized to execute a renewal Concession Licence
Agreement set out in Attachment 1 that permits the Pickering Hockey Association to continue
to operate the snack bar concession facility at Don Beer Arena from September 1, 2017 to
April 30, 2020, with the option for a mutually agreed extension of two 8 month terms, subject to
minor revisions as may be required by the Director, Community Services and the Director,
Corporate Services & City Solicitor; and,
2. That the appropriate City of Pickering officials be authorized to take the necessary actions as
indicated in this report.
Executive Summary: The Pickering Hockey Association has an existing Licence Agreement
to operate the snack bar concession facilities at Don Beer Arena and has requested to renew the
agreement for a further 3 year term, with an option to extend an additional 2 years.
The Community Services Department recommends that a renewal agreement be initiated with the
Pickering Hockey Association.
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Financial Implications: The revenue to be generated from September 1, 2017 to April 30,
2018 is $1,217.00 (plus HST) monthly for an annual total of$9,736.00 (plus HST); from
September 1, 2018 to April 30, 2019 is $1,245.00 (plus HST) monthly for an annual total of
$9,960.00 (plus HST); and from September 1, 2019 to April 30, 2020 is $1,271.00 (plus HST)
monthly for an annual total of$10,168.00 (plus HST).
Discussion: On August 3, 1999, Council enacted By-law#5540/99 to authorize the
execution of a Licence Agreement with the Pickering Hockey Association for the operation of the
Don Beer Arena Snack Bar Concessions. The term of the agreement has been renewed
consecutively since that time, with the existing term expiring on April 30, 2017. During this time,
the Pickering Hockey Association has operated the snack bar concessions in a professional and
conscientious manner that has satisfied the City.
CS 20-17 June 5, 2017
Subject: Don Beer Arena Snack Bar Concession Page 2
The Pickering Hockey Association has requested to renew this agreement again for a further term.
The renewal agreement allows the Pickering Hockey Association to continue to operate the Don
Beer Snack Bar Concession from September 1, 2017 to April 30, 2020. The renewal agreement
also allows for a mutually agreed extension of two 8 month terms subject to an inflation allowance
for rent increases.
The Director, Community Services recommends that a renewal agreement be initiated with the
Pickering Hockey Association.
Attachments:
1. Draft Don Beer Arena Concession Licence Agreement with Pickering Hockey Association
Prepared/Approved/Endorsed By:
Marisa Carpino
Director, Community Services
:mc
Recommended for the consideration
of Pickering City Council
le, ZO17
Tony Prevedel, P.Eng.
Chief Administrative Officer
CORP0227-07!01 revised
ATTACHMENT# ,TO REPORT#_SS ` [3
THIS CONCESSION LICENCE AGREEMENT is made as of September 1, 2017.
BETWEEN :
PICKERING HOCKEY ASSOCIATION
(The "Operator")
-And - . ,
THE CORPORATION OF THE CITY OF PICKERING
(The "City")
WHEREAS the City is the owner of the Don Beer Ar ria which contains a snack bar
concession facility; and �� '� 4
WHEREAS the City wishes to retain the Operatorto ope p •- th4 on -ssion on its behalf.
NOW THEREFORE the parties agree as folio
Definitions
1. in this Ag ent,
oncession" means the snack bar concession facility located in the Don
Beer Arena owned*, he City located at 940 Dillingham Road in the City of
Pickering;
(b `Director" means th- Director of the City's Community Services Department
r iesignate: an'
(c) "t .
e . eans t eµ -rm of this Agreement, including any renewal, as set out in
Section 2
Term
2. (a) The City grants to the Operator 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 September 1, 2017 and ending April 30, 2020.
(b) If both parties agree, this Agreement may be extended on the same terms and
Don Beer Arena Concession Licence Agreement Page 2
conditions for a further period beginning September 1, 2020 and ending April 30,
2022 on the same terms and conditions except as to rental rate. The monthly
rental rate for the extended term will be mutually agreed upon prior to this
extension, failing which the term shall not be extended and this Agreement shall be
at an end.
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 ,
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, $1,217.00 plus HST for a total of
$9,736.00 plus HST.
2. September 1, 2018 ending April 30, 2019, $1,245.00 plus HST for a total of
$9,960.00 plus HST.
3. September 1, 2019 ending April 30,2020, $1,271.00 plus HST for a total of
$10,168.00 plus HST.
Operations
5. The Operator and all of its 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 at any time;
(d) obtain all necessary permits, licenses and approvals that may be required in
connection with the operation of the Concession;
(e) The Operator shall pay all realty, business or other taxes or rates that may
be levied against the lands upon which the Don Beer Sports Arena is
located, against the Arena Concession operation or against the Operator as
a result of its operation of the Arena Concession.
(f) maintain in good repair the Concession and the equipment in it;
(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,
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Don Beer Arena Concession Licence Agreement Page 3
repair or replace any damage to the Concession, reasonable wear and tear
excepted;
(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
Q) 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 in the case that the said agreement expires or is terminated,
then the vendor concession operator shall comply with the new vendor/City
agreement.
6. The Operator 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 Operator's sole expense and shall become the property of the
City at the end of the term.
Insurance
7. Prior to occupying the Concession, the Operator, 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 Operator's use and occupancy of the Concession,
with coverage for any one occurrence or claim of not less than $5,000,000
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;
(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
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Don Beer Arena Concession Licence Agreement Page 4
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, burglary or
otherwise, unless such loss or damage was caused by the negligence of the City, its
servants, agents or employees.
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 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.
12. If any outstanding fees are not paid as required by this Agreement, the City shall be
entitled, at its option, and in addition to any other remedy provided herein, to retain and
dispose of any equipment installed in the Concession in order to satisfy the outstanding
fees andthe costs of collecting them.
General
13. The Director shall have the right to enter the Concession at any time for any
reason provided alt reasonable efforts are made to minimize any disruption to
the Operator's use of the Concession.
14. The leased premises is subject to inspection at any time by the Durham Region
Health Department. The Company must fully comply with the Health Inspector's
mandated rectification of any deficiencies.
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Don Beer Arena Concession Licence Agreement Page 5
15. The Operator shall not exhibit or allow to be exhibited in the Concession 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 enure 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. (1) Any notice to the City under this Agreements all �e riting and shall be
delivered to the following address: - ,,;
Pickering Civic Complex
One The Esplanade .
Pickering, ON L1V 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:
Pickering Hockey Asso at
Address
Pickering, ON Pos I Code
Attention: Don Linth este, President
(3) Notice shall be sufficiently giv .1 'delivered in person or sent by registered mail or
sent by facsimile transmission diiig 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.
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Don Beer Arena Concession Licence Agreement Page 6
IN WITNESS WHEREOF the parties have signed this Agreement.
PICKERING HOCKEY ASSOCIATION
Don Linthwaite, President
THE CORPORATION OF THE CITY O`MPs; ERING
David Ryan, Mayor
Debbie Shi l s, Cityirk
4-07
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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 940 Dillingham Rod,
(b) "Event" means any scheduled or rescheduled sporting event, s ''rttr'�a
competition or sporting contest conducted in either of the Arenas; ti ''
(c) "Soft Drink Beverages" means, "
(i) All carbonated and non-carbonate g fI
c�ft���t�lc beverages;
(ii) all syrups from which carbonat and no ,� ated soft drink
beverages may be p �� red form consumption by the
addition of carbonatedr no. w t bona t er, and
,' k.
,„
(iii) All carbonated and non-carbonate fruit drip achine-vended fruit
y�
juices, potable waters ands troth :anon-alcoholic beverages for
immediate consumption, in ludrn' ll syrups and preparations
from which the same may be prepared;
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(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 September 1, 2003 and shall expire at midnight on August 31, 2013.
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 and may change the
advertising material from time to time during the Term.
(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
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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 thesole 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 SoftDrink 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.
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