Swimming Pool Concession Agree
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MEMORANDUM
February 28, 2006
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Swimming Pool Concession Agreement
Bids were received on January 26, 2006, for operation of the concession stands at Flora
and Sutton swimming pools. The three-year agreement asks for a base fee or
percentage of annual gross sales, whichever is greater.
Leisure Services Manager Gil Spence recommends award of the contract to the only
bidder, Choo Choo Charlie's, with a base fee of $4,000 for Flora Pool and a base fee of
$2,000 for Sutton Pool, or 15% percentage of gross sales for each pool.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michelel C. Van Milligen
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
GiI D. Spence, Leisure Services Manager
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MEMORANDUM
February 23, 2006
TO: Michael C. Van Milligen, City Manager
FROM, GII D. Speo"', Le."~ SeNI"" M,"ageffi
SUBJECT: Swimming Pool Concession Agreement
INTRODUCTION
The purpose of this memorandum is to request City Council approval of the concession
agreement with Choo Choo Charlie's to operate the concession stands at Flora and
Sutton swimming pools.
DISCUSSION
Bids were received on January 26th for operation of the concession stands at Flora and
Sutton swimming pools. The three-year agreement asks for a base fee or percentage
of annual gross sales, whichever is greater. The following bid was received:
Choo Choo Charlie's
Base fee
$4,000 F I $2,000 S
Percentage of Gross Sales
15% each pool
A review of the history of sales at the concession stands indicates that the 15% will
exceed the base fee of $6,000. We would anticipate 15% of gross sales to result in an
annual fee of around $8,000. The last agreement called for a guaranteed fee of
$12,000 for both pools and the proposed budget estimates $12,000.
Recreation Division Manager Pat Prevenas has visited with the bidder and feels he has
a good handle on how the stands need to operate to increase gross sales. An increase
in gross sales will increase the percentage returned to the City and get us closer to the
budgeted amount.
continued
pool concession agreement
page two
RECOMMENDATION
I recommend the City Council approve the concession agreement with Choo Choo
Charlie's.
The Park and Recreation Commission endorsed this recommendation at its February
14, 2006 meeting.
ACTION STEP
The action requested is that the City Council approve the concession agreement with
Choo Choo Charlie's for operation of the concession stands at Flora and Sutton
swimming pools.
GDS:et
attachment
CONCESSION AGREEMENT
FOR
FLORA PARK and NICHOLAS J. SUTTON
SWIMMING POOLS
This Concession Agreement made and entered into this _ day of ,
2006, by and between the City of Dubuque, Iowa, acting through the Park and Recreation
Commission, hereinafter called the "City", whose address for the purpose of this Lease is
2200 Bunker Hill Road, Dubuque, Iowa, and Choo Choo Charlie's, hereinafter called
"Concessionaire", whose address for the purpose of this Agreement is 1895 John F.
Kennedy Road, Dubuque, Iowa 52002.
WITNESSETH:
WHEREAS, City is engaged in the operation and maintenance of the public facility
called the Flora Park and Nicholas J. Sutton Swimming Pools (the Pools) and the City
desires to engage a competent and qualified Concessionaire to operate and manage the
concession stand at the facility; and
WHEREAS, Concessionaire is desirous of procuring from City the privilege of
operating and managing the concession stand and is qualified to provide the requisite
services associated therewith; and
WHEREAS, the public interest and welfare will be served and the Pool materially
enhanced by a Concession Agreement with a reputable Concessionaire who will provide
certain services to the public patronizing the Pool.
NOW, THEREFORE, in consideration of the mutual covenants, promises and
agreements hereinafter set forth, it is agreed by and between the parties as follows:
1. LENGTH OF AGREEMENT. This Concession Agreement for the privilege and
obligation to operate the concession stand at the Pool shall be for the period from May 1,
2006, through September 1, 2008 (three swimming seasons).
2. PAYMENTS. Concessionaire shall pay to City, through the Leisure Services
Department, the sum of $4,000.00 per year or 15% of annual gross sales for Flora Park
Swimming Pool; $2,000.00 per year or 15% of annual gross sales for Nicholas J. Sutton
Swimming Pool, excluding sales tax, whichever amount is greater, for each year that this
Agreement is in effect. Said fee shall be paid in three monthly payments due by the 15th of
the month, beginning with the second month of operation.
3. FINANCIAL STATEMENTS. Concessionaire shall not later than the 15th of
each month provide the Leisure Services Manager with a financial statement verifying
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all receipts from the operation of its business. In addition, Concessionaire shall make
available to the Leisure Services Manager all its records regarding the operation of the
business when so requested by the Leisure Services Manager.
4. LICENSES. Concessionaire shall obtain all licenses, permits, and other
documents necessary to operate a food and beverage business, at its sole expense, as
required by the laws of the City of Dubuque, State of Iowa, and the United States.
5. TERMINATION. This Agreement may be terminated at any time by City without
prior notice and by Concessionaire upon seven (7) days' written notice to City. Upon
termination of this Agreement, the Concessionaire shall remove all its property and
personnel from the concession stand. It is expressly understood and agreed that this
Agreement is not a lease or a conveyance of realty, but merely a granting of the privilege of
providing certain services for the benefit and convenience of the public. The rights and
obligations of the parties under this Agreement shall end upon the termination of this
Agreement except that Concessionaire shall be responsible for any damages or losses
attributable to its acts or those of its employees while operating the concession stand.
6. ASSIGNMENT OF AGREEMENT. Concessionaire shall not assign, sell, or in
any way transfer its business or this Agreement without the prior written consent of the
Leisure Services Manager.
7. PRODUCT SALES AND HOURS OF OPERATION. It is understood and
agreed that the Concessionaire shall handle a general line of soft drinks, food, and other
items, such as are commonly found available at such concession stands. No alcoholic
beverages, tobacco, or gum shall be sold. Concessionaire shall obey all laws and
regulations of the City of Dubuque and State of Iowa pertaining to the sales of all products.
Concessionaire shall file a price list prior to May 14th for all items sold at the concession
stand with the Leisure Services Manager. The prices shall be in effect until the Leisure
Services Manager is notified in writing that a price change is requested. In the event that the
Concessionaire fails to submit a price list to the Leisure Services Manager prior to May 14th,
the prices of the previous season shall prevail until a new price list is approved. The
concession stand shall be open and available to the public during the hours as determined
by the City, primarily to coincide with all regularly scheduled swimming times and special
events, from approximately 1 :00 to 5:00 p.m., and from 6:30 to 9:00 p.m. Closing shall be
not later than 15 minutes after the Pool closes. The Concessionaire shall enforce a "no
carry-in" rule for the area.
8. MACHINERY AND EQUIPMENT. Concessionaire shall provide and maintain
all machinery and equipment necessary to operate its business at its sole expense.
Structural changes to the concession stand for machinery or equipment shall require the
prior written approval by the Leisure Services Manager and shall be at Concessionaire's
expense. When machinery or equipment is removed, the concession stand shall be
restored to its original condition, at Concessionaire's expense.
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9. ELECTRICITY AND WATER. City shall provide electricity and water to the
concession stand for use by Concessionaire at City's sole expense.
10. BUILDING MAINTENANCE. City shall maintain the concession stand at its
expense. However, Concessionaire shall be responsible for all damage caused by its
employees. Concessionaire shall not alter the interior or exterior of the concession stand
without prior written consent of the Leisure Services Manager.
11. SIGNS. Concessionaire at its sole expense and after approval from the Leisure
Services Manager may erect suitable signs to inform the public of the products available for
sale, and the prices. No signs shall be hung on the outside of the concession stand without
the prior written approval of the Leisure Services Manager.
12. HOUSEKEEPING. Concessionaire shall be solely responsible for the
maintenance of the concession stand and keep the same in a clean and wholesome
condition at all times. Concessionaire shall keep all garbage and refuse generated by its
business neatly contained. City shall be responsible for cleaning rest room facilities at
Sutton Pool and collecting refuse from the pool facility.
13. PERSONNEL IN CONCESSION AREA. Only employees of Concessionaire or
its authorized personnel shall be permitted in the concession stand.
14. REMOVAL OR ENCUMBRANCE OF CITY PROPERTY OR FUNDS.
Concessionaire shall not remove or encumber any property or equipment of City located in
the concession stand, nor shall Concessionaire dispose of or disburse any funds owed to
City.
15. RIGHT OF ENTRY. City shall have the right to enter and examine the
concession stand at any time.
16. INSURANCE. Concessionaire shall provide such insurance as required by the
attached insurance schedule.
To the extent that the Concessionaire's business is such as to place any or all of its
employees under the coverage of Worker's Compensation or similar statutes,
Concessionaire shall provide at his own expense during the time Concessionaire occupies
the premises and throughout the term, Worker's Compensation or similar insurance
affording the coverage and limits required by statute. Concessionaire shall provide the City
of Dubuque with evidence of such coverage.
17. INDEMNIFICATION. Concessionaire agrees to defend, indemnify and hold
harmless the City, its officers, boards, commissions, agents, and employees from and
against all claims by any person whatsoever occasioned by the use or operation of
Concessionaire under this Agreement.
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18. LIABILITY FOR CONCESSIONAIRE'S EQUIPMENT, SUPPLIES, AND
OTHER PROPERTY. City shall not be responsible in any way for lost, stolen, or damaged
equipment, supplies, or other property of Concessionaire. Concessionaire shall be solely
responsible for all of its equipment and supplies.
19. EMPLOYEES. Concessionaire shall supply at its sole expense a sufficient
number of employees to adequately serve the public during its hours of operation.
Concessionaire's employees shall at all times reflect personal cleanliness. Unkempt and
unclean employees shall not be tolerated. Employees shall wear distinctive shirts, jackets,
or smocks whenever working. The on site individual responsible for the concession
operation shall be at least seventeen years old.
20. PERFORMANCE BOND. Concessionaire shall on or before May 14, 2006,
execute to City a bond with good and sufficient security, said bond to be approved by City,
in the sum of One Thousand Dollars ($1 ,000.00) conditioned upon the faithful performance
and discharge of the obligations imposed by this Agreement from the date thereof and said
bond shall remain in full force and effect during the life of the Agreement. Concessionaire
shall pay all premiums changeable for said bond and shall keep the same in force and
effect at all times throughout the term of this Agreement and until removal of all its property
from the concession area. Said performance bond shall contain a provision that it shall not
be terminated or otherwise allowed to expire prior to thirty (30) days' written notice to City.
Said bond shall be in a form satisfactory to City and a duplicate copy, along with written
evidence of payment of the required premium, shall be filed with City during the term ofthis
Agreement.
21. TOTAL OR PARTIAL DESTRUCTION OF CONCESSION BUILDING. In the
event of fire or other disaster causing partial or total destruction of the concession stand,
City at its option may proceed with rebuilding or repair of the stand. During the period of
rebuilding, Concessionaire shall have the option of continuing to operate its business from
a temporary or mobile concession stand.
CITY OF DUBUQUE
CONCESSIONAIRE
IT'S REPRESENTATIVE
IT'S REPRESENTATIVE
address
telephone
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INSURANCE SCHEDULE A
INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY
OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE
CITY OF DUBUQUE
1. All policies of insurance required hereunder shall be with an insurer authorized to do
business in Iowa. All insurers shall have a rating of A or better in the current A.M.
Best Rating Guide.
2. All policies of insurance shall be endorsed to provide a thirty (30) day advance
notice of cancellation to the City of Dubuque, except for 10 day notice for non-
payment, if cancellation is prior to the expiration date. This endorsement
supersedes the standard cancellation statement on the Certificate of Insurance.
3. shall furnish a signed Certificate of Insurance to the City of
Dubuque, Iowa for the coverage required in Paragraph 6 below. Such certificates
shall include copies of the following policy endorsements:
a) Commercial General Liability policy is primary and non-contributing.
b) Commercial General Liability additional insured endorsement.
c) Governmental Immunity Endorsements.
4. Each certificate shall be submitted to the contracting department of the City of
Dubuque.
5. Failure to provide minimum coverage shall not be deemed a waiver of these
requirements by the City of Dubuque. Failure to obtain or maintain the required
insurance shall be considered a material breach of this agreement.
6. shall be required to carry the following minimum
coverage/limits or greater if required by law or other legal agreement:
a) COMMERCIAL GENERAL LIABILITY
General Aggregate Limit
Products-Completed Operations Aggregate Limit
Personal and Advertising Injury Limit
Each Occurrence Limit
Fire Damage Limit (anyone occurrence)
Medical Payments
$2,000,000
$1,000,000
$1,000,000
$1,000,000
$ 50,000
$ 5,000
This coverage shall be written on an occurrence, not a claims made form. Form CG
25 04 03 97 "Designated Location (s) General Aggregate Limit" shall be included.
All deviations or exclusions from the standard ISO commercial general liability form
CG 0001, or Business Owners form BP 0002, shall be clearly identified.
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June 2005
INSURANCE SCHEDULE A (Continued)
INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY
OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE
CITY OF DUBUQUE
Governmental Immunity Endorsement identical or equivalent to form attached.
Additional Insured Requirement:
The City of Dubuque, including all its elected and appointed officials, all its
employees and volunteers, all its boards, commissions and/or authorities and
their board members, employees and volunteers shall be named as an additional
insured on General Liability Policies using ISO endorsement CG 20 26 0704
"Additional Insured - Designated Person or Organization," or it's equivalent. -
See Specimen
b) WORKERS' COMPENSATION & EMPLOYERS LIABILITY
Statutory for Coverage A
Employers Liability:
Each Accident
Each Employee - Disease
Policy Limit - Disease
$100,000
$100,000
$500,000
c) UMBRELLA EXCESS LIABILITY
LIQUOR OR DRAM SHOP LIABILITY
Coverage to be determined on a case by case basis by Finance Director.
Completion Checklist
o Certificate of Liability Insurance (2 pages)
o Designated Location(s) General Aggregate Limit CG 25 04 03 97 (2 pages)
o Additional Insured 20 26 07 04
o Governmental Immunities Endorsement
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June 2005
CITY OF DUBUQUE, IOWA
GOVERNMENTAL IMMUNITIES ENDORSEMENT
1. Nonwaiver of Governmentallmmunitv. The insurance carrier expressly agrees and
states that the purchase of this policy and the including of the City of Dubuque, Iowa
as an Additional Insured does not waive any of the defenses of governmental
immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4
as it is now exists and as it may be amended from time to time.
2. Claims Coveraoe. The insurance carrier further agrees that this policy of insurance
shall cover only those claims not subject to the defense of governmental immunity
under the Code of Iowa Section 670.4 as it now exists and as it may be amended
from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be
covered by the terms and conditions of this insurance policy.
3. Assertion of Government Immunitv. The City of Dubuque, Iowa shall be responsible
for asserting any defense of governmental immunity, and may do so at any time and
shall do so upon the timely written request of the insurance carrier.
4. Non-Denial of Coveraoe. The insurance carrier shall not deny coverage under this
policy and the insurance carrier shall not deny any of the rights and benefits
accruing to the City of Dubuque, Iowa under this policy for reasons of governmental
immunity unless and until a court of competent jurisdiction has ruled in favor of the
defense(s) of governmental immunity asserted by the City of Dubuque, Iowa.
No Other Chanoe in Policv. The above preservation of governmental immunities shall
not otherwise change or alter the coverage available under the policy.
SPECIMEN
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June 2005