McAleece Park Concession AgreeMEMORANDUM
April 9, 2002
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
McAleece Park and Recreation Complex Concession Agreement
Bids were received for the McAleece Park and Recreation Complex Concession
Agreement. The bid notice called for a base fee (guaranteed amount) or percentage of
gross sales, whichever is greater.
Baseball Dreams LLC is the group that plans to bring professional baseball to Petrakis
Field in 2003, and wanted the concession operation to help finance that operation.
Even though Baseball Dreams did not offer a percentage of gross sales, their $15,000
guarantee is higher than the 8th Inning percentage applied to gross sales the past
several years.
The Park and Recreation Advisory Commission and Leisure Services Manager Gil
Spence recommend award of the contract to Baseball Dreams LLC.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Gil D. Spence, Leisure Services Manager
CITY OF DUBUQUE, IOWA
MEMORANDUM
TO: Michael C. Van Milligen, City Manager
FROM: Gil D, Spence, Leisure Services Manager
April 4, 2002
SUBJECT: McAleece Park and Recreation Complex Concession Agreement
INTRODUCTION
The purpose of this memorandum is to request City Council approval of awarding the
concession agreement at the McAleece Park and Recreation Complex to Baseball
Dreams LLC.
DISCUSSION
Bids were received on January 8, 2002 for operation of the concession stand at the
McAleece Park and Recreation Complex. Attached is a copy of the concession
agreement on which bids were made. The bid notice called for a base fee
(guaranteed amount) or percentage of gross sales, whichever is greater. The
following two bids were received:
Base fee Percentage of Gross Sales
Baseball Dreams LLC $ 15,250 ---
8th Inning LLC $ 10,000 20%
Baseball Dreams LLC is the group that plans to bring professional baseball to Petrakis
Field in 2003 and wanted the concession operation to help finance that operation.
The group is headed by Keith Rahe from Dyersville, and seems to be prepared to
handle this operation. Even though Baseball Dreams did not offer a percentage of
gross sales, their $15,000 guarantee is higher than the 8th Inning percentage applied
to gross sales the past several years.
RECOMMENDATION
I recommend the City Council approve awarding the concession agreement to
Baseball Dreams LLC. The Park and Recreation Advisory Commission endorsed this
recommendation at its January 8th meeting.
ACTION STEP
The action requested is that the City Council award the concession agreement to
Baseball Dreams LLC and that the City Manager be authorized to sign the agreement,
GDS:et
attachment
CONCESSION AGREEMENT
FOR
GERALD "RED" McAleece PARK AND RECREATION COMPLEX
This agreement, made and entered into this__day of , 2002, 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 Baseball Dreams LLC, hereinafter called
the "Concessionaire", whose address for the purpose of this agreement is 401 - 1st
Avenue, East, Dyersville, Iowa 52040 (Keith Rahe).
WITNESSETH:
WHEREAS, the City is engaged in the operation and maintenance of the public
facility called Gerald "Red" McAleece Park and Recreation Complex and the City
desires to engage a competent and qualified concessionaire to operate and manage the
concession stand at the facility; and
WHEREAS, The Concessionaire is desirous of procuring from the City the
privilege to operate and manage 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 Gerald "Red"
McAleece Park and Recreation Complex materially enhanced by granting such privilege
to a reputable party who will provide certain services to the public patronizing the
complex.
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 agreement for the privilege and obligation to
operate the concession rights at the Gerald "Red" McAleece Park and Recreation
Complex shall be for the period from April 1,2002 through September 30, 2004 (three
softball seasons).
2. PAYMENTS. Concessionaire shall pay to the City, through the Leisure
Services Department, the sum of 815,250 per year for each year that this agreement is
in effect. Said fee shall be paid in 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 City with a financial statement verifying all receipts from the
operation of its business. In addition, Concessionaire shalI make available to the City
all its records regarding the operation of the business when so requested by the City.
4. LICENSES. Concessionaire shall obtain all licenses, permits, and other
documents necessary to operate a food and beverage business, including beer sales, at
its sole expense, as required by the laws of the City of Dubuque, State of Iowa, and
the United States. Effective 2003, the beer permit shall not include Petrakis Baseball
Field.
5. TERMINATION. This agreement may be terminated by the Leisure Services
Manager upon 24-hours written notice if it is deemed in the best interest of the City
and by Concessionaire upon seven (7) days' written notice to the Leisure Services
Manager. 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 to provide certain services for the benefit and convenience of
the public. The rights and obligation of the parties under this agreement shall end with
the effective day of the termination of this agreement except that the Concessionaire
shall be responsible for any damages or losses attributable to his/her acts or those of
his/her employees while operating the concession stand.
6. ASSIGNMENT OF AGREEMENT. Concessionaire shall not assign, sell, or in
any way transfer the 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 beer, soft drinks, food, et cetera,
such as are commonly found available at such places. Concessionaire shall obey all
laws and regulations of the City of Dubuque and State of Iowa pertaining to the sales
of said products, including dram shop insurance. The Concessionaire shall file a price
list prior to April l~-th for such items sold at the concession stand, with the Leisure
Services Manager. These 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 shall not submit a price list to the Leisure Services Manager prior to
April 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 Leisure Services Manager, primarily to coincide with the
playing of all regularly scheduled, rescheduled, or tournament games. Closing shall not
be later than fifteen minutes after the final game is concluded. The Leisure Services
Manager reserves the right to prohibit beer sales during youth activities at the Gerald
"Red" McAleece Park and Recreation Complex. The Concessionaire shall enforce the
"no carry-in" rule for the area. The Concessionaire shall be responsible for locking all
doors and gates in the area each night of operation. Effective 2003, concession rights
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for Petrakis Baseball Field may, if so determined by the Leisure Services Manager, be
excluded from this agreement.
8. MACHINERY AND EQUIPMENT. Concessionaire shall provide and maintain
all machines and equipment necessary to operate its business at its sole expense.
Structural changes to the building pertaining to equipment must be approved in writing
by the Leisure Services Manager and done at Concessionaire's expense. When said
equipment is removed, the buitding shall be restored to its original condition, at
Concessionaire's expense. Storage shall be limited to the concession area.
9. ELECTRICITY AND WATER. City shall provide electricity and water to
concession area for use by Concessionaire at City's sole expense.
10. BUILDING MAINTENANCE. City shall maintain concession building at its
expense. However, Concessionaire shall be responsible for all damage done by
employees of the Concessionaire. Concessionaire shall not alter the interior or exterior
of the concession building without prior written consent of the Leisure Services
Manager,
11. SIGN(S). Concessionaire, at his/her sole expense and with 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 will be hung on the outside of the
concession building without approval from the Leisure Services Manager,
1 2. HOUSEKEEPING, Concessionaire shall be solely responsible for maintaining
the concession business area and keeping the same in a clean and wholesome
condition at all times. Concessionaire shall keep all garbage and refuse generated by
his/her business neatly contained, including the concession portion of the building.
The City shall be responsible for cleaning the rest room facilities and collecting refuse.
1 3. PERSONNEL IN CONCESSION AREA. Only employees of the Concessionaire
or authorized personnel shall be permitted in the concession portion of the building.
14. REMOVAL OR ENCUMBRANCE OF CITY PROPERTY. Concessionaire shatl
not remove or encumber any property or equipment of City located in the concession
building; 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 area at any time.
16. INSURANCE. Concessionaire shall 3rovide such insurance as required by
the following insurance schedule,
Any policy of insurance or certificate of insurance required hereunder shall be
with a carrier authorized to do business in Iowa and a carrier that has received a rating
of A or better in the current Best's Rating Guide.
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Any policy of insurance required hereunder shall provide for a thirty (30) day
notice to the City of any material change or cancellation of the policy prior to its
expiration date.
Concessionaire shall have its insurance agent or company certify in writing that
any policy of insurance required herein with an aggregate limit of liability has not been
reduced by paid or reserved claims at the time of issuance of policy or certificate.
Concessionaire shall furnish copies of the following policies to the City, with
limits not less than the following, or greater if required by law, and shall also furnish
certificates of insurance from all independent contractors or subcontractors hired by
Concessionaire or any independent subcontractor, which certificates shall provide
evidence of coverage for the following with limits not less than the following, or
greater if required by law:
COMMERCIAL GENERAL LIABILITY:
General Aggregate Limit
Products-Completed Operation Aggregate Limit
Personat and Advertising Injury Limit
Each Occurrence Limit
Fire Damage Limit (any one occurrence)
Medical Payments
OR
2,000,000
1,000,000
1,000,000
1,000,000
50,000
5,000
Combined Single Limit
Medical Payments
2,000,000
5,000
Coverage is to include: occurrence form, premises/operations/products/
completed operations coverage, independent contractors' coverage, contractual
liability, broad form property damage, personal injury, City of Dubuque named as an
additional insured with thirty (30) days' written notice of change or cancellation.
DRAM SHOP LIABILITY:
Bodily Injury
Property Damage
Loss of Means of Support
OR
Combined Single Limit:
X
X
X
1,000,000
City of Dubuque shall be listed as an additional insured with a thirty (30) day
written notice of cancellation.
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, the
Concessionaire shall provide at its own expense during the time the Concessionaire
occupies the premises and throughout the term, Worker's Compensation or similar
insurance affording the coverage and limits required by statute. The Concessionaire
shall provide the City of Dubuque with evidence of such coverage.
17. INDEMNIFICATION. The 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 operation of
Concessionaire under this Agreement.
1 8. 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. The Concessionaire shatl 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 the hours of operation.
Concessionaire's employees shall at all times reflect personal cleanliness. Unkempt
and unclean employees will not be tolerated. Employees shall wear distinctive shirts,
jackets, or smock and cap whenever working.
20. PERFORMANCE BOND. Concessionaire shall on or before April 14, 2002,
execute to the City a bond with good and sufficient security, said bond to be approved
by City, in the sum of Fifty Thousand Dollars (~50,000.00) conditioned upon the
faithful performance and discharge of the obligations imposed by this agreement from
the date thereof and said bond shall remain in force and effect during the life of the
agreement. Concessionaire shall pay all premiums chargeable 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
until thirty (30) days' written notice to that effect is given to the City and the
Concessionaire herein. Said bond shall be in a form satisfactory to the City; and a
duplicate copy, along with written evidence of payment of the required premium, shall
be filed with the City during the term of this 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
building, the City at its option may proceed with rebuilding or repair of the building.
During the period of rebuilding, Concessionaire shall have the option of continuing to
operate its business from a temporary or mobile concession stand.
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FOR THE CITY OF DUBUQUE
FOR THE CONCESSIONAIRE
address
phone
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