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5.f) Staff Report-Kitchen Rental Request from Jeff Schneider of Fine Time Products � � c �i ��� ��� ,, .+�'. ✓�. �' SCANDIA Staff Report Date of Meeting: November 19, 2013 To: City Council From: Brenda Eklund, Deputy Clerk Re: Kitchen Rental Request from Jeff Schneider of Fine Time Products Background: Last December,the Council approved a Kitchen Rental Agreement with Lorie Schackmann and Jeff Schneider, Marine on St. Croix residents,to make and package candies under the business name of Fine Time Products. Per the agreement,they pay a non-resident rate of$18 per hour for use of the kitchen. Residents are charged a rate of$12 per hour. Mr. Jeff Schneider contacted the City about a reduction in their hourly rental rate for use of the Community Center kitchen. Issue: Should Mr. Schneider's current rental of$18 per hour(non-resident rate)be reduced? Proposal Details: The Council discussed Mr. Schneider's request at their November 6, 2013 Work Session. Mr. Schneider was present and explained that the production of the candies requires idle time in which there is no use of the kitchen appliances while the candies are cooled and packaged. Mr. Schneider also explained that reducing their overhead costs may allow for increased production of their candy products. The Council unanimously agreed to reduce the rental rate to $16 for non-residents across the board, and reasoned that it is good for the success of local businesses. Options: 1) Amend the Kitchen Rental Agreement with Lorie Schackmann and Jeff Schneider to a rental rate of$16 per hour. 2) Amend the Kitchen Rental Agreement with Lorie Schackmann and Jeff Schneider to a different rate. 3) Do not approve a change in the rental rate of$18 per hour. Recommendation: Option l. CITY OF SCANDIA RESOLUTION NO.: 11-19-13-06 RESOLUTION AMENDING THE SCANDIA COMMUNITY CENTER KITCHEN RENTAL AGREEMENT WITH LORIE SCHACKMANN AND JEFF SCHNEIDER, DOING BUSINESS AS FINE TIME PRODUCTS WHEREAS, the City of Scandia entered into a Kitchen Rental Agreement with Lorie Schackmann and Jeff Schneider on December 18, 2012, to make and package candy products under the business name Fine Time Products; and WHEREAS, the Renters paid the nonresident hourly rate of$18 for use of the kitchen; and WHEREAS, Jeff Schneider respectfully requested a reduced hourly rate with an explanation that the manufacture of their candy products includes idle time in which there is no use of the kitchen appliances; and WHEREAS, the Kitchen Rental Agreement states that the City may change the rate charged to the Renter from time to time by action of the City Council; and WHEREAS, the City Council discussed this request at the November 6, 2013 Work Session and unanimously approved reducing the rental rate to $16 per hour to encourage the success of local businesses; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that it should and hereby does approve amending the Scandia Community Center Kitchen Rental Agreement with Lorie Schackmann and Jeff Schneider with an adjustment in the rental rate to $16 per hour. Adopted by the Scandia City Council this 19th day of November, 2013. Randall Simonson, Mayor ATTEST: Kristina Handt, Administrator/Clerk