9.d) Proposed Contract for Rental of the Community Center Kitchen by Sam's Salsa and Jams, LLC Meeting Date: 1/17/�012
Agenda Item: � `
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City Council Agenda Report ���
City of Scandia
14727 209t" St.North
Scandia, MN 55073 (651) 433-2274
Action Requested: Discuss a proposed contract for rental of the Community Center
kitchen by Sam's Salsa and Jams, LLC.
Deadline/Timeline: N/A
Background: • The City Council was approached by Samantha Keeney at the
November 15, 2011 meeting, at which she requested the City
formulate a rental policy to a11ow her to rent the Community
Center kitchen two days per week to make homemade salsa to sell
to the public.
• The Council discussed the proposal further at its December 13
work session meeting, and directed staff to finalize a draft
agreement to allow rental of the kitchen with certa.in parameters.
Treasurer Colleen Firkus worked with City Attorney Tom Miller
on the agreement, which is attached.
• The agreement does not cover the renter storing equipment and
product at the community center. Staff was concerned that there
was not enough space, about how it would be secured, and the
potential liability from storing her property here. Ms. Keeney was
requested to review other options for storage.
• On January 12, we received a memo from Ms. Keeney proposing
to place a lockable Rubbermaid storage container in the bar area of
the community center hall. This container would take about 2 ft.
by 3 ft. of floor space. This area is now occupied by a file cabinet
used to store cleaning supplies. Staff has determined that the file
cabinet can be removed and that another location can be found to
store the supplies. She has offered to pay an additional $5 per
month to rent the space for the container.
Recommendation: I recommend that the Council approve the contract and authorize the
Mayor to sign the contract with Samantha Keeney, with the condition
that an addendum be added to allow storage of the locked container at
an additional $5 per month rental fee.
Page 1 of 2
O1/13/12
Attachmentsl • Scandia Community Center Kitchen Rental Agreement
Materials provided: • Samantha Keeney letter submitted 1/12/12
Contact(s): Samantha Keeney, 651-433-5886
Prepared by: Anne Hurlburt, Administrator
{community center kitchen contract)
Page 2 of 2
Ol/13/l2
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SC.t�1�TDIA.
14727 209th Street North
Scandia, Minnesota 55073
(651 J433-2274
Scandia Community Center Kitchen Rental Agreement
This Scandia Community Center Kitchen Rental Agreement ("Agreement") is entered into this
day of , by and between the City of Scandia, a Minnesota municipal
corporation (hereinafter referred to as "City"), and
(hereinafter referred to as "Renter").
1. Term and Rent.
DURATION: (if applicable) OR MONTH TO MONTH (X)
START DATE: END DATE:
RENT: See rate schedule SECURITY DEPOSIT: $50.00
SUPPLIES FEE: $ (if applicable) MAX. MONTHLY HRS:
2. Services to Be Provided.
a. The City agrees to provide the Renter access to and use of the commercial kitchen
facilities at the City's Senior/Community Center (the "Kitchen"), for the production of the
Renter's products and Renter hereby agrees to rent the Kitchen from the City in
accordance with this Agreement.
b. Kitchen facilities and services provided by the City shall include: use of stoves, sinks,
refrigerators,freezers, counters, dishwasher, and available pots and pans. Renter shall
not be entitled to use any other City facilities or property without the prior written
consent of the City.
3. Operating Schedule.The Kitchen shall be available for the Renter's use only on such days
and during such time periods as scheduled and agreed to by the City. Before Renter's initial
Kitchen use, Renter or its representative must attend a Kitchen orientation with Community
Center management. Renter shall contact City to schedule a time for such orientation.
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4. Pricing Schedule. Renter will be charged in accordance with the provisions of this
Agreement and attached Schedule(s) which are incorporated herein. The City may change the
rate charged to Renter from time to time by action of the City Council. This includes pre-
payment for any hours scheduled and used. Unless otherwise provided, all rent payments are
due to the City on or before the first day of each month during the term of this Agreement.
5. Limitation of Liabilities. It is understood and agreed that the City will have no liability to the
Renter or any other party for loss or damage (whether direct, indirect, or consequential) which
may arise from the rental of the Kitchen. The Renter is liable for all loss or damage to City
equipment, personnel and property while under the Agreement. The City assumes no
responsibility for the security of any equipment or supplies provided by the Renter for use at the
Kitchen or other City property.
6. Other Business Interests. This Agreement shall not be construed as a partnership,joint
venture or otherwise, and unless otherwise agreed in a writing signed by both parties, the City
has no right, title or interest in and to the business or profits of the Renter.
7. Renter Promises. Renter, without limiting any other provisions of this Agreement covenants
and agrees:
a. Not to damage or misuse the Kitchen or other City property or waste the utilities
provided by the City or allow Renter's agents, employees, customer or guests to do so;
b. to keep the Kitchen clean and tidy;
c. not to conduct himself, or herself in a loud, boisterous, unruly or thoughtless manner so
as to disturb the rights of other renters, or to allow his/her/its agents, employees,
customers or guests to do so;
d. to use the Kitchen only as a professional commercial kitchen space, and not in any way
that is unlawful or dangerous or which would cause a cancellation, restriction, or
increase in premium in the City's insurance;
e. to give prompt written notice to the City of any necessary repairs to be made to the
Kitchen; and
f. to comply with all other terms of this Agreement.
8. Indemnification. Renter shall be liable for and shall defend, indemnify and hold the City, its
officers, employees or agents harmless from any and all claims, lawsuits, losses, damages or
expenses on account of bodily injuries, sickness, disease, death and property damage caused by
or resulting from Renter's activities under this Agreement or resulting from the sale distribution,
consumption, and use of any service provided or product manufactured by the Renter.
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9. Public and Product Liability Insurance. Renter shall purchase and maintain, at his/her/its
own expense, a general liability insurance policy including coverage for products liability claims
with limits of not less than $500,000.00 per occurrence and $1,500,000.00 annual aggregate.
The City shall be named as an additional insured under such policy. Prior to commencing any
activities under this Agreement, Renter shall provide the City with proof of such required
insurance, including Workers Compensation Insurance as and to the extent required by
Minnesota Law.
10. Food and Equipment Safety and Sanitation; Licenses. Prior to the commencement of any
activities under this Agreement, the Renter is responsible for obtaining, maintaining in good
standing and providing to the City copies of all local, State and federal licenses required for the
Renter's activities under this Agreement including but not limited to a valid and current Food
Manager Certification administered by the State of Minnesota Department of Health and/or a
Food Handler's License administered by the Department of Agriculture. Notwithstanding the
foregoing, the Renter may use the Kitchen for up to 45 days while completing food safety
training and application for Food Manager Certification and/or Food Handler's License.
11. Reserving and Purchasing Kitchen Time. Time must be reserved and payment received in
advance of Renter's use of the Kitchen. Kitchen time will be reserved in minimum two (2) hour
increments. Renter is responsible for payment of any reserved kitchen time, regardless of actual
use. Unless otherwise provided in this Agreement, Kitchen time can be reserved for only the
current and following month.
12. Cancellation Policy. Reserved Kitchen time can be canceled with a full refund up to 30-days
prior to the reserved time. Cancellations made less than 30 days prior to the reserved time will
receive no refund, but Renter may reschedule hours if the City determines that the Kitchen
schedule allows so long as Renter is otherwise in compliance with this Agreement.
13. Returned Checks. A fee of$35 will be assessed to the Renter's account for any returned
checks.
14. Default. A violation, breach, or failure to keep or perform any conditions of this Agreement,
shall not continue more than three (3) days after written notice to the Renter from the City. If
more than three (3) days pass without any corrective action taken by the Renter, the City may
declare this Agreement and the Renter's rights terminated with no further notice. Upon such
termination, the City may immediately repossess and remove Renter's property. The Renter will
be charged any reasonable storage cost.
15. Security Deposit.
a. The City may keep all or portions of the security deposit required hereunder for:
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(1) Damages caused by the Renter beyond normal wear and tear;
(2) Rent or other money owed to the City; or
(3) Any costs incurred by the City as a result of the Renter's default or failure to
perform hereunder.
b. The City shall return Renter's security deposit, together with a written statement
itemizing any deductions, within 21 days of the later of termination of this
Agreement or the receipt of delivery instructions from the Renter.
c. In the event that damage charges are above the amount of the security deposit,
Renter will be billed for additional damage, cleaning fees or City costs. Renter's
liability is not limited to the amount of the security deposit. Payment will be
requested within 15 days of receiving invoice or legal action will be taken. If legal
action is required,the City shall be entitled to recover its costs and reasonable
attorney's fees from Renter.
16. Personal Guarantee. If the Renter is an entity i.e. corporation, LLC etc., the person signing
this Agreement on behalf of such entity agrees to personally guarantee all of Renter's
obligations, duties, costs and damages under this Agreement. The City may, but shall not be
required to, commence an action against such individual without first bringing an action against
the Renter.
17.Assignment.This Agreement is solely between the City and the Renter. Renter shall not
assign his/her/its rights under this Agreement,the usage privileges or services of the Kitchen, or
use of the whole or any part of the Kitchen premises without the prior consent of the City which
may be withheld for any or no reason.
18.Termination and Amendment.
a. Notwithstanding any provision contained in this Agreement,the City may, in the
City's sole and absolute discretion terminate this Agreement at any time without
further liability by delivering prior written notice to Renter.
b. Except for the rate schedule which may be changed as provided in Section 4 above,
this Agreement may only be amended by a written instrument executed by both of
the parties hereto.
19. Non-Binding Until Fully Executed.This Agreement is for discussion purposes only and does
not constitute a formal offer by either party. This Agreement is not and will not be binding on
either party until and unless it is fully executed by both parties. As of the date of execution by
both parties,this Agreement shall substitute any previous Agreement made between the City
and the Renter.
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20. Notices. All notices, requests, demands or other communications required or permitted by
the terms of this Agreement will be given in writing and delivered to the parties of this
Agreement as follows:
a. City of Scandia
14727 209th Street
Scandia, MN 55073
Attn: City administrator
email: a.hurlburt@ci.scandia.mn.us
Phone: (651) 433-2274
b.
Attn:
email:
Phone:
Or to such address as to which either party may from time to time notice the other.
21. Entire Agreement. It is agreed that there is no representation, warranty, collateral
agreement or condition affecting this Agreement except as expressly provided in this
Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective on the date
first written above.
RENTER: CITY:
Name: City of Scandia
By: By:
Its: Its:
Date: Date:
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RATE SCHEDULE
Kitchen Use Hourl Rates
Type of Contract Hours of Use per month Cost per hour
Resident $12
Nonresident $18
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Re�ardin�: Stora�e at the Community Center for: ��������� �
Sam's Salsas and Jams LLC. JA�[ 1 � 2012
19727 Parkview Ave. _CITY OF SCANDIA _ ;
Scandia, Mn 55073
651-433-5886
I spoke with Dave Seipel, one of the inspectors from the Department of
Agriculture, Food and Dairy Division for the State of
Minnesota/Washington County (my inspector) regarding guidelines for
obtaining a manufactures license and storage for my salsas and jams.
He said he spoke with several other inspectors in the Food and Dairy
Division and they all concluded the product must be stored in the
facility in which it was produced. He also reiterated that I would need a
written notice stating that I could produce and store my product at
their facility.
He recommended I re-approach the Community Center regarding
storage.
So I stopped up here at the Community Center with a tape measure just
to see if I could come up with any ideas.
Brenda greeted me and had an idea to use a corner of the old kitchen
across from the new kitchen. This would be perfect. The area is 5ft
wide by 2ft deep. In which I would only need 3ft of the 5ft.
I can purchase a Rubbermaid storage container with lock or a metal
storage container with lock for around $300.00.
In this I can store all my equipment and product produced. I will not
need additional storage as I grow due to the fact I will make and sell
product at equal rate. I can also still follow the pickle law and make up
to $5,000.00 Out of my home to sell to local markets. What I produce
here at the Community Center kitchen will be for stores such as Scandia
Store, Marine General Store, Stillwater Co-op, Lund's, Byerly's,
Kowalski's and St. Paul Farmers' Markets in which all require by
manufacturing laws to be prepared in a commercial kitchen and stored
at the same facility in which produced.
With that said I would be willing to pay a $5.00 monthly fee for the
small storage area, and will sign a waiver stating the Community
Center/City of Scandia has no liability regarding theft or damage of or
to my product, pots, utensils, storage container est.
This storage container does not have wheels so it would be harder to
steal. I would not write my name on the outside of the container, only
on the inside of the container, to reduce questions or interest as to
"what's inside."
As far as others wanting to do the same as myself. Most people need
cold storage. My product is self stable. I know that space is limited to
an area of approx. 5ft which could fit 2 storage units. Maybe, if
someone else was interested, they could go on a waiting list or in
queue until a spot was available or come in front of you, the City
Council for a decision to be determined.
The manufacturing license is less expensive if your product is
refrigerated but due to my strong desire to buy my produce from the
Scandia community when available, I also want to produce,
manufacture and have my labels labeled "made in Scandia, Mn." I am a
big believer in keeping monies in the community in which a person
I ives.
Thank you once again for your time,
Samantha Keeney