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9.a) Kitchen Rental Agreement �: � �� � � � SCANDIA Staff Renort Date of Meeting: December 18,2012 To: City Council From: Kristina Handt, City Administrator Re: Kitchen Rental Agreement Agenda Item#: 9.a) Background: About a year ago, the Council was approached by Samantha Keeney about the possibility of renting out the community center kitchen on an hourly basis to make homemade salsa. In January 2012,the Council approved an agreement with Sam's Salsa. A couple of months ago, City staff were contacted by Lorie Schackmann and Jeff Schneider about the possibility of renting out the kitchen on an hourly basis to make candies. Staff supplied them with a copy of the rental agreement and met with them to look at the available space. Lorie and Jeff will be at the Council meeting to answer any questions you may have. Proposal Details: The agreement in your packet is the same one approved for Sam's Salsa last year and had been prepared by Attorney Miller and Treasurer Firkus. The applicants have paid the $50 deposit required and provided the city with copies of their insurance(naming the City as an additional insured) and Food Manager Certificate from the MN Dept of Health. Fiscal Impact: Per the agreement,the applicants will pay the fee of$18per hour(non resident) as stipulated in the rate schedule. Options: 1) Approve the Community Center Kitchen Rental Agreement with LA Schackmann. 2) Amend and then Approve the Community Center Kitchen Rental Agreement with LA Schackmann. 3) Do not approve the contract-resulting in applicants not being able to rent the kitchen on an hourly basis. Recommendation: Option 1. t f , ������ 14727 209�h Street North Scandia, Minnesota 55073 (651)433-2274 Scandia Community Center Kitchen Rental Agreement This Scandia Community Center Kitchen Rental Agreement ("Agreement") is entered into this �day of `_L�by and between the City of Scandia, a Minnesota municipal corporation (hereinafter referred to as "City"), and /� �'tf,4CIGM�4NJV� (hereinafter referred to as "Renter"). .�•N� T��� �I>(�C� 1. Term and Rent. DURATION: (if applicable) OR MONTH TO MONTH (X) START DATE:��q�„ END DATE: � o, RENT: See rate sche le SECURITY DEPOSIT: 50.00 ��' SUPPLIES FEE: $ (if appficable) 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 Cit�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. 1 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 untawful 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 a11 claims, lawsuits, losses, damages or expenses on account of bodily injuries, sickness, disease, death and property damage caused by or resutting 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. 2 C1� �'T �Can4►G �� �� � ' 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 un er suc po icy. rior 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 {icenses 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 acrual 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 Qeposit. a. The City may keep all or portions of the security deposit required hereunder for: 3 (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 attorne�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. 4 . 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: k.handt ci.scandia.mn.us Phone: (651)433-2274 b. LA Sc+��Nlkiv�- FtN� TI���cTS 21� c�rN, � - `� c-�I t l ���w �� ��y� Attn: Lc i�E email:,,Jo�Sr_hc� ,mG,nn7l��'��i✓r•�'Yl Phone: S/— Y �.�� 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: ��Q �• �j'1AC,IC i�Y�t v�r� City of Scandia By: By: Its: Its: � Date: )2—� I� /Z- Date: 5 , RATE SCHEDULE Kitchen Use Hourl Rates Type of Contract Hours of Use per month Cost per hour Resident $12 Nonresident $18 6