5.a) Rental of Community Center Kitchen Meeting Date: 12/13/2011
Agenda Item: s, ��
City Council Agenda Report
City of Scandia
14727 209`h St. North
Scandia, MN 55073 (651) 433-2274
Action Requested: Discuss a proposal that the city change its policies for rental of the
Community Center kitchen.
Deadline/Timeline: N/A
Background: • The City Council was approached by Samantha Keeney at the
November 15, 2011 meeting in which she requested the City
formulate a rental policy to allow her to rent the Community
Center kitchen two days per week to make homemade salsa to sell
to the public.
• The current hall rental agreement allows for kitchen rental for a
single event at a cost of$300. The City has no policy regarding
commercial kitchen use for the purpose of producing food for sale.
• The Community Center's kitchen license through Washington
County would allow leasing of the kitchen for such an enterprise.
However,the County suggests either a City staff inember who is a
Certified Food Manager oversee the process, or the person making
the product become a Certified Food Manager(a one day course).
This would also satisfy the Dept. of Agriculture.
• The Dept. of Agriculture allows individuals who pickle or can
certain foods at home, or in a community kitchen, to sell up to
$5,000 per year of product at Farmers' Markets and local social
and community events. However, if the individual or business
were to sell at locations other than Farmer's Markets, or exceed
$5,000 in annual sales, then they would need to get a Food
Handler's License.
• The City's insurance agent has recommended that anyone renting
the kitchen to make and sell food to the public should have a
commercial liability policy listing the City as an additional
insured.
• Other operations that lease commercial kitchens for food
entrepreneurs require either a Food Manger Certification, or
oversight by someone who has such Certification. Also, depending
on the food produced, where it is sold and the amount annual
sales, licensure may be required by the Department of Agriculture.
All such operations all required general and product liability
Page 1 of 2
12/08/11
insurance with a minimum coverage of$1,000,000.
• Kindred Kitchen charges $20 to $35 per hour depending on
number of hours leased. Commercial Kitchen Rental charges from
$12 to $16 depending on their peak times and number of hours.
Stecoah Valley Food Ventures requires a $25 application fee, $100
cleaning deposit, $5 per day cleaning supplies fee, and $12 per
hour kitchen user fee. Keeney is proposing a$10.00 per hour fee
for Residents and $15.00 per hour fee for Non-residents.
• Time must be reserved and payment received in advance of use of
the kitchen. Staff recommends kitchen time be reserved in
minimum two (2)hour increments, and reserved for only the
current and following month. Kitchen rentals must be flexible in
scheduling to accommodate community groups who need the
kitchen during the day, such as the "Cottage"potluck.
Accommodating community groups kitchen needs will need to be
balanced with paid kitchen customer's requests, which will take
additional staff time to maintain that balance.
Recommendation: I recommend that the Council discuss the proposal. A sample rental
agreement has been drafted for the Council's review. Council will
need to discuss terms covered in the agreement such as licensure,
rental rates, cleaning supplies fees, storage, and insurance
requirements. Other issues to discuss would be any limits put on this
type of rental, and what priority they would have over other uses of
the kitchen.
Attachments/ • Samantha Keeney letter submitted 11/15/11
Materials provided: . Scandia's current hall agreement
• Sample kitchen agreement
Contact(s�: Samantha Keeney, 651-433-5886
Prepared by: Colleen Firkus, Treasurer
(community center kitchen rentals)
Page 2 of 2
12/OS/11
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Sam's Salsas and lams LLC
19727 Parkview Ave
Scandia, Mn 55073
651-433-5886
Members of the City Council.
My name is Samantha Keeney.
t have been a stay at home mom for the past eight years. My youngest son Coilin is in the kindergarten
plus program at Scandia Etementary School. The fee for this program is$300.00 per month. Before
staying at home with my two children I was an employee at Security State Bank in Lindstrom,they told
me when I was ready to go back to work to give them a cafl.8 years later...they have no openings at this
time and at the soonest,the beginning of 2012. I knew t needed to make$300.00 per month to pay for
Collins school. Not quite sure how i was going to accomplish this. I made some Black Bean and Corn
Salsa, My husband said"WOW!This salsa is awesome,this is how you're going to make that$300.00". I
said"how". He said"selling this salsa". So that is what I did. I went to my neighbors and got all the
veggies 1 could get and started making my Slack Bean and Corn Salsa,then Pineapple, Black Bean and
Corn Salsa then Raspberry lalapeno Jam and went to the Gammelgarden Farmers Market on Wednesday
while my kids went to Choir at Etim Church and then on Saturdays went to Marine on the St Croix
Farmers Maricet. Both these markets are now over for the season. So my next step is the"City of St.
Paul's Farmers Markets"which are year round. The St Paul Farmers Markets now newly requires
vendars to use a commercial kitchen to make/manufacture their food products. My search for a
commercial kitchen has brought me here to you. Your current price is$300.00 for 24 hrs. About S yea�s
ago it was$25.00 for 24 hrs, I'm not sure why such a jump in price in such a short period of time? Since
1 can't physically work 24 hours straight to make it worth my while, I�m here to propose a new idea. I
am a current resident here in Scandia,pay taxes,purchase my veggies from local growers, my family and
I are grounded here in the community I want my business and my labeling to reflect the City we are so
proud of:"Scandia". I would use this kitchen to prep. Make and preserve my Salsas and 1ams. It takes
approx. 3-4 hours to go through the entire process from prepping to get to the finaf product. My
children leave on the bus at 8:20am and are home at 3:45pm. So I would be interested in using this
kitchen from 9am to 3pm one to two times per week Monday through Thursday. Prep.Work—I need
nothing but the light approx.2-3 hrs.depending on how many batches I need to make. Maybe even 1
day I will only—prep.And another day—cook,process,cool and label. When 1 prep only the lights will
be used.When I cook I use the stove and then the dishwasher to heat and sanitize the jars. t would use
all my own utensils and pots, ph meters ect. 1 basically need the stove and dishwasher. The expense to
Scandia Community Center would therefore be minimal! Since St Paul Farmers Market requires a
vender to make products in a commerciai kitchen,the demand is there—but the price is too high. The
exampie below gives a snapshot of the potentiai revenue for the City on both a monthly and annualized
schedule. This would be realized with just 2 day rental per week.
My Proposal: Add another Category.
Exampte:
Event Rental Rate:(such as Weddings)-Residence/Non-Residence:
$300.00 including the hall,tables,chairs,stage,media ect.
Kitchen Rental Rate: (Kitchen use Oniy)-Mondays thru Thursdays
Resident: $10.00 per haur
Non-resident:$15.00 per hour
Non-Event:2 x's per week x 4 weeks for 6 hrs.
Resident Revenue:$480.00 per month or$5,760.00 per year.
Non-resident Revenue:$720.00 per month or$8,640 per year.
Current Plan: $0
I see this proposal as a win/win solution for both the City of Scandia and it's residence. Since this is a
Center for the Community to use why not make it affordable for the Community to use.
Please refer to the attachment regarding use fees for other facilities outside the Scandia area.
As you wilt see most faciiities rent the kitchen by the hour,making it affordable for small businesses
such as my own.
Thank you for your time and considering my proposal,
c. �C'/������. �L � ° ,---'
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Samantha Keeney
1001 SOlUTIONS
$15.00 per hr.
$ 10.00 per hr. if renied 2 or more times per month.
Communitv Center.Scandia
$300.00 for 24 hrs._$12.50 per hr
!would be only be abie to use the kitchen fo�6 hrs a day
Which comes out to$50.00 per hr.
Kindred Kitchen. Mals.
$25.00 per hr
Commerciat Kitchen Share,Stfliwater
Opening 2013
Toast to Bread`Mpis.
$13.50 per hr from lOpm to 6am
$17.50 per hr from 6am to 10pm
Locai Facititv Marine on the St. C�oix
$10.00 per hr or Free from Midnight to 6am
*A decision has not been made.
CUMMUNITY USE OF SCHOOL FACILITIES-CONTINUED 701
llI. SCHEDULE OF RENTAL FEES d'c OTHER CHARGES
Rental Fees(up to 6 hours use)
SENIOR HIGH SCHOOL
Auditorium $200.00
(with Stage Lighting and/or Sound System$450.00)
Gym $240.00
Cafeteria $160.00
Kitchen $100.00
._._ __._,,
Classroom $ b0.00
Media Center $150.00
Outtioor Stadium $100.00
Outdoor Field $1U0.00-
Schumacher Field $100.00
JUN10R HiGH SCHOOL AND CENTRAL LEARNING CENTER
Gyrn $1b0.00
Cafeteria $120.00
itchen $ 80
Classroom $ b0.00
Media Center $120.00
Outdoor Field $ 50.00
ELEMENTARY SCHOOL
Gym $120.00
Cafeteria $100.00
Kitchen $ 60.00
Classroom $ 6 .
Media Center $ 90.00
Outdoor Field $ 30.00
NOTE: The Forest Lake Area Schoals Swimming Pool, parking lots,
other outdoor grounds and computer labs will have an hourly rental rate as
determined by the Director of Business Services.
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14727 209`"Street North
Scandia,Minnesota 55073
(651)433-2274
Scandia Community Senior Center
Rental/ Reservation Agreement
The City of Scandia hopes your event in our Community Center is enjoyable for all that attend. Please
read this agreement thoroughly. It contains your responsibilities as the renter for the event.
Start time:
Rental Date: (including setup)
End time:
(including clean-up)
Renter Name: Phone:
Street Address: Email:
City/ State: Zip:
Description of
Event:
Number of Guests
Expected:
Name of Caterer,
if any: Phone:
Calculation of Rental Fee: Rental Rate
Room(s) to be Used: Resident Non-Resident
Hall 200 475
Heritage Room 75 100
Kitchen Use 300 300
Will liquor be served? No Yes 135 135
(if`yes'; renfal agreement addendum is required)
Set-up on day prior to No Yes 100 150
event?
Total Rental Fee:
(Cash or Check, Due at Reservation)
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Scandia Community Senior Center Rental Agreement
Calculation of Deposit: Deposit
Equipment VCR/DVD/TV 50
Deposit: P.A. System 50
Overhead Projector 50
Cleaning/ Damage Deposit: 100 / 300
Total Deposit:
(Cash Only, Due Prior to Event)
Rental Period: The rental period shall be as specified in this agreement. Access to the hall
on the day prior to the event is permitted, subject to availability, if the additional $100 or $150
set-up fee is paid and access will not interfere with other users. Event activities (including
music) shall end not later than 12:00 a.m. (midnight.) Events on Sunday may not begin
earlier than 10:00 a.m.
Keys: The key must be picked up before your function during regular office hours; 9:00 a.m.
to 12:00 p.m. and 1:00 p.m. to 4:00 p.m., Monday through Friday. Return the key to the office
the next business day following the event.
Rental Fees: All rental fees are due when the facility is reserved. Rental fees are payable
by cash or check to the City of Scandia.
Resident/ Non-Resident Rates: Resident rates are available to residents of the City of
Scandia. Residency will be verified at the time the rental agreement is signed.
Cancellations: Rental fees are fully refundable if a written cancellation is received 60 days
in advance of the event. Refunds will be issued if a written cancellation is received from 30 to
59 days prior to the event, if the facility is booked for another event for the time reserved. No
refunds will be issued if the reservation is cancelled less than 30 days prior to the event
Cleaning/ Damage Deposits: Cleaning and damage deposits must be made in cash prior to
picking up the key for the event. Cash deposits will be refunded upon return of the key. A
portion of the deposit will be withheld for any cleaning required exceeding one hour, at the
rate of$50.00 per hour, or for any damage to furnishings or equipment.
Decorations: All decorations must be removed at the end of the event. No decorations that
may damage any part of the building or furnishings will be allowed.
❑ No tape on the walls.
❑ No glitter, confetti or sequins, as it is impossible to clean up off the floor.
❑ No staples in the wood trim for decorations.
❑ No items hung from the ceiling.
Utilities: All doors must be closed when the heat or air conditioning are on. Turn off all
lights and equipment at the end of your event. The switch for the parking lot lights is located
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Scandia Community Senior Center Rental Agreement
in the entry vestibule.
Security: Close and lock all doors at the end of your event, including the two exit doors,
kitchen door, coatroom door and Heritage Room door. The front door must be locked with
the key.
Equipment provided, Heritage Room: The dimensions of the Heritage room are 15 feet by
36 feet. It will accommodate seating for approximately 50 people.
Equipment provided, Hall: The dimensions of the hall are 48 feet by 68 feet. It will
accommodate seating for approximately 200 people. A dais approximately 6 feet by 15 feet
is located in the north end of the room. It may not be moved. A small podium is available.
There are approximately 30 eight-foot tables, 1 five-foot round table, 3 four-foot round tables
and 250 folding chairs. The number of tables and chairs available is subject to change;
please take inventory of what you need prior to your event.
A/V Equipment: A P/A system is available in the hall. A VCR/DVD and TV, and an
overhead projector, are available by prior arrangement. The room is not equipped with a
projection screen; you are responsible to provide this and any other equipment and
accessories (such as extension cords) for your event.
Kitchen Use: Small functions serving only coffee or light refreshments not requiring use of
the major kitchen appliances (stove/ovens/ dishwasher) may utilize the kitchen for their
events without an extra charge for kitchen use. All use of the kitchen facilities must be in
accordance with the requirements of the licensing authority (Washington County.)
Our food and beverage license does not allow use of the commercial kitchen to serve food
prepared in a home kitchen.
Equipment provided, Kitchen: The kitchen is equipped with the following items in the
approximate numbers indicated: plates, 350; cups, 250; glasses, 200; silverware, service for
300; salad bowls, 350; salad plates, 195; dessert cups, 250. One large punch bowl, coffee
servers, water pitchers, platters, kettles, and assorted kitchen utensils are provided. The
number of kitchen items is subject to change. You or your caterer should take inventory of
what you need prior to your event. You must notify the City office if any dishes are broken
(651 433-2274). No dishtowels, napkins or table cloths are provided.
Clean-up, General:
❑ All floors must be swept, including the bathrooms.
❑ Wash all tables you have used. Also wash chairs that have been spilled upon.
❑ Mop up any spills.
❑ All refuse (including from bathrooms) must be put into the dumpster located in the
back of the building.
❑ No coffee grounds are to be put in the sinks.
❑ Return all chairs and tables to the normal configuration (see diagram).
❑ Extra chairs and tables must be returned to the racks and storage room. Do not stack
against the walls.
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Scandia Community Senior Center Rental Agreement
Clean-up, Kitchen:
❑ Wash and put away all dishes or utensils.
❑ Return the kitchen to a clean condition: clean coffeemaker, leave sinks and
countertops clean, wipe down stovetop and oven, empty basket in dishwasher and put
tray from dishwashing spray table through dishwasher cycle.
❑ Sweep and mop kitchen floor.
❑ Turn off stove, ovens, dishwasher and coffeemaker.
❑ Remove all food from freezer and refrigerator; anything food or containers left after the
event will be disposed of without notice.
Acknowtedgement/ Signature:
I hereby acknowledge receipt of a copy of this agreement and accept the
responsibilities listed herein as renter of the Scandia Senior Community Center. I
understand that violation of the terms of this rental agreement may result in the denial
of future use of the facilities.
Renter Si nature: Date:
Cit Re resentative Si nature: Date:
For Cit Use Onl :
Rental Fee Paid:
Deposit Paid:
Keys issued to:
Key returned:
Deposit retained/
refunded:
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SAMPLE KITCHEN -OPERATING AGREEMENT
This agreement is entered into by City of Scandia, a municipal corporation,and Customer Name,
hereinafter referred to as"City", and the "Customer/Renter":
Individual/Business Name:
Address:
Phone:
Email:
DURATION: (if applicable)OR MONTH TO MONTH (X)
START DATE: END DATE:
MONTHLY RENT:$ SECURITY DEPOSIT:$
SUPPLIES FEE: $ (if applicable) MAX. MONTHLY HRS:
1. Services to Be Provided. The City of Scandia agrees to provide the Customer access to and use
of the commercial kitchen facilities at Scandia Senior/Community Center, for the production of
the Customer's products (and storage of products).
Facilities and services provided shall include: use of stoves, sinks, refrigerators, freezers,
counters, dishwasher, and available pots and pans.
2. Operating Schedule. Scandia Community Center shall be available for the Customer's use only
as scheduled and agreed to by the City and the Customer.
3. Pricing Schedule. The Customer will be charged in accordance with the terms and policies
included in this operating agreement and attached Schedule(s), which may be amended from
time to time, upon the written agreement of both parties. This includes pre-payment for any
hours scheduled and used, (as well as monthly storage fees due on the 15L of the month).
4. Production Responsibilities. Under no circumstances shall the City be liable to the Customer
for any failure to meet volume production and/or other failure of the production process. The
City assumes no responsibility for the supply of any other production requirements, including
but not limited to ingredients, packaging, process, and recipes, other than use of the facility and
equipment previously set forth.
5. Other Business Interests.This agreement shall not be construed as a partnership,joint
venture or otherwise, and unless otherwise agreed in writing, signed by both parties, the City
has no right, title or interest in and to the business or profits of the Customer.
6. Security.The City assumes no responsibility for the security of any equipment or supplies
provided by the Customer for use at the Community Center. (Any additional security of srorage
arrangements shall be rhe Customer's sole responsibiliry.J
7. Renter Promises.
• Not to damage or misuse the premises or waste the utilities provided by the City or allow
his/her guests to do so;
• to keep the kitchen clean and tidy;
• 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 guests to do so
• to use these premises 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
• to give written notice to Management of any necessary repairs to be made
8. liability of Customer. Customer 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 its activities under this Agreement (resulting from the sale
distribution, consumption, and use of any service provided or product manufactured by the
Customer on the Community Center premises).
9. Public and Product Liability Insurance. Customer shall purchase and maintain, at his own
expense, a general liability insurance (and product liability insurance) policy with limits of at
least $500,000.00 per occurrence and $1,500,000.00 annual aggregate. Customer shall provide
the City with proof of insurance, including Workers Compensation Insurance as required by
Minnesota Law.
10. Food and Equipment Safety and Sanitation.The Customer is responsible for obtaining and
providing 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 prior to entering into this agreement. The Customer may use the
Community Center facilities 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 Customer's use of the Community Center. Kitchen time will be reserved in minimum
two (2) hour increments. Customer is responsible for payment of any reserved kitchen time,
regardless of actual use. 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 rented time. Cancellations made less than 30 days prior to the rented time will
receive no refund, but clients may reschedule hours if kitchen schedule allows.
13. Returned Checks. A fee of$35 will be assessed to the Customer's account for any returned
checks.
J
14. Default. A violation, breach, or failure to keep or perform any conditions of this policy, shall
not continue more than three (3) days after the situation is specified in written notice to the
Customer from the City. If more than three (3) days pass without any corrective action taken by
the Customer, the City may declare Customer's rights terminated with no further notice.
Furthermore,the City may repossess and remove Customer's property. The Customer will be
charged any reasonable storage cost.
15. Security Deposit. The City may keep all or portions of the security deposit for:
a) Damages caused by the renter beyond normal wear and tear;
b) Rent or other money owed to the City.
The City shall return User's security deposit, together with a written statement itemizing any
deductions, within 21 days of termination of the tenancy and the receipt of delivery instructions
from the user.
In the event that damage charges are above the amount of the security deposit, renters will be
billed for additional damage or cleaning fees. 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.
16. Assignment. This agreement is solely between the City and the Customer. The Customer
shall not transfer usage privileges or services of the Community Center, or use of the whole or
any part of the kitchen premises.
17.Termination. Notwithstanding any provision contained in this Agreement, the City may, in
the City's sole and absolute discretion terminate this Agreement without further liability by
delivering prior written notice to Customer.
18. 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 Operating Agreement shall substitute any previous Operating Agreement
made between the City and the Customer.
TO EVIDENCE THEIR AGREEMENT, these parties have subscribed their names to be effective the
date this Agreement is fulty executed.
CUSTOMER City of Scandia
Name: Name:
Title: Title:
Signed: Signed:
Date: Date:
RATE SCHEDULES
Kitchen Orientation: Before your initial kitchen use, you must go through kitchen orientation
with Community Center management. Please contact City staff to schedule your time, or allow
one (1) hour before the start of your first kitchen shift.
Kitchen Use Hourl Rates
Type of Contract Hours of Use per month Cost per hour
As needed Less than 10 $35
Monthly, level 1 10-29 $25
Monthly, level 2 30-59 $22
Monthly, level 3 60+ $20
The additional hours used that were unpaid for will be added to the amount required for the next
month. If no hours are scheduled for the following month, the renter will be invoiced for the full
amount or will be taken from the security deposit and any remaining will be returned or held
on-site per fhe user's request.