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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 � U-�.�- l�' � �S' �� ��C�r 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 � ° ,---' ��/ -��,° 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. 4 �� - `� ,�� ` �� =.� '� //� �--.� �---� �--�� � ,.� .��,...�.�� .�*� �J � �C���I� . 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) 1 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 2 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. 3 - 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: 4 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.