98-447O R� Gi iVA� RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
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Presented By
Referred to
Committee: Date
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WHEREAS, the City has determined to enter into an Agreement for
the management and operation of the food service and equipment
rental at the Como Lakeside Pavilion, and;
WfiEREAS, through a Request for Proposal process Prom Management
Group has been selected to provide this service at the Como
Lakeside Pavilion, and;
WHEREAS, the City's Division of Parks and Recreation staff and
Prom have agreed on terms and conditions for this service, and;
NOW THEREFORE BE IT RESOLVED, that the City Council of Saint Paul
directs the proper City Officials to execute the attached Lease
Agreement between Prom Management Group and the City of Saint
Paul.
Requested by:
Div' ion of Pa 7 ecreation
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By:
Council File # � �y�
Green Sheet #- ' %� \��
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DEPAflTMENT/OFFiCF/COUNQI
Parks and Recreation
' CONTACT PERSON AND PHONE � �
Vic Wittgenstein 266-6409
IAUST BE ON COUNCIL AGENDA HY IDAT7c
May 27, 1998
qd-44R ✓
DAiE1NITIATED GREEN SHEET NO. 634
May 20, 1998 _----------�--�--�— .----
INITIAI/DATE INRIAVDATE
,-.—y '� �I DEPARTMENT DIflEGTOft 4 CIiY COUNCIL
ASSIGN
NUMBEP FOR _ Z CfTY ATTOMlEY CrtY CIERK
FOUTING
oaDEq FINANCIAL SERVICES OIR.
3 MAVOF (OR ASSISfqN17� 5 Parks
TOTA4 6 OF SKaNAWRE PAGES _(CLIP ALl LOC471OWS FOR 516NAA1RE!
ACTION PEQUESTED:
Signatures of the Superintendent of Parks and Recreation, City Attorney, and Mayor (or Assistant), and passage of the
attached Council Resolution by the Saint Paui City Council.
RECOMMENDATIONS: AOP�ove IA) or Reject �Po
�_PLANNING COMMISSION �_CIVIL SEflVICE COMMISSION
_CIB COMMITfEE _
A STAFF
DISTRICT COUNCIL
SUPPOPTS WNICH CWNCIL O&IECTIVEt
INITIATING PROBLEM, ISSVE, OPPORTUNITY IV✓ho, Wha4 NTen, Whe�e, Why):
PERSON4L SERVICE CONTRACTS MUST ANSWER THE FOILOWING W ESTIONS:
t. Has Mis peaoNfirtn ever wo�ked under a convact far [his Oepartment?
VES NO
2. Has this personlfirtn ever been a ciry emploYee?
YES NO
3. Does this pe�son/fi�m O�as a skitl �wi no�maNy possessetl by any curz¢nt city employee?
YES NO
Explain atl yea answen on separote sheat and attaeh m grean aheet.
A desire by the City to lease out the Como Lakeside Pavilion due to ongoing financiai losses.
e
A�VANTAGES IF APPflOVED'
Risk ot City sustaining tinancial loss from this Facility is removed. Prom Management Group has a strong reputation as
a good operator of similar facilities and has great catering expertise.
DISADVANTAfiES IF APPflOVED:
City will no longer self operate the faci{ity and will therefore lose some control.
teoa:ncft F3�sear�h C��?�F
)ISADVANTAGES IF NOT APPROVED:
�ontinuing financial losses.
�EC£IYV�
�$Y�7.'�.�$ Q�����
DTALAMOUNTOFTPANSACiION $ 30,000 - $40,000 annualiV
JNUINGSOUflCE Como Lakesid2 Pavilion
COST/REVENUE BUDGEfED (CIRCLE ONE) YES NO
ACiNRY NUMBER 23125
VANCIAL INFORMATION: (EXPLAIN) PfOfTi F18S 9118f8fILBed LF78 CIT�/ y.3O for the first year and 940,000 for each year thereafter
�ainst 10% of first 5180,000 and 15% of revenue over $180,000 annually.
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Interdepartmental Memorandum
CITY OR SAINT PAUL
May 20, 1998
TO: Coleman, Mayor
FROM: ert P. Piram, Superintendent of Parks and Recreation
RE: Lease Agreement with Prom Management Group for
the Operation of the Como Lakeside Pavilion
Due to continuing operating losses experienced by the City at the Como Lakeside
Pavilion we generated a Request far Proposal for the operation and management of the
facility. Two enfities responded to the R.F.P., Lancer Foods (Bluebell) and Prom
Management Group. After reviewing the R.F.P.'s and interviewing the two proposers,
staff recommended that Prom Management Group be selected to provide this service.
The attached Council Resolution and Agreement are being forwarded for approval to
complete this award. The terms of this agreement is for a littie over five yeazs. Under the
terms of the agreement Prom will have exclusive rights to the food and beverage service
at the Como Lakeside Pavilion. They wi11 honor existing contracts between renters and
the City, including some cases where someone else was scheduled to do the catering.
Prom has guaranteed the City $30,000 in year one and $40,000 for the next four years of
the agreement against the following percentage of their gross receipts:
10% of the first $180,000 generated annualiy
15% of any revenue generated over $180,000 annually
Prom will be responsible for the day to day upkeep of the facility however the City will
retain responsibility for the HVAC systems, sprinkler systems, elevator and gas and water
services. Prom will pay for its own utility usage. In addition to the above Prom wili
make the following inveshnent in the site:
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1. Invest between $10,000 and $15,000 to finish a downstairs meeting room.
Z. $10,000 for new flatware, chiva and other necessary supplies and
equipment.
Lastly, Prom will contribute $5,000 annually to a capital upkeep fund, which the City and
Prom will joinfly detemune how to spend.
If you haue any questions, please feel free to call me at 266-6409. Thank you.
cc: Tom Fabel
Vic Wittgenstein
�iHY'-16-1y93 1���59 STP PARf:S 8 RECRERTIGIJ
AGREEMENT
612 c 2 7-!JS F.�1/96
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THlS AGREEMENT, made and entered into this day of , 1998,
by and between the City of Saint Paui, herein referred to as the °Cify" and Prom
Management Group Incorporated, hereinaRer referred to as "Prom" under the foflowing
terms and conditions:
The City does hereby grant to Prom the privilege of operating the iavd and
beverage service, equipment renta{, banquet and meeting room renial and
catering service at the Como Lakeside Pavition located in the City`s Como Park.
This may inciuds outdoor vending on the Pavition Promenade, on the waikways
around the Pavilion and the pafh around Como Lake.
II. The period of this agraement shail be from the date first written above through
September 1 2003.
N{. Th+s agreement may be renewed for an additional five years September _,
2003 through Septemberl, 2D08. By the parties under th� same or minimally
altered negofiated terms and conditions by mutual consent of the City and Prom
and if executed in writing, at least thirty (30) days before the end of the originai
term of this agreement.
IV Rights and Responsibilities af Prom
A. Prom shall pay to the city for the privileges here-in granted ten percent
(10%) of its gross safes between $1.00 and $180.000 per year and fiReen
(15°l0) of its gross sales over $180,000 per year derived from food and
beverage services, rental fess for banquets, receptions and meetings and
catering services and equipment renta(s (canoes, waterbikes, etc.). Atl
gross sales witl be determined exclusive of state sales tax co{lected by
Prom.
B. That fhe dates for determining yearly sales shaff be from as foUows for the
first fiive years of this agreement:
June 1, 1998 - May 31, 1999
June 1, 1999 - May 31. 2000
June 1, 2QOd - May31, 20a1
June 1, 2041 - May 31, 20o2
June 1, 2flD2 - May 31, 2004`
'lf the agreement is renewed for an additional five years.
P1AY-18-1993 11��0 3TP PaRP:S & RECR �ar�ord 61"L F52 74:�?
C. Not withstanding the above Prom shall pay the City a guarantee of
S30,OOQ forthe period June 1, 1998 to May 31, 1999 and S40,OOG for
each yearly period thereafter.
P.02%G6
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D. Prom shai{ pay the City its ten peresnf (10°!0) and or fifteen percent (15°l0)
commission on the fifteenth of each montfi for the previous montfi and
that on June 15`" of each year Prom shalf pay fhe City 2ny amount due if
commissions due the City have not totaled 530,000 for the first year and
540,Q00 for each year thereafter.
E. Prom, on an annuai basis, will sef up a capitai repair account of $5,00�.
The City and Prom will meet annually to determine how to use these
funds for improvements, repairs and/or additions ta the present facility.
The $5,000 shall become available on June 1 each year beginning in
1989.
F. During the first year ot operating the Como Lakeside Pavilion, Prom will
make the following investments in the facility and operation:
An initial investment of $10,000 for china, flatware, glassware,
portable bars and kitchen equipment. 5uch items will remain tt�e
property of Prom. This investment wili be made by June 1, 1999.
Z. Spend between $10,000 and �,15,000 to finish the meeting room in
the Como Lakeside Pavilion basement. This would include adding
and finishing walis, adding a drop-file acoustical ceiling, lighting for
the space and Aoor covering. Ail improvements made to this space
will become the property of the City once Ehe work is completed.
Pram will also provide furnishings for the raam to include tabie,
chairs, and meeting preps such as an overhead projector, screen,
chalkboard and fiip chaRs. This equipment wifl remain the property
of Prom. This investment wil! be made by September15,1998
G. 1. That Prom, wiil be required to carry insurance of the kinds and in
the amounts hereinafter specified. Prom shall not commence work
under this agreement until it has obtained a(I the insurance required
by these specifications. The Prom's attention is specifically
directed to any special provision of this agreement demandinc�
additioaal insurance.
2. Prom shall take out and mainta;n Worket's Campensation
Insurance and Emp4oyer's Pubiic Liabitity Insurance tor ali per5ons
employed in the performance of the work contempfated by Prom,
and insuring Prom, against alf obiigations arising out of the
Workers' Compensation Act of the State of Minnesota. !n any case
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PIHY-18-193�9 11��L1 STP PAF.'I<S 8 RECREqT]ON 612 25� 74J5 P.�3%F36
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whe�e work is sublet, Prom shail require each Subcontractor to be
insured in like manner.
3. Prom shal! purchase and maintain during the life of this agreement
Comprehensive Protective Public Liability Insurance for and in
behalf of itself and the City as additional insured's, and using a
cross-(iability endorsement, protect the City.and P�om fcom claims
for damages and bodify injurizs, including accidental death, as vrell
as from claims for property damage which may arise from
operations under this agreement.
Bodily Injun/ lnsurance {including death) in an amount of not
less than $1,000,040 tor aif damages arising out of bodily
injurses to or death of one person, and subject to the same
fimit for each person in a tota! amount of not less the
$1,000,000 on account of any one accident.
Propefty damage insurance in an amount ot not iess than
$100,000 for all damages to or destruction of property in any
one accident.
4. prom shatl take out and maintain during the life of this agreement,
Comprehensive Automobile Uability Insurance, insuring Prom and
the City, its officials and employees as additional insured's not only
for the operation of vehicies owned or used by Prom, but atso
vehicles hired or leased by Prom. Such Automobife Liability
Insurance shall have a minimum of $500,d00 combined singie limit
and a total of not less than $500,QQ0 aggregate.
5, In the event any w4rk contemplated by the agreement is sublet,
Prom shall be responsible to see that the Subcontraetors provide
insurancs in accord with the m'snimum requirements hereinabove
imposed on Prom.
6. Pram sha{I take out and maintain during the life of the agreement,
liquor fiability insuring Prom and the City, its o�cials and
employees as additional insured's. Such liquor liability insurance
shall have a minimum of $1,Q60,Od0 aggregate for Bodily Injury,
Property Damage, and Loss of Means of Support.
7. Prom agrees to obtain and provide the City with a statement
describing property insurance for Prom's equipment and supplies.
It is agreed that Prom and City mutually waive their righfs to
subrogation under their respective policie5- �
hIH'r'-13-1599 I S� t3� STP PhRIiS 8�ECfiEa7l Cit! 61"L 2?� 74J: F'. EW. �t
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8. Pram shail nat proceed with the work cantemplated in this
agreemenf until prom has furnished the City with satisfactory proof
of the existence and carriage ofi insurence of the kinds and in the
amounts above specified- 7he proof of insurance shali be in such
form as the City may require, and unless othernrise provided by the
City in writing, the proo` of insurance shall consist of certified
specimen copies of the insusance poliey or poiicies, which
specimen copies have been approved by the City and fifed with the
City. The City wlll accept Certificates of insurance as evidence of
coverage yet reserves the right o obtain copies of all insurance
policies.
All such proof of insurance required herein shaif state the thirty (36)
days written notice wili be given to the City, by service of such
notice upon the City's Superintendent of Parks and Recreation,
before any insurance is changed or canceled. In the absence of
written consent by the City, Prom shall not proceed with the work
contemplated by the agreement beyond the period af cove�age
afforded by a canceled insurance policy until the required
insurance coverage has been procured, approved and filed with ;he
City as a repfacement for such cenceled insurance coverage.
F'aragraphs B through G estabiish minimum insurance
requiremenis, and it is the sofe responsibility of Prom to purchase
and maintain additional insurance that may be necessary in
connection with this contract.
9. Prom shall defend, indemnify and hold harmless the City, its
o�cers, agents, employees from and against every demand, claim,
cause of action, judgment and expense, and aU other losses and
damages arising from any injury or damage to the person or
propert}/ of Prom, or to any other person rightful(y on the premises,
where the injury or damage is caused by the neg{igence or
misconduct of Prom, its agents, or emptoyees, or resu{1s from the
violation by Prom or any of its agents pr employees of laws or
ordinances or of the provisions of this agreement.
10. 7he City shall defend, indemnify and hold harmless Prom, its
o�cers, agents and employees, from and against every demand,
claim, cause ot action, judgment and expense to any persons
right�uUy on the premises where such injury or loss is caused by the
negligence or misconduct of the City, its agents, or employees.
Nothing in this provision shall constitute a waiver by the Cify of any
sta'utory or other immunity or limitations an liabitity.
PWY'-18-1999 11�01 S7P PHF.KS 8 FECREF7lON
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11. Prom agrees that it shall be iYs duty to noTify the City in wrifing
immediately by service of nofice upon the City of the existence of
any claims, other than those arising under the V�/orkers'
Compensation Act, or possible claims either because of bodily
injury or property damage, which claims arise as a resutt of From's
or any Subcontractor's operatians in the performance of the
agreement.
Prom shall provide complete and accurate accounting records for the
concession using standard and universally accepted accounting methods.
Prom shafl, upon request of the City's Superintendent of Parks and
Recreation or his agents, provide records of ali safes at no cost to the
City.
J. By January 3'!°' of each year, Prom shail deliver to the City a compilation
statement prepared by a Certified Public Accountant and sworn to by the
o�cers of Prom whiCh sets forth the income statement, balance sheet and
gross sales made on or from the Como Lakeside Pavilion operafion during
the previous year.
K. Prom wiil provide a full time on site Manager of ihe Como Lakeside
Pavilion. Such Manager shall be made known fo the City of Saint Paul.
The City of Saint Paul shall be notified if any changes in the position.
L. At events where liquor is served, prom shall hire or cause to be hired an
off dufy Saint Paul Police O�cer, who shali be present during the period
that liquor is being served.
M. At other times if speciai Police services are deGmed necessary by Prom
they shal► be paid by Prom.
PJ. Prom shall maintain exclusive right to the Coma Lakeside Pavilion for food
and beverage catering. Nothing, however, preciudes the City from using
the Pavilion for sponsored functions providing they do not conflict with
other scheduled banquets or events. !t is the intention of the City to utilize
the services of Prom when City sponsored events invo�ve food and
beverage service. In all instances where the City wishes to use the Como
Lakeside Pavilion for meetings, receptions, etc., it will contact Prom ahead
of time fo insure that the desired areas of the Como Lakeside Pavifion are
availabfe. At no time shall City request cause the cancellation of a rental
aiready booked by Prom.
O. Due to the fact that many events have aiready been booked in the Como
lakeside Pavilion for 1998 and 1999, Prvm shall honor all contracts
PIA','-1c-1995 11�t�1 STP PARI<S 8 RECRERTION 612 25? 7-t.�. F'.OG•��7
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between the City and the renter of tfie Facility. This may i�cfude caterers
other than Prom providing food and beverage sesvice at the event.
P. Prom shall bs entitled to a11 revenue generated by the Camo Lakeside
Pavilion from the above referenced events. Prom shail collect any
revenue outstanding from these events. In the case wF�ere the City has
received a deposit for an event, such revenue shall be credited to Prom
against the commission and or guarantee it shail owe the City from
Prom's operation of the Como L.akeside Pavii;on.
t1. Prom may schedule events at the Corrmo Lakeside Pavilion from 6:Q0 a.m.
to 12:00 midnight. Further, if Prom schedules the promenade area of the
Pavilion, no music or amplifled sour�d may be used between the houcs of
10:�0 p-m. and 8:00 a.m. so as not to disturb nearby residents.
R. Prom shail have the futl use of al{ of the areas of Camo Lakeside Pavilion
with the folRowing exceptions:
Promenade area may be used only at those times when the City
has no scheduled concerts andln�• plays at if.
2. Downstairs warming room from mid-December to mid-Fe6ruary
each yesr when it wili be used for skating.
3. Storage aceas ptesentiy used by the City fo� the storage of Parks
and Recreation equipment and theatrical supplies, equipment,
props and costumes.
S. P�om shall operate the concession area of the Como Lakeside Pavilion
under the foliowing schedule: from March 15"' to October 31" &:00 a.m. to
'/= half hour past dusk and trom Novembec 1 to March t5"' 10:Q0 a.m.
until '/z hour past dusk. Hours of operation will be extertded during times
when concerts, plays or other activities are scheduled for the Promenade
section of the Pavilion.
The above hours of operation may be amended by the mutual written
agreemeni of the parties.
T. 1. By March 15 of each year Prom will provide a tisting of prices it
intends to charge the pubiic for ihe various function of the facility
beginning the foilowing June 1". Tfiis includes hall and room rental
rates, catering rates, faod and beverage ratas and rental rates for
the canoes, waterbikes and other equipment. The City shait have
thirty (30) days f, receipt of the proposed rate schedule(s) to
approve or disapprove them. Failure cf the C'tty to notify Prom of
TOTHL P.9r
MfiY-12-1958 1@�43 STP PARKS €. RECREFT10f1
612 292 7�05 P.01i0�
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iYs approval/disapproval within thirty (30) days wili result in the rate
being approved.
2. Prom sha11 conduct the operation of the Pavilion in such a manner
as not to bring criticism upon the City. prom shali not permit the
sale ofi beer or intaxicating liquor in a manner contrary to any law or
ordinance or the provisions of any appiicable liquor Eicense or
permit. Prom shall operate the Pavilion stricfly in conformity with aif
Federal, State, County or City laws and ordinances.
3. Prom shall at ail times have in plain view in the Paviiion a price list
or printed schedule of prices of all available commodities and
services. Prom shall make availabfe an attractive menu including
prices to groups or organizations for banquets, parties or other
events. Ail prices shali be compe6tively priced with establishments
within the service area that have similar functions.
4.
5.
Prom shall employ an adequate number of personnel in the
Pavilior to cover the operations during the minimum hours of
operation.
Ai( emptoyees of Prom sha(I be well groomed and dressed such a
manner as to provide an appearance acceptabie to the City.
U. in the event of inclement weather, Prom may with the consent of Yhe
Superintendent of Parks and Recreation or his designee ciose down the
Como Lakeside Pavilion and remain closed untii favorable weather
conditions prevail.
V. Prom may sell non food, souvenir type items at fhe Como Lakeside
Pavifion. Hawever, al( items to be sold must be approved by the City prior
to being put on saie. Such approval shail not be unreasonably withheld.
Sales made under this provision shall be subject to and included in the
same commission provision as afi other revenue generated at the Como
Lakeside Pavilion bq Prom.
W. Prom shall make no alteration to the Como Lakeside Pavilion without prior
approval of the City.
X. Prom shall be responsibie to pay for ail normal wear and tear of the facility
based upon usage inc�uding the replacement of all equipment i.e. stoves.
dishwasher, freezer, coolers, refrigeration, canoes, waterbikes, etc.
Further, Prom shal( be responsible for the repair and replaceme�t of afl
tabfes, ehairs, carts, etc.
7
rNr-ie-iyas io:.�a STP PAF.k;S a�EC��.qrtori
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Y. Prom is responsible for daily cleaning of the entire Pavilion. Prom shaU at
all times keep the building in a clean and sanitary condition artd shall
compiy with all State and City health laws and locai Health Department
regulations. The City shall define acceptable standards based on
performance by Pram. Such standards shaN include montf�ty cfeaning of
ali+rrindows, IighEfixtures and woodworfc. Prom shall afsrs provide supplies
for the restsooms.
Z. Prom is responsible for garbage remcval throughout the year. 7his
inciudes removing botties, cans, paper, cups, wrappers and other debris
on a daily basis and litter from the Pavilion, and the Promenade area
when used by f'rom.
AA. Prom shal! pay all utiliiies it uses in conjunetion with the facifity. Where
feasibie separate metering shalf be done. lf separate metering cannot be
accomplished the parties shall meet and determine to share in the various
costs on a pro rata basis.
BB. The burglar alarm service including false alarm charges shaff be the
responsibifity of Prom.
CC. Prom may, at fts sole cost, obtain an an-sale liquor license for the Como
lakeside Pavilion and be responsible for maintaining the iicense during
the term of this agreement. It is expressly understood that this liquor
license wili only be used for events catered by prom and will not be used
in concession area operation.
OD. 1. Prom shall return the premises to the City at ths termination of this
agreement in the same condition of cfeantiness and repair as it is
upon the Summer of 1 g98 occupancy except for reasonab)e wear
and tear.
S. Prom shal! return aii City owned equipment, furniture and other
personal proparty to the City at the tennination of this agreement in
the same condition of cieanliness ard repair as it is upon ihe
Summer of 1998 occupancy except for reasonable wear and tear,
but not excepting breakage.
EE. Prom agrees to comply with aA Federal, State and local {aws, resotutions,
ordinances, ru{�s, regulafions and executive orders pertaining to unfawFui
discrimination in the employmant of or �rovision of services to persons or
organizations on account of race, color, creed, refigion, nationai origin,
sex, marita{ status, status with regard to pubiic assistance, disabitity or
age. When required by faw and request d by the City, Prorn shali (umish
a writien a�rmaUve action pian.
PIRY-18-1999 ia�aa STP PARKS 8 RECF'ERTIOP!
612 292 74c�� P.��3i0�
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FF. Shouid fhe City fail ko perform any term, condition or requirement set forth
in the agreement, Prom shall give written notice fhereof to the City
specifying those acts or things which must occur in order to remedy said
default. Prom shail speci�y in the written notice the period of time nof less
than 30 days within which the City muat remedy the defauft. Shouid the
defauit remain upon exp+ration of the time to remedy the defauit, Prom
may give written �otice to terminate the agreemeRt. The 90 day notice of
terrnination shall be retroactive to the date of the initial notification of
defauft.
V. Rights and Responsibilities of the City.
A. The City shall be responsible for maintaining al( HVAC systems, the
elevator, and sprinkler systems and water, gas and electric senrices. The
City shall aiso be responsible for all exterior maintenance of the facility,
B. The City is responsible for litter coniroi around Lake Como and the Como
Paviiion and the Promenade area ofi the Pavilion except when the
Promenade area is used by Prom. The City shafi use separate dumpsters
from Prom for the trash and litter +t collects.
C.
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The City shall be responsible for the tandscape and upkeep of the
(andscape around the Como Lakeside Pavilion.
The City is responsible for snow removal in the parking tots and around
the Pavilion.
E. With regard to this lease the City shafi at all times reserve the righf to
approve any and all sale of this business or any and all sub-leases that
may occur.
F. Prom shaif acknowledge that the terms, conditions and requirements set
forfh in this agreement are materia! inducements to the City entering into
this agreement. Should Prom fail to perfarm any of the terms, cond�tions
or requirements, the City shal( give written notice thereof to Prom
specifying those acfs or fhings which must occur in order ta remedy said
default. The City shali specify in the written notice the period of time, not
less than 30 days, within which Prom must remedy the defauit. Should
the default remain upon expiration of the time to remedy the defauft, the
Cify may give written notice to term+nate the agreement. The 90 day
notice of termination shal! be retroactive to the date of the initial
notification of the default.
^Ifii'-lo^-1998 Su�-JJ STP PrIRIS 8 RE'=FERTIGFI
VI. General Provisions
siz �z ��+c+� F.�ia �,a
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A. 1. Limited Damage to Como Lakeside Pavifion. If aft or part of the
Pavilion is rendered untenantable by damage from fire or other
casualty which in the reasonabfe opinion of an architecf selected by
the City and approved by Prom, can be substantialty repaired under
applicable taws and governmental regulations witnin 120 days from
the date of such casualty (employing normal construction methods
without overtime or other premium) the City shall forthwith at its
own expense, repair such damage other than damage to
improvements such as fumiture, chattefs or trade fixtures owned by
Prom, which shall tie repaired forthwith by A�om at its own
expense.
2. Major Damage To Como Lakeside Pavilion. If ail or a substanfial
part of the Pavifion is rendered untenaniable by damage from fire
or other casuafty to such a material extent that in the reasonable
opinion of an architect acceptable to the City and Prom, the
Pavilion cannot be substantially repaired under applicable laws and
governmental regulations within 120 days from the date of such
casualiy (employing normal construction methods without overtime
or other premium), then the City may elect to terminate this
agreement as of the date of such psualty by written notice
delivered to Prom not more than sixky (60) days after the date of
such casualty. The City at its option may at its own expense repair
such damage other than damage to property owned by Prom,
which sha{{ be repaired by Prom at its own expense. Prom shall
have the first right to operate the facility in accordance with the
terms of this agreement upon the Clty's comple6on of
reconstruction.
3. Except as spec�calfy provided in Article VI.A., there shall be no
reduction of compensation to the City and the City shali have no
liability fo Prom by reason of any injury to or interference with
Prom's business or property arising from fire or other casualty,
howsoever caused, or from the making of any repairs resulting
therefrom in or to any portion of the Pavilion. Notwithstanding
anything contained herein, compensation payable by Prom
hereunder shall not be abated if the damage is caused by any
neg!'sgenoe of prom, its agents, servants, ar employees.
8. The City and Prom may terminate this agreement at any time by mutual
agreement.
10
TC�TfiL P. �t4
hIAY-18-1'?33 1�J�4? STP FRFKS & �£!'F.EATtC�N
612 292 7a95
P.91i�1
�Y�t��1
a
C. This agreement may be modified oniy by a written amendment executed
by both the City and Prom.
D. Prorn shall acknowiedge that Prom and the City are not engaged '+� a joint
venture or co-partnership and Prom shall nof represent to any person or
entity whafsoever that the City and Prom are joint ventures or co-partr�ers.
E. (Votice. All written �otices relative to this agreement shall be sent to:
For Prorn: Tom Given, President
Prom Managemenf Group inc.
190 North Smith Avenue
Saint Paul, Priinnesota 55102
For the City: Robart P. Pisam, Superintendent
Saint Paul Division of Parks and Recreation
25 W. 4�' Street, Room 300
Saint Paui, MN 55102
�
IN WITNESS WHEREOF, the parties have signed this agreement the day and year first
above written.
APPROVED A5 TO FORM:
Assistant City Attorney
CITY OF SAINT PAUL:
The Honorable Norm Coleman, Mayor
Superintendent of Parks and Recreation
�
Tom Given, President pirector, Department of Financiai
Prom Management Group Inc. Services
G 15PtWp��GREEMNTtprom u(eriry et com� lakaads.wpd
11
TOTAL P.OS
N , � � _ � � �
Interdepartmental Memorandum
CITY OF SAINT PAUL
June 3, 1998
TO: Council President Dan Bostrom
Councilmember Jay Benanav
Councilmember Jerry Blakey
Councilmember Chris Coleman
Councilmember Michael Harris
Councilmember Kathy Lantry
Councilxnember Jim Reiter
FROM: Robert P. P �
RE: Como Lakeside Lease-Out to Prom Management Group _
Decision Points
1. The City has been losing over $70,000 annually on this enterprise.
2. The City has operated the facility since it re-opened in 1993.
3. This spring we initiated a Request for Proposal for its operation. Two entities
responded; Prom Management Group and Lancer Food Service.
4. After reviewing the proposals and interviewing the submitters; Prom was selected
as having the best proposal.
5. The lease out of the facility will not result in any layofFs or reduction in title for
any of our existing employees. We have held ofF on any new hires or
replacements pending this Agreement. We have talked to the union about �this.
They have indicated they will not object to this least out.
r ..
- - �� -_`�'�'�,
6. Prom has the resources to operate the facility and to make it financially sound
which the City does not. We have not been able to keep a staff that will work the
flexible an@ changing hours that are needed in a facility such as this. The facility
experiences many peaks and valleys on a daily basis. Prom has more flexibility
because they can move people from one site to another on an event and/or day to
day basis.
F:�
Prom will pay the City a minimum of $30,000 in the first yeaz of this Agreement
and $40,000 a year thereafter against 10% of the first $180,000 in revenue
generated and 15% of revenue generated above $180,000 per year. This
Agreement is for five yeazs with a five yeaz extension if the parties agree to
extend.
We believe that the City will realize a minimum of $100,000 financial tum around
at this facility due to this lease.
O R� Gi iVA� RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
�
Presented By
Referred to
Committee: Date
1
2
3
4
5
6
�
9
10
11
12
WHEREAS, the City has determined to enter into an Agreement for
the management and operation of the food service and equipment
rental at the Como Lakeside Pavilion, and;
WfiEREAS, through a Request for Proposal process Prom Management
Group has been selected to provide this service at the Como
Lakeside Pavilion, and;
WHEREAS, the City's Division of Parks and Recreation staff and
Prom have agreed on terms and conditions for this service, and;
NOW THEREFORE BE IT RESOLVED, that the City Council of Saint Paul
directs the proper City Officials to execute the attached Lease
Agreement between Prom Management Group and the City of Saint
Paul.
Requested by:
Div' ion of Pa 7 ecreation
� �
\ �, � ,�'`r--
By:
Council File # � �y�
Green Sheet #- ' %� \��
��
DEPAflTMENT/OFFiCF/COUNQI
Parks and Recreation
' CONTACT PERSON AND PHONE � �
Vic Wittgenstein 266-6409
IAUST BE ON COUNCIL AGENDA HY IDAT7c
May 27, 1998
qd-44R ✓
DAiE1NITIATED GREEN SHEET NO. 634
May 20, 1998 _----------�--�--�— .----
INITIAI/DATE INRIAVDATE
,-.—y '� �I DEPARTMENT DIflEGTOft 4 CIiY COUNCIL
ASSIGN
NUMBEP FOR _ Z CfTY ATTOMlEY CrtY CIERK
FOUTING
oaDEq FINANCIAL SERVICES OIR.
3 MAVOF (OR ASSISfqN17� 5 Parks
TOTA4 6 OF SKaNAWRE PAGES _(CLIP ALl LOC471OWS FOR 516NAA1RE!
ACTION PEQUESTED:
Signatures of the Superintendent of Parks and Recreation, City Attorney, and Mayor (or Assistant), and passage of the
attached Council Resolution by the Saint Paui City Council.
RECOMMENDATIONS: AOP�ove IA) or Reject �Po
�_PLANNING COMMISSION �_CIVIL SEflVICE COMMISSION
_CIB COMMITfEE _
A STAFF
DISTRICT COUNCIL
SUPPOPTS WNICH CWNCIL O&IECTIVEt
INITIATING PROBLEM, ISSVE, OPPORTUNITY IV✓ho, Wha4 NTen, Whe�e, Why):
PERSON4L SERVICE CONTRACTS MUST ANSWER THE FOILOWING W ESTIONS:
t. Has Mis peaoNfirtn ever wo�ked under a convact far [his Oepartment?
VES NO
2. Has this personlfirtn ever been a ciry emploYee?
YES NO
3. Does this pe�son/fi�m O�as a skitl �wi no�maNy possessetl by any curz¢nt city employee?
YES NO
Explain atl yea answen on separote sheat and attaeh m grean aheet.
A desire by the City to lease out the Como Lakeside Pavilion due to ongoing financiai losses.
e
A�VANTAGES IF APPflOVED'
Risk ot City sustaining tinancial loss from this Facility is removed. Prom Management Group has a strong reputation as
a good operator of similar facilities and has great catering expertise.
DISADVANTAfiES IF APPflOVED:
City will no longer self operate the faci{ity and will therefore lose some control.
teoa:ncft F3�sear�h C��?�F
)ISADVANTAGES IF NOT APPROVED:
�ontinuing financial losses.
�EC£IYV�
�$Y�7.'�.�$ Q�����
DTALAMOUNTOFTPANSACiION $ 30,000 - $40,000 annualiV
JNUINGSOUflCE Como Lakesid2 Pavilion
COST/REVENUE BUDGEfED (CIRCLE ONE) YES NO
ACiNRY NUMBER 23125
VANCIAL INFORMATION: (EXPLAIN) PfOfTi F18S 9118f8fILBed LF78 CIT�/ y.3O for the first year and 940,000 for each year thereafter
�ainst 10% of first 5180,000 and 15% of revenue over $180,000 annually.
.:.
q8 -4y�
Interdepartmental Memorandum
CITY OR SAINT PAUL
May 20, 1998
TO: Coleman, Mayor
FROM: ert P. Piram, Superintendent of Parks and Recreation
RE: Lease Agreement with Prom Management Group for
the Operation of the Como Lakeside Pavilion
Due to continuing operating losses experienced by the City at the Como Lakeside
Pavilion we generated a Request far Proposal for the operation and management of the
facility. Two enfities responded to the R.F.P., Lancer Foods (Bluebell) and Prom
Management Group. After reviewing the R.F.P.'s and interviewing the two proposers,
staff recommended that Prom Management Group be selected to provide this service.
The attached Council Resolution and Agreement are being forwarded for approval to
complete this award. The terms of this agreement is for a littie over five yeazs. Under the
terms of the agreement Prom will have exclusive rights to the food and beverage service
at the Como Lakeside Pavilion. They wi11 honor existing contracts between renters and
the City, including some cases where someone else was scheduled to do the catering.
Prom has guaranteed the City $30,000 in year one and $40,000 for the next four years of
the agreement against the following percentage of their gross receipts:
10% of the first $180,000 generated annualiy
15% of any revenue generated over $180,000 annually
Prom will be responsible for the day to day upkeep of the facility however the City will
retain responsibility for the HVAC systems, sprinkler systems, elevator and gas and water
services. Prom will pay for its own utility usage. In addition to the above Prom wili
make the following inveshnent in the site:
- a� -��.�
1. Invest between $10,000 and $15,000 to finish a downstairs meeting room.
Z. $10,000 for new flatware, chiva and other necessary supplies and
equipment.
Lastly, Prom will contribute $5,000 annually to a capital upkeep fund, which the City and
Prom will joinfly detemune how to spend.
If you haue any questions, please feel free to call me at 266-6409. Thank you.
cc: Tom Fabel
Vic Wittgenstein
�iHY'-16-1y93 1���59 STP PARf:S 8 RECRERTIGIJ
AGREEMENT
612 c 2 7-!JS F.�1/96
- - - q�-�ty�
THlS AGREEMENT, made and entered into this day of , 1998,
by and between the City of Saint Paui, herein referred to as the °Cify" and Prom
Management Group Incorporated, hereinaRer referred to as "Prom" under the foflowing
terms and conditions:
The City does hereby grant to Prom the privilege of operating the iavd and
beverage service, equipment renta{, banquet and meeting room renial and
catering service at the Como Lakeside Pavition located in the City`s Como Park.
This may inciuds outdoor vending on the Pavition Promenade, on the waikways
around the Pavilion and the pafh around Como Lake.
II. The period of this agraement shail be from the date first written above through
September 1 2003.
N{. Th+s agreement may be renewed for an additional five years September _,
2003 through Septemberl, 2D08. By the parties under th� same or minimally
altered negofiated terms and conditions by mutual consent of the City and Prom
and if executed in writing, at least thirty (30) days before the end of the originai
term of this agreement.
IV Rights and Responsibilities af Prom
A. Prom shall pay to the city for the privileges here-in granted ten percent
(10%) of its gross safes between $1.00 and $180.000 per year and fiReen
(15°l0) of its gross sales over $180,000 per year derived from food and
beverage services, rental fess for banquets, receptions and meetings and
catering services and equipment renta(s (canoes, waterbikes, etc.). Atl
gross sales witl be determined exclusive of state sales tax co{lected by
Prom.
B. That fhe dates for determining yearly sales shaff be from as foUows for the
first fiive years of this agreement:
June 1, 1998 - May 31, 1999
June 1, 1999 - May 31. 2000
June 1, 2QOd - May31, 20a1
June 1, 2041 - May 31, 20o2
June 1, 2flD2 - May 31, 2004`
'lf the agreement is renewed for an additional five years.
P1AY-18-1993 11��0 3TP PaRP:S & RECR �ar�ord 61"L F52 74:�?
C. Not withstanding the above Prom shall pay the City a guarantee of
S30,OOQ forthe period June 1, 1998 to May 31, 1999 and S40,OOG for
each yearly period thereafter.
P.02%G6
_ a� -�y�
D. Prom shai{ pay the City its ten peresnf (10°!0) and or fifteen percent (15°l0)
commission on the fifteenth of each montfi for the previous montfi and
that on June 15`" of each year Prom shalf pay fhe City 2ny amount due if
commissions due the City have not totaled 530,000 for the first year and
540,Q00 for each year thereafter.
E. Prom, on an annuai basis, will sef up a capitai repair account of $5,00�.
The City and Prom will meet annually to determine how to use these
funds for improvements, repairs and/or additions ta the present facility.
The $5,000 shall become available on June 1 each year beginning in
1989.
F. During the first year ot operating the Como Lakeside Pavilion, Prom will
make the following investments in the facility and operation:
An initial investment of $10,000 for china, flatware, glassware,
portable bars and kitchen equipment. 5uch items will remain tt�e
property of Prom. This investment wili be made by June 1, 1999.
Z. Spend between $10,000 and �,15,000 to finish the meeting room in
the Como Lakeside Pavilion basement. This would include adding
and finishing walis, adding a drop-file acoustical ceiling, lighting for
the space and Aoor covering. Ail improvements made to this space
will become the property of the City once Ehe work is completed.
Pram will also provide furnishings for the raam to include tabie,
chairs, and meeting preps such as an overhead projector, screen,
chalkboard and fiip chaRs. This equipment wifl remain the property
of Prom. This investment wil! be made by September15,1998
G. 1. That Prom, wiil be required to carry insurance of the kinds and in
the amounts hereinafter specified. Prom shall not commence work
under this agreement until it has obtained a(I the insurance required
by these specifications. The Prom's attention is specifically
directed to any special provision of this agreement demandinc�
additioaal insurance.
2. Prom shall take out and mainta;n Worket's Campensation
Insurance and Emp4oyer's Pubiic Liabitity Insurance tor ali per5ons
employed in the performance of the work contempfated by Prom,
and insuring Prom, against alf obiigations arising out of the
Workers' Compensation Act of the State of Minnesota. !n any case
2
PIHY-18-193�9 11��L1 STP PAF.'I<S 8 RECREqT]ON 612 25� 74J5 P.�3%F36
- - q�-4y'1
whe�e work is sublet, Prom shail require each Subcontractor to be
insured in like manner.
3. Prom shal! purchase and maintain during the life of this agreement
Comprehensive Protective Public Liability Insurance for and in
behalf of itself and the City as additional insured's, and using a
cross-(iability endorsement, protect the City.and P�om fcom claims
for damages and bodify injurizs, including accidental death, as vrell
as from claims for property damage which may arise from
operations under this agreement.
Bodily Injun/ lnsurance {including death) in an amount of not
less than $1,000,040 tor aif damages arising out of bodily
injurses to or death of one person, and subject to the same
fimit for each person in a tota! amount of not less the
$1,000,000 on account of any one accident.
Propefty damage insurance in an amount ot not iess than
$100,000 for all damages to or destruction of property in any
one accident.
4. prom shatl take out and maintain during the life of this agreement,
Comprehensive Automobile Uability Insurance, insuring Prom and
the City, its officials and employees as additional insured's not only
for the operation of vehicies owned or used by Prom, but atso
vehicles hired or leased by Prom. Such Automobife Liability
Insurance shall have a minimum of $500,d00 combined singie limit
and a total of not less than $500,QQ0 aggregate.
5, In the event any w4rk contemplated by the agreement is sublet,
Prom shall be responsible to see that the Subcontraetors provide
insurancs in accord with the m'snimum requirements hereinabove
imposed on Prom.
6. Pram sha{I take out and maintain during the life of the agreement,
liquor fiability insuring Prom and the City, its o�cials and
employees as additional insured's. Such liquor liability insurance
shall have a minimum of $1,Q60,Od0 aggregate for Bodily Injury,
Property Damage, and Loss of Means of Support.
7. Prom agrees to obtain and provide the City with a statement
describing property insurance for Prom's equipment and supplies.
It is agreed that Prom and City mutually waive their righfs to
subrogation under their respective policie5- �
hIH'r'-13-1599 I S� t3� STP PhRIiS 8�ECfiEa7l Cit! 61"L 2?� 74J: F'. EW. �t
q�-y'��l
8. Pram shail nat proceed with the work cantemplated in this
agreemenf until prom has furnished the City with satisfactory proof
of the existence and carriage ofi insurence of the kinds and in the
amounts above specified- 7he proof of insurance shali be in such
form as the City may require, and unless othernrise provided by the
City in writing, the proo` of insurance shall consist of certified
specimen copies of the insusance poliey or poiicies, which
specimen copies have been approved by the City and fifed with the
City. The City wlll accept Certificates of insurance as evidence of
coverage yet reserves the right o obtain copies of all insurance
policies.
All such proof of insurance required herein shaif state the thirty (36)
days written notice wili be given to the City, by service of such
notice upon the City's Superintendent of Parks and Recreation,
before any insurance is changed or canceled. In the absence of
written consent by the City, Prom shall not proceed with the work
contemplated by the agreement beyond the period af cove�age
afforded by a canceled insurance policy until the required
insurance coverage has been procured, approved and filed with ;he
City as a repfacement for such cenceled insurance coverage.
F'aragraphs B through G estabiish minimum insurance
requiremenis, and it is the sofe responsibility of Prom to purchase
and maintain additional insurance that may be necessary in
connection with this contract.
9. Prom shall defend, indemnify and hold harmless the City, its
o�cers, agents, employees from and against every demand, claim,
cause of action, judgment and expense, and aU other losses and
damages arising from any injury or damage to the person or
propert}/ of Prom, or to any other person rightful(y on the premises,
where the injury or damage is caused by the neg{igence or
misconduct of Prom, its agents, or emptoyees, or resu{1s from the
violation by Prom or any of its agents pr employees of laws or
ordinances or of the provisions of this agreement.
10. 7he City shall defend, indemnify and hold harmless Prom, its
o�cers, agents and employees, from and against every demand,
claim, cause ot action, judgment and expense to any persons
right�uUy on the premises where such injury or loss is caused by the
negligence or misconduct of the City, its agents, or employees.
Nothing in this provision shall constitute a waiver by the Cify of any
sta'utory or other immunity or limitations an liabitity.
PWY'-18-1999 11�01 S7P PHF.KS 8 FECREF7lON
E12 29e 74'a? P.�7/0G
-�r .N� �
H.
11. Prom agrees that it shall be iYs duty to noTify the City in wrifing
immediately by service of nofice upon the City of the existence of
any claims, other than those arising under the V�/orkers'
Compensation Act, or possible claims either because of bodily
injury or property damage, which claims arise as a resutt of From's
or any Subcontractor's operatians in the performance of the
agreement.
Prom shall provide complete and accurate accounting records for the
concession using standard and universally accepted accounting methods.
Prom shafl, upon request of the City's Superintendent of Parks and
Recreation or his agents, provide records of ali safes at no cost to the
City.
J. By January 3'!°' of each year, Prom shail deliver to the City a compilation
statement prepared by a Certified Public Accountant and sworn to by the
o�cers of Prom whiCh sets forth the income statement, balance sheet and
gross sales made on or from the Como Lakeside Pavilion operafion during
the previous year.
K. Prom wiil provide a full time on site Manager of ihe Como Lakeside
Pavilion. Such Manager shall be made known fo the City of Saint Paul.
The City of Saint Paul shall be notified if any changes in the position.
L. At events where liquor is served, prom shall hire or cause to be hired an
off dufy Saint Paul Police O�cer, who shali be present during the period
that liquor is being served.
M. At other times if speciai Police services are deGmed necessary by Prom
they shal► be paid by Prom.
PJ. Prom shall maintain exclusive right to the Coma Lakeside Pavilion for food
and beverage catering. Nothing, however, preciudes the City from using
the Pavilion for sponsored functions providing they do not conflict with
other scheduled banquets or events. !t is the intention of the City to utilize
the services of Prom when City sponsored events invo�ve food and
beverage service. In all instances where the City wishes to use the Como
Lakeside Pavilion for meetings, receptions, etc., it will contact Prom ahead
of time fo insure that the desired areas of the Como Lakeside Pavifion are
availabfe. At no time shall City request cause the cancellation of a rental
aiready booked by Prom.
O. Due to the fact that many events have aiready been booked in the Como
lakeside Pavilion for 1998 and 1999, Prvm shall honor all contracts
PIA','-1c-1995 11�t�1 STP PARI<S 8 RECRERTION 612 25? 7-t.�. F'.OG•��7
-- q�_yy`t
between the City and the renter of tfie Facility. This may i�cfude caterers
other than Prom providing food and beverage sesvice at the event.
P. Prom shall bs entitled to a11 revenue generated by the Camo Lakeside
Pavilion from the above referenced events. Prom shail collect any
revenue outstanding from these events. In the case wF�ere the City has
received a deposit for an event, such revenue shall be credited to Prom
against the commission and or guarantee it shail owe the City from
Prom's operation of the Como L.akeside Pavii;on.
t1. Prom may schedule events at the Corrmo Lakeside Pavilion from 6:Q0 a.m.
to 12:00 midnight. Further, if Prom schedules the promenade area of the
Pavilion, no music or amplifled sour�d may be used between the houcs of
10:�0 p-m. and 8:00 a.m. so as not to disturb nearby residents.
R. Prom shail have the futl use of al{ of the areas of Camo Lakeside Pavilion
with the folRowing exceptions:
Promenade area may be used only at those times when the City
has no scheduled concerts andln�• plays at if.
2. Downstairs warming room from mid-December to mid-Fe6ruary
each yesr when it wili be used for skating.
3. Storage aceas ptesentiy used by the City fo� the storage of Parks
and Recreation equipment and theatrical supplies, equipment,
props and costumes.
S. P�om shall operate the concession area of the Como Lakeside Pavilion
under the foliowing schedule: from March 15"' to October 31" &:00 a.m. to
'/= half hour past dusk and trom Novembec 1 to March t5"' 10:Q0 a.m.
until '/z hour past dusk. Hours of operation will be extertded during times
when concerts, plays or other activities are scheduled for the Promenade
section of the Pavilion.
The above hours of operation may be amended by the mutual written
agreemeni of the parties.
T. 1. By March 15 of each year Prom will provide a tisting of prices it
intends to charge the pubiic for ihe various function of the facility
beginning the foilowing June 1". Tfiis includes hall and room rental
rates, catering rates, faod and beverage ratas and rental rates for
the canoes, waterbikes and other equipment. The City shait have
thirty (30) days f, receipt of the proposed rate schedule(s) to
approve or disapprove them. Failure cf the C'tty to notify Prom of
TOTHL P.9r
MfiY-12-1958 1@�43 STP PARKS €. RECREFT10f1
612 292 7�05 P.01i0�
-qY
iYs approval/disapproval within thirty (30) days wili result in the rate
being approved.
2. Prom sha11 conduct the operation of the Pavilion in such a manner
as not to bring criticism upon the City. prom shali not permit the
sale ofi beer or intaxicating liquor in a manner contrary to any law or
ordinance or the provisions of any appiicable liquor Eicense or
permit. Prom shall operate the Pavilion stricfly in conformity with aif
Federal, State, County or City laws and ordinances.
3. Prom shall at ail times have in plain view in the Paviiion a price list
or printed schedule of prices of all available commodities and
services. Prom shall make availabfe an attractive menu including
prices to groups or organizations for banquets, parties or other
events. Ail prices shali be compe6tively priced with establishments
within the service area that have similar functions.
4.
5.
Prom shall employ an adequate number of personnel in the
Pavilior to cover the operations during the minimum hours of
operation.
Ai( emptoyees of Prom sha(I be well groomed and dressed such a
manner as to provide an appearance acceptabie to the City.
U. in the event of inclement weather, Prom may with the consent of Yhe
Superintendent of Parks and Recreation or his designee ciose down the
Como Lakeside Pavilion and remain closed untii favorable weather
conditions prevail.
V. Prom may sell non food, souvenir type items at fhe Como Lakeside
Pavifion. Hawever, al( items to be sold must be approved by the City prior
to being put on saie. Such approval shail not be unreasonably withheld.
Sales made under this provision shall be subject to and included in the
same commission provision as afi other revenue generated at the Como
Lakeside Pavilion bq Prom.
W. Prom shall make no alteration to the Como Lakeside Pavilion without prior
approval of the City.
X. Prom shall be responsibie to pay for ail normal wear and tear of the facility
based upon usage inc�uding the replacement of all equipment i.e. stoves.
dishwasher, freezer, coolers, refrigeration, canoes, waterbikes, etc.
Further, Prom shal( be responsible for the repair and replaceme�t of afl
tabfes, ehairs, carts, etc.
7
rNr-ie-iyas io:.�a STP PAF.k;S a�EC��.qrtori
6i< <�2 �a�s P.�a;��
- - q��4y�
Y. Prom is responsible for daily cleaning of the entire Pavilion. Prom shaU at
all times keep the building in a clean and sanitary condition artd shall
compiy with all State and City health laws and locai Health Department
regulations. The City shall define acceptable standards based on
performance by Pram. Such standards shaN include montf�ty cfeaning of
ali+rrindows, IighEfixtures and woodworfc. Prom shall afsrs provide supplies
for the restsooms.
Z. Prom is responsible for garbage remcval throughout the year. 7his
inciudes removing botties, cans, paper, cups, wrappers and other debris
on a daily basis and litter from the Pavilion, and the Promenade area
when used by f'rom.
AA. Prom shal! pay all utiliiies it uses in conjunetion with the facifity. Where
feasibie separate metering shalf be done. lf separate metering cannot be
accomplished the parties shall meet and determine to share in the various
costs on a pro rata basis.
BB. The burglar alarm service including false alarm charges shaff be the
responsibifity of Prom.
CC. Prom may, at fts sole cost, obtain an an-sale liquor license for the Como
lakeside Pavilion and be responsible for maintaining the iicense during
the term of this agreement. It is expressly understood that this liquor
license wili only be used for events catered by prom and will not be used
in concession area operation.
OD. 1. Prom shall return the premises to the City at ths termination of this
agreement in the same condition of cfeantiness and repair as it is
upon the Summer of 1 g98 occupancy except for reasonab)e wear
and tear.
S. Prom shal! return aii City owned equipment, furniture and other
personal proparty to the City at the tennination of this agreement in
the same condition of cieanliness ard repair as it is upon ihe
Summer of 1998 occupancy except for reasonable wear and tear,
but not excepting breakage.
EE. Prom agrees to comply with aA Federal, State and local {aws, resotutions,
ordinances, ru{�s, regulafions and executive orders pertaining to unfawFui
discrimination in the employmant of or �rovision of services to persons or
organizations on account of race, color, creed, refigion, nationai origin,
sex, marita{ status, status with regard to pubiic assistance, disabitity or
age. When required by faw and request d by the City, Prorn shali (umish
a writien a�rmaUve action pian.
PIRY-18-1999 ia�aa STP PARKS 8 RECF'ERTIOP!
612 292 74c�� P.��3i0�
_ ar_
FF. Shouid fhe City fail ko perform any term, condition or requirement set forth
in the agreement, Prom shall give written notice fhereof to the City
specifying those acts or things which must occur in order to remedy said
default. Prom shail speci�y in the written notice the period of time nof less
than 30 days within which the City muat remedy the defauft. Shouid the
defauit remain upon exp+ration of the time to remedy the defauit, Prom
may give written �otice to terminate the agreemeRt. The 90 day notice of
terrnination shall be retroactive to the date of the initial notification of
defauft.
V. Rights and Responsibilities of the City.
A. The City shall be responsible for maintaining al( HVAC systems, the
elevator, and sprinkler systems and water, gas and electric senrices. The
City shall aiso be responsible for all exterior maintenance of the facility,
B. The City is responsible for litter coniroi around Lake Como and the Como
Paviiion and the Promenade area ofi the Pavilion except when the
Promenade area is used by Prom. The City shafi use separate dumpsters
from Prom for the trash and litter +t collects.
C.
���
The City shall be responsible for the tandscape and upkeep of the
(andscape around the Como Lakeside Pavilion.
The City is responsible for snow removal in the parking tots and around
the Pavilion.
E. With regard to this lease the City shafi at all times reserve the righf to
approve any and all sale of this business or any and all sub-leases that
may occur.
F. Prom shaif acknowledge that the terms, conditions and requirements set
forfh in this agreement are materia! inducements to the City entering into
this agreement. Should Prom fail to perfarm any of the terms, cond�tions
or requirements, the City shal( give written notice thereof to Prom
specifying those acfs or fhings which must occur in order ta remedy said
default. The City shali specify in the written notice the period of time, not
less than 30 days, within which Prom must remedy the defauit. Should
the default remain upon expiration of the time to remedy the defauft, the
Cify may give written notice to term+nate the agreement. The 90 day
notice of termination shal! be retroactive to the date of the initial
notification of the default.
^Ifii'-lo^-1998 Su�-JJ STP PrIRIS 8 RE'=FERTIGFI
VI. General Provisions
siz �z ��+c+� F.�ia �,a
-- - ��_yy'i
A. 1. Limited Damage to Como Lakeside Pavifion. If aft or part of the
Pavilion is rendered untenantable by damage from fire or other
casualty which in the reasonabfe opinion of an architecf selected by
the City and approved by Prom, can be substantialty repaired under
applicable taws and governmental regulations witnin 120 days from
the date of such casualty (employing normal construction methods
without overtime or other premium) the City shall forthwith at its
own expense, repair such damage other than damage to
improvements such as fumiture, chattefs or trade fixtures owned by
Prom, which shall tie repaired forthwith by A�om at its own
expense.
2. Major Damage To Como Lakeside Pavilion. If ail or a substanfial
part of the Pavifion is rendered untenaniable by damage from fire
or other casuafty to such a material extent that in the reasonable
opinion of an architect acceptable to the City and Prom, the
Pavilion cannot be substantially repaired under applicable laws and
governmental regulations within 120 days from the date of such
casualiy (employing normal construction methods without overtime
or other premium), then the City may elect to terminate this
agreement as of the date of such psualty by written notice
delivered to Prom not more than sixky (60) days after the date of
such casualty. The City at its option may at its own expense repair
such damage other than damage to property owned by Prom,
which sha{{ be repaired by Prom at its own expense. Prom shall
have the first right to operate the facility in accordance with the
terms of this agreement upon the Clty's comple6on of
reconstruction.
3. Except as spec�calfy provided in Article VI.A., there shall be no
reduction of compensation to the City and the City shali have no
liability fo Prom by reason of any injury to or interference with
Prom's business or property arising from fire or other casualty,
howsoever caused, or from the making of any repairs resulting
therefrom in or to any portion of the Pavilion. Notwithstanding
anything contained herein, compensation payable by Prom
hereunder shall not be abated if the damage is caused by any
neg!'sgenoe of prom, its agents, servants, ar employees.
8. The City and Prom may terminate this agreement at any time by mutual
agreement.
10
TC�TfiL P. �t4
hIAY-18-1'?33 1�J�4? STP FRFKS & �£!'F.EATtC�N
612 292 7a95
P.91i�1
�Y�t��1
a
C. This agreement may be modified oniy by a written amendment executed
by both the City and Prom.
D. Prorn shall acknowiedge that Prom and the City are not engaged '+� a joint
venture or co-partnership and Prom shall nof represent to any person or
entity whafsoever that the City and Prom are joint ventures or co-partr�ers.
E. (Votice. All written �otices relative to this agreement shall be sent to:
For Prorn: Tom Given, President
Prom Managemenf Group inc.
190 North Smith Avenue
Saint Paul, Priinnesota 55102
For the City: Robart P. Pisam, Superintendent
Saint Paul Division of Parks and Recreation
25 W. 4�' Street, Room 300
Saint Paui, MN 55102
�
IN WITNESS WHEREOF, the parties have signed this agreement the day and year first
above written.
APPROVED A5 TO FORM:
Assistant City Attorney
CITY OF SAINT PAUL:
The Honorable Norm Coleman, Mayor
Superintendent of Parks and Recreation
�
Tom Given, President pirector, Department of Financiai
Prom Management Group Inc. Services
G 15PtWp��GREEMNTtprom u(eriry et com� lakaads.wpd
11
TOTAL P.OS
N , � � _ � � �
Interdepartmental Memorandum
CITY OF SAINT PAUL
June 3, 1998
TO: Council President Dan Bostrom
Councilmember Jay Benanav
Councilmember Jerry Blakey
Councilmember Chris Coleman
Councilmember Michael Harris
Councilmember Kathy Lantry
Councilxnember Jim Reiter
FROM: Robert P. P �
RE: Como Lakeside Lease-Out to Prom Management Group _
Decision Points
1. The City has been losing over $70,000 annually on this enterprise.
2. The City has operated the facility since it re-opened in 1993.
3. This spring we initiated a Request for Proposal for its operation. Two entities
responded; Prom Management Group and Lancer Food Service.
4. After reviewing the proposals and interviewing the submitters; Prom was selected
as having the best proposal.
5. The lease out of the facility will not result in any layofFs or reduction in title for
any of our existing employees. We have held ofF on any new hires or
replacements pending this Agreement. We have talked to the union about �this.
They have indicated they will not object to this least out.
r ..
- - �� -_`�'�'�,
6. Prom has the resources to operate the facility and to make it financially sound
which the City does not. We have not been able to keep a staff that will work the
flexible an@ changing hours that are needed in a facility such as this. The facility
experiences many peaks and valleys on a daily basis. Prom has more flexibility
because they can move people from one site to another on an event and/or day to
day basis.
F:�
Prom will pay the City a minimum of $30,000 in the first yeaz of this Agreement
and $40,000 a year thereafter against 10% of the first $180,000 in revenue
generated and 15% of revenue generated above $180,000 per year. This
Agreement is for five yeazs with a five yeaz extension if the parties agree to
extend.
We believe that the City will realize a minimum of $100,000 financial tum around
at this facility due to this lease.
O R� Gi iVA� RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
�
Presented By
Referred to
Committee: Date
1
2
3
4
5
6
�
9
10
11
12
WHEREAS, the City has determined to enter into an Agreement for
the management and operation of the food service and equipment
rental at the Como Lakeside Pavilion, and;
WfiEREAS, through a Request for Proposal process Prom Management
Group has been selected to provide this service at the Como
Lakeside Pavilion, and;
WHEREAS, the City's Division of Parks and Recreation staff and
Prom have agreed on terms and conditions for this service, and;
NOW THEREFORE BE IT RESOLVED, that the City Council of Saint Paul
directs the proper City Officials to execute the attached Lease
Agreement between Prom Management Group and the City of Saint
Paul.
Requested by:
Div' ion of Pa 7 ecreation
� �
\ �, � ,�'`r--
By:
Council File # � �y�
Green Sheet #- ' %� \��
��
DEPAflTMENT/OFFiCF/COUNQI
Parks and Recreation
' CONTACT PERSON AND PHONE � �
Vic Wittgenstein 266-6409
IAUST BE ON COUNCIL AGENDA HY IDAT7c
May 27, 1998
qd-44R ✓
DAiE1NITIATED GREEN SHEET NO. 634
May 20, 1998 _----------�--�--�— .----
INITIAI/DATE INRIAVDATE
,-.—y '� �I DEPARTMENT DIflEGTOft 4 CIiY COUNCIL
ASSIGN
NUMBEP FOR _ Z CfTY ATTOMlEY CrtY CIERK
FOUTING
oaDEq FINANCIAL SERVICES OIR.
3 MAVOF (OR ASSISfqN17� 5 Parks
TOTA4 6 OF SKaNAWRE PAGES _(CLIP ALl LOC471OWS FOR 516NAA1RE!
ACTION PEQUESTED:
Signatures of the Superintendent of Parks and Recreation, City Attorney, and Mayor (or Assistant), and passage of the
attached Council Resolution by the Saint Paui City Council.
RECOMMENDATIONS: AOP�ove IA) or Reject �Po
�_PLANNING COMMISSION �_CIVIL SEflVICE COMMISSION
_CIB COMMITfEE _
A STAFF
DISTRICT COUNCIL
SUPPOPTS WNICH CWNCIL O&IECTIVEt
INITIATING PROBLEM, ISSVE, OPPORTUNITY IV✓ho, Wha4 NTen, Whe�e, Why):
PERSON4L SERVICE CONTRACTS MUST ANSWER THE FOILOWING W ESTIONS:
t. Has Mis peaoNfirtn ever wo�ked under a convact far [his Oepartment?
VES NO
2. Has this personlfirtn ever been a ciry emploYee?
YES NO
3. Does this pe�son/fi�m O�as a skitl �wi no�maNy possessetl by any curz¢nt city employee?
YES NO
Explain atl yea answen on separote sheat and attaeh m grean aheet.
A desire by the City to lease out the Como Lakeside Pavilion due to ongoing financiai losses.
e
A�VANTAGES IF APPflOVED'
Risk ot City sustaining tinancial loss from this Facility is removed. Prom Management Group has a strong reputation as
a good operator of similar facilities and has great catering expertise.
DISADVANTAfiES IF APPflOVED:
City will no longer self operate the faci{ity and will therefore lose some control.
teoa:ncft F3�sear�h C��?�F
)ISADVANTAGES IF NOT APPROVED:
�ontinuing financial losses.
�EC£IYV�
�$Y�7.'�.�$ Q�����
DTALAMOUNTOFTPANSACiION $ 30,000 - $40,000 annualiV
JNUINGSOUflCE Como Lakesid2 Pavilion
COST/REVENUE BUDGEfED (CIRCLE ONE) YES NO
ACiNRY NUMBER 23125
VANCIAL INFORMATION: (EXPLAIN) PfOfTi F18S 9118f8fILBed LF78 CIT�/ y.3O for the first year and 940,000 for each year thereafter
�ainst 10% of first 5180,000 and 15% of revenue over $180,000 annually.
.:.
q8 -4y�
Interdepartmental Memorandum
CITY OR SAINT PAUL
May 20, 1998
TO: Coleman, Mayor
FROM: ert P. Piram, Superintendent of Parks and Recreation
RE: Lease Agreement with Prom Management Group for
the Operation of the Como Lakeside Pavilion
Due to continuing operating losses experienced by the City at the Como Lakeside
Pavilion we generated a Request far Proposal for the operation and management of the
facility. Two enfities responded to the R.F.P., Lancer Foods (Bluebell) and Prom
Management Group. After reviewing the R.F.P.'s and interviewing the two proposers,
staff recommended that Prom Management Group be selected to provide this service.
The attached Council Resolution and Agreement are being forwarded for approval to
complete this award. The terms of this agreement is for a littie over five yeazs. Under the
terms of the agreement Prom will have exclusive rights to the food and beverage service
at the Como Lakeside Pavilion. They wi11 honor existing contracts between renters and
the City, including some cases where someone else was scheduled to do the catering.
Prom has guaranteed the City $30,000 in year one and $40,000 for the next four years of
the agreement against the following percentage of their gross receipts:
10% of the first $180,000 generated annualiy
15% of any revenue generated over $180,000 annually
Prom will be responsible for the day to day upkeep of the facility however the City will
retain responsibility for the HVAC systems, sprinkler systems, elevator and gas and water
services. Prom will pay for its own utility usage. In addition to the above Prom wili
make the following inveshnent in the site:
- a� -��.�
1. Invest between $10,000 and $15,000 to finish a downstairs meeting room.
Z. $10,000 for new flatware, chiva and other necessary supplies and
equipment.
Lastly, Prom will contribute $5,000 annually to a capital upkeep fund, which the City and
Prom will joinfly detemune how to spend.
If you haue any questions, please feel free to call me at 266-6409. Thank you.
cc: Tom Fabel
Vic Wittgenstein
�iHY'-16-1y93 1���59 STP PARf:S 8 RECRERTIGIJ
AGREEMENT
612 c 2 7-!JS F.�1/96
- - - q�-�ty�
THlS AGREEMENT, made and entered into this day of , 1998,
by and between the City of Saint Paui, herein referred to as the °Cify" and Prom
Management Group Incorporated, hereinaRer referred to as "Prom" under the foflowing
terms and conditions:
The City does hereby grant to Prom the privilege of operating the iavd and
beverage service, equipment renta{, banquet and meeting room renial and
catering service at the Como Lakeside Pavition located in the City`s Como Park.
This may inciuds outdoor vending on the Pavition Promenade, on the waikways
around the Pavilion and the pafh around Como Lake.
II. The period of this agraement shail be from the date first written above through
September 1 2003.
N{. Th+s agreement may be renewed for an additional five years September _,
2003 through Septemberl, 2D08. By the parties under th� same or minimally
altered negofiated terms and conditions by mutual consent of the City and Prom
and if executed in writing, at least thirty (30) days before the end of the originai
term of this agreement.
IV Rights and Responsibilities af Prom
A. Prom shall pay to the city for the privileges here-in granted ten percent
(10%) of its gross safes between $1.00 and $180.000 per year and fiReen
(15°l0) of its gross sales over $180,000 per year derived from food and
beverage services, rental fess for banquets, receptions and meetings and
catering services and equipment renta(s (canoes, waterbikes, etc.). Atl
gross sales witl be determined exclusive of state sales tax co{lected by
Prom.
B. That fhe dates for determining yearly sales shaff be from as foUows for the
first fiive years of this agreement:
June 1, 1998 - May 31, 1999
June 1, 1999 - May 31. 2000
June 1, 2QOd - May31, 20a1
June 1, 2041 - May 31, 20o2
June 1, 2flD2 - May 31, 2004`
'lf the agreement is renewed for an additional five years.
P1AY-18-1993 11��0 3TP PaRP:S & RECR �ar�ord 61"L F52 74:�?
C. Not withstanding the above Prom shall pay the City a guarantee of
S30,OOQ forthe period June 1, 1998 to May 31, 1999 and S40,OOG for
each yearly period thereafter.
P.02%G6
_ a� -�y�
D. Prom shai{ pay the City its ten peresnf (10°!0) and or fifteen percent (15°l0)
commission on the fifteenth of each montfi for the previous montfi and
that on June 15`" of each year Prom shalf pay fhe City 2ny amount due if
commissions due the City have not totaled 530,000 for the first year and
540,Q00 for each year thereafter.
E. Prom, on an annuai basis, will sef up a capitai repair account of $5,00�.
The City and Prom will meet annually to determine how to use these
funds for improvements, repairs and/or additions ta the present facility.
The $5,000 shall become available on June 1 each year beginning in
1989.
F. During the first year ot operating the Como Lakeside Pavilion, Prom will
make the following investments in the facility and operation:
An initial investment of $10,000 for china, flatware, glassware,
portable bars and kitchen equipment. 5uch items will remain tt�e
property of Prom. This investment wili be made by June 1, 1999.
Z. Spend between $10,000 and �,15,000 to finish the meeting room in
the Como Lakeside Pavilion basement. This would include adding
and finishing walis, adding a drop-file acoustical ceiling, lighting for
the space and Aoor covering. Ail improvements made to this space
will become the property of the City once Ehe work is completed.
Pram will also provide furnishings for the raam to include tabie,
chairs, and meeting preps such as an overhead projector, screen,
chalkboard and fiip chaRs. This equipment wifl remain the property
of Prom. This investment wil! be made by September15,1998
G. 1. That Prom, wiil be required to carry insurance of the kinds and in
the amounts hereinafter specified. Prom shall not commence work
under this agreement until it has obtained a(I the insurance required
by these specifications. The Prom's attention is specifically
directed to any special provision of this agreement demandinc�
additioaal insurance.
2. Prom shall take out and mainta;n Worket's Campensation
Insurance and Emp4oyer's Pubiic Liabitity Insurance tor ali per5ons
employed in the performance of the work contempfated by Prom,
and insuring Prom, against alf obiigations arising out of the
Workers' Compensation Act of the State of Minnesota. !n any case
2
PIHY-18-193�9 11��L1 STP PAF.'I<S 8 RECREqT]ON 612 25� 74J5 P.�3%F36
- - q�-4y'1
whe�e work is sublet, Prom shail require each Subcontractor to be
insured in like manner.
3. Prom shal! purchase and maintain during the life of this agreement
Comprehensive Protective Public Liability Insurance for and in
behalf of itself and the City as additional insured's, and using a
cross-(iability endorsement, protect the City.and P�om fcom claims
for damages and bodify injurizs, including accidental death, as vrell
as from claims for property damage which may arise from
operations under this agreement.
Bodily Injun/ lnsurance {including death) in an amount of not
less than $1,000,040 tor aif damages arising out of bodily
injurses to or death of one person, and subject to the same
fimit for each person in a tota! amount of not less the
$1,000,000 on account of any one accident.
Propefty damage insurance in an amount ot not iess than
$100,000 for all damages to or destruction of property in any
one accident.
4. prom shatl take out and maintain during the life of this agreement,
Comprehensive Automobile Uability Insurance, insuring Prom and
the City, its officials and employees as additional insured's not only
for the operation of vehicies owned or used by Prom, but atso
vehicles hired or leased by Prom. Such Automobife Liability
Insurance shall have a minimum of $500,d00 combined singie limit
and a total of not less than $500,QQ0 aggregate.
5, In the event any w4rk contemplated by the agreement is sublet,
Prom shall be responsible to see that the Subcontraetors provide
insurancs in accord with the m'snimum requirements hereinabove
imposed on Prom.
6. Pram sha{I take out and maintain during the life of the agreement,
liquor fiability insuring Prom and the City, its o�cials and
employees as additional insured's. Such liquor liability insurance
shall have a minimum of $1,Q60,Od0 aggregate for Bodily Injury,
Property Damage, and Loss of Means of Support.
7. Prom agrees to obtain and provide the City with a statement
describing property insurance for Prom's equipment and supplies.
It is agreed that Prom and City mutually waive their righfs to
subrogation under their respective policie5- �
hIH'r'-13-1599 I S� t3� STP PhRIiS 8�ECfiEa7l Cit! 61"L 2?� 74J: F'. EW. �t
q�-y'��l
8. Pram shail nat proceed with the work cantemplated in this
agreemenf until prom has furnished the City with satisfactory proof
of the existence and carriage ofi insurence of the kinds and in the
amounts above specified- 7he proof of insurance shali be in such
form as the City may require, and unless othernrise provided by the
City in writing, the proo` of insurance shall consist of certified
specimen copies of the insusance poliey or poiicies, which
specimen copies have been approved by the City and fifed with the
City. The City wlll accept Certificates of insurance as evidence of
coverage yet reserves the right o obtain copies of all insurance
policies.
All such proof of insurance required herein shaif state the thirty (36)
days written notice wili be given to the City, by service of such
notice upon the City's Superintendent of Parks and Recreation,
before any insurance is changed or canceled. In the absence of
written consent by the City, Prom shall not proceed with the work
contemplated by the agreement beyond the period af cove�age
afforded by a canceled insurance policy until the required
insurance coverage has been procured, approved and filed with ;he
City as a repfacement for such cenceled insurance coverage.
F'aragraphs B through G estabiish minimum insurance
requiremenis, and it is the sofe responsibility of Prom to purchase
and maintain additional insurance that may be necessary in
connection with this contract.
9. Prom shall defend, indemnify and hold harmless the City, its
o�cers, agents, employees from and against every demand, claim,
cause of action, judgment and expense, and aU other losses and
damages arising from any injury or damage to the person or
propert}/ of Prom, or to any other person rightful(y on the premises,
where the injury or damage is caused by the neg{igence or
misconduct of Prom, its agents, or emptoyees, or resu{1s from the
violation by Prom or any of its agents pr employees of laws or
ordinances or of the provisions of this agreement.
10. 7he City shall defend, indemnify and hold harmless Prom, its
o�cers, agents and employees, from and against every demand,
claim, cause ot action, judgment and expense to any persons
right�uUy on the premises where such injury or loss is caused by the
negligence or misconduct of the City, its agents, or employees.
Nothing in this provision shall constitute a waiver by the Cify of any
sta'utory or other immunity or limitations an liabitity.
PWY'-18-1999 11�01 S7P PHF.KS 8 FECREF7lON
E12 29e 74'a? P.�7/0G
-�r .N� �
H.
11. Prom agrees that it shall be iYs duty to noTify the City in wrifing
immediately by service of nofice upon the City of the existence of
any claims, other than those arising under the V�/orkers'
Compensation Act, or possible claims either because of bodily
injury or property damage, which claims arise as a resutt of From's
or any Subcontractor's operatians in the performance of the
agreement.
Prom shall provide complete and accurate accounting records for the
concession using standard and universally accepted accounting methods.
Prom shafl, upon request of the City's Superintendent of Parks and
Recreation or his agents, provide records of ali safes at no cost to the
City.
J. By January 3'!°' of each year, Prom shail deliver to the City a compilation
statement prepared by a Certified Public Accountant and sworn to by the
o�cers of Prom whiCh sets forth the income statement, balance sheet and
gross sales made on or from the Como Lakeside Pavilion operafion during
the previous year.
K. Prom wiil provide a full time on site Manager of ihe Como Lakeside
Pavilion. Such Manager shall be made known fo the City of Saint Paul.
The City of Saint Paul shall be notified if any changes in the position.
L. At events where liquor is served, prom shall hire or cause to be hired an
off dufy Saint Paul Police O�cer, who shali be present during the period
that liquor is being served.
M. At other times if speciai Police services are deGmed necessary by Prom
they shal► be paid by Prom.
PJ. Prom shall maintain exclusive right to the Coma Lakeside Pavilion for food
and beverage catering. Nothing, however, preciudes the City from using
the Pavilion for sponsored functions providing they do not conflict with
other scheduled banquets or events. !t is the intention of the City to utilize
the services of Prom when City sponsored events invo�ve food and
beverage service. In all instances where the City wishes to use the Como
Lakeside Pavilion for meetings, receptions, etc., it will contact Prom ahead
of time fo insure that the desired areas of the Como Lakeside Pavifion are
availabfe. At no time shall City request cause the cancellation of a rental
aiready booked by Prom.
O. Due to the fact that many events have aiready been booked in the Como
lakeside Pavilion for 1998 and 1999, Prvm shall honor all contracts
PIA','-1c-1995 11�t�1 STP PARI<S 8 RECRERTION 612 25? 7-t.�. F'.OG•��7
-- q�_yy`t
between the City and the renter of tfie Facility. This may i�cfude caterers
other than Prom providing food and beverage sesvice at the event.
P. Prom shall bs entitled to a11 revenue generated by the Camo Lakeside
Pavilion from the above referenced events. Prom shail collect any
revenue outstanding from these events. In the case wF�ere the City has
received a deposit for an event, such revenue shall be credited to Prom
against the commission and or guarantee it shail owe the City from
Prom's operation of the Como L.akeside Pavii;on.
t1. Prom may schedule events at the Corrmo Lakeside Pavilion from 6:Q0 a.m.
to 12:00 midnight. Further, if Prom schedules the promenade area of the
Pavilion, no music or amplifled sour�d may be used between the houcs of
10:�0 p-m. and 8:00 a.m. so as not to disturb nearby residents.
R. Prom shail have the futl use of al{ of the areas of Camo Lakeside Pavilion
with the folRowing exceptions:
Promenade area may be used only at those times when the City
has no scheduled concerts andln�• plays at if.
2. Downstairs warming room from mid-December to mid-Fe6ruary
each yesr when it wili be used for skating.
3. Storage aceas ptesentiy used by the City fo� the storage of Parks
and Recreation equipment and theatrical supplies, equipment,
props and costumes.
S. P�om shall operate the concession area of the Como Lakeside Pavilion
under the foliowing schedule: from March 15"' to October 31" &:00 a.m. to
'/= half hour past dusk and trom Novembec 1 to March t5"' 10:Q0 a.m.
until '/z hour past dusk. Hours of operation will be extertded during times
when concerts, plays or other activities are scheduled for the Promenade
section of the Pavilion.
The above hours of operation may be amended by the mutual written
agreemeni of the parties.
T. 1. By March 15 of each year Prom will provide a tisting of prices it
intends to charge the pubiic for ihe various function of the facility
beginning the foilowing June 1". Tfiis includes hall and room rental
rates, catering rates, faod and beverage ratas and rental rates for
the canoes, waterbikes and other equipment. The City shait have
thirty (30) days f, receipt of the proposed rate schedule(s) to
approve or disapprove them. Failure cf the C'tty to notify Prom of
TOTHL P.9r
MfiY-12-1958 1@�43 STP PARKS €. RECREFT10f1
612 292 7�05 P.01i0�
-qY
iYs approval/disapproval within thirty (30) days wili result in the rate
being approved.
2. Prom sha11 conduct the operation of the Pavilion in such a manner
as not to bring criticism upon the City. prom shali not permit the
sale ofi beer or intaxicating liquor in a manner contrary to any law or
ordinance or the provisions of any appiicable liquor Eicense or
permit. Prom shall operate the Pavilion stricfly in conformity with aif
Federal, State, County or City laws and ordinances.
3. Prom shall at ail times have in plain view in the Paviiion a price list
or printed schedule of prices of all available commodities and
services. Prom shall make availabfe an attractive menu including
prices to groups or organizations for banquets, parties or other
events. Ail prices shali be compe6tively priced with establishments
within the service area that have similar functions.
4.
5.
Prom shall employ an adequate number of personnel in the
Pavilior to cover the operations during the minimum hours of
operation.
Ai( emptoyees of Prom sha(I be well groomed and dressed such a
manner as to provide an appearance acceptabie to the City.
U. in the event of inclement weather, Prom may with the consent of Yhe
Superintendent of Parks and Recreation or his designee ciose down the
Como Lakeside Pavilion and remain closed untii favorable weather
conditions prevail.
V. Prom may sell non food, souvenir type items at fhe Como Lakeside
Pavifion. Hawever, al( items to be sold must be approved by the City prior
to being put on saie. Such approval shail not be unreasonably withheld.
Sales made under this provision shall be subject to and included in the
same commission provision as afi other revenue generated at the Como
Lakeside Pavilion bq Prom.
W. Prom shall make no alteration to the Como Lakeside Pavilion without prior
approval of the City.
X. Prom shall be responsibie to pay for ail normal wear and tear of the facility
based upon usage inc�uding the replacement of all equipment i.e. stoves.
dishwasher, freezer, coolers, refrigeration, canoes, waterbikes, etc.
Further, Prom shal( be responsible for the repair and replaceme�t of afl
tabfes, ehairs, carts, etc.
7
rNr-ie-iyas io:.�a STP PAF.k;S a�EC��.qrtori
6i< <�2 �a�s P.�a;��
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Y. Prom is responsible for daily cleaning of the entire Pavilion. Prom shaU at
all times keep the building in a clean and sanitary condition artd shall
compiy with all State and City health laws and locai Health Department
regulations. The City shall define acceptable standards based on
performance by Pram. Such standards shaN include montf�ty cfeaning of
ali+rrindows, IighEfixtures and woodworfc. Prom shall afsrs provide supplies
for the restsooms.
Z. Prom is responsible for garbage remcval throughout the year. 7his
inciudes removing botties, cans, paper, cups, wrappers and other debris
on a daily basis and litter from the Pavilion, and the Promenade area
when used by f'rom.
AA. Prom shal! pay all utiliiies it uses in conjunetion with the facifity. Where
feasibie separate metering shalf be done. lf separate metering cannot be
accomplished the parties shall meet and determine to share in the various
costs on a pro rata basis.
BB. The burglar alarm service including false alarm charges shaff be the
responsibifity of Prom.
CC. Prom may, at fts sole cost, obtain an an-sale liquor license for the Como
lakeside Pavilion and be responsible for maintaining the iicense during
the term of this agreement. It is expressly understood that this liquor
license wili only be used for events catered by prom and will not be used
in concession area operation.
OD. 1. Prom shall return the premises to the City at ths termination of this
agreement in the same condition of cfeantiness and repair as it is
upon the Summer of 1 g98 occupancy except for reasonab)e wear
and tear.
S. Prom shal! return aii City owned equipment, furniture and other
personal proparty to the City at the tennination of this agreement in
the same condition of cieanliness ard repair as it is upon ihe
Summer of 1998 occupancy except for reasonable wear and tear,
but not excepting breakage.
EE. Prom agrees to comply with aA Federal, State and local {aws, resotutions,
ordinances, ru{�s, regulafions and executive orders pertaining to unfawFui
discrimination in the employmant of or �rovision of services to persons or
organizations on account of race, color, creed, refigion, nationai origin,
sex, marita{ status, status with regard to pubiic assistance, disabitity or
age. When required by faw and request d by the City, Prorn shali (umish
a writien a�rmaUve action pian.
PIRY-18-1999 ia�aa STP PARKS 8 RECF'ERTIOP!
612 292 74c�� P.��3i0�
_ ar_
FF. Shouid fhe City fail ko perform any term, condition or requirement set forth
in the agreement, Prom shall give written notice fhereof to the City
specifying those acts or things which must occur in order to remedy said
default. Prom shail speci�y in the written notice the period of time nof less
than 30 days within which the City muat remedy the defauft. Shouid the
defauit remain upon exp+ration of the time to remedy the defauit, Prom
may give written �otice to terminate the agreemeRt. The 90 day notice of
terrnination shall be retroactive to the date of the initial notification of
defauft.
V. Rights and Responsibilities of the City.
A. The City shall be responsible for maintaining al( HVAC systems, the
elevator, and sprinkler systems and water, gas and electric senrices. The
City shall aiso be responsible for all exterior maintenance of the facility,
B. The City is responsible for litter coniroi around Lake Como and the Como
Paviiion and the Promenade area ofi the Pavilion except when the
Promenade area is used by Prom. The City shafi use separate dumpsters
from Prom for the trash and litter +t collects.
C.
���
The City shall be responsible for the tandscape and upkeep of the
(andscape around the Como Lakeside Pavilion.
The City is responsible for snow removal in the parking tots and around
the Pavilion.
E. With regard to this lease the City shafi at all times reserve the righf to
approve any and all sale of this business or any and all sub-leases that
may occur.
F. Prom shaif acknowledge that the terms, conditions and requirements set
forfh in this agreement are materia! inducements to the City entering into
this agreement. Should Prom fail to perfarm any of the terms, cond�tions
or requirements, the City shal( give written notice thereof to Prom
specifying those acfs or fhings which must occur in order ta remedy said
default. The City shali specify in the written notice the period of time, not
less than 30 days, within which Prom must remedy the defauit. Should
the default remain upon expiration of the time to remedy the defauft, the
Cify may give written notice to term+nate the agreement. The 90 day
notice of termination shal! be retroactive to the date of the initial
notification of the default.
^Ifii'-lo^-1998 Su�-JJ STP PrIRIS 8 RE'=FERTIGFI
VI. General Provisions
siz �z ��+c+� F.�ia �,a
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A. 1. Limited Damage to Como Lakeside Pavifion. If aft or part of the
Pavilion is rendered untenantable by damage from fire or other
casualty which in the reasonabfe opinion of an architecf selected by
the City and approved by Prom, can be substantialty repaired under
applicable taws and governmental regulations witnin 120 days from
the date of such casualty (employing normal construction methods
without overtime or other premium) the City shall forthwith at its
own expense, repair such damage other than damage to
improvements such as fumiture, chattefs or trade fixtures owned by
Prom, which shall tie repaired forthwith by A�om at its own
expense.
2. Major Damage To Como Lakeside Pavilion. If ail or a substanfial
part of the Pavifion is rendered untenaniable by damage from fire
or other casuafty to such a material extent that in the reasonable
opinion of an architect acceptable to the City and Prom, the
Pavilion cannot be substantially repaired under applicable laws and
governmental regulations within 120 days from the date of such
casualiy (employing normal construction methods without overtime
or other premium), then the City may elect to terminate this
agreement as of the date of such psualty by written notice
delivered to Prom not more than sixky (60) days after the date of
such casualty. The City at its option may at its own expense repair
such damage other than damage to property owned by Prom,
which sha{{ be repaired by Prom at its own expense. Prom shall
have the first right to operate the facility in accordance with the
terms of this agreement upon the Clty's comple6on of
reconstruction.
3. Except as spec�calfy provided in Article VI.A., there shall be no
reduction of compensation to the City and the City shali have no
liability fo Prom by reason of any injury to or interference with
Prom's business or property arising from fire or other casualty,
howsoever caused, or from the making of any repairs resulting
therefrom in or to any portion of the Pavilion. Notwithstanding
anything contained herein, compensation payable by Prom
hereunder shall not be abated if the damage is caused by any
neg!'sgenoe of prom, its agents, servants, ar employees.
8. The City and Prom may terminate this agreement at any time by mutual
agreement.
10
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hIAY-18-1'?33 1�J�4? STP FRFKS & �£!'F.EATtC�N
612 292 7a95
P.91i�1
�Y�t��1
a
C. This agreement may be modified oniy by a written amendment executed
by both the City and Prom.
D. Prorn shall acknowiedge that Prom and the City are not engaged '+� a joint
venture or co-partnership and Prom shall nof represent to any person or
entity whafsoever that the City and Prom are joint ventures or co-partr�ers.
E. (Votice. All written �otices relative to this agreement shall be sent to:
For Prorn: Tom Given, President
Prom Managemenf Group inc.
190 North Smith Avenue
Saint Paul, Priinnesota 55102
For the City: Robart P. Pisam, Superintendent
Saint Paul Division of Parks and Recreation
25 W. 4�' Street, Room 300
Saint Paui, MN 55102
�
IN WITNESS WHEREOF, the parties have signed this agreement the day and year first
above written.
APPROVED A5 TO FORM:
Assistant City Attorney
CITY OF SAINT PAUL:
The Honorable Norm Coleman, Mayor
Superintendent of Parks and Recreation
�
Tom Given, President pirector, Department of Financiai
Prom Management Group Inc. Services
G 15PtWp��GREEMNTtprom u(eriry et com� lakaads.wpd
11
TOTAL P.OS
N , � � _ � � �
Interdepartmental Memorandum
CITY OF SAINT PAUL
June 3, 1998
TO: Council President Dan Bostrom
Councilmember Jay Benanav
Councilmember Jerry Blakey
Councilmember Chris Coleman
Councilmember Michael Harris
Councilmember Kathy Lantry
Councilxnember Jim Reiter
FROM: Robert P. P �
RE: Como Lakeside Lease-Out to Prom Management Group _
Decision Points
1. The City has been losing over $70,000 annually on this enterprise.
2. The City has operated the facility since it re-opened in 1993.
3. This spring we initiated a Request for Proposal for its operation. Two entities
responded; Prom Management Group and Lancer Food Service.
4. After reviewing the proposals and interviewing the submitters; Prom was selected
as having the best proposal.
5. The lease out of the facility will not result in any layofFs or reduction in title for
any of our existing employees. We have held ofF on any new hires or
replacements pending this Agreement. We have talked to the union about �this.
They have indicated they will not object to this least out.
r ..
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6. Prom has the resources to operate the facility and to make it financially sound
which the City does not. We have not been able to keep a staff that will work the
flexible an@ changing hours that are needed in a facility such as this. The facility
experiences many peaks and valleys on a daily basis. Prom has more flexibility
because they can move people from one site to another on an event and/or day to
day basis.
F:�
Prom will pay the City a minimum of $30,000 in the first yeaz of this Agreement
and $40,000 a year thereafter against 10% of the first $180,000 in revenue
generated and 15% of revenue generated above $180,000 per year. This
Agreement is for five yeazs with a five yeaz extension if the parties agree to
extend.
We believe that the City will realize a minimum of $100,000 financial tum around
at this facility due to this lease.