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HomeMy WebLinkAbout2019-11-18-J01E July 4th Carnival ContractAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: November 18, 2019 AGENDA ITEM:Consideration of approval of a resolution approving Amusement Ride and Concession Agreement FORMAT:Consent Agenda SYNOPSIS INCLUDING PRO & CON: Over the last two months Parks and Recreation Staff have been soliciting carnivals for the 2020 4th of July Festival. Staff has been in contact with the carnival Spectacular Amusements that provided services to Coralville Iowa last year. Staff called Coralville and was given good reviews of their services and how they were to work with. City of Waukee Parks and Recreation Staff, City Fire Marshal Justin Frederick, and Building Official Keith Rash had a conference call with the owners of the carnival in early October. City staff felt comfortable with the Spectacular’s knowledge of safety protocol and inspections. Spectacular did not have any concerns with any of the inspections that were outlined to them via the two City of Waukee Inspectors. The price difference between the two carnivals is significant. Last year the City of Waukee had to provide a guarantee of $10,000 and then received %15 of the sales after the $10,000. The 2020 Carnival is a guarantee of $26,000 and then %20 percent of the sales over $26,000. The 2019 Carnival claimed that the total of last year’s sales was just shy of $21,000. If the 2020 event brought in the same amount of revenue as last year the City would have a deficit of $5,000. Due to 2020 4th of July being on a Saturday it is anticipated that the Carnival would run from Noon -10:30 BOTH Friday and Saturday allowing additional time to increase the revenue. The contract under consideration is a contract that was prepared by our City Attorney and agreed to by Spectacular. Contract negotiations were much smoother this year. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the resolution. ATTACHMENTS: I. Proposed Resolution II. Contract PREPARED BY: Matt Jermier REVIEWED BY: J1E THE CITY OF WAUKEE, IOWA RESOLUTION 19- APPROVING AMUSEMENT RIDE AND CONCESSION AGREEMENT IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal Organization; AND, WHEREAS, the City of Waukee annually hosts a 4th of July celebration with activities and amusements for all ages; AND, WHEREAS, the City of Waukee Park Board wishes to enter into a contract with Spectacular Amusements for amusement rides and concessions to be provided on July 3-4, 2020; AND, WHEREAS, the City Attorney has reviewed the agreement and finds it satisfactory. NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council that the Amusement Ride and Concession Agreement with Spectacular Amusements is hereby approved. Passed by the City Council of the City of Waukee, Iowa, and approved this the 18th day of November, 2019. ____________________________ William F. Peard, Mayor Attest: ___________________________________ Rebecca D. Schuett, City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN Anna Bergman R. Charles Bottenberg Courtney Clarke Shelly Hughes Larry R. Lyon 1 Amusement Ride and Concession Agreement This agreement is made and entered into this ____ day of ______________, 2019 by and between Spectacular Amusements, Inc, a corporation now duly formed and existing pursuant to the laws of the State of Arkansas (hereinafter referred to as “SPECTACULAR”) and the City of Waukee, Iowa, a municipal corporation duly formed and existing pursuant to the laws of the State of Iowa (hereafter referred to “City”). WHEREAS, SPECTACULAR is a company provides amusement rides, games and food for the enjoyment and consumption of the general public for publicly attended events such the one being organized by the City; and WHERES, SPECTACULAR has indicated their willingness to participate and otherwise provide amusement rides, games, and food for the sale, consumption and use of the general public for said event; and WHEREAS, on consideration of mutual promises and the sufficiency and receipt of which is hereby acknowledged, the parties agree as follows: 1) Obligations of SPECTACULAR. a) Amusement Rides. SPECTACULAR agrees that it will provide the minimum of ____ amusement rides identified on Schedule A attached hereto and incorporated herein by this reference, plus games and concessions together with its own competent personnel to operate the same for the Event and have the same set up and operating by Noon on the 3rd day of July, 2020 through 10:30 o’clock p.m. and by Noon on the 4th day of July, 2020 at 10:30 o’clock p.m. In addition, SPECTACULAR shall be responsible for the sale of tickets for all amusement rides. b) Ticket Prices. The parties have agreed that the cost for one ticket shall be $1.00; family packs of 24 tickets shall be $20 per pack; and armbands for advance sale at $15 each prior to the event. Armbands will be sold for $20 each day of the event. Advance sale armbands will be good for July 3 or July 4 from noon-4 p.m. only. Armbands will be differentiated for specific dates by colors or armband material. All tickets and wristbands utilized for the purpose of the event will be supplied by SPECTACULAR, at their cost and expense. The required amount of tickets for each ride will be posted on each ride. c) Fair Information Packet. SPECTACULAR understands and agrees to abide by the City’s Carnival and Fair Information Packet provided to SPECTACULAR with this agreement d) Inspections and permits. SPECTACULAR understands and agrees that it shall be responsible for obtaining all licenses, permits, and inspections from any Federal, State or local agency that may be required for the purpose of fulfilling its obligations prior to commencement of the event as identified in paragraph 1(a). SPECTACULAR will 2 schedule and obtain any and all necessary inspections, permits or licenses prior to the commencement of the event. SPECTACULAR shall be responsible for all costs associated with obtaining all Federal and State licenses, permits, and inspections. The City will be responsible for licenses, permits, and inspection fees for in-house(City) licenses, permits, and inspections. In addition, the City reserves the right for inspections to enforce compliance with local adopted municipal codes. e) Insurance. SPECTACULAR understands and agrees that SPECTACULAR shall have no right of coverage under any and all existing or future City comprehensive, self or personal injury policies or any other of the City’s insurance policies of any kind. SPECTACULAR agrees to provide insurance coverage for and on behalf of SPECTACULAR, their employees and personnel, to protect SPECTACULAR, their employees and personnel, in connection with the undertakings set forth in this agreement including but not limited to, bodily injury, death, property damage, lost income, loss of use and workers compensation. f) Evidence of Insurance. SPECTACULAR shall provide evidence of comprehensive general liability coverage and contractual liability insurance by an insurance company licensed to do business in the state of Iowa and limits with at least $1,000,000 dollars per claim. Said insurance shall be in effect at least 30 days prior to the commencement of the event and shall be maintained by SPECTACULAR thereafter. g) Independent Contractor. SPECTACULAR understands and agrees that it is an independent contractor and that its employees, personnel, contractors and subcontractors are its responsibility. SPECTACULAR understands and agrees that SPECTACULAR and their employees and representatives are not City employees. SPECTACULAR shall be solely responsible for payment of salaries, wages, payroll taxes, unemployment benefits, any other form of compensation or benefit for SPECTACULAR and its employees, representatives or other personnel performing or participating in any way in SPECTACULAR’ undertakings pursuant to this agreement, whether it be of a direct or indirect nature. h) SPECTACULAR Warranty. SPECTACULAR does hereby warrant and represent that its undertakings herein will be performed with the most of degree of care and skill, and that its amusement rides and concessions will be in good working order, safe and free from defects. i) Electrical Power, Wiring and Distribution Boxes for Amusement Rides, Concessions and Games. SPECTACULAR agrees to provide electrical power, wiring and distribution boxes for the amusement rides, concession and games. 2) City Obligations. 3 a) Electrical Power. The City agrees to furnish, at no expense to SPECTACULAR, a single 50 amp receptacle for use when the event is not operating to keep concessions powered overnight, b) Water. The City will provide one water hook up for use by SPECTACULAR for their concessions. c) City Vendors. The City and its vendors have the right to serve snow cones, shaved ice, Italian ice, slushies, and other flavored ice items at a higher priced based on the prize and size that Spectacular Amusement’s vendors sell their items. d) The City will provide the following: - Portable toilets or Stationary bathrooms on grounds - Garbage cans and dumpsters for the disposal of solid waste - RV hookups with water and electricity for carnival - Will mow the grass 2 days prior to carnival opening 3) Payment. The City will pay SPECTACULAR a non-refundable security deposit of $10,000 to guarantee arrival and performance by SPECTACULAR in accordance with this agreement. The deposit will be calculated back into the ticket sales settlement at the end of the event. The City guarantees to SPECTACULAR the event will result in $26,000 in gross ticket sales for amusement rides. If the guarantee is not reached in ticket sales, the City will pay the difference to SPECTACULAR upon the conclusion of the event, less the amount paid to SPECTACULAR in the form of the security deposit. If gross ticket sales exceed $26,000, SPECTACULAR agrees to pay 20% of the gross ticket sales exceeding $26,000.00 from amusement rides to the City upon the conclusion of the event. The City agrees that SPECTACULAR may retain revenues non-amusement rides including its concessions and games that it operates. THE CITY OF WAUKEE, IOWA SPECTACULAR AMUSEMENTS, INC By: ________________________________ By: ________________________________ William F. Peard, Mayor Name: _____________________________ Title: ______________________________ ATTEST: By: ________________________________ Tim Moerman, City Administrator