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HomeMy WebLinkAboutD-1 Staff Report - Bashful Butler 7 Month ExtensionSCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MIKI CARPENTER, DIRECTOR, RECREATION AND FAMILY SERVICES DATE: DECEMBER 3, 2018 SUBJECT: EXTEND RENTAL AND CATERING CONTRACT WITH BASHFUL BUTLER FOR 7 MONTHS, EXPIRING JUNE 30, 2019, AND ESTABLISH NEW BUSINESS PLAN FOR THE AZUSA WOMEN’S CLUB BACKGROUND: In 1999, the City of Azusa began to contract with an exclusive caterer for the Azusa Woman’s Club to both cater and manage the facility. The intent was not only to identify an exclusive caterer, but to more effectively market and manage the property. The Bashful Butler was contracted to again serve in this capacity for a one-year term commencing on December 1, 2017 and expiring November 30, 2018. The Azusa Women’s Club has consistently underperformed as a rental property. The Recreation and Family Services Department is prepared to take back the property management of the Azusa Women’s Club and to assess opportunities and develop a new business plan for the 2019-20 fiscal year. RECOMMENDATION: Staff recommends the City Council take the following actions: 1)Extend the Bashful Butler contract services agreement for 7 months, terminating on June 30, 2019, for the contracting of rentals and catering services for private party events held at the Azusa Women’s Club; and 2)Authorize the City Manager to execute the agreement, in a form acceptable to the City Attorney, on behalf of the City. ANALYSIS: The current revenue generated by the Azusa Woman’s Club is approximately $10,000 per year, not including City expenses. The Recreation and Family Services Department oversees this facility and could take back property management from the current contractor in the new fiscal year to develop a business and marketing plan for the facility. A preliminary assessment of fees indicated that the City’s rate is possibly up to 50% lower than market rates. The extra time the extension will allow Staff the opportunity to prepare an initial plan for the next fiscal year. This may include the following: •Assess the potential for a new fee schedule for the Azusa Women’s Club based on market rates •Develop a preferred caterers list at a range of costs to accommodate community access to the facility •Evaluate the need for any service or building improvements to markedly increase revenue generating ability of this facility •Report back to the City Manager and to Council for feedback and adoption APPROVED CITY COUNCIL 12/3/2018 EXTEND RENTAL AND CATERING CONTRACT WITH BASHFUL BUTLER FOR 7 MONTHS, EXPIRING JUNE 30, 2019, AND ESTABLISH NEW BUSINESS PLAN FOR THE AZUSA WOMEN’S CLUB December 3, 2018 Page 2 FISCAL IMPACT There is no fiscal impact in taking this action. However, increased costs associated with cleaning, monitoring, and overseeing the use of the facility beginning next fiscal year, should be adequately offset by the increase in revenues as a result of greater usage and the City having complete operational control of the Azusa Women’s Club. All current expenses have been budgeted in the FY 2018-19 Recreation and Family Services budget. The goal of the new business plan, that will be presented to the City Council prior to the start of next fiscal year, would be to improve marketing, assess and develop an appropriate fee schedule, and to increase revenue for the City of Azusa. Prepared b y: Reviewed and Approved: Miki Carpenter Sergio Gonzalez Director of Recreation and Family Services City Manager Attachment: 1) Contract Services Agreement for Hall Rental and Catering Services for the Azusa Woman’s Club (1) CONTRACT SERVICES AGREEMENT HALL RENTAL & CATERING/BAR SERVICES FOR THE AZUSA WOMAN'S CLUB THIS AGREEMENT (hereinafter the "Agreement") is made this1st day of December 2018 (the "Effective Date") by and between the CITY OF AZUSA, a California municipal corporation (the "City") and THE BASHFUL BUTLER (the "Contractor). The City and the Contractor are sometimes hereinafter referred to as "Party" and hereinafter collectively referred to as the "Parties". RECITALS A.The Contractor desires and intends to perform and assume responsibility for the provision of certain services, as hereinafter described, on the terms and conditions set forth herein. B.The City desires and intends to contract for such services on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, the City and the Contractor agree as follows. SCOPE OF SERVICES AND OPERATIVE PROVISIONS SECTION 1 ENGAGEMENT AND SERVICES ON THE CONTRACTOR l. ENGAGEMENT OF CONTRACTOR: The City hereby engages the Contractor, subject to the terms and conditions set forth in this Agreement, to perform the services set forth in Section IV (the "Services"). The Contractor agrees to perform the Services in accordance with the terms and conditions of this Agreement. 2.PERFORMANCE OF THE CONTRACTOR: The Contractor accepts the relationship of trust and confidence established between the City and the Contractor by the terms of this Agreement. The Contractor covenants with the City to furnish its best skill, judgement, and efforts and to cooperate with the City in their performances of the Services. 3.THE CONTRACTOR'S PERSONNEL: The Contractor shall provide adequate and experienced administrative, management, food service preparation and server, personnel, to perform the services for the Hall Rental & Catering Services for the Azusa Woman's Club. 4.THE CONTRACTOR S RESPONSIBILITIES FOR COSTS AND EXPENSES: The Contractor shall be responsible for all costs and expenses incurred relative to his/her employees in connection with the performance of the Services, including, without limitation, payment of salaries, fringe benefit contributions, payroll taxes, withholding taxes and other taxes and levies. Telephone and document reproduction expenses may be shared with the City. Attachment 1 (2) SECTION II RESPONSIBILITIES OF THE CONTRACTOR 1. PERSONNEL: The Services shall be performed by Contractor or under his/her supervision. The contractor represents that it possesses the profe ssional and technical personnel required to perform the Services. The City retains the Contractor on an independent contractor basis and the Contractor is not an employee of the City. Personnel performing the Services on behalf of the Contractor shall at all times be under the Contractor's exclusive direction and control. The Contractor shall pay all expenses in connection with the performance of the Services, including , without limitation, salaries, fringe benefit contributions, payroll taxes, withholding taxes and other taxes or levies and all other amounts due, such as personnel, or due others as a result of the connection with their performance of the services. 2. OPERATION/PROJECT ADMINISTRATOR: The Contractor shall work closely and cooperate with the City's designated Project Administrator. This Agreement will be administered on behalf of the City by the Project Administrator, or his/her designee, shall be the principal officer of the City for liaison with the Contractor, and shall review and give approval to the details of the Services as they are performed. The City designates Lenore Gonzales, Recreation Supervisor/Senior Services as it's Project Administrator, a nd reserves the right to appoint another person as Project Administrator upon written notice to the Contractor. 3. TIME OF PERFORMANCE: The Contractor shall perform the Services i n a timely manner in accordance with direction from the Project Administrator. The Contractor must be able to provide the following: • Must be available, during set, regular business hours, to show the Azusa Woman's Club to potential clients. • Must be available, during set, regular business hours, to meet with clients, to discuss arrangements and details of the client's upcoming event(s). • Must be available to meet with city personnel, at times within short notice, to discuss the Azusa Woman's Cl ub, facility walk-throughs, etc. • Must be available to meet with Los Angeles County Health Inspectors at the Azusa Woman's Club, during announced and unannounced inspection visits. The selected caterer must be able to respond in person, immediately. • Please note: The Azusa Woman's Club will not be available for rentals on Wednesdays or Thursdays. • Please note: The Azusa Woman's Club will not be available the first weekend through the second (2nd) weekend in October due to the City of Azusa, Golden Days activities. If days during this period should become available the Contractor will be given ample notice in an effort to utilize these days for rental purposes, with the exception of Wednesdays and Thursdays. 4. CITY POLICY: The Contractor shall discuss and review all matters relating to the Services with the Project Administrator in advance of all critical decision points in order to ensure that the Services proceed in a manner consistent with the goals and policies of the City. 5. CONFORMANCE TO APPLICABLE REQUIREMENTS: All aspects of the provision of the Services by the Contractor shall at all times conform to applicable city, county, state, and federal requirements and be subject to approval of the Project Administrator and the City. (3) · 6. INDEMNIFICATION: The Contractor shall indemnify, defend, and hold harmless the City, it's elected officials, officers, employees and agents against, and will hold and save each of them, harmless from any and all actions, claims, damages to persons or property, penalties, .obligations to liabilities that may be asserted to claimed by any person, firm, entity, corporation, political subdivision, or other organization arising out of or in connection with the provision of the Services by the Contractor, op(:rations, or in connection with the provision of the Services by the Contractor, operations or activities of the Contractor, it's agents, employees or subcontract provided for her ein, whether or not there is concurrent passive or active negligence on the such actions, claims, damages to persons or property, penalties, obligations or liabilities arising from the sole negligence or willful misconduct of the City, it's elected officials, officers, agents, servants, or independent contractors who are directly responsibility of the City and in connection therewith: A. The Contractor will defend any action or actions filed in connection with any said claims, damages, penalties, obligations, or liabilities, and will pay all costs and expenses, including attorney's fees incurred in connection therewith. B. The Contractor will promptly pay any judgment rendered against the Contractor or the City covering such claims, damages, penalties, obligations, or liabilities, arising out of connection with such services, operation, or activities, or the Contractor hereunder; and the Contractor agrees to save and hold the City harmless there from. C. In the event the City is made a party to any action or proceeding filed or prosecuted against the Contractor for such damages or other claims arising out of or in connection with the work, operations or activities of the Contractor hereunder, the Contractor agrees to pay the City any and all costs and expenses incurred by the City in such actions or proceedings, together with reasonable attorney's fees. 7. STANDARD OF CARE, LICENSES: The Contractor represents and warrants that it shall keep in effect all appropriate licenses, permits, and other approvals during the term of this Agreement. 8. INSURANCE: Without limiting the Contractor's indemnification of the City, the Contractor shall obtain and maintain at its own expense at all times during the term of this Agreement a policy or policies of liability insurance of the type and amounts described below .and satisfactory to the City, i n its sole and absolute discretion. Such policies shall be signed by a person authorized by the insurer to bind coverage on its behalf, and certificates evidencing such insurance must be filed with the City prior to exercising any right or performing the S ervices under this Agreement. Said policies shall add as insured the City, its elected officials, officers, employees, and agents for liability rising from the Contractor's services as described herein: A. Prior to the commencement of the Services, the Contractor shall provide to the City certificates of insurance with original endorsements and copies of policies, if requested by the City, of the following insurance, obtained from carriers rated in Best's Rating Report as Class A or better. (4) 1. Workers Compensation insurance covering all employees and principals of the Contractor, in a minimum amount of $1,000,000 per accident, effective per the laws of the State of California. 2. Commercial General Liability insurance covering third party liability risks, including without limitation contractual liability, in a minimum amount of $1,000,000 combined single limit per occurrence for bodily injury, personal injury, and property damage. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate shall apply separately to this project, or the general aggregate limit shall be twice the occurrence limit. 3. Commercial Automobile Liability and Property Insurance covering any owned and rented vehicles of Contractor in a minimum amount of $1,000,000 combined single limit per accident for bodily injury and property damage. 4. General Liability Insurance: Vendor shall maintain general liability insurance with coverage at least as broad as Insurance Services Office from CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and proper ty damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standards ISO "insured contract" language will not be accepted. If alcohol is sold during the permitted activity, coverage must include all full liquor liability. Agency, its officers, officials, agents, and employees shall be included as additional insureds on the policy. B. Said policy or policies shall be endorsed to state the coverage shall not be suspended, voided, canceled by either party, or insurance reduced in coverage or in limits except after (30) days' prior notice has been given in writing to the City. The Contract or shall give to the City prompt and timely notice of all claims made or suits instituted arising out of or related to the Services or the Contractor's performance hereunder. The Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance which in its own judgment may be necessary for its proper protection and performance of the Services. C. The Contractor shall include subcontracting consultants, if any, as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for each subcontractor shall be subject to the requirements stated herein. D. The Contractor shall list the City of Azusa, 213 E. Foothill Blvd., Azusa CA 91702, as additional insured, along with endorsement(s), on all insurance certificates/policies. 9. PROGRESS The Contractor shall keep the Project Administrator and/or his/her duly authorized designee informed on a regular basis regarding the status of Services, activities performed and planned hereunder. 10. SCHEDULING The Contractor shall book a minimum of seventeen (17) events at the Azusa Woman's Club. The calendar shall be coordinated to allow for certain weekend evening events organized by the City and non-profit organizations. (5) SECTION III SPECIFIC ADDITIONAL RESPONSIBILITIES OF CITY 1. The City shall work with Contractor to coordinate scheduling and payments for set -up and clean-up for events which Contractor has booked under the guidelines of this agreement. 2. The City shall pay utility bills, phone bills, Health Department License, quar terly cleaning fees, janitorial service, and other fees or bills currently associated with the expenses of the Azusa Woman's Club facility. 3. The City shall maintain the exterior grounds and continue to complete interior maintenance as needed and in cooperation with the Contractor. 4. The City shall make appropriate referrals to Contractor to maximize schedule of booked events benefiting both parties. 5. The City will continue to work with non -profit organizations to hold events at the Azusa Woman's Club. A minimum number MAY be allowed on Saturday evenings. 6. The City will coordinate with Contractor regarding specific dates desired to be available for City and/or non-profit organization events. SECTION IV SPECIFIC ADDITIONAL RESPONSIBILITIES OF THE CONTRACTOR 1. The Contractor shall target to guarantee a minimum of seventeen (17) events per City Council approved fee schedule. Such guarantee includes "showing" the facility and working with prospective renter to create a package of services that may be offered by the Contractor. 2. The contractor shall forward the facility rental check, made payable to "The City of Azusa" to the project Administrator and/or his/her duly appointed designee. 3. Any and all Service Packages offered by the Contractor shall be separate from the Hall Rental Agreement with payment for such services being made directly to the contractor. 4. Contractor's Service Package(s) shall be reviewed and approved by the City prior to being offered to the public. 5. At least one (1) Service package offered by the Contractor will include a Mexican style menu. At least one Service package offered by the Contractor will include a Country BBQ style menu. 6. The Contractor shall provide appropriate staff for all events scheduled by Contractor. Staffing shall include set-up, teardown, and clean-up of the Azusa Woman's Club facility, leaving the facility clean and in order fo r the next event. Staffing shall include appropriate security for the events. (If separate, Security Guards are hired when alcohol will be part of an event. The Security Company must be in a possession of a current City Business License). Security requirem ent is identified in City Municipal Code, section 18-375. (6) . 7. 8. 9. 10. 11. 12. 13. Contractor shall maintain regular office hours in the Azusa Woman's Club or at their personal place of business in order to show the facility, book reservations, and plan events which will take place in the Azusa Woman's Club with customers and potential customers. The Contractor must also be available for un-announced health inspection visits by the Los Angeles County Department of Health. At times, within a five minute notice by the inspector. Contractor shall be able to repair, replace, or augment furnishings and/or amenities as needed to maintain a high level of service to customers. Project Administrator must approve all changes/additions in advance. Contractor shall maintain, at own expense, a phone line on the premises for business use. Contractor will be responsible for monthly phone bills. Contractor agrees to provide free catering services for two mutually agreed upon City sponsored (or staff) events annually. Contractor will be equipped with a wide variety of selection in the area(s) of: linen selections, table ware, glass ware, portable appliances, decorative accents, etc., in an effort to provide a high quality of service. Contractor will furnish the Azusa Woman's Club with thirty, 60' round tables, five 6ft. oblong tables, and five 8 ft. oblong tables. Contractor will submit a check-off list before and after each event, showing the walk- through process of facility between client and Contractor's staff. This report will show compliance and/or lack of compliance and will determine whether the security deposit, partial security deposit or no security deposit, will be returned to the client. The check off list must be delivered to the Azusa Senior Center by the next business day, or faxed to (626) 969-5611, Attn: Jennifer Retana, Senior Administrative Technician. (7) SECTIONV GENERAL PROVISIONS 1. .TERM. This Agreement shall commence on December 12 2018 and terminate on June 30, 2019, unless terminated sooner in accordance with the terms of this Agreement. 2. Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant ma y not terminate this Agreement except for cause. 3. SUBCONTRACTOR The Contractor shall not subcontract any portion of the services except as expressly stated herein, without prior written consent of the City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 4. NOTICES All notices required hereunder shall be given in writing to the following address or such address as the parties may designate by written notice: To The City: Lenore Gonzales, Recreation Supervisor/Senior Services Azusa Senior Center 740 N. Dalton Avenue Azusa CA 91702 To Contractor: The Bashful Butler. Attn: Ben Shultz 124 E. Santa Fe Ave. Azusa CA 91702 5. ATTORNEY' S FEES AND COSTS. If any legal action or other proceeding is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default or misrepresentation in connection with any provisions of the Agreement, the successful or prevailing party shall be entitled to recover reasonable attorney's fees and other costs. Incurred in that action or proceeding, in addition to any other relief to which it may be entitled. 6. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the City and the Contractor and supersedes any prior verbal or written statements or agreements between the City and the Contractor. No supplement, modification, or amendment of the Agreement shall be binding unless executed in writing by both parties. (8) ' I IN WIT NESS WHEREOF, the parties hereto have accepted and made and executed this Agreement upon the terms, conditions, and provisions set forth above as of the Effective Date. “CITY” “CONTRACTOR” By: ___________________________ By: ____________________________ Date: ___________________________ Title: ____________________________ Date: ____________________________ ATTEST: By: _________________________ City Clerk, City of Azusa Date: _________________________ APPROVED AS TO FORM: _________________________________ City Attorney _________________________________ Date