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HomeMy WebLinkAbout09-144 Resolution No. 09-144 RESOLUTION AUTHORIZING EXECUTION OF A FOXFIREFEST ALCOHOL RETAILER AGREEMENT WITH THE DOWNTOWN NEIGHBORHOOD ASSOCIATION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Diane Robertson,City Clerk,be and are hereby authorized and directed to execute a FoxFireFest Alcohol Retailer Agreement on behalf of the City of Elgin with the Downtown Neighborhood Association,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock,Mayor Presented: June 10,2009 Adopted: June 10, 2009 Vote: Yeas: 6 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk FoxFireFest Alcohol Retailer Agreement THIS AGREEMENT is hereby made and entered into this 10th day ofJune 2009, by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City") and Downtown Neighborhood Association of Elgin (hereinaf- ter referred to as "Vendor"). WHEREAS, City conducts an annual festival known as the "FoxFireFest" along the city's riverfront in Festival Park; and WHEREAS, City has determined it to be in its best interests to engage the services of Vendor to serve as its alcoholic liquor retailer for the 2009 FoxFireFest; NOW, THEREFORE, in consideration of the mutual promises and covenants con- tained herein, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 1. Vendor shall have the exclusive right to sell alcoholic beverages at the 2009 FoxFi- reFest. 2. Vendor shall dispense and serve alcohol only from those three (3) locations within the 2009 FoxFireFest grounds designated by the City. 3. Vendor shall staff two (2)wrist banding stations at locations within the 2009 FoxFi- refest grounds identified by the City. In addition, vendor will have at least two persons roam- ing the festival grounds wrist banding persons 21 years of age and older. Vendor shall be re- sponsible for purchasing wristbands, checking identification to confirm lawful drinking age, and banding the wrists of persons 21 years of age or older who wish to purchase alcohol from the Vendor at the 2009 FoxFireFest. 4. All alcohol sold at the 2009 FoxFireFest shall be purchased by Vendor from City Sales. Vendor, the City of Elgin, and City Beverage shall determine the appropriate the prod- uct mix of alcoholic beverages that will be offered for purchase by Vendor during the 2009 FoxFireFest. 5. Vendor shall provide City with proof of completion of a state certified "beverage alcohol sellers and service education and training program" (BASSET) for each person selling alcoholic beverages during the 2009 FoxFireFest. 6. City shall not be required to provide storage space for Vendor's equipment, goods or perishable items. City may provide storage space to Vendor at City's sole discretion. In the event Vendor stores any equipment on City's property, Vendor shall be solely liable for any and all damage or theft to Vendor's equipment. CITY SHALL NOT BE LIABLE FOR ANY LOSS OR DAMAGE TO ANY Vendor EQUIPMENT, GOODS OR PERISHABLE ITEMS PURSUANT TO ANY BAILMENT OR OTHER BASIS OF LIABILITY. 7. City shall provide for and pay all costs for utilities and refuse disposal services which may be reasonably required by Vendor in the performance of its duties hereunder. 8. Vendor shall pay to City 4 2 sod from rattecordxakthe gross sales, exclud- ing sales tax, of all alcoholic beverages sold during the 2009 FoxFireFest.zincadditionAza- gleasigaibmakextcaltaritable'cincthocannatrithoficxxxxxxxxxxxxxxxxxxxxxxxverzentrzt l c iddait x ciiiixaktitt C x k durt ittx3 F3oce uE s ccxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx4 ibschathakatepotgaiiizationorkettgRigneskinatitibet2tizacifii(*Opofxthoot3c.Sxxisatemabibmazint Coder 9. Vendor shall keep and maintain records of all beverage sales served pursuant to this agreement. All records shall be in a form satisfactory to the City and in accordance with good accounting practice. The aforementioned records shall be made available upon request to the City or its duly authorized representatives for inspection, copying or auditing purposes upon reasonable notice. 10. Vendor shall pay all monies provided herein to the City and the charitable organi- zation identified in paragraph 8 within three (3) days following the final date of the 2009 FoxFireFest. All payments shall be accompanied by a signed written report of the gross re- ceipts for that event. 11. Vendor shall provide all equipment necessary for dispensing, selling and serving alcohol which shall be used to provide the required services for this agreement. The place- ment location of all equipment must be approved in writing by the City prior to its placement within the 2009 FoxFireFest grounds. 12. No alcoholic beverages shall be served in glass bottles. 13. Vendor shall keep and maintain all assigned locations in a clean, orderly and sani- tary condition at all times and in strict accordance with all applicable laws, ordinances and regulations. 14. Vendor shall provide sufficient personnel to serve alcoholic beverages and provide wrist banding at the respective service stations for those activities and shall provide to the City the names of all persons working at the 2009 FoxFireFest twenty-four(24) hours prior to the event. Vendor, its employees, agents, partners or assigns shall not unreasonably disturb patrons and spectators or interfere with a program or event in progress. Upon request of the City, Vendor shall remove any employee, agents, partner or assign from the building and not allow that person to again serve without the written approval of the City. 15. Vendor shall not make any alterations in or additions to the 2009 FoxFireFest grounds without the express written consent of the City. 2 Vendor: ---Dowvc UW n jJ ti314 tow et,notAgoGi 44) - E19i k Address: 2 I-) ovpi s /N-e.tr ,te, City, State ZIP: E-1� ,i•. / I L, (, o l 2 0 All notices directed to City shall be considered effective when sent via U.S. mail to: Ms. Daina DeNye Assistant Purchasing Director City of Elgin 150 Dexter Court Elgin, IL 60120-5555 24. This agreement shall be subject to and governed by the laws of the State of Illi- nois. Venue for the resolution of any disputes and the enforcement of any rights arising out of or in connection with this agreement shall be in the Circuit Court of Kane County, Illinois. 25. The terms of this agreement shall be severable. In the event any of the terms or provisions of this agreement shall be deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect. 26. This agreement shall not be construed so as to create a joint venture, employment, partnership or agency relationship between the parties hereto. 27. This agreement is the sole and exclusive agreement between the parties hereto. There are no other agreements, either oral or written, which amend, modify or otherwise af- fect this agreement. This agreement shall not be amended or modified without the written consent of the parties hereto. 28. Vendor shall pay to City the cost of any damage to City property or goods arising out of or in connection with Vendor's negligent performance o ' agree n upon 30 days written notice of the cost of such damage by City. CITY OF ELGIN W 2 1 By: -� By: -14v,„7�v�e 1 L Olu em' Folarin, k ity Manager Attest: City Clerk 4 16. Vendor shall not post any signs, other than price schedules within the 2009 FoxFi- reFest grounds without the express written consent of City. 17. Vendor shall comply with all federal, state and local laws and regulations, includ- ing but not limited to, the obtaining of any licenses or permits which may be required. 18. Vendor hereby waives and releases City from any and all liability for loss or dam- age to goods, merchandise or equipment of Vendor used or stored at any City owned property. 19. Vendor shall furnish City with a liability insurance policy naming the City as an additional insured in the following amounts: Personal Injury: $1,000,000 per person Property Damage: $1,000,000 per occurrence Vendor shall also provide City a policy of insurance commonly known as "dram shop" insurance, including City as an additional insured, covering the service of alcoholic beverag- es. Said policy shall be subject to approval by City. Such insurance policies as provided by this agreement shall apply as primary insurance with respect to any other insurance or self- insurance program afforded to or utilized by City. There shall be no endorsement or modifica- tion of such insurance to make it excess over other available insurance, and alternatively, if such insurance states that it is excess or pro rata, it shall be endorsed to be primary with re- spect to City. 20. Vendor hereby agrees to hold harmless, indemnify and defend City, its officers, employees, agents, boards, commissions and assigns from and against any and all causes of action, claims for damages, suits, and any and all other liability of whatsoever nature, includ- ing but not limited to attorney's fees, arising out of or in connection with Vendor's negligent performance of this agreement. Nothing herein shall be construed so as to waive Vendor's du- ty to defend City. In the event of any action against City, its officers, agents, employees, boards, commissions or assigns covered by the aforementioned duty to indemnify, hold harm- less and defend, such action shall be defended by counsel of City's choosing. 21. Vendor shall not assign, transfer or convey any interest in this Agreement without the written consent of the City. 22. Vendor shall not hold itself out as an agent of the City. 23. This agreement shall terminate after Vendor has fulfilled its obligations under this Agreement as the exclusive alcoholic liquor retailer for the 2009 FoxFireFest. City may ter- minate this agreement for any reason at any time at City's sole discretion and without liability of any kind upon seven (7) days written notice via U.S. mail. Such notice shall be considered effective when sent to: 3 • •`41 May 21 2009 , la TO: Mayor and Members of the City Council = 11 FROM: Olufemi Folarin, City Manager f erreannau(,lrisnrr and RuthAnne K. Hall, Management Analyst cnirnraaOpporninirixsfor 4ll(:iri.ens SUBJECT: Downtown Neighborhood Association Service Agreements for the 4th of July Parade and FoxFire Fest PURPOSE The purpose of the memorandum is to provide information to the Mayor and members of the City Council to consider two Service Agreements with the Downtown Neighborhood Association(DNA) for the 4th of July Parade and FoxFire Fest. RECOMMENDATION It is recommended that the City Council consider a Purchase of Service Agreement with the DNA for the 4th of July parade in the amount of $31,807 and an agreement for DNA to participate as the alcohol vendor for the 2009 FoxFireFest. BACKGROUND Since its founding in 1998, the DNA has been dedicated to revitalizing downtown Elgin. The DNA is a not for profit 501(c)3, volunteer driven coalition that represents the interests of the individuals and organizations with a presence in downtown Elgin. DNA's purpose is to foster a center of activity and ensure economic stability for the heart of Elgin through historic preservation, communication, education,promotion and economic revitalization. Since 2000, the DNA has carried the responsibility of the event planning and implementation of the 4th of July parade held in the City's downtown. Historically, the City provided cash contribution as a co-sponsor for the event,plus assistance with labor and equipment from various City departments. The event will take place on Saturday, July 4th, beginning at 9:00 a.m. The event will commence at the corner of Douglas and Slade Avenues and proceed south to the corner of Douglas and Highland Avenues. The 2009 Budget includes $16,000 for the event planning and implementation of the 4th of July Parade. This amount is a 38 percent decrease in funding from 2008. In 2008, additional funding was provided to assist with the cost of an after parade concert. This year, DNA is coordinating DNA Service Agreements for the 4th of July Parade and FoxFire Fest May 21,2009 Page 2 with some of the downtown bars and restaurants to take over the task of providing post parade entertainment. DNA will also be seeking additional funding for the event from outside organizations. City funds will be applied to expenses related to securing additional live entertainment, marching bands, entertainment, and marketing and promotion of the event as indicated in the budget attached to the purchase of service agreement. DNA will be responsible for providing an accounting of how the $16,000 was expended upon conclusion of the event. This amount does not include costs to the City for providing the necessary labor and equipment associated with the event. DNA has requested that the City provide services for the necessary labor and equipment for the event. It is estimated, based on costs attributed to the event in 2008, that the labor and equipment costs for the event will total $15,807. The following is a listing of the projected costs for the necessary labor and equipment. 1. Placement of barricades to block off streets from traffic: The estimated cost for the barricade rental is $700. Staff estimates that 23 man hours and equipment will be utilized for pre-setup at a cost of$812 and 48 man hours and equipment will be used on the day of event for placement and pick up of barricades at a cost of$2,356. 2. Street Sweeping: Estimated cost for sweeping the street prior to and after the parade is estimated at $719, which includes $346 for the labor, $274 for the use of equipment, and $99 for the water. 3. Police Labor: Estimated cost of twenty-five (25) officers to assist with the security for the event for a period of seven(7)hours is$10,000. 4. Port-o-lets and Hand washing Stations: Estimated cost for placement of four standard port-o-lets ($344), two handicapped port-o-lets ($224), and two hand washing units ($224) is $792. 5. Equipment in the Parade: Estimated cost for the use of two pieces of Public Works equipment and the eight man hours needed to operate them for the parade is$428. In addition to their work with the 4th of July Parade, the DNA has been selected as the alcohol vendor for the 2009 FoxFire Fest. As in the past two years, proposals were sought from not-for- profit organizations to coordinate the sales of alcohol at the 2009 FoxFireFest. The Request For Proposal (RFP) requested information regarding the organization's ability to obtain a state and local liquor license, percentage of sales to be given back to the City of Elgin, the ability to purchase the alcohol from the distributor, proof of insurance listing the City of Elgin as additionally insured, and alcohol training certifications or courses attended. DNA submitted a proposal based on the organization and the City's shared interest in creating an "Alive Downtown"—one of the strategic goals for the City of Elgin. In their proposal, they indicated that they would be seeking to partner with three of the bars located in downtown Elgin to provide the services as the alcohol vendor. It is the intent of the DNA to split any of the DNA Service Agreements for the 4th of July Parade and FoxFire Fest May 21,2009 Page 3 profits realized from the event with the three establishments, thus providing an additional economic impact to downtown as part of the FoxFire Fest. It was for this reason that DNA was selected as the vendor for alcohol for the FoxFire Fest. In addition, DNA has agreed to pay the City $2,500 from their earnings, of which $1,000 will go towards the rental of the tables and tents for the beer area. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT The total cost of the Purchase of Service Agreement with DNA for the 4th of July Parade is a not- to-exceed amount of$31,807. Funds totaling $16,000 have been budgeted and are available for event planning and implementation of the 4th of July Parade by DNA in the Riverboat Fund, account number 275-0000-791.80-36, "Contributions-DNA." Police services will equal no more than $10,000 and will be charged to the General Fund, Police Department Overtime Employee Earnings, account numbers 010-2301-731.02-02, 010-2305-731.01-02, 010-2308-731-01-02, and 010-2312-731.01-02, project number 039827 where sufficient funds exist to pay for the personnel related overtime costs. A total of$1,865 will be allocated to the costs of port-o-lets, hand washing units, street sweeper, and barricades and will be charged to the General Fund, "City Sponsored Events - Miscellaneous Services," account number 010-0801-709.45-99 where $40,000 is budgeted and available. Cost of labor provided by the Public Works for the event will equal $3,596 and will be charged to the General Fund, "Public Works Department- Overtime Earnings," account numbers 010-3321-753.01-02, 010-3343-755.01-02, and 010-3371-761.01- 02. Cost of labor provided by the Water Department will equal $346 and will be charged to the Water Fund, "Overtime Earnings,"account numbers 401-4005-771.01-02 and 430-4202-772.01- 02. The 2009 FoxFire Fest budget shows $163,900 in revenue and $203,640 in expenditures (excluding staff overtime). As the recommended alcohol vendor for the 2009 FoxFire Fest, DNA will pay the City$1,500 from their earnings. LEGAL IMPACT None DNA Service Agreements for the 4th of July Parade and FoxFire Fest May 21, 2009 Page 4 ALTERNATIVES 1. The City Council may choose to approve the service agreements with the Downtown Neighborhood Association to organize the 4th of July Parade in the amount of$31,807, and provide alcohol retail for the third annual FoxFireFest on August 1st and 2nd, 2009. 2. The City Council may choose not to approve the service agreements with the Downtown Neighborhood Association to organize the 4th of July Parade in the amount of$31,807, and provide alcohol retail for the third annual FoxFireFest on August 1st and 2nd,2009. Respectfully submitted for Council consideration. RICH Attachments ,C,4 OF E4C RIF City of Elgin Memorandum RATED Ftsb ,: Date: June 23, 2009 To: RuthAnne Hall, Management Analyst From: Jennifer Quinton, Deputy City Clerk Subject: Resolution No. 09-144, Adopted at the June 10, 2009, Council Meeting Enclosed you will find the agreement listed below. Please retain a copy for your records. If you have any questions please feel free to contact our office 847-931-5660 and we will do our best to assist you. Thank you. • Alcohol Retailer Agreement with the Downtown Neighborhood Association for FoxFireFest