HomeMy WebLinkAbout25H - AGMT - CONCESSION SRVS AT SA STADIUMREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 20, 2012
TITLE:
AGREEMENT WITH KARMINA
RESTAURANT FOR CONCESSION
SERVICES AT THE SANTA ANA STADIUM
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1St Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager and Clerk of the Council to execute the attached agreement
amendment with Karmina Restaurant and Grill for concession services at the Santa Ana
Stadium, subject to non-substantive changes approved by the City Manager and City Attorney.
DISCUSSION
On August 6, 2010, City Council awarded a contract to Karmina Restaurant and Grill after a
formal RFP process. Santa Ana based Karmina Restaurant, co-owned by Adolfo Lopez and
Carlos Madriles, operates the "Downtown Stadium Grill" at the Santa Ana Stadium. For over a
year, Downtown Stadium Grill offered a diverse menu including fresh sandwiches, Panini's,
salads, wraps, burgers, and Mexican food for the Civic Center lunch crowd. In addition,
Downtown Stadium Grill offered an alternate menu for sporting events including fan favorites
such as hotdogs, popcorn, cotton candy, kettle corn, pretzels and frozen lemonade. The
concession fee for providing both daily service and special event service is $600 per month
plus 10% or gross proceeds.
After a year of servicing both daily crowds and special events, the owners determined that
operating the daily restaurant was not profitable in the current economy. This agreement
amendment gives the contractor the option to service Stadium special events only. The
concession fee for providing special event service will be 10% of the gross proceeds
(eliminating the $600 monthly fee). The agreement amendment also gives the contractor the
option of re-opening for daily service if economic conditions support it. In February 2012,
Karmina Restaurant and Grill submitted a written request to operate at special events only and
this amendment retroactively reduces the concession fee by $600 per month effective
February 1, 2012.
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Agreement with Karmina Restaurant
August 20, 2012
Page 2
The Parks, Recreation and Community Services Agency (PRCSA) recommends the City
amend the contract for a two year term and continue with Downtown Stadium Grill to make the
Stadium a more attractive and versatile venue for a variety of special events. PRCSA will
continue to share 5% of the gross proceeds with Santa Ana College and the local high schools
that reserve the Stadium for their football games.
FISCAL IMPACT
The total projected annual revenue of $5,000 will be deposited in the Recreation Special Fees
and Donations account (no. 02213002 57010) and be used for deferred maintenance at the
Stadium.
APPROVED AS TO FUNDS AND ACCOUNT:
A?"
Ger
ardo ,
Mou
Executive Director
Parks, Recreation and Community
Services Agency
Francisco Gutierrez,
Executive Director
Finance and Management Services Agency
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FIRST AMENDMENT TO AGREEMENT
THIS FIRST AMENDMENT TO AGREEMENT is entered into on August 20, 2012, by
and between Karmina Restaurant & Banquet Hall, a California limited liability company
("Concessionaire") and the City of Santa Ana, a charter city and municipal corporation organized
and existing under the Constitution and laws of the State of California ("City").
RECITALS:
A. The parties entered into that certain Concession Agreement # A-2010-149, dated September
3, 2010, (hereinafter "said Agreement") by which Concessionaire has provided concession
services at the Santa Ana Stadium.
B. In accordance with the terms and conditions of said Agreement, the parties wish to amend the
Scope of Services and compensation terms and extend the term for an additional two-year
period.
WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to all
the terms and conditions of said Agreement, except those amended in this First Amendment to
Agreement, the parties agree as follows:
1. Section 1, SCOPE OF SERVICES, shall be amended to reflect the Parties' agreement that,
effective February 1, 2012, Concessionaire ceased providing weekday breakfast and/or lunch
service, as set forth in Exhibit A, Section 4.
2. Section 2.a., COMPENSATION, shall be deleted in its entirety and replaced with the
following:
"In consideration of the concession rights granted by said Agreement, the parties agree that,
effective February 1, 2012, Concessionaire shall pay the City ten percent (10%) of gross
receipts from the operations of Downtown Stadium Grill, including any catering from the
site. Payment is due on the 10`h day of each month, and shall be accompanied by an
accounting of gross receipts during the previous month.
The parties further agree that if Concessionaire commences providing breakfast and/or lunch
service, the concession fee will be increased to $600 per month plus ten percent (10%) of
gross receipts."
Section 3, TERM, shall be amended to extend the term of said Agreement for an additional
two year period, through August 31, 2014.
4. Except as hereinabove amended, all terms and conditions of said Agreement shall remain in
full force and effect.
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IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agreement
on the date and year first written above.
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By:
Laura Sheedy
Assistant City Attorney
CITY OF SANTA ANA
PAUL M. WALTERS
City Manager
KARMINA RESTAURANT &
BANQUET HALL
CARLOS MADRILES
Owner
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