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ITEM 6
City Council Memorandum Community Services Memo No.
Date:
November 4, 2021
To:
Mayor and Council
Thru:
Joshua Wright, City Manager
Debra Stapleton, Assistant City Manager
Andy Bass, Community Services Director
From:
Andy Bass, Deputy City Manager
Subject:
Amendment Number Three To Memorandum Of Agreement For Desert Breeze Railroad
Proposed Motion:
Move City Council approve Resolution No. 5530 third Amendment to Memorandum of Agreement with Chandler Amusements, LLC for Amusement Train Ride and Concession Services at Desert Breeze Park.
Background:
The City of Chandler has used an outside contractor to provide train and concession services for public enjoyment at Desert Breeze Park for many years. The contractor is responsible for operating and maintaining the train, train track, and concession areas. The services are to be provided year round, but services are optional from May 31 through August 31. In 2004, the City released a Request For Proposal (RFP) for these services. In response to the RFP, the City contracted with Chandler Amusements, LLC, on September 3, 2004. Chandler Amusements has been providing the train and concession services since that date. The current agreement expires on August 15, 2024.
Discussion:
Chandler Amusements has requested that the City consider an updated agreement to help in their future planning. Chandler Amusements has been a valued partner who satisfactorily performs the operations of the agreement. The changes being presented in this third amendment include:
Increase the term of the agreement for an additional seven years, until August 31, 2031.
Updated insurance requirements to meet current City standards for other similar agreements.
Revenue sharing remaining at 8% of gross until August 2024 and then increasing to 9% on September 2024 for the reminder of the term of the agreement.
Requirement of contractor to post policies and hours of operation both on-site and online. Contractor must communicate in advance to the public and the City via online and electronic means any daily change in operation schedule or cancellation of operations.
Updated termination by the City language to include that the City may not terminate solely for convenience.
The City may terminate if the Contractor is in default of the agreement or has failed to provide the services in a manner consistent with the requirements of the agreement or if the contractor falls to cure any default after notice from the City.
Removal of the performance bond requirement for contractor.
Focus Icons (text will appear on the agenda)
Financial Implications:
Revenue sharing remaining at 8% of gross until August 2024 and then increasing to 9% on September 2024 for the reminder of the term of the agreement which will result in greater revenue to the City.
Attachments
Resolution No. 5530
Agreement DB Railroad
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