FEDRAC PKT 07-12-2005
J'
AGENDA
1. CALL TO ORDER
2. PUBLIC COMMENT
3. COMMITTEE BUSINESS
A. Approval of the June 14,2005 Minutes
B. Espresso Cart in City Hall (Matheson)
C. Comcast Franchise Extension (Sadri)
Action
Action
Action
4. . OTHER
5. FUTURE AGENDA ITEMS
A.
B.
6. NEXT MEETING:
FEDRAC - Economic Development:
FEDRAC: July 26, 2005
August 9, 2005
Committee Members;.
Eric Faison, Chair
Jeanne Burbidge
Jim Perrell
Citv Starr
Patrick Doherty, Economic Development Director
Jordan Wheeler, Management Intern
(253) 835-2403
I-1071205 Agenda. doc
MINUTES
Committee Members in Attendance: Chair Eric Faison, Member Jeanne Burbidge, and Member Jim Ferrell.
City Council Members in Attendance:
Staff Members in Attendance: David Moseley, City Manager; Karen Kirkpatrick, Deputy City Attorney; Rob
VanOrsow, Solid Waste/Recycling Manager; Jordan Wheeler, Management Intern.
Others in Attendance:
L CALL TO ORDER
Chair Eric Faison called the meeting to order at 5:36 p.m.
2. PUBLIC COMMENT
None.
3. COMMITTEE BUSINESS
a) Approval of the May 10. 2005 meeting minutes
Motion to approve the May 10, 2005 meeting minutes. Motion seconded and carried.
b) Extension of Contract Term for Solid WastelRecvcling Services
Presented by Rob VanOrsow
Mr. VanOrsow reviewed the proposal to extend the contract for solid waste and recycling services
with Waste Management through 2008.
Motion to forward Options 1 and 2 to full Council for approval. Motion seconded and carried.
4. OTHER
None.
5. FUTURE AGENDA ITEMS
a) Statutory changes in the State Legislature that may impact Economic Development.
6. NEXT SCHEDULED MEETING
July 12, 2005 at 5:30 p.m. in the Hylebos Conference Room.
7. ADJOURN
Chair Eric Faison adjourned the meeting at 5:43 pm.
Recorded by Jordan Wheeler
A-I
CITY OF FEDERAL WAY
CITY COUNCIL COMMITTEE STAFF REPORT
DATE:
July 12,2005
Finance, Economic Development, and Regional Affairs Committee
David~anager ~
Dcrck ~athes~ '~:si~tant City Managetl-'
Jordan Wheelcr, Management Intem~
SUBJECT: Espresso Cart Contract
TO:
VIA:
FROM:
Policy Question
Should the Council authorize the City Manager to enter into a contract for providing espresso
services at city hall?
Background
There has been interest amongst both city staff and visitors to city hall to provide espresso
services at city hall during normal working hours and city council meetings. Currently these
services must be obtained outside of city hall at businesses throughout the city.
Last December staff went out with a first RFP, receiving one response and entering into
discussions with The Java Store. However, before signing an agreement with the city, the owner
sold the business and moved from Federal Way. Staff contacted the new owner of the business
but she was not interested. Therefore, staff recently went out for a secondRFP, rcceiving two
proposals from Terino's Espresso and Just in Time Espresso.
Staff determined that the Just in Time Espresso proposal was not responsive to the City's
requests and entered into discussions with Terino's Espresso. The attached draft contract is very
similar to ones used for concessionaire services at Celebration Park. It calls for a one-year deal
with an option for another year at the City's discretion. The vendor has agreed to remit to the
city a flat fee and a percentage of gross revenues on a sliding scale as shown in section 5 of the
agreement. A list of products and prices is provided in Exhibit B. The vendor also agrees to pay
for the cost of installing a three-compartment sink in the first floor janitorial room and vinyl tile
at the espresso cart location in the lobby, per public health department regulations. The attached
draft agreement may need to be modified to comply with hcalth department regulations.
The vendor is to be open during normal working hours and during city council and Federal Way
School Board meetings; both the City and Terino's Espresso will continue to work together to
determine if services should be provided at othcr important mcetings.
B-1
.
Options
1. "Authorize the City Manager to enter into a contract with Tenno's Espresso to provide
espresso services to the City and its visitors to city halL"
Pros:
1. Provides a convenient place for providing coffee and other refreshments toboth
city employees and visitors without having to travel outside of city hall.
2. Supports a local business
3. Proyides a small amount of revenue to the City.
4. Proposal is consistent with other concession contracts.
2. Go back out for a third RFP for espresso services.
Pros:
L May receive a more favorable proposal from another vendor.
Cons: .
1. May receive proposals that are not as favorable as the first bid.
2. May not receive any proposals, given past history.
3. No espresso cart in city halL
Cons:
1. Staffand visitors will need to continue traveling outside of city hall for
refreslunents.
2. Loss of potential revenue to, city.
Staff recommendation
Staff recommends option I; to authorize the City Manager to enter into a contract with Terino's
Espresso to provide espresso services to the City and its visitors to city hall.
Committee recommendation
Forward option _ to the full City Council for approval at the July 19th Council meeting.
f)-2
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AGREEMENT
FOR
CITY HALL CONCESSION SERVICES
This Concession Services Agreement ("Agreement") is dated effective this _ day of
,2005. The parties ("Parties") to this Agreement are the City of Federal Way, a
Washington municipal corporation ("City"), and Terino's Espresso, a Washington corporation,
("Concessionaire").
A. The City seeks the temporary services of a skilled independent contractor capable of
working without direct supervision, to provide food and beverage services to the general public at
Federal Way City Hall main lobby; and
B. The Concessionaire has the requisite skill and experience necessary to provide such
services.
NOW, THEREFORE, the Parties agree as follows:
1. Services.
Concessionaire shall provide services as set forth in Exhibit "A" attached hereto and
incorporated by this reference, at concession stand ("Concession Stand") located at City Hall main
lobby ("Services"), in a manner consistent with the accepted practices for other similar services,
performed to the City's satisfaction, within the time period prescribed by the City and pursuant to the
direction of the City Manager or his or her designee.
1.1 Customer Service. Concessionaire and all of its employees, agents, or
representatives shall provide the highest quality of customer service and shall treat all
customers with courtesy and respect Concessionaire shall honor all reasonable requests for
refunds including requests from customers that are dissatisfied with any food, beverage or
other product sold by Concessionaire or from customers who have lost money in any vending
machine owned by Concessionaire.
1.2 Employee Appearance. All of Concessionaire's employees, agents,
representatives or licensees shall have a neat, clean and sanitary personal appearance and
those who come in direct contact with the public shall wear clothing or identification, which
distinguishes them as employees of Concessionaire.
1.3 Employee Training. Concessionaire shall provide a training program for its
employees, agents, or representatives for the development of the skills and techniques
necessary to perform its obligations under this Agreement including but not limited to
promoting customer service, produce and service presentation, cleanliness, positive attitude
and promoting the City's philosophy and policy.
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1.4 Staffing. The Concession Stand shall be properly staffed in order to prevent
undue delay to the public. Concessionaire shall plan its staffing in advance and anticipate to
the best of its ability any events, such as holidays or special events, which may require
additional staffing. In the event the City determines in its sole discretion that Concessionaire
is not adequately staffing the Concession Stand, it may notify Concessionaire ofthat fact and
Concessionaire shall endeavor to immediately increase its staffing to meet the City's
recommendation.
1.5 Hours of Operation. The Concession Stand shall remain open during the
hours of operation set forth in Exhibit "A", unless the City notifies the Concessionaire of
other hours of operation, and such hours of operation shall be posted in a conspicuous place
on the Concession Stand.
1.6. Pricing. All pricing of any food, beverage or other product as set forth in
Exhibit "B" attached hereto and incorporated by this reference, must be competitive and must
be approved in writing by the City. Concessionaire may not change any pricing without the
City's prior written consent, which consent may not be unreasonably withheld.
1.7 Products. All food, beverage or other products offered for sale by
Concessionaire to the public shall be approved in writing by the City prior to distribution or
sale of any such products. Concessionaire shall comply with any reasonable requests made
by the City to either add or eliminate certain types of food, beverage or other products.
2. Concession Equipment.
2.1 Delivery. Concessionaire agrees to deliver and/or install, within thirty days
(30) from the execution of this Agreement, at its sole cost and expense, the concession
facilities, machines and equipment described in Exhibit "C" attached hereto and incorporated
by this reference ("Concession Equipment").
2.2 Alterations. Concessionaire shall not make any alterations, additions or
improvements to the Concession Stand or to the Concession Equipment without the City's
prior written consent, which consent may not be unreasonably withheld. In the event the City
consents to the making of any alterations, additions or improvements to the Concession
Stand and/or Concession Equipment, the same shall be made at Concessionaire's sole cost
and expense, and in the event such alterations, additions or improvements are made to a
structure, building or other improvement attached to the real property, the same will become
a part of the real property and be surrendered to the City upon the termination of this
Agreement. The City has no obligation to alter, remodel, improve, repair, decorate or paint
the Concession Stand.
2.3 Removal of Equipment. In the event the City notifies Concessionaire that it
desires the removal of the Concession Equipment at any time, Concessionaire shall, at its
sole cost and expense, remove the Concession Equipment and repair any damage to the real
property caused by such removal within twenty (20) days.
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2.4 Maintenance. Concessionaire shall, at its sole cost and expense, maintain the
Concession Stand and Concession Equipment and the surrounding real property in good
condition and repair, induding, but not limited to, maintaining the Concession Stand in a
neat, clean and sanitary condition and removing all garbage, trash or other debris on a regular
basis pursuant to the City's instructions.
2.5 Damage to Concession Stand. Ifthe Concession Stand or any part thereof are
damaged by any cause other than the sole negligence of the City, its employees or agents,
Concessionaire shall, at its solc cost and expense, restore the Concession Stand to a condition
equivalent to or better than their condition immediately prior to such damage.
2.6 City Reimbursement. In the event Concessionaire fails to remove the
Concession Equipment pursuant to paragraph 2.3, maintain the Concession Stand or
Equipment pursuant to paragraph 2.4, or repair the Concession Stand pursuant to paragraph
2.5, the City may, but in no event is the City obligated to, remove the Concession Equipment
or perform the maintenance or repair and the Concessionaire shall, upon demand,
immediately pay the City the costs and expenses of such removal, maintenance or repair. In
the event Concessionaire fails to comply with the terms of this paragraph, the City may
confiscate the Concession Equipment or any part thereof and sell the same, the proceeds of
which sale will be credited against any costs or expenses incurred by the City. The sale of
the Concession Equipment shall not constitute an election of remedies by the City but will be
in addition to any remedies available to the City at law, in equity, by statute or under this
Agreement.
2.7 Utilities, Taxes and Expenses. Concessionaire shall pay all costs and
expenses associated with the operation of the Concession Stand other than utility expenses
for water and power, which will be paid by the City. Concessionaire shall pay directly,
before delinquency, any and all taxes levied or assessed upon its leasehold improvements,
equipment, furniture, fixtures and personal property located on the City's property.
3. Term.
The term ofthis Agreement shall commence upon the effective date ofthis Agreement and
shall continue until the completion of the Services, but in any event no later than one (1) year from
the effectiye date, plus a one (1) year option at the City's discretion ("Term"). This Agreement may
be extended for additional periods of time upon the mutual written agreement of the City and the
Concessionaire.
4. Termination.
Prior to the expiration of the Term, the City may terminate this Agreement immediately, with
or without cause.
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5. Compensation.
5.1 Total Compensation. The Concessionaire agrees to pay the City a flat rate of
$200.00 per month, plus the applicable Leasehold Excise Tax referenced in section 5.6, ifthe
Concessionaire's gross monthly revenue, excluding sales tax, is $5,999.99 or below per
month.
Concessionaire agrees to pay the City an amount equal to 5% of the Concessionaire's.
gross monthly revenue, plus the applicable Leasehold Excise Tax referenced in section 5.6, if
gross monthly revenue, excluding sales tax, is between $6,000.00 and $9,999.99;
Concessionaire agrees to pay the City an amount equal to 10% of the
Concessionaire's gross monthly revenue, plus the applicable Leasehold Excise Tax
referenced in section 5.6, if gross monthly revenue, excluding sales tax, is $10,000.00 or
higher.
The term "Gross Monthly Revenue" shall mean the total amount charged .by
Concessionaire, its employees, agents, or licensees, for all goods and merchandise sold or
services performed, whether for cash or other consideration or on credit, and regardless of
collections, including but not limited to orders taken at the Concession Stand but filled
elsewhere and orders taken elsewhere but filled at the Concession Stand.
5.2 Payment Due Date. Concessionaire shall deliver the $200 flat rate or the
percentage payment to the City on or before the 10th day of each month for Gross Monthly
Revenue received during the preceding month ("Due Date").
5.3 Access to Records. Concessionaire shall provide a written statement to the
City on the Due Date showing the total Gross Monthly Revenue for the preceding month
("Statement"). Concessionaire will provide the City or the City's agents or representatives
reasonable access to the books and records of Concessionaire for the purposes of auditing
and inspecting the same to verifY the Statement. The records shall include documents from
which the original transaction entry was made, including sales slips, cash register tapes,
and/or purchase invoices.
5.4 Cash Registers. All sales, other than sales from vending machines, shall be
recorded by cash registers, which display to the customer the amount of the sale and
automatically issue receipts certifying the transaction amount. The cash registers shall be
equipped with devices which lock in sales totals, transaction records, produce duplicate audit
tape, contain counters which cannot be reset and which record the transaction numbers and
sales details on such tape. Any errors shall be noted by Concessionaire on the audit tape with
an explanation. Cash register readings shall be recorded by Concessionaire at the beginning
and the end of each business day.
5.5 Late Fee. Concessionaire acknowledges that late payment to the City ofthe
$200 flat rate or percentage payment will cause the City to incur costs not contemplated by
this Agreement, the exact amount of which will be difficult to ascertain. Accordingly, ifthe
$200 flat rate or percentage payment is not received by the City on the Due Date,
Concessionaire agrees to pay a late fee equal to Twenty-Five and Noll 00 Dollars ($25.00).
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5.6 Concessionaire Responsible for Taxes. The Concessionaire shall be solely
responsible for the payment of any taxes imposed by any lawful jurisdiction as a result ofthe
performance and payment ofthis Agreement; including, but not limited to, Leasehold Excise
Tax, currently at a rate of 12.84 % of the payment to the city.
5.7 Installation of Plumbing. The Concessionaire is responsible for payment of
the installation and plan review of a three-compartment sink, to be located inRoom 1082 of
Federal Way City Hall. Installation will be performed by the city, who will match the lowest
bid provided by Concessionaire.
5.8 Installation of Flooring. The Concessionaire is responsible for payment of the
installation andplan review of a solid, durable, and impervious flooring or floor covering, to
be located underneath the cart and its immediate area of operation. Installation will be
performed by the city.
6. Compliance with Laws.
Concessionaire shall comply with and perform the Services in accordance with all applicable
federal, state, and City laws including, without limitation, all City codes, ordinances, resolutions,
standards and policies, as now existing or hereafter adopted or amended, including but not limited to
the following:
(i) Federal, state and local health, safety and licensing laws relating to the sale of
concession goods; and
(ii) City code provisions requiring any person or entity doing business in the City to
obtain a business registration.
7. Warranty.
The Concessionaire warrants that it has the requisite training, skill and experience necessary
to provide the Services and is appropriately accredited and licensed by all applicable agencies and
governmental entities, including but not limited to being registered to do business in the City of
Federal Way by obtaining a City of Federal Way business registration.
8. Independent Contractor/Conflict of Interest.
It is the intention and understanding of the Parties that the Concessionaire shall be an
independent contractor and that the City shall be neither liable nor obligated to pay Concessionaire
sick leave, vacation payor any other benefit of employment, nor to pay any social security or other
tax which may arise as an incident of employment. The Concessionaire shall pay all income and
other taxes as due. Industrial or any other insurance, which is purchased for the benefit of the City,
regardless of whether such may provide a secondary or incidental benefit to the Concessionaire, shall
not be deemed to convert this Agreement to an employment contract. It is recognized that
Concessionaire mayor will be performing professional services during the Term for other parties;
provided, however, that such performance of other scrvices shall not conflict with or interfere with
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Concessionaire's ability to perform the Services. Concessionaire agrees to resolve any such conflicts
of interest in favor of the City.
9. Indemnification.
9.1 Contractor Indemnification. The Concessionaire agrees to indemnity, defend,
and hold the City, its elected officials, officers, employees, agents, and volunteers harmless
from any and all claims, demands, losses, actions and liabilities (including costs and all
attorney fees) to or by any and all persons or entities, including, without limitation, their
respective agents, licensees, or representatives, arising from, resulting from, or connected
with this Agreement to the extent caused by the negligent acts, errors or omissions of the
Concessionaire, its partners, shareholders, agents, employees, or by the Concessionaire's
breach of this Agreement. Concessionaire waives any immunity that may be granted to it
under the Washington State Industrial Insurance Act, Title 51 RAW. Concessionaire's
indemnification shall not be limited in any way by any limitation on the amount of damages,
compensation or benefits payable to or by any third party under workers' compensation acts,
disability benefit acts or any other benefits acts or programs.
9.2 City Indemnification. The City agrees to indemnify defend, and hold the
Concessionaire, its officers, directors, shareholders, partners, employees, and agents hannless
from any and all claims, demands, losses, actions and liabilities (including costs and attorney
fees) to or by any and all persons or entities, including without limitation, their respective
agents, licensees, or representatives, arising from, resulting from or connected with this
Agreement to the extent solely caused by the negligent acts, errors, or omissions of the City,
its employees or agents.
9.3 Survival. The provisions of this Section shall survive the expiration or
termination of this Agreement with respect to any event occurring prior to such expiration or
termination.
10. Equal Opportunity Employer.
In all Concessionaire's activities, including the performance ofthe Services and all hiring and
employment made possible by or resulting from this Agreement, there shall be no discrimination by
Concessionaire or by Concessionaire's employees, agents, subcontractors or representatives against
any person because of sex, age (except minimum age and retirement provisions), race, color, creed,
national origin, marital status or the presence of any disability, including sensory, mental or physical
handicaps, .unless based upon a bona fide occupational qualification in relationship to hiring and
employment. This requirement shall apply, but not be limited to the following: employment,
advertising, layoff or termination, rates of payor other forms of compensation, and selection for
training, including apprenticeship. Concessionaire shall not violate any of the terms of Chapter
49.60 RCW, Title VII of the Civil Rights Act of 1964, the Americans With Disabilities Act, Section
504 of the Rehabilitation Act of 1973 or any other applicable federal, state or local law or regulation
regarding non-discrimination. Any material violation of this provision shall be grounds for
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B-g
termination of this Agreement by the City and, in the case ofthe Concessionaire's breach, may result
in ineligibility for further City agreements.
11. Confidentiality.
All information regarding the City obtained by Concessionaire in performance of this
Agreement shall be considered confidential. Breach of confidentiality by Concessionaire will be
grounds for immediate termination.
12. Insurance.
The Concessionaire agrees to carry as a minimum, the following insurance, in such forms and
with such carriers who have a rating, which is satisfactory to the City:
12.1 Workers' compensation and employer's liability msurance m amounts
sufficient pursuant to the laws of the State of Washington;
12.2 Commercial general liability insurance with combined single limits ofliability
not less than $500,000 for bodily injury, including personal injury or death, products liability
and property damage.
12.3 Automobile liability insurance with combined single limits ofliabilitynot less
than $500,000 for bodily injury, including personal injury or death and property damage.
The City shall be named as additional insured on all such insurance policies, with the
exception of workers' compensation coverage. Concessionaire shall provide certificates of
insurance, concurrent with the execution of this Agreement, evidencing such coverage and, at City's
request, furnish the City with copies of all insurance policies and with evidence of payment of
premiums or fees of such policies. All insurance policies shall contain a clause of endorsement
providing that they may not be terminated or materially amended during the Term of this Agreement,
except after thirty (30) days prior written notice to the City. If Concessionaire',s insurance policies
are "claims made" or "claims paid", Concessionaire shall be required to maintain tail coverage for a
minimum period of three (3) years from the date this Agreement is actually terminated.
Concessionaire's failure to maintain such insurance policies shall be grounds for the City's immediate
termination of this Agreement.
The provisions ofthis Section shall survive the expiration or termination ofthis Agreement
with respect to any event occurring prior to such expiration or termination.
13. Non-Exclusive Right. This Agreement does not grant Concessionaire an exclusive
right to distribute its products. The City reserves the right to grant to other persons or entities any of
the rights contained herein or othelWise.
14. Signs. Concessionaire shall be limited to placing a sign on the concession stand only.
Concessionaire shall not place any sign, notice or advertising matter in or about the City's real
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(s-4
property, without the City's prior written consent, which consent may be withheld for any reason. If.
required by City code, Concessionaire shall obtain all necessary permits in connection with any such
SIgnS.
15. General Provisions.
15.1 Entire Agreement. This Agreement contains all of the agreements of the
Parties with respect to any matter covered or mentioned in this Agreement and no prior
agreements shall be effective for any purpose.
15.2 Modification. No provision ofthis Agreement, including this provision, may
be amended or modified except by written agreement signed by the Parties.
15.3 Full Force and Effect. Any provision of this Agreement, which is declared
invalid or illegal shall in no way, affect or invalidate any other provision hereof and such
other provisions shall remain in full force and effect.
15.4 Assignment. Neither the Concessionaire nor the City shall have the right to
transfer or assign, in whole or in part, any or all of its obligations and rights hereunder
without the prior written consent of the other Party.
15.5 Successors in Interest. Subject to the foregoing Subsection, the rights and
obligations of the Parties shall inure to the benefit of and be binding upon their respective
successors in interest, heirs and assigns.
15.6 Attorney Fees. In the event either ofthe Parties defaults on the performance
of any terms of this Agreement or either Party places the enforcement of this Agreement in
the hands of an attorney, or files a lawsuit, each Party shall pay all its own attorneys' fees,
costs and expenses. The venue for any dispute related to this Agreement shall be King
County, Washington.
15.7 No Waiver. Failure or delay of the City to declare any breach or default
immediately upon occurrence shall not waive such breach or default. Failure ofthe City to
declare one breach or default does not act as a waiver of the City's right to declare another
breach or default.
15.8. Governing Law. This Agreement shall be made in and shall be governed by
and interpreted in accordance with the laws of the State of Washington.
15.9 Authority. Each individual executing this Agreement on behalf ofthe City
and Concessionaire represents and warrants that such individuals are duly authorized to
execute and deliver this Agreement on behalf ofthe Concessionaire or the City.
15.10 Notices; Any notices required to be given by the Parties shall be delivered at
the addresses set forth below. Any notices may be delivered personally to the addressee of
the notice or may be deposited in the United States mail, postage prepaid, to the address set
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forth below. Any notice so posted in the United States mail shall bc deemed received three
(3) days after the date of mailing.
15.11 Captions. The respective captions of the Sections of this Agreement are
inserted for convenience of refcrence only and shall not be deemed to modify or otherwise
affect any of the provisions of this Agreement.
15.12 Performance. Time is ofthe essence oftms Agreement and each and all of its
provisions in which performance is a factor. Adherence to completion dates set forth in the
description of the Services is essential to the Concessionaire's performance of this
Agreement.
15.13 Remedies Cumulative. Any remedies provided for under the terms ofthis
Agreement are not intended to be exclusive, but shall be cumulative with all other remedies
available to the City at law, in equity or by statute.
15.14 Counterparts. This Agreement may be executed in any number of
counterparts, which counterparts shall collectively constitute the entire Agreement.
15.15 Compliance with Ethics Code. Ifa violation ofthe City's Ethics Resolution
No. 91-54, as amended, occurs as a result of the formation and/or performance of this
Agreement, this Agreement may be rendered null and void, at the City's option.
15.16 Equal Opportunitv to Draft. The parties have participated and had an equal
opportunity to participate in thc drafting ofthis Agreement, and the Exhibits, if any, attached.
No ambiguity shall be construed against any party upon a claim that that party drafted the
ambiguous language.
DATED the day and year set forth above.
TERINO'S ESPRESSO
By:
Teri Ramsdell, Owner
20107 112th Ave E.
Graham, W A 98338
CITY OF FEDERAL WAY
By:
David H. Moseley, City Manager
33325 8th Ave S
PO Box 9718
Federal Way, Washington 98063-9718
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ATTEST:
City Clerk, N. Christine Green, CMC
APPROVED AS TO FORM:
Patricia A. Richardson, City Attorney
STATE OF WASHINGTON)
) ss.
COUNTY OF )
On this day personally appeared before me, , to me
known to be the individual described in and who executed the foregoing instrument, and on oath
swore that he/she/they executed the foregoing instrument as hislher/their free and voluntary act and
deed for the uses and purposes therein mentioned.
GIVEN my hand and official seal this
. day of
(typed/printed name of notary)
Notary Public in and for the State of Washington.
My commission expires
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,200_.
EXHIBIT A
The Concessionaire agrees to provide services during the days and hours listed below:
Federal Wav City Hall
33325 8th Avenue South
Federal Wav. W A 98003
Mondav through Fridav. 8:00 am to 5:00 pm
In addition. concessionaire agrees to provide services before and during City Council meetings on
the first and third Tuesdavs of every month. Federal Wav School Board meetings on the second and
fourth Tuesdavs of every month. and for other large gatherings as requested bv the City.
~-13
PRODUCT PRICE LIST
Drinks 120z 160z 200z
Latte 1.90 2.45 3.00
Latte with Flavor 2.20 2.75 3.40
Mocha 2.20 2.75 3.40
Americano 1.50 1.75 2.00
Breve 2.10 2.75 3.40
Soy Milk Substitute 2.10 2.75 3.40
Cappuccino 1.90 2.45 ***
Oregon Chai Tea 2.20 2.75 3.40
Jet Tea (blended ice drink) *** 2.95 3.55
Big Train (Blended Coffe Drink) *** 2.95 3.55
Protein Power Boost 1.00
(added to coffee drink)
Italian soda *** 2.00 230
Fruit Smoothie *** 2.75 3.00
Hot Chocolate 1.35 1.65 1.90
Steamers 1.35 1.65 1.90
Hot Caramel Cider 1.35 1.65 ***
Stash Teas *** 1.25 ***
Extra shot espresso 030
Added Flavor 030
Baked Goods
Muffins 1.25
pink cookies 1.25
Turnovers 1.25
Cookies 1.25
Danish 1.25
Rice Krispy Treats 1.25
Bakers Breakfast Cookie 1.55
Pop Tarts 1.00
bagels 0.75
cream cheese 0.25
Fruit
apples, bananas, oranges 0.55
B-15
\Equipment
Cart
Bridges Industries, Model #BI 6, 72" X 32.5", Laminate color-Windswept (a blend of
beige colors)
Espresso Machine
Nuova Simonelli-2 group, fully automatic, Model #2673R-15493
Coffee Grinder
Michaelo Commercial Grinder, Model #SM90
Commissary refrigerator
Sears-6.2cubic ft, Model #564.9866680
Side Cart
26" X 16" Silver Serving Cart
All equipment is subject to Health Dcpt. approval.
The espresso machine and grinder could be different if sold before I receive Health Dept.
approval; in that case the espresso machine and grinder will both be very similar and will
meet all requirements.
g-17
CITY OF FEDERAL WAY
MEMORANDUM
DATE:
July 7,2005
1'0:
Finance, Economic DeYelopment and Regional Affairs Committee
David H. M~anager
Mehdi Sadri, Info~ation Systems Manager I'-!$
VIA:
FROM:
SUBJECT:
Cable Franchise renewal
Policv Issue
Should the City extend the Comcast Franchise to coincide with the March 2006 expiration
and allow additional time for negotiation?
Background
The City entered into non-exclusive cable franchise agreements with TCI and Viacom in
1995 and 1996 which since have been transferred to Comcast of Washington. These
agreements will expire on August 10,2005 and March 2006. Staffs approach is to combine
the two agreements into one franchise with a comnion expiration date. We require additional
time to complete the rencwal negotiations, therefore, staff is recommending that we extend
the expiration of the first franchise, so it coincides with the March 2006 expiration of the
second franchise.
Attached is a memo from Pam Beery (the contract attorney working for the City) that
provides a detailed update on the franchise renewal process to date. Also attached, staff has
prcparcd an Ordinance to extend the expiration of the first agreement, and is present for your
consideration and approvaL
Options
1. Recommend approval of the Ordinance and forward to the full council for first
reading at the July 19,2005 meeting.
2. Recommend rejection of Ordinance.
3. Recommend modification of Ordinance and forward to the full council for first
reading at July 19, 2005 meeting.
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Staff Recommendation
Approve the Ordinance and forward to the full council for first reading at the July 19,2005
meeting. (Option 1)
Committee Recommendation
Forward option~ to the full City Council for placement on the July 19,2005 City Council
Agenda for first reading with a "do pass" recommendation.
APPROV AL OF COMMITTEE ACTION:
Committee Chair
Committee Member
Committee Member
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BEERY, ELSNER & HAMMOND, LLP
ATTORNEYS AT LAW
.
.
THOMAS SPONSLER t
DAVID F. DOUGHMAN
SPENCER Q. PARSONS
PAMELAJ. BEERY*
PAUL C. ELSNER
JOHN H. HAMMOND, JR.
1750 SW HARBOR WAY, SUITE 380 PORTLAND, OREGON 97201-5164
TELEPHONE (503) 226-7191 FACSIMILE (503) 226-2348
WWW.GOV-LAW.COM
* Also admitted
in Washington
t Of Counsel
MEMORANDUM
TO:
Members of the Finance Committee
City of Federal Way
FROM:
Pamela J. Beery, Special Legal Counsel
SUBJECT:
Renewal of Comcast cable franchise: status update
DATE:
July 7,2005
This memorandum will provide an overview of the ongoing cable franchise renewal negotiations
with Comcast, including key negotiation topics and recommended next steps. As '. will be
discussed below, staff will be recommending that we extend the current franchise (setito .expire
on August 10, 2005) in order to allow both Comcast franchises to be renewed in one. package, i. .
and to allow us to complete negotiations for the new franchise. .'.: 'r.'"
History of the Negotiations to Date
., ~ d
We engaged a technical consultant to review the Comcast system serving Federal Way, and to
report on any deficiencies in the system so that we could get any needed changes agreed upon as
part of the renewal. This included a review of compliance with construction and electrical codes
as well as a determination that the system is fully upgraded to provide state of the art services
and programming, with quality as required by federal regulations. We also engaged a consultant
to identify community needs including government and educational programming and services.
With this information in hand, we undertook a review of cable franchises in neighboring systems
to assure that the franchise we drafted would be consistent with the best negotiated result in those
systems. 1 We created a draft franchise and coordinated with the City Attorney, Public Works,
Finance, and Information Services staff to be sure the franchise would be consistent with their
needs and expectations. We then submitted the draft franchise to Comcast in September, 2004.
We did not receive a response from Comcast until March 18, 2005 - six months later. The
response we received was a wholesale rewrite of much of the document. Since that time, we
1 The franchises evaluated included University Place, Seattle, Tacoma, Redmond, Des Moines, Bellevue,
Tukwila, Port Angeles, and King County. These were selected after a broader review of franchises in the
Puget Sound area.
KlFEDRACIZOO5\07l2ICable F.-.noh Finaru:o Committee update 0705....,mdo<
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BEERY, ELSNER & HAMMOND LLP
ATTORNI>YS AT LAW
July 7,2005
Page 2
have been meeting regularly with Comcast's representatives during April, May and June. We
have workcd through roughly 75% of the document and have made what I consider to be good
progress.
Kev Negotiation Topics and Remaining Issues
As noted above, the response we received from Comcast was very aggressive in terms of
changes to our language. The environment in which we are negotiating is very different than
that even in the recent past, due to Comcast's growing customer base (it is now the largest cable
company in the country) and its new policies - developed on a national level - with respect to
franchising. Some highlights of areas of dispute include:
o Scope ofthe City's authority to monitor performance
o Customer service requirements
o Construction and right of way management
o Educational and government services and programming
o Institutional Network serving public buildings
o Franchise fees and other financial provisions (bonding, reporting, calculation of fees)
As we.have worked through the document, we have achieved tentative agreement on. language
wherever possible. We still need to work through the institutional network discussion 'and to
finish negotiating the remaining franchise sections (roughly 25%, as noted above).WewiH then
have a working document with areas still in disputc and will attempt to reach agreement in those
areas.
Schedule and next steps
The City is served under two separate cable franchises. One expires on August 10, 2005 and the
other expires next March. Our approach is to combine the two into one franchise with a common
expiration date. Since we require additional time to complete the renewal negotiations, staff is
recommending that we extend the expiration of the first franchise so it coincides with the March,
2006 expiration of the second franchise. Attached is an ordinance to accomplish that and is
present for your consideration and approval.
Depending on how the remaining negotiations go, we may need to brief the Finance Committee
and Council in more detail on selected issues, and to obtain direction on areas where we can or
cannot compromise. In many franchises, the issues remaining at the end of negotiation are the
institutional network and public, educational and government access support. Since the level of
effort and expense to be devoted to these areas represent policy choices for the community, your
guidance will be important.
Any member of our team (Karen Kirkpatrick, Iwen Wang, and Mehdi Sadri, with help from Cary
Roe and Marwan Salloum in public works) would be happy to provide additional detail on any
K.:\FEDRAC\200S\0712\Cablc Franch Finance Conun~ttee update 0705.memdoe
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BEERY, ELSNER & HAMMOND LLP
ATTORNF.YS AT LAW
July 7,2005
Page 3
aspect of the negotiations and to respond to your questions. Please let us know if you have any
concerns or would like additional information, and we will continue to update you as our
negotiations continue.
Sincerely,
Pamela J. Beery
Enclosure
cc: Karen Kirkpatrick, Esq.
Iwen Wang, Finance Director
Mehdi Sadri, Information Systems Manager
c..- s
IC:\FEDRAC\2005\07I ZIC.ble Fl'allch Fillance Committee update 0705.m:mdoc
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ORDINANCE NO. 05 ~ _
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF FEDERAL WAY, WASHINGTON, AMENDING
ORDINANCE NO. 95-238 TO EXTEND THE LENGTH
OF THE FRANCHISE CREATED BY ORDINANCE NO.
95-238 GRANTING TELE-VUE SYSTEMS, INC. D/B/A
VlACOM CABLE, INC., NOW, COMCAST OF PUGET
SOUND, INC., A NONEXCLUSIVE CABLE
COMMUNICATIONS FRANCHISE WITHIN AND
THROUGH THE CITY OF FEDERAL WAY. (AMENDS
ORDINANCE NO. 95-238)
WHEREAS, on August 6, 1995, by Ordinance No. 95-238, the City of Federal
Way (hereinafter, "City") granted a non-exclusive cable franchise (hereinafter,
"Franchise") to Tete-Vue Systems, Inc. DBA Viacom Cable and the Franchise was
subsequently transferred to Comcast of Puget Sound, mc. (hereinafter, "Grantee"); and
WHEREAS, Section 4 of the Franchise provides for the Length of Franchise, with
a termination date of midnight, August 13,2005; and
WHEREAS, on March 21, 1996, by Ordinance No. 96-264, the City granted a non-
exclusive. cable franchise to TCI of Auburn, Inc and said franchise was subsequently
transferred to Grantee; and
WHEREAS, Section 4 of Ordinance No. 96-264, provides for the Length of
Franchise to terminate at midnight, March 20, 2006; and
WHEREAS, the City and Grantee are negotiating the renewal of the Franchise and
anticipate combining the franchises into one franchise; and
Ordinance No. 05 -
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WHEREAS, negotiations are anticipated to extend beyond August 13,2005; and
WHEREAS, the City Council of Federal Way finds it is in the public interest to
extend the length of the Franchise to the same termination date as the franchise created by
Ordinance No. 96-264;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1.
Amendment. Section 4 of Ordinance No. 95-238 IS hereby
amended as follows:
Lene;th of Franchise
The len!,..fu of this This Franchise shall be fur a term of ton (10) years commenoing
on AUgHst 11, 1995 and terminating at midnight on August 13,2005 terminate at midnight
on March 20, 2006.
Section 2.
Full Force and Effect.
All other terms and conditions of the Franchise Agreement not modified by this
Amendment shall remain in full force and effect.
Section 3.
Severability
If any section, sentence, clause, or phrase of this Amendment should be held to be
invalid or unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of any other section,
sentence, clause or phrase of this Franchise.
Section 4.
Ratification
Any act consistent with the authority and pnor to the effective date of this
Amendment is hereby ratified and affirmed.
Ordinance No. 05 -
Page 2
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Section s.
Effective Date This ordinance shall take effect and be in force 5
days from the time of its final passage and publication, as provided by law.
PASSED by the City Council of the City of Federal Way this _ day of
, 2005.
CITY OF FEDERAL WAY
MAYOR, DEAN McCOLGAN
ATTEST:
CITY CLERK, N. CHRISTINE GREEN, CMC
APPROVED AS TO FORM:
CITY ATTORNEY, P A TRlCIA A. RICHARDSON
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.:
ACCEPTANCE:
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Ordinance No. 05-
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