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CONTRACT NO. K-314-59: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND ICE CHALLENGE ENTERPRISES, L.L.C., FOR THE INSTALLATION AND OPERATION OF AN ICE SKATING RINK IN ANDREWS PARK AND BUDGET APPROPRIATION.
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BACKGROUND: For the past two winters, Mr. Dmitri Logoutine, owner of Ice Challenge Enterprises, LLC has set up and run an ice rink on the former Mark Heitz Chevrolet site on West Lindsey Street in Norman. The current dealership owner will not be accommodating the ice rink in the future. In the interest of developing downtown Norman into a holiday destination area, Mr. Logoutine, Ms. Karen Cody with KCoyote #1 Force, LLC (a promotional/marketing company), and representatives from the Norman Chamber of Commerce and the Norman Convention and Visitors Bureau met with City Staff on August 9, 2013 to discuss the option of locating the ice rink at Andrews Park during the winter holiday season. Subsequent to that meeting the proposed Agreement has been drafted and is now submitted for consideration. Mr. Logoutine has also provided ice rinks in downtown Oklahoma City for eight years, Tulsa for five years, Lawton for two years and Edmond for two years.
DISCUSSION: Contract No. K-1314-59 provides that Ice Challenge Enterprises, LLC will provide and install an ice skating rink located on the paved basketball court area in the southeast corner of Andrews Park to allow for public ice skating during the winter holiday season. The rink will be set up on the inside of the existing court fencing, which will add to the security of the area during the times the rink is closed. The chiller unit which is used to freeze and keep the ice frozen will be located to the east of the courts, south of the old underground water storage facility.
We are proposing that the City of Norman provide the electric service equipment that is needed to power the chiller unit and additional electric outlets in the area that will be used for lighted holiday decorations. The estimated cost for providing this equipment is $12,000. Accordingly, the agreement is structured so that the City will forgive one third of this equipment cost for each of the first three years of operation. Should Ice Challenge Enterprises, LLC elect to terminate the agreement prior to completing three consecutive seasons, they will be required to reimburse the City for any remaining electric equipment expenses. Should the City of Norman elect to terminate the agreement prior to the completion of three seasons, Ice Challenge Enterprises, LLC will not be required to reimburse the City for these expenses. Ice Challenge Enterprises, LLC will be responsible for the cost of the electricity used to operate the ice rink. The City will provide the existing basketball court lighting.
Ice Challenge Enterprises, LLC will operate the ice rink on a daily basis beginning the day after Thanksgiving through January 5th of each year. The rink will be available to the public from 4:00-9:00pm on weekdays when school is in session; 12:00-9:00pm on weekdays when school is not in session; 10:00am- 9:00pm on Saturdays and 1:00-7:00pm on Sundays. There will be no scheduled activities after 11:00pm. Skating cost will be $10.00 (skates included) or $8.00 (provide your own skates). A concession stand will be available at the site for patrons use. Ice Challenge Enterprises, LLC has agreed to pay the City of Norman $0.30/ per ticket after the first 7,000 persons and $0.50/ per ticket after 10,000 persons pay to enter until an amount not to exceed $7,000 is collected. Ice Challenge Enterprises, LLC will decorate the area with lighted holiday displays.
Further, the agreement provides that Ice Challenge Enterprises, LLC will indemnify and hold the City of Norman harmless from all claims and keep liability insurance in the amount of $1,000,000 to protect themselves and the City of Norman against all liabilities, judgments, costs, damages and legal expenses. They will be responsible for maintaining the property in good and clean condition and follow all City of Norman codes and safety requirements.
RECOMMENDATION NO. 1: It is recommended that $12,000 be appropriated from the Room Tax Fund Balance (account #023-0000-253.20-00) to the Park Maintenance Division: Miscellaneous Services (account #010-7010-452.47-99) in order to provide electric service installation necessary to power the chiller unit for the ice skating rink and additional electric outlets to be used for lighted holiday decorations.
RECOMMENDATION NO. 2: It is recommended that Contract No. K-1314-59 with Ice Challenge Enterprises, LLC be approved so as to provide, install and operate an ice skating rink in Andrews Park for the Parks and Recreation Department.