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Home My WebLink AboutResolution - 5220 - Amendment #3 To Agreement - METTS Inc - Convention & Tourism Service - 07_11_1996RESOLUTION NO.5220 July 11, 1996 Item #43 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Third Amendment to Convention and Tourism Service Agreement, attached herewith, by and between the City of Lubbock and Marketing, Entertainment, Travel, Tourism and Sports, Inc., and any associated documents, which Agreement shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this I Ith day of July , 1996. DAVID R. LANGSTON% MAYOR ATTEST: Betty A Johnson, ity Secretary APPROVED AS TO CONTENT: G20� (plc' Carolyn A iamus, Managing Director of Culture and Leisure Services APPROVED AS TO FORM: 1)e2fald G. Vandiver, First Assistant City Attorney DGV : da/ccdocs/metts.res June 26, 1996 RESOLUTION NO.5220 July 11, 1996 Item #43 THIRD AMENDMENT TO CONVENTION AND TOURISM SERVICE AGREEMENT This Third Amendment is entered into the 11th day of July , 199_, between the CITY OF LUBBOCK, TEXAS, a municipal corporation ("City") and MARKETING, ENTERTAINMENT, TRAVEL, TOURISM AND SPORTS, INC., a Texas not -for -profit corporation ("METTS"). PREAMBLE City and METTS previously have entered into a Convention and Tourism Service Agreement dated September 22, 1994 and amended by First Amendment dated September 14, 1995 and Second Amendment dated January 11, 1996 (the "Agreement' pursuant to which City has delegated to METTS and management and supervision of certain programs and activities funded with revenue from the hotel occupancy tax (the "Hotel Tax") imposed by City pursuant to the terms of Chapter 351, Tax Code. City and METTS desire to further broaden the scope of services to be provided by METTS pursuant to the Agreement, and have executed this Amendment for such purpose. AGREEMENT In consideration of the recitals contained in the Preamble, City and METTS agree to amend the Agreement, and by these presents do amend the Agreement, in the following respects: 1. Article I of the Agreement is amended by adding thereto a new Section 1.07 reading as follows: "1.07 Cultural and Educational Programs. In addition to the program and activities conducted by METTS pursuant to Section 1.01, 1.05 and 1.06 of this Agreement, City hereby delegates to METTS, and METTS hereby accepts, responsibility for the fostering and promotion of the presentation, in the Lubbock Memorial Civic Center and Municipal Auditorium -Coliseum, of wholesome educational and cultural programs, attractions and entertainments for the general intellectual and physical improvement and welfare of the people of the City of Lubbock and the surrounding area, with the authority is such corporation to sponsor and/or contract for such programs, attractions, and entertainments and matters incidental hereto, including, but not limited to, the Walk of Fame and Terrace projects, development and implementation of a local grant program for events held in the Civic Center and Municipal Auditorium -Coliseum, sponsorship and co-sponsorship of national touring productions and events held in the Civic Center and Auditorium -Coliseum. a. Corporation agrees to use its best efforts to make maximum use of the facilities hereinabove mentioned so that events providing entertainment and adding to the cultural and educational quality of life of the citizens of the City will be presented. b. Funding: The City agrees to pay to Corporation $70,000 per year, beginning on October 1, 1996 and each October 1 thereafter, to carry out the responsibilities described in 1.07. Both parties agree that should any major reduction occur in the concessions revenues of the City as a result of, for instance, the loss of a primary tenant at one of the City facilities, then this agreement shall be subject to revision as to the financial commitments by the City. Otherwise, the financial arrangement provided for herein shall be reviewed and evaluated annually by the parties. Corporation agrees that it will be responsible for all financial obligations and costs associated with the presentation their events and programs. None of the net income from events presented shall inure to the benefit of any private individual, but all of such net income shall be appropriated and expended to the end that outstanding programs, attractions, and entertainments of a cultural and educational nature may be available and presented in the City of Lubbock facilities as mentioned above. Corporation will retain any net revenues generated through ticket sales for events that are presented by Corporation and is authorized to retain net profits in a reserve fund to further the purposes as outlined in 1.07. The City also agrees that it will make available to METTS, any additional profits that are generated by the operation of the food concessions in the Lubbock Memorial Civic Center and Lubbock Municipal Auditorium - Coliseum facilities to further carry out the responsibilities outlined in 1.07. Profits will be considered any revenue in excess of: all costs associated with the operation of concessions; to include but not limited to personnel and uniforms, supplies and materials, insurance, equipment maintenance, replacement and upgrade, 30% of the gross concession revenues; any Select -a -Seat deficit; the cost for maintaining the interior and exterior planter program; and any capital improvement program directly related to THIRD AMENDMENT TO CONVENTION AND TOURISM SERVICE AGREEMENT Page 2 the delivery of the above services. The $70,000 payment shall also be deducted prior to computing additional profits. Any additional profits will be made available to the corporation the following year after they occur and after completion of an annual audit for the prior year. Should additional funds be available, acknowledgment of the amount of those funds would be communicated to the Corporation by the City on January 1, 1998 and each January 1 thereafter. Should all funds not be spent in any particular year by Corporation, those excess funds shall be placed in a reserve fund to be utilized only for the purposes as outlined in 1.07. C. Corporation further agrees to pay to City, within thirty (30) days of the events, established rental rates on all events where Corporation sponsors or co-sponsors such event. d. The City and METTS agree that Civic Center staff will continue to administer the programs as outlined in 1.07. In addition, the funds as outlined in 1.07(b) shall be deposited in a separate checking account and administered by Civic Center staff. Monthly activity reports will be provided to the board. e. Corporation agrees to prepare and present to the City Council a budget for the upcoming fiscal year which commences on October 1, 1996, and each October thereafter during the term of this agreement. The budget should include the programs that will be funded by the monies to be received for that fiscal year. This budget will be presented to City Council in accordance with the City of Lubbock's calendar for budget preparation and presentation. 2. City and METTS hereby ratify and affirm the Agreement, as amended by this amendment, and declare the same to be in full force and effect in accordance with the terms thereof. This Amendment may be executed in any number of counterparts and each of such counterparts shall, for all purposes, be deemed to be an original, and all of such counterparts shall together constitute but one and the same instrument. THIRD AMENDMENT TO CONVENTION AND TOURISM SERVICE AGREEMENT Page 3 EXECUTED the day and date first above written, effective as provided herein. CITY: BY: DAVID R. ATTEST: MA Betty M. J on, CiTy Secretary APPROVED AS TO CONTENT: MARKETING, ENTERTAINMENT, TRAVEL, TO AND SPORTS, INC. l7 BURL MAS ERS, PRESIDENT ATTEST: 0 Secretary 6:�-t-44m altAwkzt-o hu 01(� 1�01 Carolyn A iamus, Managing Directoiv of Culture and Leisure Services APPROVED AS TO FORM: onald G. Vandiver, First Assistant City Attorney DGV :da/cityattla-metts.doc May 21, 1996 THIRD AMENDMENT TO CONVENTION AND TOURISM SERVICE AGREEMENT Page 4