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HomeMy WebLinkAboutResolution - 2003-R0470 - License Agreement Of The Auditorium-Coliseum - Civic Lubbock, Inc. - 10/23/2003Resolution No. 2003-RO470 October 23, 2003 Item No. 17 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock a License Agreement for use of the Auditorium -Coliseum and the Lubbock Memorial Civic Center and any associated documents by and between the City of Lubbock and Civic Lubbock, Inc., for food, beverage and other concession sales, a copy of which License Agreement is attached hereto and which shall be spread upon the minutes of this Council and as spread upon the minutes of this Council shall constitute and be a part hereof as if fully copied herein in detail. Passed by the City Council this 23rdday of ATTEST: RelIecca Garza, City Secretary APPROVED AS TO CONTENT: f Vicki Key, Civic Se c Director APPROVED AS TO FORM: G.'VandNei, Attorney of Counsel Mres/MagreementRes September 9, 2003 October , 2003. Ze -"/ ARC McD GA , MAYOR LICENSE AGREEMENT THE STATE OF TEXAS COUNTY OF LUBBOCK Resolution No. 2003-RO470 October 23, 2003 Item No. 17 This agreement is entered into on the 23rd day of October, 2003, by and between the City of Lubbock, a home rule municipal corporation (hereinafter called "City") and Civic Lubbock, Inc., a Texas non-profit corporation (hereinafter called "Corporation". WITNESSETH WHEREAS, the City and the Corporation did heretofore on the 25th day of April, 2002, enter into an Agreement wherein the City granted to Corporation a license for the use of the Auditorium/Coliseum and the Lubbock Memorial Civic Center, and WHEREAS, it is the desire of the City and Corporation to enter into a new Agreement establishing the relationship between the City and the Corporation; NOW THEREFORE: BE IT RESOLVED BY THE CITY AND THE CORPORATION AS FOLLOWS: 1. This agreement supercedes and takes the place of the Agreement entered into by and between the City and Corporation on the 25t day of April, 2002, including all amendments thereto, and any and all prior agreements between the City and the Corporation; and upon execution this Agreement shall establish and govern the relationship between the City and Corporation. 2. In consideration of the Corporation's service to the community in the enhancement of public art and the Corporation's commitment to its cultural and educational programs, the City hereby grants to Corporation a license for all food, beverage and other concession sales in or surrounding the Lubbock Municipal Auditorium/Coliseum, Lubbock Memorial Civic Center, and other designated municipal facilities as mutually determined by the City and Corporation. 3. Corporation agrees that for and in consideration of such license, herein granted, that Corporation shall pay: a) City a commission of zero percent (0%) of food and soft drink adjusted gross sales at the Lubbock Municipal Auditorium/Coliseum and Lubbock Memorial Civic Center and other mutually determined municipal facilities for the 2003/2004 fiscal year and shall be five percent (5%) during the remainder of the term of this agreement. The food and soft drink 2bo`3- VCA I () concession sales commission shall be paid by Corporation to the City on a quarterly basis with the first such payment being due on the 10th day of January in each fiscal year, and a similar payment on the 10th day after each succeeding quarter during the term of this Agreement. b) City a commission of zero percent (0%) of alcoholic beverages gross sales at the Lubbock Municipal Auditorium/Coliseum and Lubbock Memorial Civic Center and other mutually determined municipal facilities for the 2003/2004 fiscal year and shall be twenty percent (20%) during the remainder of the term of this agreement. In addition, Corporation shall pay an additional zero percent (0%) of gross beer sales generated from hockey games in the Lubbock Municipal Coliseum for the 2003/2004 fiscal year and shall be thirty percent (30%) for the remainder of the term of this Agreement. This commission shall be paid by Corporation to the City on a quarterly basis with the first such payment being due on the 10th day of January in each fiscal year, and a similar payment on the 10th day after each succeeding quarter during the term of this Agreement. 4. As additional consideration for this license, the Corporation agrees to abide by the exclusive beverage agreement between the City of Lubbock and Southwest Coca-Cola Bottling Company, dated August 26, 1999, in regard to the sale, dispensing, serving sampling of beverages through their concession operation for the term of that agreement, a copy of which is attached hereto. Corporation also agrees to purchase beverage products from Southwest Coca-Cola Bottling Company for and to provide service to any beverage vending machines located at the Municipal Auditorium/Coliseum and the Lubbock Memorial Civic Center. The Corporation may retain all revenues from such vending machines. City agrees that Corporation will have the appropriate signage on the System provided by Southwest Coca-Cola Bottling Company for the Municipal Coliseum. Video messages, produced by Corporation, may also be run on the System when System is being utilized for events. 5. Corporation agrees to pay all operational expenses associated with such concession rights or sales, including, but not limited to, all salaries of full or part-time staff employees engaged in such sales. Routine maintenance of all concession areas included in this license shall not be considered an operational expense and shall be borne by the City at no cost to the Corporation. In addition, the City agrees to employ such full-time staff as may be necessary and appropriate to assist the Corporation in carrying out the duties and responsibilities of the concessions and accounting functions of the Corporation. Salaries and benefits of such employees shall be reimbursed to the City by the Corporation on a quarterly basis. 6. In consideration of Corporation's desire to expand its programs and in addition to the license heretofore granted, the City does hereby further grant to Corporation a license to operate and manage all box office operations reasonably necessary for events scheduled by the City in the Lubbock Memorial Civic Center, 2 2U33 �_(Aqc) Lubbock Municipal Auditorium/Coliseum and in other mutually agreed venues. This license authorizes the Corporation to undertake ticket sales for events scheduled by the City in its facilities, utilize the box office areas within the Municipal Auditorium/Coliseum and Lubbock Memorial Civic Center, establish charges for ticketing services in City facilities and other venues in the community which may request ticketing services for their scheduled events. 7. Corporation agrees to pay all operational expenses associated with such box office services, including, but not limited to, all salaries of full or part-time staff employees engaged in such sales. Routine maintenance of all box office areas included in this license shall not be considered an operational expense and shall be borne by the City at no cost to the Corporation. In addition, the City agrees to employ such full-time staff as may be necessary and appropriate to assist the Corporation in carrying out the duties and responsibilities of the box office and accounting functions of the Corporation. Such salaries and benefits of such employees shall be reimbursed to the City by the Corporation on a quarterly basis. 8. In order to provide funding for the expansion of the ticketing operation, the total salary and benefits reimbursements as outlined in Sections 5 and 7 shall be reduced by an amount not to exceed $290,000 for FY 2003/2004. 9. At the Corporation's expense, Corporation agrees to conduct an annual audit of its book of accounts by an independent auditor and provide a copy of the final audit to the City each year during the term of this Agreement. The audit shall be completed no later than the 30th day of December of each year this Agreement is in force. The copy shall be provided to the City within 60 days after completion. 10. If the audit presented by the Corporation to the City identifies a cash fund balance, after payment of the total considerations hereinabove mentioned and excluding all expenses incurred or encumbered, the Corporation is hereby authorized to retain such fund balance as follows: a) The first one hundred thousand dollars of such cash fund balance shall be retained by Corporation as a reserve fund for the performance of its obligations and duties herein set forth. b) Any fund balance remaining after the contribution to a reserve account as mentioned above is satisfied shall be placed in a reserve to fund activities relative to the purposes of the Corporation as stated in its Charter. 11. The Corporation hereby agrees to prepare and submit to the City a budget for the upcoming fiscal year beginning October 1 of each year. The Corporation shall prepare this budget on forms satisfactory to the City and shall present this budget to the City Council prior to the beginning of each fiscal year. 3 ,2003 X04,10 12. The Corporation agrees to use its best efforts to foster, promote, and present cultural and educational 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 which shall add to the quality of life of the citizens of the City of Lubbock in accordance with the Corporation's Charter. This will include, but is not limited to, sponsoring such programs, attractions, and entertainments and matters incidental hereto, including, but 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 Auditorium/Coliseum, sponsorship and co-sponsorship of national touring productions and events held in the Lubbock Memorial Civic Center and Municipal Auditorium/Coliseum and public art programs in or on property owned and operated by the City of Lubbock. 13. It is understood by both parties that Civic Lubbock, Inc. receives no direct or indirect monetary benefit from advertising or sponsorship revenues generated by the operation of the facilities or events scheduled in the facilities. It is also understood that Civic Lubbock, Inc. has no right or authority to control, either directly or indirectly, any programming or booking decision at the Lubbock Memorial Civic Center and Lubbock Municipal Auditorium/Coliseum. These functions are handled and controlled by the City of Lubbock. It is also understood that Civic Lubbock, Inc. is not subject to the direction or control, either directly or indirectly, of the City of Lubbock as the facility owner and operator, event producer, or any upper tier member of the alcoholic beverage industry as to the quantities or brands of alcoholic beverage products purchased and/or sold by Civic Lubbock, Inc. 14. In consideration of the Corporation's services to be rendered pursuant to the Agreement, the City does hereby grant the Corporation the right to use any and all of the above mentioned or agreed upon City facilities for its business meetings. The Corporation, however, will be required to schedule its meetings at times that are mutually agreeable to both the City and the Corporation. 15. The City agrees, that for the purposes of transferring the food and beverage concession functions to Corporation, all equipment currently owned by the City that is used for the food and soft drink concessions will be leased to Corporation for one dollar ($1.00) per year and other good and valuable consideration with such amount to be paid upon final execution of this Agreement by all parties and upon the anniversary of such execution each year thereafter. Corporation agrees to maintain said equipment and to replace such equipment when its useful life expectancy has been reached. Any equipment replaced by Corporation shall be the property of said Corporation. 16. The City agrees, that for the purposes of transferring the box office functions to Corporation, all equipment currently owned by the City that is used for the box office and ticketing operation will be leased to Corporation for one dollar ($1.00) per year and other good and valuable consideration with such amount to be paid upon final execution of this Agreement by all parties and upon the anniversary of such execution each year thereafter. Corporation agrees to maintain said equipment and to replace such 0 203- Zo14g0 equipment when its useful life expectancy has been reached. Any equipment replaced by Corporation shall be the property of said Corporation. In addition, the City agrees to sell its current inventory of ticket stock and ticket envelope stock associated with such operations to the Corporation on an "as used" basis at a total cost not to exceed ten thousand dollars ($10,000). 17. The term of this Agreement shall be for eight (8) years from the date of execution of this Agreement. After the initial eight (8) year term, this Agreement may be extended by mutual agreement of the parties expressed in writing upon a year-to-year basis. 18. In the event that this Agreement terminates at any time after the initial eight (8) year guaranteed term, then in such event the Corporation shall nevertheless be authorized to undertake and fulfill all existing obligations and contracts necessary and essential for the conclusion of the Corporation's business. The Corporation further agrees to cooperate with the City to insure an orderly transition of all services and facilities subject to this Agreement upon its termination. EXECUTED this 23rd day of October , 2003. CIVIC LUBBOCK, INC: 2MARCMAYOR L OCK: By: RESIDE ATT ST: ATTEST: Secretary Rebecca Garza, City Secretary Ddcon/RevisedCLIlicenseagreement September 9, 2003 5 APPROVED AS TO CONTENT: Vicki Key, Civi rvices Director APPROVED AS TO FORM: E(opA G. Vandiver, Attorney of Counsel