HomeMy WebLinkAboutResolution - 2001-R0219 - Ticketing Services Agreement - Texas Tech University - 06/14/2001Resolution No. 2001-80219
June 14, 2001
Item No. 45
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 Ticketing Services Agreement by and
between the City of Lubbock and Texas Tech University, and any associated documents,
a copy of which Agreement is attached hereto and which Agreement shall be spread upon
the minutes of this 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 14th day of
ATTEST:
1 " -1+ A rt
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
j
— 02� -
Tommy Gon4kiez, As stan ity Manager
APPROVED AS TO FORM:
I LQdald G. Vandiver, First Assistant City
Attorney
DDres/TicketSvcs.res. doc
April 30, 2001
June
, 2001.
MU5426
Resolution No. 2001-RO219
June 14, 2001
Item No. 45
TICKETING SERVICES AGREEMENT
THIS AGREEMENT is made and to be performed in Lubbock County, Texas,
this 14ttday of June 2001, by and between CITY OF LUBBOCK, 1501 6th
Street, Lubbock, TX 79401, a Texas municipal corporation (hereinafter referred to as
"CITY") and TEXAS TECH UNIVERSITY, an agency of the State of Texas (hereinafter
called "UNIVERSITY").
WHEREAS, CITY owns computerized event ticketing equipment and utilizes,
under a License Agreement, software enabling CITY to furnish a computerized ticketing
system (hereinafter referred to as "Select -a -Seat"), and UNIVERSITY desires to
designate Select -a -Seat as its official ticketing company for all ticketed events, with the
exception of Texas Tech Athletic events, at the United Spirit Arena; and
WHEREAS, CITY and UNIVERSITY may contract for said purposes pursuant to
Chapter 791, Texas Government Code;
NOW, THEREFORE AND IN CONSIDERATION of the covenants and
agreements contained herein, the parties agree as follows, to wit:
1. Authori . The UNIVERSITY hereby grants to CITY the exclusive opportunity,
right and authority to sell, handle, distribute and otherwise dispose of, both in
advance and at the Box Office, admission tickets for all events, with the exception
of Texas Tech Athletic events, held at the United Spirit Arena on various dates
and times.
2. Term. The term of this agreement will be for one (1) year from the date of
execution hereof and it shall thereafter be renewed automatically for successive
one-year periods unless either party shall notify the other in writing that it desires
to terminate this agreement. Such notice shall be given to the other party not less
than sixty (60) days prior to the end of the applicable contract period.
3. Ci 's Obligations:
a. CITY agrees to maintain a central ticketing agency located in the
Memphis Place Mall, 501h Street and Memphis Avenue in Lubbock, Texas,
this agency will be open during normal working hours Monday through
Saturday of each week, and will be closed on Sundays and holidays. CITY
does not guarantee that any minimum or fixed number of tickets will be
sold for UNIVERSITY'S events;
b. CITY shall continue to provide a sufficient number of ticket outlets
throughout Lubbock in order to provide the public with easy and
convenient access to arena ticketed events. CITY shall determine the
number and locations of said ticket outlets. The CITY agrees to maintain
an internet website for the sale of tickets online.
C. CITY will execute a Box Office Agreement between CITY and each of
UNIVERSITY'S tenants that will be utilizing the Select -a -Seat ticketing
service. A sample Box Office Agreement is attached as Exhibit "A" of
this Agreement.
d. Any monies, funds or receipts acquired by CITY pursuant to this
agreement shall be held by CITY until the conclusion of the final
performance of the event at which time only, CITY shall pay to
UNIVERSITY'S tenants total gross receipts less the following sums that
will be deducted from total gross receipts:
1. All CITY fees prescribed pursuant to this agreement and
the agreement between CITY and UNIVERSITY'S tenants;
2. All Texas sales tax;
3. All City of Lubbock sales tax, if applicable; and
4. Any additional amount required by the UNIVERSITY
which the UNIVERSITY notifies CITY is due and owing it
from the UNIVERSITY and/or its tenant.
e. CITY shall provide the United Spirit Arena with software (Pro -Com Plus)
that will allow arena management to view and print daily sales reports of
arena events. CITY, through Select -a -Seat, shall provide training on the
software to arena management.
f. CITY will insure that there is adequate control of ticket stock supply at all
ticket outlet locations.
g. CITY reserves the right to sell advertising space on ticket backs and ticket
envelopes and retain all associated revenues. CITY agrees that no
advertising will be sold to promote alcohol or tobacco products. CITY
also agrees that the only potential non-alcoholic beverage advertiser will
be Coca-Cola.
h. To protect the investment of the ticket purchaser, under no circumstance
will the CITY provide cash pay -outs prior to the day of the performance.
Any and all cash pay -outs during event settlement will be approved by the
management of the United Spirit Arena.
4. UNIVERSITY'S Obligations
a. UNIVERSITY shall provide box office space at the United Spirit Arena to
Select -a -Seat for ticketing operations on the day of show.
b. The UNIVERSITY will provide communication lines for telephone and
modem access for the ticketing equipment.
C. The UNIVERSITY will provide lockable storage space within the box
office at the United Spirit Arena so that Select -a -Seat can store and secure
its equipment when not in use.
d. The UNIVERSITY will insure that their tenants are aware that Select -a -
Seat has the exclusive rights to sell tickets for all events in the United
Spirit Arena (except Texas Tech Athletic events). UNIVERSITY will also
insure that their venue contract with their tenants indicate that no
advertising will begin without all contracts and required deposits received.
5. Ticketing Services Fees:
a) CITY will charge certain fees to UNIVERSITY'S tenants and the general
public to assist with covering the cost for ticketing services provided.
b) Unless otherwise notified by UNIVERSITY, UNIVERSITY will not be
held liable for fees associated with providing ticketing services.
C) In general, ticketing fees will be as follows:
1. Professional Fee assessed to UNIVERSITY'S tenant
4% of gross sales, after taxes
$ .10 per ticket printed and not sold, including
complimentary tickets printed
Programming Fee - $50 per hour for new configurations
Set-up Changes - $100 per hour after initial event set-up
Cancellation/Refunding fees — 25 cents per ticket refunded
plus twice the professional fee percentage
2. Handling Fees assessed to ticket purchasers:
$2.00 per ticket sold over the counter
$3.00 per ticket sold via the telephone and/or internet
$1.00 per order for mail orders
d) CITY may require UNIVERSITY'S tenant to pay a deposit for services
prior to tickets going on sale. The amount of that deposit shall be
negotiated directly with UNIVERSITY'S tenant.
e) CITY reserves the right to negotiate directly with the UNIVERSITY'S
tenant regarding the fees listed above on a case by case basis to insure the
success of the performance as well as insure that the CITY'S costs are
covered.
f) CITY will notify the UNIVERSITY of permanent fee increases in
writing.
g) UNIVERSITY will have the option of add $1.00 to the CITY'S handling
fee on all tickets sold for United Spirit Arena events. CITY will pay to the
UNIVERSITY said $1.00 following the conclusion of the performance(s),
less applicable sales tax. The UNIVERSITY reserves the right to adjust
the $1.00 handling fee on an event by event basis to insure the success of
the performance.
6. Cancellation of Performance and Refunds.
a) Should a cancellation of a performance occur, the UNIVERSITY will
notify Select -a -Seat via telephone or fax in a timely manner.
b) All refunds, with the exception of tickets sold via TicketMaster, will be
handled by Select -a -Seat at the Memphis Mall location.
C) Refunds will be available to the public beginning no later than the second
business day following notification of the cancellation.
d) Ticket purchasers will receive a full refund, including all handling fees.
7. Special Provisions:
a) At the UNIVERSITY'S recommendation, Select -a -Seat will consign
tickets to other ticketing companies to sell tickets outside of the Lubbock
area for those events in which the promoter requests tickets to be sold
statewide. The UNIVERSITY shall agree, and make their tenants aware,
that no more than 25% of the "sellable" seats, with a cap at 3,000 tickets
total shall be distributed to other ticketing companies. It is mutually
agreed that CITY is not responsible for ticket monies collected by
TicketMaster when tickets are consigned to them to sell.
b) CITY and UNIVERSITY agree that events such as trade shows,
conventions and UNIVERSITY sponsored events shall be able to sell their
own tickets when using a ticketing service is not practical for the event.
C) It is mutually agreed that, at this time, the UNIVERSITY'S box office at
the United Spirit Arena will not operate as a ticket outlet for events sold
through Select -a -Seat other than the day of the performance(s) as outlined
in the Box Office Agreement with UNIVERSITY'S tenant.
d) It is mutually agreed that tickets will not go on sale until all venue
contracts and required deposits and all box office agreements and required
deposits have been received.
e) It is mutually agreed that the UNIVERSITY will have total event control
of held seats, comps, group sales, and mail orders as well as when tickets
go on/off sale.
f) It is mutually agreed that neither the CITY nor the UNIVERSITY shall be
liable for any refund claims once the settlement of the event has occurred.
g) Neither parry shall be responsible for any delay or failure or performance
resulting from fire, storm, flood, labor dispute, domestic or internal unrest,
equipment failure, delay in receipt of supplies, energy shortage or failure
of any other cause that is beyond its reasonable control.
h) Any payments required to be made by any party to this Agreement for the
performance of governmental functions or services shall be made from
current revenues available to the paying party.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands in
duplicate, this 14th day of June 2001.
CITY OF LUBBOCK: TEXAS TECH UNIVERSITY:
a(4 I YOR Kent Meredith, General Manager
United Spirit Arena
ATTEST:
e ecca Garza, City Secretary
Jim les, 'ef Financial Officer
Te s Tech University System
APPROVED AS TO FORM:
Im-imy Go��Iez--,A&sistgt City Manager
APPROVED AS TO CONTENT -
QA,
`(
ald G. Vandiver, First Assistant Cit Attorney
Y
Sastechagreement. doc
Resolution No. 2001-RO219
EXHIBIT "A"
SAMPLE AGREEMENT THAT WOULD BE EXECUTED BETWEEN THE CITY OF LUBBOCK'S
SELECT -A -SEAT OPERATION AND THE TENANTS OF THE UNITED SPIRIT ARENA
BOX OFFICE AGREEMENT
THIS AGREEMENT is made and to be performed in Lubbock County, Texas, this day of
by and between CITY OF LUBBOCK, 1501 6th Street,
Lubbock, TX 79401, a Texas non-profit corporation (hereinafter referred to as "CITY")
and (hereinafter called "CUSTOMER").
WHEREAS, CITY owns computerized event ticketing equipment and utilizes under a
License Agreement software enabling CITY to furnish a computerized ticketing system
(hereinafter referred to as "Select -a -Seat"), and CUSTOMER will utilize Select -a -Seat
for its event ticket sales.
NOW, THEREFORE AND IN CONSIDERATION of the sums to be paid and of the
covenants and agreements contained herein and subject to the terms and conditions of
the agreement with Texas Tech University, the parties agree as follows, to -wit:
Event. CUSTOMER hereby grants to CITY the exclusive opportunity, right and
authority to sell, handle, distribute and otherwise dispose of on behalf of
CUSTOMER, both in advance and at the Box Office, all admission tickets for the
following event(s) to be held at the United Spirit Arena in
Lubbock, Texas, on (Date) at (Time)
2. Compensation. CUSTOMER agrees to pay to CITY for services rendered the
following:
a) CUSTOMER agrees to pay CITY as general compensation for its services a sum
equal to and in addition authorizes CITY to collect at point of sale from
purchasers of tickets an additional amount of $--------per ticket ("HANDLING
FEE"). Said Handling Fee shall be in addition to CUSTOMER'S established
ticket price, and CITY and its sellers, as the case may be, may retain such
Handling Fee for its account as compensation for effecting computerized sale of
tickets. In the event any tickets are sold which are issued to a third party at the
request of CUSTOMER and with the approval of CITY, CITY will be entitled to
the same Handling Fee as stated above;
b) CUSTOMER also agrees and hereby authorizes CITY to collect from purchasers
of tickets via telephone and/or the internet, a Handling Fee in the amount of-$----
- per
f_=per ticket and if mailed to collect an additional fee of $ per order. Said
Handling Fee shall be in addition to CUSTOMER'S established ticket price and
CITY is authorized to retain said Handling Fee as compensation for effecting
telephonic and internet sale of tickets;
c) CUSTOMER also agrees and hereby authorizes the CITY to collect from
purchasers a facility improvement fee assessed by the United Spirit Arena of
$ on all tickets sold for this event. This fee will be collected by CITY and
paid to the United Spirit Arena upon the conclusion of the performance(s), less
applicable sales tax.
d) CUSTOMER also agrees and authorizes CITY to collect from purchasers of
tickets via mail a Handling Fee in the amount of $ per ticket and in addition
to collect from purchasers per order. Said Handling Fee shall be in
addition to CUSTOMER'S established ticket price and CITY is authorized to
retain said Handling Fee as additional compensation;
e) CUSTOMER agrees to pay CITY a fee of L_for each ticket printed and not
sold and/or complimentary tickets printed and provided by CITY;
f) CUSTOMER agrees to pay CITY a fee of .25 for each ticket refunded after a
sale hereunder. The fee provided in this subparagraph shall be in addition to
any other amounts payable to CITY by CUSTOMER under this agreement
provided that CITY has refunded to the purchasers the full ticket price together
with any Handling Fee made as a result of such sale; and
g) CUSTOMER agrees to pay CITY a "Programming Fee" of L_for any
attraction or event to be held in the United Spirit Arena which requires a new
configuration to be built onto the Select -a -Seat system, and additionally shall pay
a fee to CITY of $100.00 per hour for changes made after initial Set -Up. The fee
will be based upon the seating configuration and price levels proposed.
3. Terms and Conditions. The following terms and conditions are a part of this
agreement:
a. CITY agrees to maintain a central ticketing agency, currently located in the
Memphis Place Mall, 50th Street and Memphis Avenue in Lubbock, Texas. This
agency will be open during normal working hours Monday through Saturday of
each week, and will be closed on Sundays and holidays. Should CITY deem
necessary, CITY will make its remote ticketing venues available for first day
sales. CITY does not guarantee that any minimum or fixed number of tickets will
be sold for CUSTOMER'S event;
b. Assuming CUSTOMER has executed required venue contracts, CITY agrees to
accept mail orders for tickets for the event six (6) weeks in advance of the
opening date, and will conduct over-the-counter sales four (4) weeks in advance
of the opening date, or for a shorter period if CUSTOMER desires. CITY will
provide all materials deemed necessary by CITY to competently handle the ticket
sales and will render a true and correct accounting of all box office receipts.
CUSTOMER shall have the right at all reasonable times to examine and audit
the books and records of CITY insofar as they relate to CUSTOMER'S
attractions or events. CITY shall retain any unsold tickets. CITY will pay for any
security they deem necessary for first-day sales for the CUSTOMER'S EVENT;
c. CITY will handle the box office sales on the day of the event, exclusively at the
United Spirit Arena on the specified dates and will open the sale at least one (1)
hour before the doors open to the public. The Arena Box Office will be staffed no
longer than two (2) hours before the start time of the event unless special
arrangements are made with the Box Office Manager. CITY will provide the pay
for all necessary ticket sellers to cover said box office sales and will provide a
box office statement showing all tickets sold, unsold, etc., at the conclusion of
each performance for this event. CUSTOMER will provide the pay for box office
security at the venue on the day of the event;
d. CITY shall supply ticket stock necessary for CUSTOMER'S event. CITY
reserves exclusive rights to printed advertising on the back of ticket stock;
e. Ticket copy and layout is limited by the configuration of the CITY's Select -A -Seat
ticketing system. The maximum lines per ticket are six (6) and maximum
characters per line are twenty-four (24).
CUSTOMER agrees to timely provide, furnish, and pay for, any and all
advertising and promotion required to promote the sale of tickets for the event.
No advertising in any form shall be placed in any newspaper, magazine, radio or
television medium bearing or utilizing the Select -a -Seat name without the
express consent and agreement of CITY. No advertising in any form shall be
directed to any location other than CITY's established Ticket Agency outlets or
remote terminals or other outlets approved by the City. All print advertising in
any form shall state "TICKETS ON SALE AT SELECT -A -SEAT - MEMPHIS
PLACE MALL", in addition to CITY's remote ticket outlets. All electronic
advertising should state "TICKETS ON SALE AT ALL SELECT -A -SEAT
OUTLETS'. All reference to mail orders contain the following statement:
ENCLOSE SELF -ADDRESS STAMPED ENVELOPE FOR RETURN OF
TICKETS TOGETHER WITH $1.00 PER ORDER HANDLING CHARGE';
g ° In the event CUSTOMER desires to issue any type of coupon to be used in
exchange for tickets for admission to the event, then said coupon shall be
calculated at the actual cash value of the ticket it is exchanged for when
determining total gross sales. Both for purposes of calculating CITY's fee and
any taxes applicable thereto, and if any tickets are discounted in price, the same
shall likewise be calculated at the actual full price of the ticket when determining
the total gross sales. Any discount coupons issued in exchange for admission
tickets shall be redeemable only at CITY's Memphis Place Mall office. No
discount coupons will be redeemed at any CITY remote ticket office, without prior
consent.
h) In the event CUSTOMER desires CITY to open its box office locations for
periods longer than the specified hours, then the CUSTOMER shall pay CITY at
the rate of $10.00 per CITY employee -hour for each hour that each box office is
open.
i) Any monies, funds, or receipts acquired by CITY pursuant to this agreement
shall be held by CITY until the conclusion of the final performance of the event at
which time only, CITY shall pay to CUSTOMER total gross receipts less the
following sums that will be deducted from total gross receipts;
i) All CITY fees prescribed pursuant to this agreement;
ii) All Texas sales tax;
iii) All City of Lubbock sales tax, if applicable; and
iv) Any additional amount required by the United Spirit Arena for whichthe
United Spirit Arena notifies CITY is due and owing it from CUSTOMER.
j. Neither party shall be responsible for any delay or failure or performance
resulting from fire, storm, flood, labor dispute, domestic or internal unrest,
equipment failure, delay in receipt of supplies, energy shortage or failure of any
other cause beyond its reasonable control;
k. CUSTOMER AGREES TO INDEMNIFY CITY AGAINST AND HOLD CITY
HARMLESS FROM ANY LOSS, LIABILITY, COST OR EXPENSE ARISING
FROM REFUND CLAIMS.
5. Cancellation of Performance and Refunds
a. Should a cancellation of a performance occur, CUSTOMER will notify Select -a -
Seat via telephone or fax in a timely manner.
b. All refunds will be handled by Select -a -Seat at their Memphis Place Mail location
unless tickets are sold through third party outlets.
c. Refunds will be available to the general public beginning no later than the second
business day following notification of the event cancellation.
d. Ticket purchasers will receive a full refund, including all handling fees.
e. In the event of an event cancellation, CUSTOMER agrees to pay to CITY a
cancellation fee that is equivalent to twice the agreed percentage of total gross
ticket sales at the time of the cancellation, plus any and all expenses incurred by
CITY that were associated with the sale of tickets for this event.
6. Deposit Requirement: Advance deposit due:
Tickets will not go on sale until contracts have been executed and deposit
received by CITY.
7. Cash Advance Requirements
a. To protect the investment of the ticket purchaser, under no
circumstances will CITY provide a cash advance to CUSTOMER or
anyone else prior to the day of the performance.
b. The management of the United Spirit Arena must approve any and all
cash payouts.
C. Cash requirement requests must be received by CITY at least three (3)
business days prior to the event.
d. Signed receipts will be required for any cash payouts during show
settlement.
8. Customer Obligation: No ticket will be placed on sale by CITY until all venue
contracts and deposits have been received and accepted by the United Spirit
Arena, and this agreement has been signed in duplicate and an original
delivered with stipulated payments to CITY prior to the opening date of ticket
sales.
9. Special Provisions:
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands in
duplicate, this day of , 20
CITY OF LUBBOCK CUSTOMER
THIS AGREEMENT MUST BE SIGNED IN DUPLICATE AND ORIGINAL COPY
DELIVERED, WITH STIPULATED PAYMENTS, TO SELECT -A -SEAT, CITY OF
LUBBOCK, 1501 6T" STREET, LUBBOCK, TEXAS, 79401, PRIOR TO THE OPENING
DATE OF THIS TICKET SALE. IN ADDITION, NO TICKETS WILL BE PLACED ON
SALE UNTIL ALL VENUE CONTRACTS AND REQUIRED DEPOSITS HAVE BEEN
RECEIVED BY THE UNITED SPIRIT ARENA.
Q:\ccenter\ticket agreement.doc
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