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HomeMy WebLinkAboutResolution - 2002-R0150 - Agreement With Umbrella Entertainment Group - 04/25/2002Resolution No. 2002—RO150 April 25, 2002 Item No. 39 RESOLUTION l�E ITR[ SOLVl-:I) I3Y 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 an Agreement between the City of Lubbock and Umbrella Entertainment Group d.b.a. The Air Show Network to provide coordination and production of Air Shows at Lubbock International Airport, and any other related documents. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 25th day of __April _ _ 2002. WINDY SITTOIN, MAYOR ATTEST: �Q 9�a' RGbt.Cca Garza, City Secretary APPROVED ASO CONTENT: 1%Lark `e, Director Aviation APPROVED AS TO FORM: Linda L. Chamales Supervising Attorney -- Office Practice LLC* Ccdocs/Air show. Res March 4. 2002 Resolution No. 2002-RO150 April 25, 2002 Item No. 39 PROFESSIONAL MANAGEMENT SERVICES AGREEMENT BETWEEN THE CITY OF LUBBOCK AND THE AIR SHOW NETWORK STATE OF TEXAS § COUNTY OF LUBBOCK § This agreement, (the "Agreement") is by and between the City of Lubbock, (the "City"), a Texas Home Rule Municipal Corporation, and Umbrella Entertainment Group, d.b.a. The Air Show Network, a corporation operating under the laws of the State of California, whose principal place of business is located at 6385A Rose Lane, Carpinteria, California ("ASN"). RECITALS WHEREAS, the City desires to host an Air Show at the Lubbock International Airport; and WHEREAS, ASN possesses the skills and expertise necessary to design and manage the Air Show on behalf of the City; NOW THEREFORE, for and in consideration of the terms, covenants and conditions set forth in this Agreement, the City and ASN agree as follows: 1. DEFINITIONS A. Defined Terms. As used in this Agreement, the following terms have the meanings indicated below: "Air Show" includes the performance of military and professional civilian performers, air operations, static displays and other event activities open to the public for both Saturday and Sunday as well as performances on the preceding Friday with viewing opportunities for media representatives, corporate patrons and sponsors, and specific groups, including but not limited to, seniors and physically handicapped persons. "Air Show Schedule" means a schedule of activities, including but not limited to, pre -production activities, set-up and teardown, and performance schedule. "City" means the City of Lubbock Aviation Department. "Concessions" means the operations at the Scheduled Air Show that generate revenue by the sale of food, beverages, merchandise, souvenirs, or other air show related items. "Operations Plan" has the meaning ascribed to it in Exhibit A. Air Show Services Agreement, City of Lubbock and The Air Show Network pntta i "-Onsite Generated Revenue" means revenue collected that is related to or arises ;from a Scheduled Air Show, including admission charges and parking fees, but not including 1) any applicable sales taxes; 2) concession revenue; and ; ) Flightline Club and Box Seat revenue.. "Revenue" means funds collected from the sale or lease of goods or services related to a Scheduled Air Show, excluding applicable sales taxes. "Site" means the Lubbock International Airport and its airspace. "Site Map" means a scale representation of the Air Show Facilities at the Lubbock International Airport. B. Construction of Certain Terms and Phrases. Unless the context of this Agreement otherwise requires (i) words of any gender include each other gender; (ii) words using singular or plural number also include the plural or singular number, respectively; (iii) whenever this Agreement refers to a number of days, such number shall refer to calendar days unless business days are specified. A1l accounting terms used herein and not expressly defined herein shall have the meanings given to them under Generally Accepted Accounting Principles (GAAP). 2. TERM OF AGREEMENT This Agreement shall commence upon execution by both parties and shall terminate upon. (1) the completion of the services set forth in the Scope of Work, Exhibit A, attached hereto and made a part of this Agreement, for each of three Air Shows scheduled in 20021 2004, and 2006, or (2) the termination by City pursuant to the provisions of this Agreement, whichever event occurs first. 3. COMPENSATION A. City and ASN shall agree on a budget for each Air Show, which shall not be exceeded without prior approval by the City. The City shall pay ASN the actual expenses incurred by ASN for each Air Show. Payments to ASN shall be made according to the schedule attached as Exhibit B and made a part of this Agreement. ASN shall submit invoices for actual expenses and the City representative shall verify and audit these expenses. B. City shall receive ninety percent (90%) and ASN shall retain ten percent (10%) of all Onsite Generated Revenue as defined herein. C. City shall receive twenty percent (200/0) and ASN shall receive eighty percent (80° o) of all Flight Line Club and Box Seat Revenue. :fir Show Services Agreement, City of Lubbock and Tile ;fir Show Neiwori; D. City shall receive twenty percent (20%) and ASN shall retain eighty percent (80%) of all Concession Revenue up to Two Hundred Thousand and no/100 Dollars ($200,000.00). For any amount over Two Hundred Thousand and no/100 Dollars ($200,000.00), City shall receive twenty-five percent (25%) and ASN shall retain seventy-five (75%) of all Concession Revenue. In no case shall City's share of concession sales revenue be less than Twenty -Five Thousand and no/100 Dollars ($25,000.00) E. City shall set the price for Chalets and retain one hundred percent (100%) of Chalet sales revenue. ASN shall receive Two Thousand Five Hundred and no/100 Dollars ($2,500.00) for each 100 -seat Chalet Package that the City requests, and One Thousand Two Hundred Fifty and no/100 Dollars ($1,250.00) for each 50 -seat Chalet Package. ASN shall provide catering at the Chalets at a rate of Twenty-two and 95/100 Dollars ($22.95) per person for full catering. ASN shall receive nine and 95/100 Dollars ($9.95) per person for beverage -only catering. City shall receive no revenues from catering. F. ASN shall assist City with the sale of sponsorships. City shall retain one hundred percent (100%) of the money received on the sponsorships acquired solely by the City. If the City brings in a sponsor but asks ASN for assistance in working with the sponsor, City shall retain eighty percent (80%) of the money received from the sale of the sponsorship and ASN shall receive twenty percent (20%). Any sponsorship acquired solely by ASN shall entitle ASN to eighty percent (80%) and the City to twenty percent (20%) of the money received from the sale of the sponsorship. City shall obtain approval from ASN prior to soliciting sponsorships from hotels, automotive companies, waste service providers, aviation fuel providers, or media outlets. G. ASN shall have no claim against City for any compensation or payment in addition to those specified in this Section. H. In the event that City may receive any invoice or claim for the payment of any cost related (or purportedly related) to the Air Show, City shall forward such invoice or claim for payment to ASN for disposition. 4. REPRESENTATIONS AND WARRANTIES A. Existence. ASN is a corporation duly organized, validly existing, and in good standing under the laws of the State of California and is qualified to carry on its business in the State of Texas. B. Corporate Power. ASN has the corporate power to enter into and perform this Agreement and all other activities contemplated hereby. C. Authorization. Execution, delivery, and performance of this Agreement and the activities contemplated hereby have been duly and validly authorized by all the Air Show Services Agreement, City of Lubbock and The Air Show Network pncra I requisite corporate action on the part of ASM. This Agreement constitutes legal, valid, and binding obligations of the ASN and is enforceable in accordance with the terms thereof. D. Qualifications. ASN maintains a professional staff and employs, as needed, other qualified specialists experienced in presenting and conducting air shows, and is familiar with all laws, rules, and regulations, both state and federal. including, without limitation the applicable laws, regarding the activities contemplated hereby. E. Performance. ASN will and shall conduct all activities contemplated by this agreement in a good and workmanlike manner, and comply with all laws, rules, and regulations, both state and federal, relating to the presentation and conduct of air shows, as contemplated hereby. . Use of Copyrighted Material. ASN warrants that any materials provided by ASN for use by City pursuant to this agreement shall not contain any proprietary material owned by any other party that is protected under the Copyright Act or any other similar law. ASN shall be solely responsible for ensuring that any materials provided by ASN pursuant to this Agreement satisfy this requirement and ASN agrees to hold City harmless from all liability or loss to which City is exposed on account of ASN's failure to perform this duty. G. ASN makes no representations or warranties that the City will receive revenues in excess of expenses to produce the Air Show. The City shall be liable for any shortfall in revenue and benefit from any surplus in revenues over the actual expenses incurred to produce the Air Show. 5. SCOPE OF WORK ASN shall provide services that shall be in accordance with the Scope of Work as set forth in Exhibit A, attached hereto and made a part of this Agreement. ASN shall provide progress reports to the Deputy Aviation Director according to a mutually agreed-upon schedule. The Air Show Network Letter of Intent, dated July 5, 2001, attached hereto as Exhibit C is made a part of this Agreement. If, or whenever, Exhibit C conflicts with any other portion of this Agreement the Agreement shall take precedence over the language in Exhibit C. 6. COMPLIANCE WITH APPLICABLE LAWS ASN shall comply with all applicable federal, state and local laws, statutes, ordinances, rules and regulations relating, in any way to the activities under this Agreement, and any amendments thereto. Without limitation on this requirement, ASN shall: Air Show Services Agreement. City of Lubbock and The Air Show Network nq"P A A. Obtain and deliver the appropriate Certificate of Waiver and/or Authorization from the Federal Aviation Agency (FAA) prior to the Air Show and shall at all dimes be solely responsible to ensure compliance with all provisions of the Waiver. B. Obtain all necessary public health and assembly permits with the cooperation of the City. C. Obtain approval from the proper authorities for any pyrotechnics that may be used in the Air show. D. Provide public restroom facilities as required by the City of Lubbock Health Department. E. ASN or it's subcontractors shall pay promptly all taxes and assessments which may be levied by a federal, state, county, city, or other tax levying body on any taxable interest of ASN or it's subcontractors and all excise, license, and permit fees of whatever nature applicable to the operation of the Air Show. A copy of all necessary documents, but not limited to, Certificate of Waiver from the FAA, licenses, and permits, shall be provided to the City not less than five (5) days prior to the start of the Air Show. 7. INDEMNIFICATION OF CITY AGAINST LIABILITY City of Lubbock shall not be liable or responsible for, and shall be saved and held harmless by ASN from and against any and all suits, actions, losses, damages, claims, or liability of any character, type, or description, including all expenses of litigation, court costs, and attorney's fees for injury or death to any person, or injury to any property, received or sustained by any person or persons or property, arising out of, or occasioned by, directly or indirectly, in whole or in part, the performance of ASN under this agreement. 8. INSURANCE A. General. ASN shall procure and carry, at its sole cost and expense through the life of this Agreement insurance protection hereinafter specified, except that the Air Meet Liability and Weather Insurance in BA. below will be purchased by ASN on behalf of the City and included in each Air Show budget as agreed to between the City and ASN. All insurance policies shall be in form and substance satisfactory to the City. City must approve all policies prior to the commencement of any activities whether performed by the ASN, subcontractor, agents, or third parties. The insurance carrier must be an insurance company authorized to transact business in the State of Texas and have a Best's Financial rating of A: VII. A Certificate of Insurance specifying each and all coverage shall be submitted to City prior to the execution of this Contract. All insurance shall be prepared and Air Show Services Agreement, City of Lubbock and The Air Show Network Pana S executed by the insurance company or it's authorized agents and shall contain an endorsement naming the City of Lubbock an additional insured. Written notice of cancellation or any material change will be provided thirty (30) days in advance of cancellation or change. All insurance, other than Workers' Compensation, shall provide a waiver of subrogation in favor of the City of Lubbock, and shall contain cross liability and severability clauses. B. Required Coverage. ASN shall obtain and maintain policies of insurance throughout the Agreement term in limits specified below. 1. Worker's Compensation. The Contractor shall maintain Workers' Compensation and Employer's Liability insurance coverage as required by statute or coverage approved by the City Risk Management Coordinator. 2. Commercial General Liability. ASN shall maintain Commercial General Liability coverage endorsed to include premises/operations, contractual liability, and independent contractors' and completed operations. The policy shall have a minimum of Million and no/100 Dollars ($_,000,000) combined single limit in the aggregate and per occurrence. 3. Commercial Automobile Liability. ASN shall maintain Commercial Automobile Liability coverage with a minimum of One Million and no/100 Dollars ($1,000,000) combined single for Bodily Injury and Property Damage and shall include any auto or in the alternative, owned autos, non - owned autos and hired autos. 4. Air Meet Liability and Weather. ASN shall purchase Air Meet Liability and Weather Insurance on behalf of the City in an amount agreed upon between City and ASN. ASN and subcontractors shall procure and maintain their insurance coverage until all of their obligations under this Agreement have been discharged or satisfied, including any warranty periods. The insurance requirements listed herein are minimum requirements for this Agreement and in no way limit the indemnity covenants contained in this Agreement. The City in no way warrants that the minimum limits contained herein are sufficient to protect ASN from liabilities that might arise out of the performance of the work under this Agreement by the ASN, his agents, representatives, employees or subcontractors. ASN's certificates shall include all subcontractors as insured's under its policies or ASN shall furnish to the City separate certificates for each subcontractor. All insurance coverage for subcontractors shall be subject to the minimum requirements identified above. .air Show Services Agreement. City of Lubbock and The Air Show Network P0,YP (, Any modification or variation from the insurance requirements in this contract must have prior approval from the City of Lubbock Risk Management Coordinator, whose decision shall be final. Such action will not require a formal contract amendment, but may be made by administrative action. 9. AIRPORT OPERATIONS ASN acknowledges the authority of the City with regard to the conduct of all operations at the Airport. ASN shall at all times abide by any conditions imposed by the Federal Aviation Administration or City for the event. ASN's designated agent shall be subject to the reasonable direction of City at all times during the event. Direction may include the right to cancel or modify the Air Show at any time when, in the sole judgment of the City, such modifications are necessary to accommodate an emergency situation or for public safety. ASN shall take all necessary steps to assure that principles of good airmanship and safety are strictly enforced, including but not limited to, grounding operators of aircraft as necessary. ASN shall furnish an Aerial Event Controller ("Airboss"), who shall be the sole and exclusive authority for controlling all flying activities in the Air Show. At the conclusion of the Air Show performances, the Airboss shall return control of the airspace to the local controllers. City shall not be liable to ASN for any loss which it might sustain as the result of modification or cancellation of the Air Show plan undertaken pursuant to the authority described in Paragraph 1 of this section. 10. CITY'S RESPONSIBILITIES A. The City hereby grants ASN an exclusive right to provide all concessions, including food, beverages, novelties, confections, sundries, and film for sale at each Scheduled Air Show with the exception of sales within the museum. The City shall retain all proceeds from museum food and merchandise sales; however, museum food sales shall be limited to on -premises consumption. B. City shall make the site available to ASN at City's expense. C. City shall provide reasonable access to the site for ASN's vehicles and personnel, including any vehicles of ASN's contractors and suppliers, at least one hundred twenty (120) hours prior to each Scheduled Air Show and at least forty-eight (48) hours after each Scheduled Air Show. D. City shall provide ASN and ASN's contractors' access to the ramp for set-up a minimum of forty-eight (48) hours prior to the first Scheduled Air Show, as agreed in the Operations Plan. Air Show Services Agreement, City of Lubbock and The Air Show Network Paaa 7 E. City shall provide limited site preparation and maintenance, such as grass cutting, maintenance and repair of on -airfield property as would be the case in the normal operation of the airport. Such site preparation and maintenance shall not include the use of City trades people for Site set-up, teardovvn, or clean up in connection with any ASN services. F. City shall provide access to minimum quantities of portable water. G. City shall provide: 1. Sufficient fire response to support all activities associated with the Air Show: 2. Adequate security and airport personnel to conduct normal Airport operations; I Personnel required for safe and orderly traffic management on the Site. H. City shall secure access to any tenant controlled property required for the safe and efficient conduct of the Air Show, L City shall provide access to secure office space, including telephones, for a period not less than three months prior to the first Scheduled Air Show. J. City shall provide at least one staff member to act in the role of liaison between City and ASN. Joe Hays is designated as the City's liaison. 11. CONDITION OF LUBBOCK INTERNATIONAL AIRPORT ASN shall be responsible for the repair of any damage to the Site caused by any activity of ASN or its subcontractors arising from or related to a Scheduled Air Show. ASN shall immediately repair, to the sole satisfaction of City, any damage to the Site, including but not limited to, Airport operating surfaces, Airport parking lots, or premises of Airport tenants. 12. EXPENSES Each party will pay its own costs and expenses incurred in connection with the negotiation, execution, and closing of this Agreement. 13. LIENS ASN shall not place or allow any of its subcontractors to place any liens against the City by reason of any work, labor, services or materials provided as a result of this Agreement. If any such lien is filed against the City, ASN shall cause the lien to be discharged of record within sixty (60) days of notification that the lien was filed. Air Show Services Agreement, City of Lubbock and The Air Show Network �a�P z 14. INDEPENDENT CONTRACTOR STATUS ASN and City agree that ASN shall perform the duties under this Agreement as an independent contractor. ASN has the sole discretion to determine the manner and means in which the services are to be performed. 15. CONTRACTS ASN shall have the right to use outside contractors to manage certain portions of the Air Show, including but not limited to Airboss, narrators, concessions sales, merchandise sales, construction, communications, transportation, parking, sanitation, set-up and take down, and air operations. ASN shall have full authority on the selection of all contractors, provided however, that ASN shall give preference to local suppliers insofar as such preference is commercially reasonable as determined in the sole and absolute discretion of ASN. Notwithstanding the preceding provision, ASN's selection of contractors shall be subject to the City's right of approval, provided that such right of approval shall not be unreasonably withheld. In the event the City does not provide ASN with written notice of rejection within 10 days of the date of submission of the selected contractors, the selected contractors shall be deemed approved by the City. ASN shall be fully responsible to the City for the performance of contractors, or subcontractors or any other persons either directly or indirectly performing any of the Services such that the Services are performed in accordance with this Agreement. Nothing contained in this Agreement shall create any contractual relationship between the City and any such person or subcontractor, nor shall this Agreement create any obligation on the part of the City to pay or to ensure that payment is made to any subcontractor of any sums. ASN shall provide a list of the subcontractors it plans to use in the Plans submitted in accordance with Exhibit A. 16. CONFIDENTIALITY ASN shall retain all information received from or concerning the City and the City's business in strictest confidence and shall not reveal such information to third parties without prior written consent of the City, unless otherwise required by law. All data, including originals, images and reproductions, prepared by, obtained by, or transmitted to ASN in connection with this Agreement is confidential, proprietary information owned by the City. Except as specifically provided in this Agreement, ASN shall not disclose data generated in the performance of this Agreement to any third party without the prior written consent of the City. The obligations of ASN under this section shall survive the termination of this Agreement. Air Show Services Agreement, City of Lubbock and The Air Show Network Para a 17. CONTACTS WITH THIRD PARTIES Should,ASN be contacted by any person requesting information or requiring testimony relative to the services provided under this Agreement or any other prior or existing Agreement with the City, ASN shall promptly notify the City. ASN shall not disclose such information or give such testimony without the consent of the City or a valid court order. It is agreed that a violation of this Section shall be deemed to cause irreparable harm that justifies injunctive relief in a court of law. The obligations of ASN under this Section shall survive the termination of this Agreement. 13. AUDIT AND RECORDS A. Audit. ASN shall provide access to its corporate books and records to the City relative to all transactions directly involving the Air Show. The City may audit, at its expense and during normal business hours, ASN's books and records with respect to this Agreement between ASN and City. B. Records. ASN shall maintain records that are necessary to substantiate the services provided by ASN. All records pertaining to this Agreement shall be kept on a Generally Accepted Accounting Principles (GAAP) basis for a period of four years following termination of the Agreement. 19. CONTRACT AMENDMENTS No amendment, modification, or alteration of the terms of this Agreement shall be binding unless such amendment, modification, or alteration is in writing, dated subsequent to this Agreement, and duly executed by ASN and City. Changes to the Services may be made and the compensation to be paid to ASN may be adjusted by mutual agreement, but in no event may the compensation exceed the amount authorized without further authorization by the City Council. It is specifically understood and agreed that no claim for extra work done or materials furnished by ASN will be allowed except as provided herein, nor shall ASN do any work or furnish any materials not covered by this Agreement unless first authorized in writing. Any work or materials furnished by ASN without prior written authorization shall be at ASN's risk, cost and expense, and ASN agrees to submit no claim for compensation or reimbursement for additional work done or materials furnished without prior written authorization. 20. NON -ASSIGNABILITY This Agreement is in the nature of a personal service agreement and ASN shall have no power to assign its rights and obligations under this Agreement without the prior written consent of City. Any attempt to assign without such prior written consent shall be void. 21. NOTICES Air Show Services Agreement, City of Lubbock and The Air Show Network Pa", in Any notice, consent or other communication required or permitted under this Agreement shall by in writing and either delivered in person, sent by facsimile transmission, or deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested. If to ASN: Umbrella Entertainment Group Attn: James J. Breen 6385A Rose Lane Carpinteria, CA 93013-2923 If to City: City of Lubbock Attn: Director of Aviation Lubbock International Airport Lubbock, TX 79401 22. GOVERNING LAW; FORUM; VENUE THIS CONTRACT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. THE PARTIES HERETO HEREBY IRREVOCABLY CONSENT TO THE EXCLUSIVE JURISDICTION AND VENUE OF THE COURTS OF THE STATE OF TEXAS, COUNTY OF LUBBOCK, FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS CONTRACT OR THE ACTIONS THAT ARE CONTEMPLATED HEREBY. 23. TERMINATION OR SUSPENSION OF SERVICES A. If either ASN or City shall terminate this Agreement, within the one hundred eighty (180) days prior to a scheduled air show, for reasons other than those described in Section 24, the other party shall be entitled to the sum of fifty thousand dollars ($50,000.00) as liquidated damages in addition to reimbursement of any expenses incurred by the non -terminating party in anticipation of the air show. Termination more than 180 days prior to a scheduled air show will not entitle the non -terminating party to liquidated damages. B. City's Right to Terminate The City reserves the right, at the discretion of the Director of Aviation, to terminate this Agreement without cause by notifying ASN in writing. C. Immediately upon receiving a written notice to terminate or suspend services under Section 23, Paragraphs A or B, or under Section 24, the parties shall take the following steps: 1. ASN shall discontinue advancing the work in progress or such part that is described in the notice. Air Show Services Agreement, City of Lubbock and The Air Show Network Pana 7 1 2. ASN shall deliver to. the City all collected raw data, draft reports, preliminary reports, working papers, estimates and forecasts entirely or partially completed, together with all unused material supplied by the City. 3. City shall compensate ASN for management services performed to the date of its receipt of the Notice of Termination, including reimbursement for all reasonable costs and expenses incurred by ASN in terminating the work, including demobilization of field service over and above fees already received or due at the time of termination. 4. After verification and audit, City shall compensate ASN for actual expenses (within the approved budget) incurred by ASN on behalf of the Air Show in a timely manner. D. Temporary Suspension The Director of Aviation may, by written notice, direct ASN to suspend performance on all or any part of the Services for such period of time as may be determined by the City to be necessary or desirable for its convenience. City will reimburse additional reasonable expenses that are a direct result of a requested suspension of the ASN's services. Any claim by ASN must be made promptly and supported by appropriate documentation. 24. FORCE MAJEURE It is expressly understood and agreed by the parties to this Agreement that if an air show is delayed or cannot be performed as agreed and obligations cannot be performed by either party under this Agreement because of circumstances beyond its control, including but not limited to war, civil commotion, acts of God, inclement weather, natural disasters, governmental restrictions, regulations, or interferences, fire or other casualty, court injunction, unavoidable and unforeseeable site conditions or the unforeseeable inability to obtain necessary site access, authorization, permits, licenses, certifications and approvals, then the obligated party shall not be responsible for or deemed in breach hereof because of nonperformance or delay in the performance of its obligations to the extent that the circumstances were beyond its control, without its fault or negligence, and could not have been prevented by the exercise of due diligence. 25. DOCUMENTATION A. Title All documents including, but not limited to, artwork, copy, posters, billboards, photographs, videotapes, audio tapes, system designs, drawings, estimates, field notes, investigations, software, reports, diagrams, surveys, analysis, studies, or any other original works of authorship created by ASN in the performance of this Agreement are to be and remain "works for hire" under Title 17, United States Code, and the property of the City and all copyright ownership and authorship Air Show Services Agreement, City of Lubbock and The Air Show Network Para t rights in the work(s) shall belong to the City pursuant to 17 U.S.C. 201(b). In the event that the work(s) that is/are the subject matter of this Agreement is deemed ,to not be work for hire, then ASN hereby assigns to the City all of the right, title and interest for the entire world in and to the work(s) and the copyright therein. ASN agrees to cooperate and execute additional documents reasonably necessary to conform to its obligations under this paragraph. All documents, together with all unused materials supplied by the City, are to be delivered to the Director of Aviation upon completion or termination of this Agreement and before the final payment is made to ASN. B. Dissemination and Retention There shall be no dissemination or publication of any information gathered, or documents prepared in the course of the performance of the services without the prior written consent of the City. Should the Director of Aviation, upon advice of counsel, deem it necessary, due to existing or anticipated litigation, to assert a legal privilege of protection and non -disclosure with regard to the subject matter of this Agreement, then, and in that event, upon written demand, ASN shall relinquish to the possession and control of the Director of Aviation its entire: file related to this Agreement and only those portions of said file deemed by the City to be not privileged shall be returned to ASN pending the resolution of the existing or anticipated litigation. C. Format and Quality All documents prepared by ASN shall be prepared in a format and at a quality level approved by the City. D. Document Review ASN shall review all documents provided by the City related to the performance of the services and shall promptly notify the City of any defects or deficienci-2s discovered in such review. E. Submittals ASN shall provide in a timely manner all submittals and all documents, if any, required of ASN to the City for review. 26. SEVERABILITY If any provision of this Agreement is ever held to be invalid or ineffective by any court of competent jurisdiction with respect to any person or circumstances, the remainder of this Contract and the application of such provision to persons and/or circumstances other than those with respect to which it is held invalid or ineffective shall not be affected thereby. 27. CAPTIONS Air Show Services Agreement, City of Lubbock and The Air Show Network Pacsa 1 The captions for the articles and sections in this Agreement are inserted in this Agreement strictly for the parties' convenience in identifying the provisions to this Agreerpent and shall not be given any effect in construing this Agreement. 28. ENTIRE AGREEMENT This Agreement, including Exhibits attached hereto, contains the Entire Agreement between the City and ASN, and there are no other written or oral promises, conditions, warranties, or representations relating to or affecting the matters contemplated herein. EXECUTED this 25th CITE' OF LUBBOCK day of April 2002. iIUIh WINDY SITT , MAYOR ATTEST: Rebecca Garza City Secretary APPROVED AS TO CONTENT Mark Are Dir for of Aviation Air Shov. Contract Discussion Draft August 26, 2002 THE UMBRELLA ENTERTAINMENT GROUP, a California Corporation, d.b.a. THE AIR SHOW NETWORK 137y: Title: Rxsi APPROVED AS TO FORM: Linda L. Chamales Supervising Attorney, Office Practice Air Show Services Agreement. City of Lubbock and The Air Show Network Pq(TP 34 Resolution No. 2002—RO150 EXHIBIT A SCOPE OF WORK ASN shall be responsible for the following Scope of Work: Air Show Plan. ASN shall submit to City an Air Show Plan as coordinated with all participating parties in the Air Show. The Air Show Plan shall contain information in detail sufficient for City to fully understand the scope, schedule, coordination plans, and physical layout of all Air Show related activity. ASN shall include in its plan a Site Map detailing all Air Show operations as well as an Air Show Schedule providing specific identification of participating acts. The Air Show Plan must be approved by the City prior to implementation. ASN shall direct and choreograph all Air Show activities in accordance with the approved Air Show Plan. ASN shall be responsible for entering into contracts with performers and coordinating with City and any other Governmental or regulatory authority to ensure the successful implementation of the approved Air Show Plan. The Air Show Plan shall address all of the items outlined in this document, "Exhibit A, Scope of Work". 2. Operations. ASN shall be solely responsible for day-to-day operations of the Air Show, including the following: (a) Coordination with airport tenants; (b) Issuance of NOTAM's; (c) Briefings with Air Traffic Control Tower Personnel, Federal Aviation Administration (FSDO) and Airport Staff, (d) Designation of runway closures; (e) Crowd control; (f) Public announcements and narration; (g) Aircraft parking; (h) Reservation of airspace. (i) A Contingency Plan in the event of inclement weather. Concessions. In accordance with the approved Air Show Plan, ASN shall be solely responsible for Concession Operations for the Air Show, and shall conduct all Concession activity, including the following: (a) Exclusively provide all food and soft drink booths, ice cream booths, beer booths, novelty booths and film booths for the Air Show as set forth in Addendum I. (b) Provide booths which will be completely self-contained and will require no electricity. Air Show Services Agreement, City of Lubbock and The Air Show Network Pane 1 (c) Assemble and take down all booths and concession equipment. The booths shall be operational by 0800 hours on the day of the Air Show and removed no later than 2000 hours on the final day of the Air Show. The booths shall be open for business from approximately 0800 hours until approximately 1700 hours each day of the Air Show. Booths and equipment will be cleaned by the sales team assigned to the booth. Following trash pick-up by the sales team, the sweeping of the ramp area will be the responsibility of the City. (d) Select and provide menu items which, in its opinion, shall best maximize revenues, based on regional tastes and seasonal weather factors. (e) Price all food and novelty items with regard to the percentage due the City, local costs of raw materials and at prices which are consistent with those charged at comparable Air Shows in the United States. (f) Use its best efforts to access local vendors for food products, including vendors who in the past have been loyal to the City and who offer comparable and reasonable pricing. The final decision on vendors will be made by the ASN, and ASN will notify the City of vendors selected upon request. (g) Provide an on-site management team to execute the concessions program. The City is not responsible for providing compensation to the on-site manager or to supervisors provided by ASN. Training of the sales force shall be conducted by ASN. (h) It is agreed that all employees of ASN will dress professionally and conduct themselves in a courteous manner. (i) Comply with all applicable laws pertaining to persons employed by ASN regarding wages, workmen's compensation, and the equal opportunity service contract act. City may require copies of any souvenir concession contracts and shall have the right to approve the concession operators and the location of any concession facilities to be temporarily installed at the Airport. ASN warrants that the sale of all items shall comply with applicable state and local laws. 4. Ticketing. ASN shall be solely responsible for production, distribution and sale of tickets for the Air Show. ASN shall create and implement a system for advance and on-site ticket sales, and shall provide adequate audit systems, checks and balances. All ticketing operations shall be carried out in accordance with the approved Air Show Plan. 5. Publicity. ASN shall be solely responsible for publicity, including: (a) Notices to airport tenants; (b) Advertising; (c) Printed programs; (d) Public relations; and (e) Media relations. Air Show Services Agreement. City of Lubbock and The Air Show Network Pnap 1F, ASN shall carry out all publicity operations in accordance with the approved Air Show Plan. ASN shall confer with City on all community relations issues. The City will have editorial approval for all communication material that references the City and/or the Lubbock International Airport and ASN will also have editorial approval for any reference to the Air Show in any collateral promotions made by City. The publicity campaign, at a minimum, shall include plans for the following: (a) Group ticket sales; (b) Graphics and poster production; (c) Production of event specialty items, i.e. t -shirts, caps, pins, etc.; (d) A community awareness program to mitigate negative community response to additional noise, traffic congestion and aircraft activity in neighboring communities; (e) Development of event logo and/or theme; (f) Display of event banners; (g) Event Master of Ceremonies/announcer scripts, announcer accommodations, etc.; (h) VIP scripts or other event scripts as needed; (i) Coordinating with the Director of Aviation on an article in The Avalanche - Journal; (j) Interfacing with local school systems to promote the Air Show; (k) Coordinating correspondence with reunion groups, local veteran groups, etc.; (1) Providing event notification in air show calendar publications; (m) Coordinating opening ceremonies with Director of Aviation; and (n) Coordinating media and VIP rides with Director of Aviation. 6. Maintenance. ASN is solely responsible for obtaining the necessary support equipment for the Air Show. 7. Facilities. ASN is solely responsible for providing and maintaining facilities for the Air Show, and shall carry out this function in accordance with the approved Air Show Plan. At a minimum, ASN shall be responsible for the following: (a) Designation of spectator and non -spectator areas; (b) Provision of pedestrian corridors; (c) Placement and removal of portable toilets; (d) Placement and removal of trash receptacles; (e) Placement and removal of narration platform; (f) Placement and removal of booths; (g) Placement and removal of chalets; (h) Placement and removal of tents; and (i) Placement and removal of fencing. Air Show Services Agreement, City of Lubbock and The Air Show Network Pana 11 ASN shall be responsible for clean up and restoration of the Site following completion of the Air Show in accordance with the Air Show Plan. ASN shall ,also provide for the clean up and disposal of any and all oil, waste oil, waste fuel, waste solvents, fuel, solvents or absorbent materials contaminated with oil, fuel or solvents. 8. Parking Services. ASN shall be solely responsible for automobile parking operations and traffic control. Parking operations shall be carried out in accordance with the approved Air Show Plan and will include provisions for the following: (a) VIP Parking; (b) Spectator parking; (c) Staff, tenant and employee parking; (d) Valet parking; (e) Shuttles; (f) Traffic control; (g) Barricades; and (h) Dust control (if appropriate). 9. Emergency Services. ASN include in its Air Show Plan provisions for emergency services, including the following: (a) Medical providers; (b) Rescue unit(s); (c) Air evacuation services 10. Security Services. ASN shall be solely responsible for providing the following security services in accordance with the approved Air Show Plan: (a) Spectator area; (b) Tiedown area; and (c) Static display area. 11. Transportation and Accommodations. ASN shall provide commercially reasonable transportation and accommodations for all contracted Air Show performers. 12. Military Liaison. ASN shall provide sufficient staff support to effectively liaison with any military contact regarding a military jet demonstration team, other military performers, static displays, or any other issues related to a Scheduled Air Shoe-. Air .Show Services Agreement, City of Lubbock and The Air Show Network Dq(l. 1 R 13. Communications. ASN shall provide a commercially reasonable sound system for the Air Show, including but not limited to, a public address system and a ,communications system for key Air Show personnel. 14. Construction. ASN shall provide sufficient staff and materials for the construction of any facilities required, including but not limited to, box seating, fencing, and chalets. 15. Temporary Facilities. ASN shall provide additional facilities and services as it deems necessary to produce the Air Show, including but not limited to, event ticketing, credentials, on-site signage, tents, fencing, seating, public facilities, and other temporary event structures. 16. Corporate Chalet. If requested, ASN shall provide to the City a 40 -foot by 40 - foot corporate chalet for up to 150 invited guests of the City and up to 150 complimentary admission tickets per day of any Scheduled Air show. ASN shall provide for full catering services at ASN's expense for the City guests. Menu choices will be similar to those offered to all other corporate chalets at the air show. 17. Volunteer Coordination. ASN shall be responsible for establishing the number of volunteers required for all activities at the Air Show, and the feeding and clothing of volunteers on Scheduled Air Show days. ASN will also be responsible for the compensation of the concession volunteers. The volunteer requirements will be detailed in the Air Show Plan. City shall be responsible for recruiting volunteers and making them available to ASN. 18. Fuel and Maintenance. ASN shall be responsible for providing fuel for the Air Show at its own expense. If the fuel is not obtained through a Fixed Base Operator, any other fueling is subject to written City approval. ASN shall require all event participants to perform maintenance, service, repair, overhaul and/or fueling work upon aircraft only in areas approved in advance by City. 19. First Aid. ASN shall provide first aid facilities as necessary to accommodate reasonably anticipated public spectators at the Air Show. First Aid provisions shall be described in the Air Show Plan. Air Show Services Agreement, City of Lubbock and The Air Show Network Pour 7 Q Resolution No. 2002-R0150 Exhibit B Payment Schedule The City shall pay progress payments to ASN to cover expected expenses for the show in the following order. ASN must invoice the City for each progress payment and provide a full accounting of all expenses with the final accounting of revenues and expenses no later than 30 days after the conclusion of the Air Show. Upon execution of the contract June 1, 2002 July 1, 2002 August 1, 2002 Final Settlement: Initial Payment Progress Payment Progress Payment Progress Payment $30,000 25% of Budget 25% of Budget 25% of Budget Remaining Balance ASN shall provide a final accounting to the City on or before October 1, 2002 documenting all expenses and revenues from the Air Show as well as determine the amounts due the City and/or ASN. This includes amounts due the City from concessions and the amounts due ASN from "Onsite Generated Revenue" and Sponsorships. Payment schedules for the Air Shows in 2004 and 2006 will be agreed upon between the parties at the time the Budget is set. Air Show Services Agreement, City of Lubbock and The Air Show Network Pn"0 1n