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HomeMy WebLinkAboutResolution - 3581 - Agreement - Civic Lubbock Inc - Concession Sales, LMAC & LMCC - 03/28/1991R: js RESOLUTION Resolution No. 3581 March 28, 1991 Item #19 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 irected to execute for and on behalf of the City of Lubbock an Agreement by nd between the City of Lubbock and Civic Lubbock, Inc. for concession sales n, or surrounding the Lubbock Municipal Auditorium/Coliseum, Lubbock Memorial ivic Center, the Meadowbrook Golf Course and other designated municipal fa- ilities, attached herewith, which shall be spread upon the minutes of the ouncil and as spread upon the minutes of this Council shall constitute and be part of this Resolution as if fully copied herein in detail. assed by the City Council this 28th day of March �-B.-C. McMIN , MAYOR 4TTEST: netgte boya, City Secretary APPROVED AS TO CONTENT: Rita Harmon, Assistant City Manager for Public Safety and Services 1APPROVED AS TO FORM: John C. Ross, Jr., City ttorney , 1991. Resolution No. 3581 March 28, 1991 Item #19 JCR: js AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement is entered into on this the 28th day of March , 1991, by and between the City of Lubbock, a home rule municipal corporation, hereinafter referred to as City, and Civic Lubbock, Inc., a non-profit corporation existing under the laws of the State of Texas, hereinafter referred to as Corpora- tion. WITNESSETH: WHEREAS, the City and Corporation did enter into an Agreement on the 25th day of February, 1988, wherein City granted to Corpora- tion 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 City and Corporation; and WHEREAS, it is the desire of the City and Corporation to in- clude Meadowbrook Golf Course into this Agreement; and WHEREAS, advances in computer technology have made it possible to provide additional and better services for the general public utilizing the above mentioned facilities; and WHEREAS, it is the desire of both City and Corporation to pro- vide new and state of the art services to the general public who utilize the above mentioned facilities; NOW THEREFORE: BE IT RESOLVED BY THE CITY AND CORPORATION AS FOLLOWS: 1. This Agreement supersedes and takes the place of the Agreement entered into between City and Corporation on the 25th day of February, 1988, and upon execution shall establish and govern the relationship between City and Corporation. 2. 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 Cen- ter, the Meadowbrook Golf Course, and other designated municipal facilities as mutually determined by the City and the Corporation. 3. Corporation agrees that for and in consideration of such license, herein granted, that Corporation shall pay to: a. City twenty percent (20%) of the gross concession sales at the Municipal Auditorium/Coliseum and Lubbock Civic Center and other mutually determined municipal facilities during the term of this Agreement. The twenty percent (20%) of gross concession sales shall be paid by Corpora- tion to City on a quarterly basis with the first such payment being due on the 10th day of April, 1990, and a similar payment on the same date of each succeeding quar- ter during the term of this Agreement. b. The Meadowbrook Golf Course, forty percent (40%) of the net profits generated from concession sales at the Mead- owbrook Golf Course. The forty percent (40%) of net profit shall be calculated and paid to the Meadowbrook Golf Course of the City on a quarterly basis with the first such payment being due on the 10th of July, 1991, and a similar payment on the same date of each succeeding quarter during the term of this Agreement. 4. As additional consideration for this license Corporation agrees to pay all operational expenses associated with concession rights or sales including, but not limited to, the salaries of full or part time staff or employees engaged in concession sales. Rou- tine maintenance of all concession areas included in this license shall not be considered an operational expense and shall be borne by City at no cost to Corporation. In addition, City shall, at its option, employ a food and beverage coordinator at City's expense who shall coordinate City and Corporation activities, related to concession services and operations, under this Agreement. 5. Corporation agrees to conduct an annual audit of its book of account each year during the term of this Agreement. The audit shall be completed no later than the 30th day of December, 1990, and each such date during succeeding years that this Agreement remains in effect between the parties hereto. City shall be fur- nished with a copy of Corporation's audit annually. City reserves the right to have the City's internal auditors conduct an audit upon the book of account of Corporation on a yearly basis during the term of this Agreement and Corporation agrees to make its book of account and other necessary records available for such audit. 6. If the audit presented by Corporation to City identifies a cash fund balance, after the payment of the total considerations hereinabove mentioned and excluding all expenses incurred or encum- bered, the Corporation is hereby authorized to retain such fund balance as follows: - 2 - a. The first one hundred thousand dollars of such cash fund balance shall be retained by Corporation as a reserve fund for performance of its obligations and duties herein set forth. b. Any fund balance remaining after the contribution to a reserve account as above mentioned shall be placed in a separate account entitled Major Project Reserve. 7. Corporation may use the funds deposited in the Major Project Reserve account, above mentioned, only for capital expendi- tures for improvements to the Auditorium/Coliseum or the Lubbock Memorial Civic Center. No fund from this account shall be spent by Corporation without the concurrence and prior approval of the City Council of the City of Lubbock. In addition, Corporation agrees to give immediate consideration to capital expenditures from this account when requested by the City Council. 8. Corporation agrees to prepare and present to the City, during the month of July for each year this Agreement is in effect, a budget for the upcoming fiscal year which commences October, 1990, and each October thereafter during the term of this agree- ment. The Corporation shall present this budget to the City Council for said City Council information and to receive recom- mendation from the City Council on said budget. 9. 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 the oper- ation of the Municipal Auditorium/Coliseum and the Lubbock Memorial Civic Center. This license authorized the Corporation to under- take, among others, the following activities: a. Undertake house staffing as deemed necessary by Corpora- tion. b. Undertake ticket sales for all events. C. Utilize box office areas within the Municipal Auditorium/ Coliseum and Lubbock Memorial Civic Center. d. Subject to local, state and federal laws, undertake a system of computerized ticket sales for events as re- quested by any facility, enabling Corporation to sell tickets to events in other facilities. e. To allow the Corporation to establish charges for its services in the area of ticket sales and to incorporate with Lessee of the above facilities, on a per event basis, for said charges. - 3 - f. To undertake any other necessary services to implement a Regional computerized ticketing system. g. Subject to local, state and federal laws, to authorize the Corporation to market the use of the computerized ticket system to other facilities, in accordance with its contractual limits. 10. In consideration of the license granted in paragraph 9 above, Corporation shall use its resources in developing and imple- menting a computerized ticketing system and associated services for, but not limited to, the facilities above mentioned. The Cor- poration in this regard shall be responsible for the following: a. Cost of obtaining and installing such system. b. Cost of operating and maintaining such system. C. Cost of marketing of such system. d. All other related costs except routine cleaning and building maintenance cost of the box office areas in the above mentioned facilities, which will be the responsi- bility of the City. 11. Corporation shall keep the City Council of the City of Lubbock fully informed as to all costs related to implementation and operation of this system and will identify operating cost and other expenses associated therewith in its annual budget submitted to the City. 12. Corporation agrees to use its best efforts to make maxi- mum 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. 13. In consideration of the Corporation services to be ren- dered under this Agreement City does hereby grant to Corporation the right to use any or all of the above mentioned facilities for its business meetings and other corporate functions. Corporation will, however, be required to schedule such meetings or functions at a time mutually agreeable to it and City. 14. Corporation further agrees to pay to City, within thirty (30) days of the event, established rental rates on all events where Corporation sponsors or co-sponsors such event. 15. The term of this Agreement shall run from the date first above written until cancelled by mutual agreement of the parties or if cancelled by the City by giving thirty (30) days written notice to Corporation. - 4 - r a 16. In the event that City cancels this Agreement by giving thirty (30) days written notice of its intention to so cancel, then in such event, Corporation shall nevertheless be authorized to undertake and fulfill all existing obligations and contracts necessary and essential for the orderly conclusion of Corporation's obligations and commitments. However, Corporation shall not under- take any new contracts or commitments after receipt of the notice above mentioned. 17. In the event City cancels this contract by giving thirty (30) days notice of its intent to so cancel, then in such event Corporation agrees to cooperate with City to ensure an orderly transition to ensure the orderly operation of all facilities hereinabove mentioned. ICATTZ.-_ Ran to Boyd, City ecretary APPROVED AS TO CONTENT: Rita Harmon, Asst. City Manager for Public Safety and Services AP ROVED AS TO FORM: C_... n C. Ross, Jr., C'ty Attorney - 5 - CITY OF LUBBOCK B. C. McMINN, MAYOR CIVICLUBBOCK, INC..X� CUAIL*6 0_� I , 11 - �^ President