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Home My WebLink About13. Theatre Management Agreement AGENDA MEMO DATE: November 23, 2010 TO: Mayor and Members of the City Council FROM: Office of the City Manager By: Thad Phillips, Community Services Director SUBJECT:APPROVAL OF THEATRE MANAGEMENT AND CONSULTING AGREEMENT WITH VENUETECH MANAGEMENT GROUP INC. AND APPROPRIATION OF $208,000. RECOMMENDATION That the City Council approve a five (5) year agreement with VenueTech Management Group Inc. for Theatre Management and Consulting Services for the period of December 1, 2010 – December 31, 2015 according to the terms and conditions of the attached agreement and appropriate $208,000 for the period of December 1, 2010 – June 30, 2011. DISCUSSION On September 9, 2009, the City Council formed a Theatre sub-committee with Council members David R. Gafin and Roger C. Brossmer as members. On April 13, 2010 the City Council approved issuing a Request for Proposal (RFP) for Management and Operation of the Downey Theatre. After reviewing responses from six (6) organizations and individuals, Lafayette California based VenueTech Management Group Incorporated was invited to meet with the Theatre sub-committee to discuss their proposal. The Theatre sub-committee recommends contracting with VenueTech based on a number of factors including: experience in venue management of similar size theatres, booking experience, proposed presenting series and events, continuing long- term relationships with existing partnerships, and proposed operating budget. VenueTech submitted a proposal including private-public partnership through which the City-owned facility is managed by a private company. VenueTech currently operates six (6) public theaters in California in the cities of Campbell, Eureka, Vacaville, Vallejo and San Ramon. The VenueTech business establishes and manages a non-profit foundation for each of its theatres, these foundations offset the subsidies associated with theatre operation. This key service is not offered by the City’s in-house staff. In addition, the VenueTech proposal includes continuation of rental activity at the Downey Theatre in addition to a limited series of in-house Special Events or Festivals presenting professional artists and national touring artists and full service box office operation. The Scope of Services include Development of a Theatre Business Plan Formation of a 501(c)(3), nonprofit organization CITY OF DOWNEY, CALIFORNIA Hiring of a on-site Theatre Manager Installation of Equipment and Software for a Full Service Box Office operation Develop programming plan for a season of entertainment and/or series of festivals Coordinate the event production needs of Civic Light Opera, Downey Symphony and Downey Unified School District Marketing and Business Development Daily Operation of Theatre Entering into an agreement with VenueTech for professional management of the theatre will create a cornerstone of community life, a unique destination in Downtown Downey, and deliver economic benefits for the entire Downey community. FISCAL IMPACT VenueTech included with their proposal a first year budget of $684,590 with anticipated revenues of $314,222 and a second year budget of $857,870 with anticipated revenues of $484,107. The expected contract cost for the first seven (7) months is $208,000 for the period of December 1, 2010 – June 30, 2011 which includes, in addition to the Fiscal Year 2010-2011 Theatre budget appropriation funding for a Management Fee, advertising, postage, contract services, equipment rental and one (1) time ticketing system hardware purchase and transition cost. The Fiscal Year 2010-2011 Theatre appropriation is $455,968 with anticipated revenue of $230,000. The increased costs are associated with transforming the theatre from a strictly rental operation to presenting headline acts in the theatre and art events in Downtown Downey. ARTICLE 1DEFINITIONS ................................................................................................................................2 ARTICLE 2VENUETECH - SCOPE OF SERVICES .....................................................................................4 ARTICLE 3CITY OBLIGATIONS ...................................................................................................................5 ARTICLE 4FEES & EXPENSE REIMBURSEMENTS ..................................................................................5 ARTICLE 5BILLING & PAYMENT ................................................................................................................5 ARTICLE 6TERM, RENEWAL & TERMINATION .....................................................................................5 ARTICLE 7VENUETECH REPRESENTATIONS .........................................................................................8 ARTICLE 8CITY REPRESENTATIONS ........................................................................................................8 ARTICLE 9HUMAN RELATIONS ...................................................................................................................9 ARTICLE 10VENUETECH OPERATING AUTHORITY .............................................................................10 ARTICLE 11INTELLECTUAL PROPERTY ..................................................................................................12 ARTICLE 12CONFIDENTIALITY ..................................................................................................................12 ARTICLE 13NONSOLICITATION ..................................................................................................................13 ARTICLE 14INDEMNITY .................................................................................................................................13 ARTICLE 15INSURANCE .................................................................................................................................13 ARTICLE 16RECORDS & OWNERSHIP OF DOCUMENTS ......................................................................15 ARTICLE 17MISCELLANEOUS ......................................................................................................................15 SIGNATURES ...........................................................................................................................................................18 EXHIBIT A - SCOPE OF SERVICES ....................................................................................................................19 EXHIBIT B – OBLIGATIONS OF CITY ...............................................................................................................24 EXHIBIT C – SCHEDULE OF FEES .....................................................................................................................25 Page 1 AGREEMENT FOR MANAGEMENT AND CONSULTING SERVICES DOWNEY CIVIC THEATRE DOWNEY, CALIFORNIA This Agreement for Management Services and Consulting Services (“Agreement”) for the Downey Civic Theatrelocated at 8435 Firestone Blvd in Downey, California 90241 st (“THEATRE”), is entered into on this 1. day of December, 2010 by and between VenueTech Management Group, Inc, a California Corporation ("VENUETECH"), and The City of Downey, ("CITY"), a California Municipal Corporation hereinafter a “party” or the “parties”. WHEREAS, CITY desires to secure professional management and consulting services for the THEATRE and VENUETECH is qualified and willing to provide professional services: NOW, THEREFORE , CITY and VENUETECH agree as follows: ARTICLE 1DEFINITIONS 1.1“Business Plan” means that certain document which shall be authored by VENUETECH, as approved by CITY, and which shall provide the policies, procedures, operating guidelines and performance benchmarks, as well as the definition for all approved activities and related agreements for the use of THEATRE, and shall be attached to this Agreement marked “Exhibit E”, upon acceptance by CITY. 1.2“CITY Project Liaison” means that CITY employee, department head level or higher, as designated in writing by CITY to interface with VENUETECH to ensure open communication between the parties with respect to the management of THEATRE. 1.3“Event” means an activity that occurs on the stage or in the lobby at THEATRE which may be open to the general public or to a private audience including but not limited to: 1.3(a)“Rental Event” means any approved Event produced at THEATRE by a THEATRE Client who shall be solely responsible for all Event activities, including but not limited to, production, marketing, financial and other event related obligations pursuant the terms and conditions of a “Facility Rental Agreement”; 1.3(b)“In-House Event” means an Event produced at THEATRE at the request of or on behalf of CITY that may be open to the general public or may be for a private audience for which CITY is the primary or sole financial sponsor and/or underwriter, produced by VENUETECH or CITY. 1.3(c)“Co-Promoted Event” means an Event which CITY may elect to produce with a THEATRE Client whereby both CITY and THEATRE Client shall share, on a negotiated basis, in the potential financial profits and/or potential liabilities. Page 2 1.3(d)“Season of Events” means professional headliner shows featuring nationally recognized touring Performing Artist(s) which are packaged into a “Season of Events” and offered to the general public through the THEATRE In-House Event program. The Season of Events is produced by VENUETECH on behalf of CITY, subject to a budget approved by the City Council. 1.3(e)“Event Days” means any day in which THEATRE is in use for any purpose to support any type of an Event. This includes but is not limited to, rehearsal, technical staging of lights and sound, set up & strike of stage and actual performance days. For the avoidance of doubt an Event Day shall include days which cannot be rented to other THEATRE Client(s) which are work days used to support a coming Event. Notwithstanding the foregoing, rehearsals or similar activities are not deemed to be an Event but are deemed to be Event Days. 1.4 “Merchandise Rights” means the rights for Performing Artists or other businesses, individuals or organizations to sell or distribute merchandise or products at the THEATRE at any time, which shall be negotiated exclusively by VENUETECH in exchange for a percentage of gross sales receipts for such merchandise, which shall be paid to and collected by VENUETECH and remitted to CITY. 1.5“Performing Artist” means an individual or group of entertainers who perform in a wide range of performance disciplines including but not limited to a dramatic, musical or dance Event for an audience at THEATRE. 1.6 “Production Management Employee(s)” means those employees authorized by VENUETECH, who are qualified to provide professional consultation and expertise, including but not limited to the areas of production equipment, Event production, Technical Rider negotiation, Show Advance, stage equipment and production equipment. Authorized VENUETECH employees are solely and expressly limited to the Production Manager, President and Vice President of VenueTech Management Group, Inc. 1.7“Show Advance” means in advance of the arrival of the Performing Artist, the process by which VENUETECH negotiates a Technical Rider to the Talent Contract to coordinate the production of an Event pursuant to the specific requirements of the Performing Artist’s performance at THEATRE. This may include but is not limited to such matters as performance times, load in times, rehearsal schedules, catering needs, travel needs, local transportation, lodging accommodations, stage employees requirements, equipment requirements, security requirements, ticketing specifications, marketing plans, press access, stage lighting plots, hairdressing and wardrobe requirements, financial settlement procedures. 1.8“Talent Agent”/“Talent Agency” means a company which on behalf of individual Performing Artists, represents, manages and negotiates the terms and conditions of Talent Contracts which will include but is not limited to talent fees, performance dates, routing schedules, travel and lodging accommodations, insurance provisions, marketing requirements, ticket prices, show budgets, Merchandise Rights, use or reproduction of artists intellectual property such as image for all media, box office profit splits. Page 3 1.9“Talent Management” means a third party that directly manages the business and legal affairs of a Performing Artist. Talent Management is sometimes referred to as “Artist’s Management”. 1.10“Talent Contract” means a binding agreement or executed contract between VENUETECH and a Performing Artist, Talent Agent, or Talent on behalf of CITY, which sets forth the terms and conditions by which the Performing Artists will perform an Event at the THEATRE. For the avoidance of doubt, in the entertainment industry it is a usual and customary practice to enter into binding Talent Contracts verbally, via facsimile. Talent Contract shall include any Technical Riders. 1.11“Talent Fees” means payments made to Performing Artist(s) in compensation for services payable traditionally in two payments as follows: a) 50% upon agreement of the Talent Contract, and b) 50% on day of the Event, prior to commencement of the Event; form of payment shall be at the sole discretion of the Performing Artist or Talent Agent and may include but not be limited to a) cashiers check, b) cash, c) commercial bank check. Flexibility is required to conform to the Performing Artist or Talent Agent’s payment requirements which could require payment made directly to Talent Agency prior to the Event or differing percentage payments.) 1.12 “Technical Rider” means an addendum to a Talent Contract which sets forth the specific technical and production requirements for a Performing Artist’s performance at THEATRE. 1.13“THEATRE Client” means an individual, business, organization, City department or school sponsored class or organization, which is granted use of THEATRE by VENUETECH, on behalf of CITY, for an Event or Event Day which may be open to the general public or to a private audience. 1.14“Theatre Manager” means a full time employee hired, trained and supervised by VENUETECH specifically for the management and operation of THEATRE. Theatre Manager shall perform their primary duties in Downey, California in an office provided by CITY, and may be assigned some duties, at the discretion of VENUETECH, in other locations, including but not limited, to its offices in San Francisco and Lafayette, California. 1.15“Vendor” means a third party entity including but not limited to a company or individual who may provide lighting, sound or other technical expertise or equipment or services directly to VENUETECH on behalf of CITY at THEATRE. 1.16“VENUETECH Executive Employees” means those specific executive officers of VENUETECH who are solely authorized by VENUETECH to bind VENUETECH and/or provide professional consultation and expertise with regards to the areas of theatre management, financial management, marketing, artist negotiation and fundraising counsel. VENUETECH Executive Employees are limited to the John R. Lind, President, and Judy Barkett, Vice President of VenueTech Management Group, Inc. ARTICLE 2VENUETECH - SCOPE OF SERVICES 2.1Scope of Services. VENUETECH shall provide for the management and operation of THEATRE as set forth on the “Scope of Services” marked as Exhibit A (“Services”). Page 4 2.2Changes to Scope of Services. VENUETECH and CITY may modify the Services by in writing by mutual agreement, provided however, should any change increase or decrease affect the amount, character or time for performance of the Services, then VENUETECH’s compensation and/or time for performance shall be adjusted accordingly. ARTICLE 3CITY OBLIGATIONS 3.1Obligations of CITY. CITY shall have the obligations set forth in Exhibit B (“CITY Obligations”). ARTICLE 4FEES & EXPENSE REIMBURSEMENTS 4.1Fees & Expense Reimbursements. CITY shall pay fees to VENUETECH as compensation and/or expense reimbursement for Services, including management and consulting services, labor and corresponding human resources reimbursement, and administrative expenses incurred in the performance of Services, collectively “Fees” as set forth in the “Schedule of Fees” marked asExhibit C. ARTICLE 5BILLING & PAYMENT st 5.1Invoice. VENUETECH shall invoice CITY on the 1 of each month for such management fees, labor and expense reimbursements due including but not limited to base management fee, administrative overhead fee, labor reimbursements and labor overhead, or any other reimbursements (i.e. insurance premium) that have previously not yet been invoiced as set forth in the Schedule of Fees, collectively the “Invoice”, as set forth on “Sample Invoice” attached as Exhibit D. 5.2Payment. Payment for services shall be due net fifteen (15) days from date of receipt of st Invoice, and shall be deemed late if made on or after the twenty-first (21) day of the month. 5.3Late Fees. Late payments will be subject to a finance charge equal to one and one half percent (1.5%) per month prorated on a daily basis for the unpaid balance. 5.4Fee Disputes. In the event CITY disputes any particular item or amount on an Invoice, CITY shall provide VENUETECH with written notice within seven (7) days of receipt of the Invoice, stating the particulars of the dispute. The parties shall mutually cooperate to resolve any such disputes in good faith and by mutual agreement. All items not in dispute shall be paid as provided for above. ARTICLE 6TERM, RENEWAL & TERMINATION st 6.1Initial Term: The term of this Agreement is five (5) years, and shall commence on the 1 day of December 2010, and shall expire on December 31, 2015, (the fifth full calendar year (referred to as the “Term”, “Initial Term”, or “Subsequent Term”). This Agreement may be extended for up to two (2) additional Subsequent Terms each for a period of three (3) years (collectively each a “Term”) upon the same terms and conditions. For example if this Agreement commences upon November 1, 2010, the Agreement shall expire December 31, 2015. Page 5 6.2Renewal upon Same Terms. No less than six (6) months prior to the expiration of the then- current Term, VENUETECH and CITY may mutually agree to renew the Agreement for an additional three (3) year “Subsequent Term” upon the same terms and conditions of the Agreement. 6.3Non-Renewal Transition. In the event that the parties do not renew the Agreement as set forth in 6.2 above, then the parties acknowledge that the express purpose of a minimum of six (6) months notice to terminate this Agreement, is to facilitate a predictable and professional transition to some other form of management of THEATRE for the benefit of CITY and VENUETECH, as well as for the benefit of VENUETECH employees who will require notification of their potential change in employment, to provide notification of Talent Agents, vendors, etc. collectively to provide for an orderly and smooth transition and winding down of Services. 6.4Termination. 6.4(a)Expiration of the Term. This Agreement shall terminate upon the expiration date of the current Term of the Agreement, unless CITY has exercised its’ right to renew as set forth above in Section 6.2. 6.4(b)Notice of Intent to Terminate for Material Breach & Cure of Default. In the event of a material breach, the non-defaulting party must provide notice of such potential material breach in writing to the defaulting party, stating the reasons for the notice. The defaulting party shall have a period of sixty (60) days to cure. Upon the expiration of the cure period and where cure is not achieved within said cure period, this Agreement shall be terminated by the provision of a final written 30 notice of intent to terminate by the non-defaulting party. 6.4(c)In the event the City Council votes to not fund the operations of the THEATRE, then the CITY may terminate this Agreement by providing a six (6) month notice, provided however, that in the event the City Council decides to fund the operations of the THEATRE within nine (9) months of the original notice to VENUETECH of its intent to not fund the operations of the THEATRE, then CITY shall reinstate VENUETECH on the same terms and conditions of this Agreement. 6.4(d)Notwithstanding anything to the contrary CITY may terminate this Agreement by providing a six (6) months notice to VENUETECH in order for CITY to be in compliance with Article XVI of the State of California Constitution (which provides in part that a CITY cannot obligate itself where funding is unavailable). 6.5Effect of Termination Records & Executory Contracts. Upon termination of this Agreement, for any reason, all of the records in VENUETECH's possession pertaining to the operation of THEATRE, together with all supplies, equipment, or other property of CITY in VENUETECH's possession shall be immediately delivered to CITY. CITY shall retain responsibility for all executory contracts in effect for agreements including but not limited to talent fees, rental agreements and third party vendors. 6.6Effect of Termination – Booking New Talent Contracts. Upon termination of this Agreement, for any reason, or upon the passing of the date for renewal without a renewal of this Agreement for a subsequent term, or where either party is subject to a notice of material breach which has not been cured has set forth above, then all duties and obligations of VENUETECH Page 6 with respect to the negotiation and booking of In-House and Season of Events shall cease without further obligation. 6.7Upon Termination - Booking of Events. CITY agrees that it shall have no right to impose any obligation or requirement upon VENUETECH to continue to provide such booking services and that in no event shall CITY have the right to reduce any Fees due VENUETECH under the terms and conditions of this Agreement. For the avoidance of doubt the parties acknowledge and agree to avoid the instance of VENUETECH entering into any Talent Contract for Events for which VENUETECH will not have managerial authority of THEATRE which VENUETECH would have represented to Talent Agent(s) or Performing Artist(s) during negotiations. 6.8Effect of Termination – Existing Talent Contracts. VENUETECH shall have the right, at its sole discretion, to notify the Talent Agent(s) of any Performing Artist(s) under contract for Event dates that would occur after VENUETECH’s last day of scheduled management of THEATRE, that VENUETECH will no longer be managing THEATRE at the time such Event takes place. 6.8(a)Each Performing Artist and their respective Talent Agent or Talent Manager shall be provided an option to reissue the Talent Contract in the name of CITY, or to cancel the Talent Contract, expressly because VENUETECH will no longer be in a position to provide professional event production as originally represented to Talent Agent(s); 6.8(b)Decisions to reissue contracts will be made solely at the discretion of individual Performing Artists, Talent Agents, Talent Agencies or Talent Management, and shall be out of the control of VENUETECH or CITY. 6.8(c)Thereafter any Talent Contract(s) which have not been reissued in the name of the CITY, or have not been cancelled, shall be assigned to CITY by VENUETECH, whereby CITY shall assume, without reservation or change, subject to the consent of Performing Artist, Talent Agent or Talent Management, all rights, duties and obligations under such Talent Contracts, including but not limited to (i) responsibility for previously paid or unpaid contract deposits and final Talent Fees, and/or (ii) all contract and production requirements per the Technical Rider. 6.8(d)Should Performing Artist’s Event(s) occur after VENUETECH’s last day of management of THEATRE, whether the Talent Contracts or Technical Riders have been reissued or remain in original form as assigned to CITY, then CITY shall be responsible for all production and other contract requirements 6.9Effect of Termination – Box Office Software License. In the event Termination occurs for any reason prior to the expiration of the 47 month of the Box Office Software License payment plan (See Exhibit C), the following shall occur: 6.9(a)CITY shall pay to VENUETECH the sum of the remaining payments due for the Software License fee prior to the date of Termination; and then 6.9(b)VENUETECH shall assign all rights and obligations under the existing Software License Agreement to CITY (which License Agreement is freely assignable under the terms and conditions of the License Agreement between VENUETECH and Choice Ticketing Systems, Inc.) as per the terms and conditions of this Agreement (See further, Exhibit C where such assignment shall be had for a fee of $100.00). Page 7 6.10Termination - Wind-Down Expense. Upon notice of termination of this Agreement for any reason, then during the final three (3) months of the Term of this Agreement, and for all Subsequent Terms resulting from extensions, VenueTech shall be paid a management expense of $6,500 per month, over and above all other Fees (the “Wind-Down Fee”). This Wind-Down Fee shall offset increased costs incurred by VENUETECH during the Wind-Down period. It is agreed by both parties that should this Agreement be terminated for any reason at any time during the Term or at the end of the Term, that the Wind-Down Fee shall be deemed fully earned and non-revocable by VENUETECH, and shall be immediately due and payable together with all other Fees and Reimbursements, License Fees (if any) due VENUETECH per this Agreement. VENUETECH agrees to waive the Wind-Down Fee in the event that the parties mutually agree to an extension of this Agreement for a Subsequent Term. ARTICLE 7VENUETECH REPRESENTATIONS 7.1Authority. VENUETECH is incorporated in the State of California, and is duly licensed and authorized to engage as licensed fundraising counsel. 7.2Standard of Performance. VENUETECH shall perform services with the degree of skill and care observed by national firms performing the same or similar services. 7.3Compliance with Wage & Employment Laws. VENUETECH shall comply with all applicable Federal, State and/or local wage and hour laws, including, without limitation, withholding of social security, unemployment taxes and other required taxes. 7.4No Discrimination. VENUETECH shall make all employee decisions based on reasonable criteria and shall not discriminate based on race, creed, color, national origin or sex, or any other classification then protected by law. 7.5ADA Disclaimer. VENUETECH expressly disclaims any expertise, obligations or duty with respect to compliance with the Americans with Disabilities Act of 1990 as amended (“ADA”), and shall under no circumstances provide any oral or written advice or consultation with respect to compliance with the ADA for THEATRE. 7.6Independent Contractor. VENUETECH hereby represents and warrants to CITY that VENUETECH is an independent contractor for Federal, state and local tax purposes. Further, VENUETECH hereby covenants and agrees to pay any and all Federal, state and local taxes required by law to be paid by an independent VENUETECH, including, without limitation, any taxes imposed by the Self Employment Contribution Act. ARTICLE 8CITY REPRESENTATIONS Page 8 8.1Authority. CITY represents and warrants that it owns and controls THEATRE and has all legal rights to operate the FACILITES and authority to enter into this Agreement with VENUETECH for the management and operation of THEATRE and for the production of live entertainment, performing arts, school and community events. 8.2Maintenance and Repair of the THEATRE. CITY shall maintain, or cause to be maintained the buildings, appurtenances and grounds of the THEATRE in substantial compliance with all then-current applicable laws, statutes, ordinances and regulations, federal, state and local, and in accordance with commercial reasonable standards, including within such maintenance, without limitation thereof, electrical and plumbing, equipment, carpentry and such other normal maintenance and repair work as may be reasonably necessary. 8.3ADA & Access Compliance & Guidance to VENUTECH. CITY represents and warrants that it shall use best efforts to be and remain in compliance with the ADA Act of 1990 as amended, with respect to the THEATRE facilities and adjacent premises. On an as-needed basis, CITY shall provide written guidance to VENUETECH Executive Employees with information for any issues with respect to ADA compliance regarding the operation of THEATRE. CITY standards may not be so low as to expose VENUETECH to risk of liability to other persons or third parties for liability under the Americans with Disabilities Act. 8.4Acknowledgement of Risk. CITY acknowledges that the production and promotion of Events in the entertainment and cultural arts industry have associated inherent risks which include but are not limited to financial and other general liabilities. Both parties also acknowledge that a decision to produce entertainment, recreation or cultural Events, or any specific Event, may at times be made by CITY for reasons other than financial profit potential and that at times CITY may elect to produce Events which will require financial subsidy in order to achieve other community service objectives. By entering into this agreement, CITY represents and warrants that it has evaluated this risk, fully understands the implications of said risks and is willing and able to accept the financial obligations associated with this enterprise. VENUETECH will make every professional effort to increase the likelihood of both creative and financial success for productions held at THEATRE and will provide CITY with financial information for each Event that will enable CITY to best analyze both the financial realities as well as any operational and community benefits that may be realized by the production of specific Events. ARTICLE 9HUMAN RELATIONS 9.1Theatre Manager. VENUETECH shall provide one full-time Theatre Manager. VENUETECH shall have sole responsibility and authority in the selection, hiring, compensation, benefits, supervision, discipline and/or discharge of Theatre Manager. For all purposes, Theatre Manager shall be deemed to be an employee of VENUETECH. 9.2Additional Theatre Employees. VENUETECH shall have sole responsibility and authority in the selection, hiring, compensation, benefits, training, supervision, discipline and/or discharge of all support employees. For all purposes, support employees shall be deemed to be employees of VENUETECH. In the event that CITY requests or requires training unique to CITY, CITY shall reimburse VENUETECH for costs associated with employee time and expenses of employees to attend such training. Page 9 9.3No Co-Employment. VENUETECH and CITY shall not be co-employers and employee assigned to work at THEATRE shall work exclusively for VENUETECH. CITY shall have no authority in the selection, hiring, compensation, benefits, supervision, discipline and/or discharge of any employee of VENUETECH. 9.4VENUETECH Employee Policies. VENUETECH shall have the sole and exclusive right to establish policies for all VENUETECH employees assigned to work at or on behalf of THEATRE. This shall include, but not be limited to, hourly, wage and bonus compensation, employee benefits, vacation schedules, holiday schedules, work schedules and all work related policies. ARTICLE 10VENUETECH OPERATING AUTHORITY 10.1Authority to Enter into Agreements with Facility Clients. VENUETECH is hereby authorized to negotiate and enter into contracts on behalf of CITY with individuals, businesses and organizations that may be interested in renting THEATRE for the production of public and private Events at THEATRE not sponsored by CITY. Said agreements shall be in conformity with CITY's approved policies for operation of THEATRE as set forth in the Business Plan. 10.2Authority - Talent Contracts. VENUETECH is hereby authorized to negotiate and enter into Talent Contracts on behalf of CITY for In-House Events and the Season of Events. CITY shall be obligated by all the terms and conditions of each Talent Contract, including but not limited to fees required for talent and production requirements. The cost of talent fees shall be in conformance with the operating budget approved by CITY and all Talent Contracts be discussed with the Director of Community Services. 10.3Exclusive Authority All Events. VENUETECH shall have the sole and exclusive right to negotiate on behalf of CITY with Talent Agents, Performing Artists, Talent Managements and other artists’ representatives for all Events at the THEATRE during the Term of this Agreement. CITY acknowledges that VENUETECH has a developed good will and an outstanding professional reputation within the entertainment industry nationwide. These valuable established relationships with industry leaders include practices and methods and specific skills and expertise and experience which are deemed to be trade secrets of VENUETECH. CITY agrees to refrain from contacting any Performing Artist or Talent Agent or Talent Management, or “talent buying companies” for Events at THEATRE. VENUETECH shall use its goodwill, expertise and experience, together with its trade secrets for the benefit of CITY and THEATRE in the booking of Performing Artists at THEATRE. 10.4Exclusive Authority Technical Riders. VENUETECH shall also have the sole and exclusive right to negotiate Technical Riders for In-House Events or Season of Events, on behalf of THEATRE and CITY including production requirements, security, staffing requirements, bus and truck parking, air transportation, ground transportation, lodging, catering services, merchandise rights, financial settlement procedures, media rights, approval of marketing plans, approval of use of artists image, approval of artists recorded materials, media and public access to artists, backstage accessibility and other related issues. 10.5Back Stage & Security. VENUETECH shall have the sole right to control access to back stage and on-stage areas when Performing Artists and their representatives are present and shall have the sole right to assign this control to individuals designated by such Performing Artists. In Page 10 addition, VENUETECH shall have the sole right to select security employees for areas with stage and backstage access and to grant approval rights for this selection to Performing Artists or their designated representatives. 10.6.Meet & Greet with Artists. VENUETECH will make all reasonable efforts to accommodate CITY, its representatives, employees and guests, when requests are made to meet artists in secure back stage areas; however both parties acknowledge that these decisions will always be within the sole control of individual Performing Artists and their representatives. 10.7Performing Artists’ Confidentiality. It is understood by both parties that in most instances Performing Artists, Talent Agents and Talent Managers consider the terms of their Talent Contracts to be proprietary confidential information and will impose confidentiality requirements upon VENUETECH and expect that such information will be held in confidence. To fulfill its duties under this Agreement, VENUETECH will be sharing confidential information with CITY. CITY therefore agrees to not disclose this information to third parties other than its advisors, officials and key employees solely for the purpose of CITY’s receiving legal, tax, business, policy and financial advice. 10.8Day To Day Operations – General. It is agreed that VENUETECH shall have control over the day to day operation of THEATRE and shall make decisions on an ongoing basis relating to the operation and event production needs of the facilities of the THEATRE. CITY will assign a Project Liaison (as set forth above) to work directly with VENUETECH and to provide a communication link between CITY and VENUETECH, to provide a resource for answering questions that may arise from time to time, provide guidance when community issues surface and to give general guidance to VENUETECH. CITY may elect to change this Project Liaison from time to time and will give VENUETECH written notification when it elects to do so. 10.9Handling of Requests for Special Treatment by Facility Clients. Both parties acknowledge that the THEATRE is a high profile public building and that many nonprofit and other community organizations will wish to use the THEATRE for the presentation of events in the Downey area. In many instances, requests will be made to use THEATRE for discounted fees or at no cost. VENUETECH has developed strategies to shield the CITY from receiving direct solicitation from these individuals and groups and has included these provisions in the Business Plan. In addition to becoming a nuisance and being time consuming for CITY, this situation has the potential to undermine the VENUETECH employees assigned to the management of THEATRE and decrease their ability to achieve financial goals established for them. It is agreed that VENUETECH and CITY will meet quarterly, or on an as-needed basis, to discuss the effectiveness of these strategies and that VENUETECH will adjust operating policies to reflect the desires of CITY concerning this matter and the financial and public relations impact of this policy and the THEATRE business plan. 10.10Accounting & Financial Responsibility of CITY. VENUETECH shall work with CITY to develop the annual operating budget and CITY shall have sole financial authority to approve the annual budget as well as any mid-year adjustments. VENUETECH shall work with CITY to Page 11 develop a mutually agreeable financial tracking plan, during the development of the Business Plan. VENUETECH shall provide financial reports, or additional information as may be reasonably requested by CITY. CITY accepts full financial responsibility for the budget, and operating costs associated as well as the associated accounting with the THEATRE, as well as for In-house Events, Season of Events and Co-promoted Events that may be presented at THEATRE on CITY’s behalf. CITY is retaining VENUETECH as a management and operating company and does not view VENUETECH as a financial partner or investor or expect VENUETECH to participate in the financial profit or loss of THEATRE or the Events that take place at THEATRE. ARTICLE 11INTELLECTUAL PROPERTY All materials developed for the Business Plan by VENUETECH shall remain the property of VENUETECH and are protected by copyright. VENUETECH hereby grants, at no cost to CITY other than considerations contained in this Agreement, a fully executable, non- expiring, nontransferable license agreement to CITY for its use of the written Business Plan for THEATRE. This license agreement shall grant CITY the right to use said plan for any public benefit purpose within the current and future geographic borders of Downey, California and its successors. CITY may make copies of said plan for its use, however agrees that it will not knowingly sell, give or otherwise transfer ownership or control of said plan to other individuals, agencies, organizations or businesses and will only use said plan for the benefit of the residents of CITY who through this Agreement have been granted rights to the benefits of said plan. With the exception of this non-expiring license agreement granted to CITY, VENUETECH retains ownership and copyright rights to the company’s ideas, concepts, materials, trade secrets and other intellectual properties. ARTICLE 12CONFIDENTIALITY 12.1“Confidential Information” means any and all information of a proprietary or confidential nature, including all tangible or intangible property including but not limited to trade secrets, patents, or copyrights of either party (“Confidential Information”). For purposes of this Agreement, Confidential Information does not include: (i) information learned from a third party entitled to disclose it and who is not in violation of a contractual, legal or fiduciary obligation to either party, (ii) information which is or becomes known publicly through no fault of either party, (iii) information already known by either party prior to disclosure from the other party, or (iv) or certain information CITY is required to disclose to the public. 12.2VENUETECH understands and agrees that, in the performance of the work under this Agreement or in contemplation thereof, VENUETECH may have access to private or confidential information owned or controlled by CITY. Such information may contain proprietary or confidential details. VENUETECH agrees that all information disclosed to VENUETECH by CITY shall be held in strictest confidence and used only in performance of this Agreement. VENUETECH shall exercise the same standard of care to protect such information, as a reasonably prudent businessperson would use to protect its own proprietary or confidential information. Page 12 ARTICLE 13NONSOLICITATION 13.1No Solicitation. During any Term of this Agreement, and on the non-renewal, expiration or earlier termination of this Agreement for any reason, CITY or any of its subsidiaries, affiliates, employees or agents, shall not, either directly or indirectly (through any other successor management entity of THEATRE) (i) solicit, entice, or induce any employee, sub- contractor or agent of VENUETECH to terminate employees’ employment with VENUETECH, without the express written consent of VENUETECH. Solicitation by CITY, or its successors or successor management entities of any VENUETECH employee, in contravention of this provision without written consent by VENUETECH, shall be deemed a material breach of this Agreement. 13.2Proselytizing Fee. CITY agrees to pay VENUETECH a fee equal to one year salary of any employee who terminates employment with VENUETECH under the non-solicitation clause above. Such Proselytizing Fee shall be due no later than ten (10) days from the date of termination of such employee. ARTICLE 14INDEMNITY 14.1VENEUTECH Indemnity. VENUETECH hereby agrees to indemnify, defend and hold harmless CITY, its agents, and employees, against all liability, obligations, claims, loss, and expense, including reasonable attorney fees (“Loss”), arising out of the negligent performance or willful misconduct of VENUETECH, its employees, Vendors, or employees; or for any Loss arising out of injuries suffered or allegedly suffered by VENUTECH employees or Vendors (or employees of Vendor) in the course of their employment or in the performance of the Services hereunder, except to the extent where such Loss results from the negligence or willful misconduct of CITY, its agents or its employees. 14.2CITY Indemnity. CITY hereby agrees to indemnify, defend and hold harmless VENUETECH, its agents, and employees, against all liability, obligations, claims, loss, and expense, including reasonable attorney fees (“Loss”), arising out of (i) any defect in the premises of THEATRE, or (ii) the failure of CITY to comply with any Federal, State and/or Local regulation regarding THEATRE, including but not limited to the Americans with Disabilities Act of 1990 as amended. ARTICLE 15INSURANCE 15.1VENUETECH shall procure prior to commencement of Services, and keep in force for the term of this Agreement, the following policies of insurance, certificates, or binders as necessary to establish that the coverage described below is in place with companies licensed to do business in California. If requested, VENUETECH shall provide CITY with copies of all insurance policies. The insurance coverage shall include: 15.2Commercial General Liability Insurance. Commercial General Liability insurance, including but not limited to, bodily injury, broad form property damage, and contractual liability. Coverage afforded CITY shall be primary insurance, to the extent of the indemnification provided by VENUETECH to CITY in this Agreement. Limits of liability shall include the following: Page 13 15.2(a)Bodily injury, one million dollars ($1,000,000); 15.2(b)Property damage, one million dollars ($1,000,000); or 15.2(c)Combined single limit (CSL) for bodily injury and property damage, one million dollars ($1.0 per occurrence/$2.0 million aggregate) per accident for bodily injury and property damage. 15.2(d)Excess liability coverage $1,000,000, in form acceptable to risk manager of CITY. Such insurance shall contain limits of liability of not less than $2Million per occurrence and aggregate. 15.3Automobile Liability Insurance. Automobile liability insurance, including, non-owned and hired automobiles used by the VENUETECH or its employees in the performance of this Agreement shall have a minimum combined single limit of one million dollars ($1,000,000) for bodily injury and property damage. 15.4Worker’s Compensation Insurance. Worker’s Compensation insurance as required by the laws of the State of California including statutory coverage for Employers Liability with limits not less than one million dollars ($1,000,000). 15.5Professional Liability Insurance. Professional liability (errors and omissions) insurance is required in the amount of one million dollars ($1,000,000) per claim and in the aggregate. 15.6Additional Insurance Provisions. The following additional provisions apply to the insurance coverage required as indicated in paragraph 15 above. 15.6(a)Additional Insured. VENUETECH shall name CITY, its Council members, officers, agents, and employees as additional insured in the aforementioned Comprehensive Commercial General Liability and Automobile Liability policies. The additional insured endorsements shall be Multi-Cover (CG 7158 12-03). 15.6(b)Notice of Cancellation. The policies shall provide for thirty (30) days written notice to CITY prior to cancellation, termination or material change in coverage. 15.6(c)Certificate Holder. The certificate holder shall be the same person and have the address as indicated in Paragraph 19 (Notices) of this Agreement. 15.6(d)Insurance Rating. Insurers shall have current A.M. Best’s rating of not less than A:VII, shall be licensed to do business in the State of California, and shall be acceptable to the CITY. 15.7Event Insurance Coverage. Notwithstanding the foregoing, the parties agree that VENUETECH purchases insurance coverage for general liability for exposure specifically related to THEATRE operations and public events (“Event Insurance Coverage”). The direct cost of Event Insurance Coverage for all Events at THEATRE shall be an expense in the annual operating budget of CITY, which direct cost will be reimbursed to VENUETECH (without overhead charge) by CITY. 15.8Facility Client Evidence of Insurance Coverage. CITY authorizes VENUETECH to direct all THEATRE Clients to provide evidence of general liability insurance coverage to CITY. Page 14 THEATRE Clients shall provide CITY with a certificate of insurance which shall (i) name CITY, VENUETECH and their respective owners, officers and employees as additional insured for all Events, and (ii) provide an endorsement to the policy to require the insurance carrier to a prior written thirty (30) days notice to CITY for any change or cancellation of coverage. ARTICLE 16RECORDS & OWNERSHIP OF DOCUMENTS 16.1Records. CITY and VENUETECH agree to keep accurate, complete, and separate books and records of accounts in accordance with generally accepted accounting standards and procedures on the basis of a calendar year.These books and records shall, without limitation, show all income and expenditures, accounts payable, accounts receivable, available cash, and other assets and liabilities pertaining to THEATRE. A specific financial management system shall be agreed upon by the parties. 16.2Inspection of Books and Records. VENUETECH and/or CITY may, at any time during the normal business hours of CITY, inspect all records and supporting and related documentation kept by VENUETECH and CITY relating to the management and operation of THEATRE, including without limitation, checks, bills, statements, cash receipts, contracts, and correspondence. 16.3Audit. CITY, at its sole expense, shall conduct an audit of all account books and records connected with the management of the THEATRE. 16.4Work Product. The parties acknowledge VENUETECH is providing the CITY with professional services and there is no work product, provided however that VENUETECH shall provide CITY with the Business Plan as set forth in Exhibit A and CITY shall be granted a fully executable, non-expiring, nontransferable license agreement to for use of the written Business Plan for any public benefit purpose within the current and future geographic borders of Downey, California. 16.5Ownership of Documents. Upon the expiration or termination of this Agreement for any reason, the originals of all records, data, files, memoranda, reports, studies and similar material shall be the property of CITY. 16.6Ownership of Records Specific to VENUETECH. On the expiration, or the earlier termination of this Agreement for any reason, VENUETECH shall retain the ownership rights to contracts, memoranda, files and records relating to Talent Agents (including but not limited to artists management, artists, artists publicists, artists road managers and other artists representatives), as well as all records relating to employees currently or previously working for VENUETECH at or on behalf of THEATRE. ARTICLE 17MISCELLANEOUS 17.1Acceptance of Facsimile Signatures. The Parties agree that this Agreement and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a Party is delivered by facsimile transmission. Such facsimile signature shall be treated in all respects as having the same effect as an original signature. Page 15 17.2Amendment. This Agreement may be amended only by written agreement, signed by the parties to be bound. 17.3Arbitration. All disputes shall first be attempted to be settled by informal mediation between the parties. In the event an impasse is reached, all disputes shall be submitted to final and binding arbitration in accordance with the rules of the American Arbitration Association, to a single arbitrator selected by the Parties. The arbitrator's decision shall be a final and binding determination and shall be fully enforceable as an arbitration award in any court having jurisdiction and venue over the parties by order of the court under a sealed confidential agreement for same. 17.4Assignment. This Agreement may not be assigned by either party, and any attempted assignment shall be void. 17.5Cooperation. The parties covenant and agree to take such further actions and to execute, acknowledge, and deliver such additional documents as may be reasonably required to implement the terms and conditions of this agreement. 17.6Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute on instrument. 17.7Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of California. Any arbitration action or suit or proceeding with respect to this Agreement shall be brought exclusively in Los Angeles County, South East, in the State of California. 17.8Integration. This Agreement contains the entire Agreement between parties and supersedes all prior oral and written agreements, understandings, commitments, and practices between them. 17.9Modification. No oral modifications, express or implied, may alter or vary the terms of this Agreement. No amendments to this Agreement shall be binding unless in writing and signed by an authorized representative of the Parties. 17.10Notices. All notices, requests, demands and other communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given when received if personally delivered; when received if transmitted by telecopy; if received during normal business hours on a business day (or if not, the next business day after delivery) provided that such facsimile is legible and that at the time such facsimile is sent the sending party receives written confirmation of receipt; if sent for next day delivery to a domestic address by recognized overnight delivery service (e.g., Federal Express); and upon receipt, if sent by certified or registered mail, return receipt requested. In each case notice shall be sent to the respective parties as follows: Page 16 City of DowneyVenueTech Management Group, Inc. Community Services Department 3415 Sweet Drive Downey City HallLafayette, California 94549 11111 Brookshire AvenueAttn: John R. Lind, President Downey, CA 90241 Attn: Mr. Thad Phillips, Director 17.11Severability. The provisions of this Agreement are intended to be interpreted and construed in a manner which makes such provisions valid, legal and enforceable. In the event any provision of this Agreement is found to be partially or wholly invalid, illegal or unenforceable, such provision shall be modified or restricted to the extent and in the manner necessary to render such provision valid, legal and enforceable. _______________________________________________________________ End of Downey Management and Consulting Services Agreement Signatures & Exhibits Follow Page 17 Page 18 CONTRACT FOR MANAGEMENT AND CONSULTING SERVICES Downey Civic Theatre DOWNEY, CALIFORNIA EXHIBIT A - SCOPE OF SERVICES Ì®¿²·¬·±² Ð¸¿» Ì¸» Ì®¿²·¬·±² Ð¸¿» ±º ¬¸» ß¹®»»³»²¬ ©·´´ ¬¿µ» °´¿½» ±ª»® ¿ ¬©± øî÷ ³±²¬¸ °»®·±¼ò Ü«®·²¹ ¬¸· ¬·³» Ý·¬§ ¬¿ºº ©·´´ ½±²¬·²«» ¬± ±°»®¿¬» ¬¸» Ì¸»¿¬®» ©¸·´» Ê»²«»Ì»½¸ ·³°´»³»²¬ ¬¸» º±´´±©·²¹ ½±°» ±º »®ª·½»æ ï÷Ü»ª»´±°³»²¬ ±º ¿ ½±³°®»¸»²·ª» Ì¸»¿¬®» Þ«·²» Ð´¿²ò î÷×²·¬·¿´ ´»¹¿´ ¿²¼ ½±³³«²·¬§ ©±®µ º±® ¬¸» º±®³¿¬·±² ±º ¿ ²»© ëðïø½÷íô ²±²°®±º·¬ ±®¹¿²·¦¿¬·±² ¬± «°°±®¬ ¬¸» Ì¸»¿¬®» ±°»®¿¬·±² øº·²¿´ ¿°°®±ª¿´ º®±³ ¬¸» ×ÎÍ ©·´´ ¬¿µ» °´¿½» ¿¬ ¿ ´¿¬»® ¼¿¬»ò÷ 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Ó¿²¿¹»®ô Ì¿´»²¬ ß¹»²¬ ±® Ì¿´»²¬ ß¹»²½§ ©¸»®» ®»¯«·®»¼ò ½÷Ý±±®¼·²¿¬·±² ±º °»®±²¿´ ¿°°»¿®¿²½»ô ·²¬»®ª·»© ÜÏÙlÐØØÉÜÏÙÖËØØÉÊkÛÄÍØË×ÎËÐÔÏÖÜËÉÔÊÉÊ ¼÷Ü»ª»´±°³»²¬ ¿²¼ ¿°°®±ª¿´ ±º ¬¸» «» ±º ¿´´ ¿´» ¿²¼ ¿¼ª»®¬··²¹ ³¿¬»®·¿´ °»½·º·½ ¬± ×²óØ±«» Ûª»²¬ ¿²¼ Í»¿±² ±º Ûª»²¬ ·²½´«¼·²¹ ¾®±½¸«®»ô ¬·½µ»¬ ±®¼»® º±®³ô º´§»®ô °±¬»®ô ¾·´´¾±¿®¼ ¿²¼ °®·²¬ ¿²¼ »´»½¬®±²·½ ³»¼·¿ò »÷Þ«·²» ¼»ª»´±°³»²¬ ¿²¼ ³¿®µ»¬·²¹ º±® ¬¸» Ì¸»¿¬®» ®»²¬¿´ ±°»®¿¬·±² ·²½´«¼·²¹ ¬¸» ¼»ª»´±°³»²¬ ±º ¬»½¸²·½¿´ °»½·º·½¿¬·±² ¾®±½¸«®»ô ¿´» ³¿¬»®·¿´ ¿²¼ ±¬¸»® ®»¯«·®»¼ ½±´´¿¬»®¿´ ³¿¬»®·¿´ò Page 22 Ü¿·´§ Ñ°»®¿¬·±²¿´ ×«» ï÷Ê»²«»Ì»½¸ ¸¿´´ °®±ª·¼» º±® ¬¸» ¼¿·´§ ¶¿²·¬±®·¿´ ²»»¼ ±º ¬¸» Ì¸»¿¬®»ò î÷Ê»²«»Ì»½¸ ¸¿´´ ½±±®¼·²¿¬» ©·¬¸ ¬¸» Ý·¬§ º±® ¿´´ ³¿¶±® ³¿·²¬»²¿²½» ±º ¬¸» °¸§·½¿´ °´¿²¬ ¿²¼ ¸»´° »²«®» ¬¸¿¬ ½±³³«²·½¿¬·±² ©·¬¸ ¬¸» ¿°°®±°®·¿¬» Ý·¬§ Ü»°¿®¬³»²¬ · »ºº»½¬·ª» ¿²¼ °®±º»·±²¿´ò í÷Ê»²«»Ì»½¸ ¸¿´´ ©±®µ ½´±»´§ ©·¬¸ ¬¸» Ý·¬§ Í¬¿ºº ¬± »²«®» ¬¸¿¬ º·²¿²½·¿´ ®»½±®¼ô ¾«¼¹»¬ô ¿²¼ ¾«¼¹»¬ «°¼¿¬» ¿®» ¬·³»´§ ¿²¼ ¿½½«®¿¬»ò ì÷Ê»²«»Ì»½¸ ¸¿´´ ½±±®¼·²¿¬» ¿´´ ®»°±®¬·²¹ ®»¯«·®»³»²¬ º±® ¬¸» Ý·¬§ Ý±«²½·´ ¿²¼ ¬¸» Ý·¬§ Ó¿²¿¹»® ¬¸®±«¹¸ ·¬ ½±²¬¿½¬ ©·¬¸ ¬¸» Ý·¬§ Í¬¿ººò ë÷çØÏÈØéØÚÕÊÕÜÑÑÐØØÉËØÖÈÑÜËÑÄÆÔÉÕÉÕØÜÊÊÔÖÏlúÔÉÄñÔÜÔÊÎÏkÆÕÔÚÕÊÕÜÑÑÛØÜúÔÉÄÛ³°´±§»» ¿¬ ¬¸» Ü»°¿®¬³»²¬ Ø»¿¼ ´»ª»´ò Û²¼ ±º Û¨¸·¾·¬ ß Page 23 CONTRACT FOR MANAGEMENT AND CONSULTING SERVICES DOWNEY, CALIFORNIA EXHIBIT B – OBLIGATIONS OF CITY General 1) a)Provide a safe building that is appropriate for public assembly and that meets fire safety, public access, local zoning and other local, state and federal requirements. b)Assign a CITY Project Liaison to interface with VENUETECH with regard to all aspects of the THEATRE operation and to provide coordination and communication between CITY and VENUETECH. c)Provide the funds required to operate the THEATRE, and approve the annual operating budget of the THEATRE. d)Provide the funds required to produce the In-House Events and Season of Events at the THEATRE. e)CITY shall obtain, fund and maintain a “Merchant Account” for the purpose of providing credit card sales at the box office for the purchase of tickets by patrons for sales directly through the box office or for internet sales. f)Review financial reports, and provide direction to VENUETECH concerning the operation of THEATRE, the direction of the THEATRE business and the financial, business and community service goals of CITY regarding THEATRE. Make budget adjustments as necessary. g)Review and approve the annual programming plan of the THEATRE as submitted by VENUETECH. h)Provide guidance to VENUETECH regarding community interests and needs of the overall mission and goals of CITY with regards to THEATRE. Specifically provide VENUETECH with direction relating to any requests that may be made by local nonprofit organizations for free or discounted use of THEATRE. i)Provide guidance to VENUETECH regarding the production of In-House Events or Season of Events that may not be profitable and therefore may require financial subsidy to meet objectives of CITY other than financial goals. j)Provide ADA policies and procedures as per the terms of this Agreement and ensure that the THEATRE remain in compliance with ADA laws and other public safety considerations. k)Compensate VENUETECH timely for the services provided, as per the terms of this Agreement. Page 24 CONTRACT FOR MANAGEMENT AND CONSULTING SERVICES DOWNEY, CALIFORNIA EXHIBIT C – SCHEDULE OF FEES Þ¿»¼ ±² ¬¸» ½±°» ±º »®ª·½» ±«¬´·²»¼ ·² ¬¸· °®±°±¿´ ø®»½±¹²·¦·²¹ ¬¸¿¬ ¬¸» ¿½¬«¿´ ½±²¬®¿½¬ ³¿§ ½¸¿²¹» ±²½» ©» ³»»¬ ©·¬¸ Ý·¬§ ¬¿ºº÷ ·¬ · ¿²¬·½·°¿¬»¼ ¬¸¿¬ ±«® º»» ¬®«½¬«®» ©±«´¼ ¾» ¿ º±´´±©æ Ó¿²¿¹»³»²¬ Ú»» üïíôèðð °»® ³±²¬¸æ º±® ¬¸» Ì¸· º»» · ·²½´«·ª» ±º ¿´´ ®»¯«·®»¼ ½±²«´¬¿¬·±² ¿²¼ °»®·±¼ º®±³ ïîñïñîðïð ³¿²¿¹»³»²¬ »®ª·½»ô ·²½´«¼·²¹ ¸±«® °»²¬ ¾§ ¬¸» Ê·½» ¬¸®±«¹¸ êñíðñîðïî Ð®»·¼»²¬ô Ì¸»¿¬®» Ñ°»®¿¬·±² øÐ®±¶»½¬ Ó¿²¿¹»®÷ ¿²¼ Ð®»·¼»²¬ ±º Ê»²«»Ì»½¸ ¿²¼ ¬¸» »³°´±§³»²¬ ½±¬ üïìôìçð °»® ³±²¬¸æ º±® ¬¸» ¿±½·¿¬»¼ ©·¬¸ ±²» øï÷ º«´´ó¬·³» Ê»²«»Ì»½¸ °±·¬·±² ±²ó °»®·±¼ º®±³ éñïñîðïî ·¬»ô ©¸·½¸ ©±«´¼ ¾» ¬¸» Ì¸»¿¬®» Ó¿²¿¹»® °±·¬·±²ò ¬¸®±«¹¸ êñíðñîðïí üïëôîïë °»® ³±²¬¸æ º±® ¬¸» °»®·±¼ º®±³ éñïñîðïí ¬¸®±«¹¸ êñíðñîðïì éñïñîðïì ¿²¼ ¬¸»®»¿º¬»® ±² Ö«´§ ï º±® ¬¸» ®»³¿·²¼»® ±º ¬ ¬¸· ß¹®»»³»²¬ô ¬¸» ³±²¬¸´§ º»» ¸¿´´ ¾» «¾¶»½¬ ¬± ¿²²«¿´ ¿¼¶«¬³»²¬ ¾¿»¼ «°±² ¬¸» ÝÐ×óË ø¿ «»¼ º±® ±¬¸»® ¾«¼¹»¬¿®§ °«®°±» ¾§ ¬¸» Ý·¬§ ±º 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