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2015-279\ \CODAD\Departments \Legal \Our Documents \0rdinances \15 \Denton Community Theatre.doc ORDINANCE NO. 2015 -279 AN ORDINANCE APPROVING AN AGREEMENT - DENTON COMMUNITY THEATRE BY AND BETWEEN THE CITY OF DENTON, TEXAS AND THE DENTON COMMUNITY THEATRE, A TEXAS NON - PROFIT CORPORATION; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT - DENTON COMMUNITY THEATRE; APPROVING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas ( "City ") has determined that it is in the best interests of the City of Denton to continue to support the arts in the community and specifically, to provide public funds for utility and janitorial services to the Denton Community Theatre ( "DCT "), to be used for its new leased rehearsal facility, in consideration of the valuable cultural and public services to be furnished by the DCT to the City; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby approves the "Agreement- Denton Community Theatre," attached hereto and incorporated herewith by reference, entered into by and between the City of Denton, Texas and the Denton Community Theatre ( hereafter the "Agreement "), and authorizes the City Manager to execute said Agreement. SECTION 2. The City Council authorizes the expenditure of funds in the manner and amount as specified in the Agreement. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2015. 1. S WATTS, N YOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By:� �_ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By THE STATE OF TEXAS COUNTY OF DENTON AGREEMENT - DENTON COMMUNITY THEATRE The City of Denton, Texas, a Texas municipal corporation (hereafter the "City ") and the Denton Community Theatre, a Texas not - for - profit corporation (hereafter the "DCT ") do hereby enter into this Agreement- Denton Community Theatre (hereafter the "Agreement- DCT "), and by presents: PREAMBLE A. Both the City and DCT desire to simplify and streamline the handling of payments regarding the DCT's utility bills and the payment provisions for janitorial services regarding the timing and method of City's payments; and B. City staff has received direction from Council to proceed with proposing this Agreement to provide DCT with an amount of funding for utilities and janitorial services for the rehearsal facility to be utilized by Denton Community Theatre, being the approximate 3800 square foot space, which DCT has leased from the Denton Record Chronicle; and C. The City has proposed to provide a mutually agreed -upon fixed annual funding amount for these leased rehearsal facilities used by DCT that are leased from the Denton Record Chronicle; and to improve the administration of funds, as well as to reduce City and DCT staff time that is devoted to reconciling the DCT utility and janitorial accounts; NOW THEREFORE, the City and DCT for good and valuable consideration, and for the benefit of community cultural and theatrical activities in the City of Denton, Texas; the City and DCT do hereby AGREE to the following covenants, provisions and terms, that establish this Agreement -DCT, to wit: 1. The termination date of this Agreement is agreed to be September 30, 2020, unless earlier terminated as provided for herein. 2. City and DCT agree and understand that if the City is unable or not willing to appropriate funds for subsequent fiscal years, in order to continue the funding provided for, that the City may terminate this Agreement -DCT at the end of the then current Fiscal Year and it shall not be obligated to make further payments 1 under this Agreement -DCT. The first annual period regarding this Agreement shall commence on October 1, 2015 and continue through September 30, 2016. The second annual period shall commence on October 1, 2016 and continue through September 30, 2017. The third and successive annual periods shall be in each succeeding year thereafter. 3. The DCT agrees to deliver to the City, Director of Finance, its Financial Statements and its Independent Auditor's Report for each Fiscal Year of DCT, during the pendency of this Agreement -DCT, promptly when received from its Auditor, at the close of the DCT Fiscal Year. 1. The City shall provide a mutually agreed -upon annual funding amount commencing on October 1, 2015 for DCT's rehearsal space at the Denton Record Chronicle. The annual funding amount for City utilities, as detailed in Exhibit A, will be paid annually with the first such annual payment being due and beginning on October 1, 2015. DCT shall timely and directly pay for all of its utilities for said rehearsal space directly to the providers of same and /or to their Landlord, as applicable. DCT may manage whether or not it desires separate meters for utility service. The City does not object to same. 2. The City and DCT agree that the additional sum of $3,000 is an appropriate amount to be spent annually on DTC's janitorial services for its rehearsal space at the Denton Record Chronicle. This $3,000 amount is in addition to the annual amount set forth in Paragraph 4 herein. The $3,000 for janitorial expenses will be paid to the DCT by the City on October 1 of each Fiscal Year, beginning October 1, 2015. DCT shall then be liable for paying all of its janitorial expenses for the Fiscal Year. 6. There are no requirements set for maximum annual usage (i.e. kilowatt hours, gallons of water, etc.) regarding this Agreement. There are no other utility services covered by this agreement other than for drainage, electric, gas, solid waste, water and wastewater utilities. 7. The fixed annual funding accounts established by the City in Paragraph numbers 4 and 5 above, may be re- considered by the City Council provided that the DCT either sells, assigns or otherwise disposes of the DCT leased location to another entity, or sub - leases the DCT leased location to another entity, or the DCT leased location is no longer used for the cultural and theatrical purposes that benefit the residents of the City of Denton, Texas. 2 8. DCT is strongly encouraged to implement energy savings plans, and may fully utilize Denton Municipal Utilities community services, such as the Green -Sense Program, Energy Audits, and other resources in order to economize and more efficiently regulate its utility use. 9. The City may enter the DCT rehearsal facilities at any time that City staff provides advance notice to the designated representative of DCT. SIGNED this the i`5) day of _ _„ 2015. ATTESTED: JENNIFER WALTERS, CITY SECRETARY By: �� ,. ee "CITY" THE CITY OF DENTON, TEXAS A Texas Municipal Corporation By: GEORGE C. CAMPBELL, City Manager 3 ATTEST: 0 APPROVED AS TO LEGAL FORM: By: Its Attorney "DCT" DENTON COMMUNITY THEATRE, INC. A Texas Not-For-Profit Corporation By: Its EXHIBIT A DCT Rehearsal Space Annual Funding Amounts Fiscal Year City Provided Utilities Gas Utilities Janitorial and Maintenance Services 2015-2016 7,200 0 3,000 2016-2017 7,450 0 3,000 2017-2018 7,650 0 3,000 2018-2019 7,900 0 3,000 2019-2020 8,100 0 3,000