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2015-278ORDINANCE NO. 2015 -278 AN ORDINANCE APPROVING A SIXTH AMENDED AGREEMENT - GREATER DENTON ARTS COUNCIL, TO THE AGREEMENT ORIGINALLY ENTERED INTO BY AND BETWEEN THE CITY OF DENTON, TEXAS AND THE GREATER DENTON ARTS COUNCIL, DATED OCTOBER 15, 1990; AUTHORIZING THE CITY MANAGER TO EXECUTE THE SIXTH AMENDED AGREEMENT - GREATER DENTON ARTS COUNCIL; 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 to provide public funds to the Greater Denton Arts Council ( "GDAC "), for the benefit of GDAC regarding the City's payment of an amount of money for GDAC's utility service, janitorial service and maintenance in consideration of the valuable cultural and public services to be furnished by the GDAC to the City; and WHEREAS, this "Sixth Amended Agreement- Greater Denton Arts Council" (hereafter the "Sixth Amended Agreement ") makes provisions for simplifying and streamlining the handling of payments made by the City for the benefit of GDAC and sets forth other terms, provisions and conditions; and WHEREAS, based upon the foregoing the City Council finds that it should approve the "Sixth Amended Agreement- Greater Denton Arts Council;" and such Sixth Amended Agreement is in the best interests of the City; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The preamble to this ordinance is hereby incorporated herewith by reference as a part of this ordinance. SECTION 2. The City Council hereby approves the Sixth Amended Agreement- Greater Denton Arts Council, to the Agreement heretofore dated October 15, 1990; said Sixth Amended Agreement, by and between the City of Denton, Texas and the Greater Denton Arts Council is attached hereto and incorporated herewith by reference; and the City Council authorizes the City Manager to execute said Sixth Amended Agreement. SECTION 3. The City Council authorizes the expenditure of funds in the manner and amount as specified in the Sixth Amended Agreement. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ATTEST: JENNIFER WALTERS, CITY SECRETARY By PAGE 2 I `v ATTS, MAYOR THE STATE OF TEXAS COUNTY OF DENTON SIXTH AMENDED AGREEMENT- GREATER DENTON ARTS COUNCIL The City of Denton, Texas, a Texas municipal corporation (hereafter the "City ") and the Greater Denton Arts Council, a Texas not - for - profit corporation (hereafter the "GDAC") do hereby enter into this Sixth Amended Agreement (hereafter the "Sixth Amendment- GDAC "), and by presents: PREAMBLE A. On October 2, 1990, Ordinance No. 90 -151 was approved by the City Council (hereafter the "Council) which authorized the Mayor of Denton to execute the "Agreement Between the City of Denton, Texas and the Greater Denton Arts Council" (hereafter the "Agreement ") on October 15, 1990 for a 25 -year period, terminating September 30, 2015; and B. On August 2, 1991, Ordinance No. 91 -134 was approved by the Council which authorized the City to amend the Agreement for the first time to provide for the correction of Schedule "A" regarding the units of measurement and the annual consumption of gas in the "First Amendment to Agreement Between the City of Denton, Texas and the Greater Denton Arts Council" (hereafter the "First Amendment "); and C. On January 21, 1997, Ordinance No. 97 -023 was approved by the Council, which authorizes the City in the "Second Amendment to Agreement Between the City of Denton, Texas and the Greater Denton Arts Council" (hereafter the "Second Amendment ") to agree to changes in the maximum units in Schedule "A" to reflect actual charges of the Campus Theatre; and D. On September 5, 2000, Ordinance No. 2000 -285 was approved by the Council, which authorized the City in the "Third Amendment to Agreement Between the City of Denton, Texas and the Greater Denton Arts Council" (hereafter the "Third Amendment ") to change the maximum units regarding Section A, relating to the level of utility service consumption by GDAC and amending Schedule "A" and requiring the City to review and reconcile the utility accounts; and E. On July 19, 2005, Ordinance No. 2005 -190 was approved by the Council and approved the "Fourth Amendment to Agreement Between the City of Denton, Texas and the Greater Denton Arts Council" (hereafter the "Fourth Amendment "), which agreement 1 required changes in several procedures as to the Parties as well as changes to Schedule "A ", along with the City's agreement to pay on behalf of the GDAC the City drainage fee and a change in the maintenance of GDAC facilities; and F. City, as Lessor and the GDAC, as Lessee entered into a "Lease Agreement /CVA" on September 26, 2006 (hereafter the "Lease Agreement ") that provided for an extension of the term of the City's twenty -five year lease originally entered into on September 1, 1981, to GDAC, by a period of an additional twenty -five years, until September 1, 2031, pertaining to the Visual Arts Center of Denton, which real property is owned by the City, such Lease Agreement commencing on September 1, 2006, for the rental of $1.00 per year; said Lease Agreement also contained express provisions for janitorial services and utility costs; and G. Both the City and GDAC desire to simplify and streamline, to the extent possible, the handling of all of the GDAC's utility bills at the Campus Theatre (hereafter the "Campus ") and CVA, and the payment provisions for maintenance and janitorial services regarding the timing and method of City's payments; and H. City staff has received direction from Council to proceed with amending the existing agreements heretofore entered into by and between the City and GDAC regarding the Campus and CVA; and I. The City has proposed to provide a mutually agreed -upon annual funding amount for the Campus Theatre and CVA used by GDAC and to amend the previous Agreements to improve the administration of funds as well as to reduce City and GDAC staff time that is devoted to reconciling the GDAC utility, maintenance and janitorial accounts under the existing agreements; J. On September 15, 2009, Ordinance No. 2009 -210 was approved by the Council and approved the "Fifth Amendment to Agreement Between the City of Denton, Texas and the Greater Denton Arts Council" (hereafter the "Fifth Amendment "), which agreement makes provisions for simplifying and streamlining the handling of payments made by the City for the benefit of GDAC and sets forth other terms, provisions and conditions; NOW THEREFORE, the City and GDAC for good and valuable consideration, and for the benefit of community cultural and theatrical activities in the City of Denton, Texas; the Parties do hereby AGREE to the following covenants, provisions and terms, that establish this Sixth Amendment -GDAC, to wit: 2 1. This Sixth Amendment -GDAC shall supersede all prior provisions of the five (5) previous Agreements [described in Preamble paragraphs A, B, C, D, E and J] and it shall likewise replace those covenants in the "Lease Agree ment /CVA," dated September 1, 2006, referred to above in paragraphs Section 5, paragraphs 2 and 3 and Section 7, dealing with the subjects of utilities, maintenance and janitorial services. The contract provisions set forth below, shall be in lieu of and in substitution for those documents and provisions set forth in the five (5) previous Agreements and Section 5, paragraphs 2 and 3 and Section 7 in the "Lease Agreement /CVA" that are referred to in this numbered paragraph. 2. The termination date of this Sixth Amendment -GDAC is agreed to be September 30, 2020 as stated in the original Campus Theatre Agreement dated October 15, 1990; and August 31, 2031 as stated in the Center for the Visual Arts Lease Agreement dated September 1, 2006, unless earlier terminated as provided for herein. 3. The Parties 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 in this Sixth Amendment -GDAC, the City may terminate this Sixth Amendment -GDAC at the end of the then current fiscal year and it shall not be obligated to make further payments under this Sixth Amendment -GDAC. The first annual period regarding this Sixth Amendment -GDAC 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. 4. This Sixth Amendment -GDAC is intended to condense the City's prior separate agreements with GDAC governing the Campus and the Center for Visual Arts ( "CVA ") into this one agreement. The GDAC agrees to deliver to the City, Director of Finance, its Financial Statements and its Independent Auditor's Report for each Fiscal Year of GDAC promptly when received from its Auditor, at the close of the GDAC fiscal year. 5. The City shall provide a mutually agreed -upon annual funding amount commencing on October 1, 2015. The annual funding amount for City utilities, as detailed in Exhibit A, will be held by the City and drawn down by City staff and used by City staff to pay GDAC's City - provided utilities, such as drainage, electric, solid waste, 3 water, and wastewater utilities for the Campus Theatre and the Center for Visual Arts. 6. The City and GDAC agree that the additional sum of $20,000 is an appropriate amount to be spent annually on GDAC's and the Campus Theatre's janitorial and maintenance services for its properties. This $20,000 amount is in addition to the annual amounts provided for utilities as set forth in paragraph 5. The $20,000 for maintenance and janitorial expenses will be paid to the GDAC by the City on October 1 of the fiscal year, beginning October 1, 2015. GDAC shall then be liable for paying all of its janitorial and maintenance expenses. 7. The City and GDAC agree that the additional sum of $4,300 shall be paid by the City to GDAC in one lump -sum by October 1 of the fiscal year for the entire annual funding amount. This amount includes $4,300 for GDAC's gas utilities regarding the Campus Theatre, which are to be paid by GDAC to the vendor, ATMOS ENERGY. The $4,300 paid annually to GDAC for these stated gas utilities is in addition to the amounts described above in paragraphs 5 and 6. S. The City shall receive and timely pay each utility bill listed in paragraph 5 above, when it receives same directly from the Customer Service Department of the City. The utility bills shall be sent directly to the City of Denton, Director of Finance, 215 East McKinney Street, Denton, Texas 76201. GDAC will be sent an informational "DO NOT PAY" bill so that it can maintain accurate balances of its annual account with the City. The City shall pay only the annual amount, as detailed in Exhibit A, for the Campus Theatre and the CVA for the listed utilities set out in paragraph 5 hereinabove. Provided however, once the annual amount for the Campus Theatre and CVA is exhausted for the Fiscal Year, then the City shall cease to pay the utility bills for the entity or entities exceeding the city utility payment amount established in this paragraph, for that entity; then said City - provided utility bills for that entity or entities shall be the sole responsibility of and shall be paid timely by GDAC. 9. If there are annual budgeted funds in the GDAC utility account provided for in numbered paragraph 5 above, that prove to be in excess of the total utility bills received for a Fiscal Year, then at the close of that Fiscal Year, the undistributed funded amount remaining in GDAC's established accounts, shall be credited by the City to GDAC, or distributed to GDAC, at GDAC's option, for the following fiscal year, by written election delivered to the City of Denton, Director of Finance, within thirty (30) days after the close of that Fiscal Year. 4 10. There will no longer be any 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. The City does not furnish gas utilities, but has agreed to a utility allocation as described in Paragraph 7 above. 11. The annual funding amount for City - provided utilities, established by the City as set forth in Exhibit A, may be re- considered by the City Council provided that the total utility rates established by the City for those annual utilities provided by the City of Denton, Texas (exclusive of gas utilities) have increased in an amount of greater than 3% for the preceding Fiscal Year. 12. The annual funding accounts established by the City in paragraph numbers 5, 6 and 7 above, may be re- considered by the City Council provided that the GDAC either sells, assigns or otherwise disposes of a GDAC location to another entity, or leases a GDAC location to another entity, or a location of GDAC is no longer used for the cultural and theatrical purposes that are identified in previous documents entered into by and between the GDAC and the City. 13. GDAC 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. 14. The City may enter the Campus Theatre and Center for Visual Arts facilities at any time City staff provides advance notice to the designated representative at GDAC. 15. All of the covenants, provisions and terms contained within the original Agreement regarding the Campus Theatre, dated October 2, 1990, which are set forth in Articles IV., V., VI., VII. and VIII. therein are incorporated by reference herein; and the Lease Agreement for the Center for Visual Arts, dated September 1, 2006, shall survive and shall be become a part of this "Sixth Amendment - GDAC' by and between the City of Denton, Texas and the Greater Denton Arts Council. SIGNED this the day of w, 2015. 5 "CITY" THE CITY OF DENTON, TEXAS A Texas Municipal Corporation w By: .: GEORGE C. CAMPBELL, City Manager ATTESTED: ANITA BURGESS, CITY ATTORNEY By: "G DAC" ATTEST: By: APPROVED AS TO LEGAL FORM: By.; Its Attorney GREATER DENTON ARTS COUNCIL A Texas Not - For - Profit Corporation c By: LI Its 11 EXHIBIT A GDAC Annual Fundiniz Amounts Fiscal Year City Provided Utilities Gas Utilities Janitorial and Maintenance Services 2015-2016 77,250 4,300 20,000 2016-2017 79,500 4,300 20,000 2017-2018 82,000 4,300 20,000 2018-2019 84,500 4,300 20,000 2019-2020 87,000 4,300 20,000