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2007-159` S:\Our UncumenLS\Ordinances\07\DCT Ordinance 2007-No-2.dnc ORDINANCE NO. OOH' .~ AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND DENTON COMMUNITY THEATRE REGARDING TRAVEL EXPENSES ASSOCIATED WITH THE "AACTFEST 2007", AN INTERNATIONAL THEATER FESTIVAL TO BE HELD IN HEIDELBERG, GERMANY FOR THE SHOWCASE PRODUCTION OF "CROWNS", BEING AN AFRICAN AMERICAN MUSICAL PRODUCTION; PROVIDING THAT THIS PROGRAM SERVES A MUNICIPAL AND PUBLIC PURPOSE OF PROMOTING THE ARTS AND TOURISM WITHIN DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Denton Community Theatre, a Texas non-profit corporation, (the "Organization") is dedicated to the promotion and provision of artistic performances of all kinds for the benefit of the citizens of Denton; (the "Program"); and WHEREAS, the Organization and the City of Denton desire to enter into an agreement to provide for the continuance of the Program, which agreement is substantially in the same form as the agreement attached hereto and made a part hereof by reference (the "Agreement"); and WHEREAS, the City Council of the City ofDenton hereby finds that the Agreement between the City and the Organization attached hereto and made a part hereof by reference serve a municipal and public purpose and the Agreement is in the public interest as it promotes the arts and tourism within the City of Denton; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this ordinance are incorporated by reference into the body of this ordinance as if fully set forth herein. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City under the Public Service Agreement, including the expenditure of funds, as provided in the Public Agreement. SECTTON 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~ day of , 2007. . m~ n.~ PERR . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: W APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER CITY ATTORNEY BY: Page 2 C:\OOCUMF-I\LAI-IOLLGY\LOCALS-I\Temp\XPg~pwise\Denton Community Thcalre 2007-No-2.doc SERVICE AGREEMENT BETWEEN THE CITY OF llENTON, TEXAS AND DENTON COMMUNITY THEATRE This Agreement is hereby entered into by and between the City of Denton, Texas, a Home Rule Municipal Corporation, hereinafter referred to as "City", and Denton Community Theatre, a Texas Non-Profit Corporation, hereinafter referred to as "Denton Community Theatre": WHEREAS, City has determined that the proposal for services merits assistance and can provide needed services to citizens of City and has provided funds in its budget for the purpose of paying for contractual services; and WHEREAS, this Agreement serves a valid municipal and public purpose, including the promotion of the arts and tourism within the City of Denton; NOW, THEREFORE, the parties hereto mutually agree as follows: I. SCOPE OF SERVICES Denton Community Theatre shall in a satisfactory and proper manner perform the following tasks, for which the monies provided by City may be used: The funds being provided shall be used by Denton Community Theatre to help pay travel expeuses to promote the African American musical, "Crowns" at the "AACTPest 2007" to be held in Heidelberg, Germany in October, 2007. Il. OBLIGATIONS OF DENTON COMMUNITY THEATRE In consideration of the receipt of funds from City, Denton Community Theatre agrees to the following terms and conditions: A. Oue Thousand Five Hundred Thirty Nine Dollars and no/100 ($1,539.00) shall be paid to Denton Community Theatre by City to be utilized for the purposes set forth in Article I. B. Denton Community Theatre will maintain adequate records to establish that the City funds are used for the purposes authorized by this Agreement. C. Denton Community Theatre will permit authorized officials of City to review its books at any time. D. Upon request, Denton Community Theatre will provide to City its By Laws and any of its rules and regulations that may be relevant to this Agreement. E. Denton Community Theatre will not enter into any contracts that would encumber City funds for a period that would extend beyond the term of this Agreement. F. Denton Community Theatre will appoint a representative who will be available to meet with City officials when requested. G. Denton Community Theatre will submit to City copies of year-end audited financial statements. Ill. TIME OF PERFORMANCE 1~he services funded by City shall be undertaken and completed by Organization within the following time frame: The term of this Agreement shal I commence on the effective date and terminate November 30, 2007, unless the contract is sooner terminated under Section VII "Suspension or Termination". IV. PAYMENTS A. PAYMENTS TO DGNTON COMMUNITY THEATRE. City Shall pay t0 Denton COmmunlly Theatre the sum specified in Article II after the effective date of this Agreement. B. EXCESS PAYMENT. Denton Community Theatre shall refund to City within ten (10) working days of City's request, any sum of money which has been paid by City and which City at any time thereafrer determines: 1) has resulted in overpayment to Denton Community Theatre; or 2) has not been spent strictly in accordance with the terms of this Agreement; or 3) is not supported by adequate documentation to fullyjustify the expenditure. V. EVALUATION Denton Community Theatre agrees to participate in an implementation and maintenance system whereby the services can be continuously monitored. Denton Community Theatre agrees to make available its financial records for review by City at City's discretion. In addition, Denton Community Theatre agrees to provide City the following data and reports, or copies thereof: A. All external or internal audits. Denton Community Theatre shall submit a copy of the annual independent audit to City within ten (10) days of receipt. B. All external or internal evaluation reports. C. An explanation of any major changes in program services. D. To comply with this section, Denton Community Theatre agrees to maintain records that will provide accurate, current, separate, and complete disclosure of the status of funds received and Page 2 of 7 the services performed under this Agreement. The record system of Denton Community Theatre shall contain sufficient documentation to provide in detail full support and justification for each expenditure. Denton Community Theatre agrees to retain al] books, records, documents, reports, and written accounting procedures pertaining to the services provided and expenditure of funds under this Agreement for five years. E. Nothing in the above subsections shall be construed to relieve Denton Community Theatre of responsibility for retaining accurate and current records that clearly reflect the level and benefit of services provided under this Agreement. VI. DIRECTORS' MEETINGS During the term of this Agreement, Denton Community Theatre shall deliver to City copies of al l notices of meetings of its Board of Directors, setting forth the time and place thereof wherein this program is a part of the subject matter of the meeting. Such notice shall be delivered to City in a timely manner to give adequate notice, and shall include an agenda and a brief description of the matters to be discussed. Denton Community Theatre understands and agrees that City's representatives shall be afforded access to all meetings of its Board of Directors. Minutes of all meetings of Denton Community Theatre' governing body shall be available to City within ten (] 0) working days of approval. VII. TERMINATION "The City may terminate this Agreement for cause if Denton Community Theatre violates any covenants, agreements, or guarantees of this Agreement, the Denton Community Theatre 's insolvency or filing of bankruptcy, dissolution, or receivership, or the Denton Community Theatre' violation of any law or regulation to which it is bound under the terms of this Agreement. The City may terminate this Agreement for other reasons not specifically enumerated in this paragraph. VIII. EOUAL OPPORTUNITY AND COMPLIANCE WITH LAWS A. Denton Community Theatre shall comply with all applicable equal employment opportunity and affirmative action laws or regulations. B. Denton Community Theatre will furnish all information and reports requested by Ciry, and will permit access to its books, records, and accounts for purposes of investigation to ascertain compliance with local, State and Federal rules and regulations. C. In the event of non-compliance by Denton Community Theatre with the non-discrimination requirements, the Agreement may be canceled, terminated, or suspended in whole or in part, and Denton Community Theatre may be barred from further contracts with City. Page 3 of 7 IX. WARRANTIES Denton Community Theatre represents and warrants that: A. All information, reports and data heretofore or hereafter requested by City and furnished to City, are complete and accurate as ofthe date shown on the information, data, or report, and, since that date, have not undergone any significant change without written notice to City. B. Any supporting financial statements heretofore requested by City and furnished to City, are complete, accurate and fairly reflect the financial conditions of Denton Community Theatre on the date shown on said report, and the results of the operation for the period covered by the report, and that since said data, there has been no material change, adverse or otherwise, in the financial condition of Denton Community Theatre. C. No litigation or legal proceedings are presently pending or threatened against Denton Community Theatre. D. None of the provisions herein contravenes or is in conflict with the authority under which Denton Community Theatre is doing business or with the provisions ofany existing indenture or agreement of Denton Community Theatre. E. Denton Community Theatre has the power to enter into this Agreement and accept payments hereunder, and has taken all necessary action to authorize such acceptance under the terms and conditions of this Agreement. F. None of the assets of Denton Community Theatre are subject to any lien or encumbrance of any character, except for current taxes not delinquent, except as shown in the financial statements furnished by Denton Community Theatre to City. Each of these representations and warranties shall be continuing and shall be deemed to have been repeated by the submission of each request for payment. X. CHANGES AND AMENDMENTS A. Any alterations, additions, or deletions to the terms of this Agreement shall be by written amendment executed by both parties, except when the terms of this Agreement expressly provide that another method shall be used. B. It is understood and agreed by the parties hereto that changes in the State, Federal or local laws or regulations pursuant hereto may occur during the term of this Agreement. Any such modifications are to be automatically incorporated into this Agreement without written amendment hereto, and shall become a part of the Agreement on the effective date specified by the law or regulation. Page 4 of 7 C. Denton Community Theatre shall notify City of any changes in personnel or governing board composition. XI. INDEMNIFICATION To the extent authorized by law, the Denton Community Theatre agrees to indemnify, hold harmless, and defend the CITY, its officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the Denton Community Theatre or those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in pari, upon allegations of negligent or intentional acts of Denton Canmunity Theatre, its officers, employees, agents, subcontractors, licensees and invitees. XII. CONFLICT OF INTEREST' A. Denton Community Theatre covenants that neither it nor any member of its governing body presently has any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. Denton Community Theatre further covenants that in the performance of this Agreement, no person having such interest shall be employed or appointed as a member of its governing body. B. Denton Community Theatre further covenants that no member of its governing body or its staff, subcontractors or employees shall possess any interest in or use his/her position for a purpose that is or gives the appearance of being motivated by desire for private gain for himself/herself, or others; particularly those with which he/she has family, business, or other ties. C. No officer, member, or employee of City and no member of its governing body who exercises any function or responsibilities in the review or approval of the undertaking or carrying out of this Agreement shall participate in any decision relating to the Agreement which affects his personal interest or the interest in any corporation, partnership, or association in which he has direct or indirect interest. XIII. NOTICE Any notice or other written instrument required or permitted to be delivered under the terms of this Agreement shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, or via hand-delivery or facsimile, addressed to Denton Community Theatre or City, as the case may be, at the following addresses: Page 5 of 7 CITY City of Denton, Texas Attn: City Manager 215 E. McKinney Denton, TX 76201 Fax No. 940.349.8591 DENTON COMMUNITY THEATRE Philip Gallivan, President Denton Community Theatre 214 W. Hickory Denton, TX 76201 Fax No. 940.89 L 169 ] Either party may change its mailing address by sending notice ofchange of address to the other at the above address by certified mail, return receipt requested. XIV. MISCELLANEOUS A. Denton Community Theatre shall not transfer, pledge or otherwise assign this Agreement or any interest therein, or any claim arising thereunder to any party or parties, bank, trust company or other financial institution without the prior written approval of City. B. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect and continue to conform to the original intent of both parties hereto. C. In no event shall any payment to Denton Community Theatre hereunder, or any other act or failure of City to insist in any one or more instances upon the terms and conditions of this Agreement constitute or be construed in any way to be a waiver by City of any breach of covenant or default which may then or subsequently be committed by Denton Community Theatre. Neither shall such payment, act, or omission in any manner impair or prejudice any right, power, privilege, or remedy available to City to enforce its rights hereunder, which rights, powers, privileges, or remedies are always specifically preserved. No representative or agent of City may waive the effect of this provision. D. This Agreement, together with referenced exhibits and attachments, constitutes the entire agreement between the parties hereto, and any prior agreement, assertion, statement, understanding, or other commitment occurring during the term of this Agreement, or subsequent thereto, have any legal force or effect whatsoever, unless properly executed in writing, and if appropriate, recorded as an amendment of this Agreement. E. This Agreement shall be interpreted in accordance with the laws of the State of Texas and venue of any litigation concerning this Agreement shall be in a court ofcompetent jurisdiction sitting in Denton County, Texas. Page 6 of 7 IN WITNESS W~~OF, the pities do hereby affix their signatures and enter into this Agreement as of the day of [ ,/,~~-, , 2007. ~' w""' PERRY . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY B Y: APPROVED AS TO LEG FORM: EDWIN M. SNYDER, CI ~Y ATTORNEY BY: DENTON COMMUNITY THEATRE LIP A DIVAN, PRESI ENT ATTEST: BY: SECRETARY Page 7 of 7