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HomeMy WebLinkAbout2846 BREMERTON CITY COUNCIL RESOLUTION NO. A CITY COUNCIL RESOLUTION AUTHQRIZING THE MAYOR TO EXECUTE THE FIRST ADDENDUM TQ OPERATING AGREEMENT WITH THE ADMIRAL THEATRE FOUNDATION WHEREAS, performing arts facilities are an integral part of providing cultural events for the benefit of the community; and WHEREAS, performing arts facilities are recognized as effective vehicles for promoting tourism; and WHEREAS, the Admiral Threatre was purchased by the City of Bremerton in 1989; and WHEREAS, the City of Bremerton contracted with the Admiral Theatre Foundation, a non-profit corporation to renovate and operate the Admiral Theatre to promote the arts, community events and overall economic revitalization of downtown Bremerton; and WHEREAS, in 1990 the voters of Bremerton overwhelmingly supported a forty (40) year contract with the Admiral Theatre Foundation in order to operate and manage the Admiral Theatre; and WHEREAS, in order to provide the Admiral Theatre with additional funding for its operations the City increased its Hotel/Motel Tax rate by an additional two percent (2%); and WHEREAS, the use of the Hotel/Motel Tax proceeds are restricted to uses that promote tourism; and WHEREAS, the support of a performing arts facility is specifically recognized as an authorized use for Hotel/Motel Tax funds; and WHEREAS, the Admiral Theatre Foundation has done an excellent job in managing the City's Admiral Theatre for the benefit of the community; and WHEREAS, performing art theatres are rarely profitable from an economic standpoint but have many intangible benefits to a community that do not show on an economic balance sheet; and Resolution No. WHEREAS, the City Council recognizes that intangible profitability that benefits the citizens of the community and finds it is in the best interests of the City and its citizens to also assure the tangible profitability of the Theatre by providing financial support for the operation of the theatre; now, therefore BE IT RESOLVED that the City Council finds it to be in the best interests of the citizens of the community to assist in the continued financial support of the Admiral Theatre Foundation as it relates to its operation of the Admiral Theatre; and BE IT FURTHER RESOLVED that the City Council finds that so long as there are adequate controls relative to the financial reporting and use of City funds that a long- term financial commitment to the Admiral Theatre Foundation is in the best interests of the citizens of Bremerton; and BE IT FURTHER RESOLVED the Mayor is authorized to execute the attached document (entitled First Addendum to Operating Agreement). PASSED by the City Council of the City of Bremerton this ~ day of , 2001. ~' City Council President APPROVED this ~ day of ~P.~~001. Mayor A'I-rEST: KA']'HLEEN McCLUSKEY City Clerk Resolution No. FIRST ADDENDUM TO OPERATING AGREEMENT 1. Date and Parties. This document, for reference purposes only, is dated the day of ,2001 and is entered into by and between the City of Bremerton, hereinafter referred to as the "City", and the Admiral Theatre Foundation, hereinafter referred to as the "Foundation". 2. General Recitals. a. The City and the Foundation entered into an agreement entitled "Operating Agreement" (herein referred to as the "Agreement") dated the 28th day of September 1990. b. As stated in the Agreement the Agreement's purpose was to provide for the renovation of the Admiral Theatre located at 507 Pacific Avenue, Bremerton, Washington and owned by the City and to provide for the operation of a performing and visual arts center for public entertainment, education and cultural events at the Theatre. c. The Foundation has successfully renovated the Admiral Theatre and operated it since its renovation as a successful performing and visual arts center for public entertainment, education and cultural events. d. The purpose of this First Addendum is to clarify the term of the Operating Agreement, to provide funding support for the Admiral Theatre and further clarify conditions of the Agreement. 3. Term. The initial term of this Agreement commenced on September 28, 1990 and shall terminate on September 27, 2040. 4. Buildin.qMaintenance. The Foundation is solely responsible for maintaining the Theatre property and improvements therein in good condition. The City shall have no responsibility for building maintenance, repairs or damage to the structure, except to the extent insurance proceeds are available to cover any loss. 5. Financial Contribution. Commencing in calendar year 2002 the City shall pay to the Foundation Ninety Thousand Dollars ($90,000.00) and a like amount each and every year thereafter. Provided, however, the obligation to pay this amount is conditioned upon the following: a. the Foundation properly maintaining the Theatre and its facilities; b. the Foundation continuing to market and provide performing and visual arts at the Theatre on a full-time basis, including education and cultural events; First Addendum to Operating Agreement Pane 1 of 3 c. the Foundation making available to the City's internal auditor all financial information he deems appropriate to determine that the Theatre is using its funds in accordance with its non-profit purpose and the purpose of the Agreement and this First Addendum thereto; d. the Foundation providing to the City an external audit on a bi- annual basis, commencing in 2003, and the results of that audit showing no significant irregularity; e. the City's hotel/motel tax generates at least $90,000 each year for each 2% of tax imposed; and f. the City Council, in 2004, and every three (3) years thereafter, renews its commitment to the above-referenced funding amount or such other amount as it deems within the best interests of the City and its citizens. It is anticipated that the $90,000.00 commitment will be renewed after each three (3) year review, so long as the Foundation has used the funds in a manner that the Council deems as promoting the best interests of the City and its citizens and the purposes of the Hotel/Motel Tax enabling legislation. 6. Confirmation of Agreement Terms. Except as modified by this First Addendum, the terms and conditions of the Agreement are hereby confirmed in their entirety and incorporated herein as if fully set forth in this First Addendum. THE ADMIRAL THEATRE FOUNDATION Date: By: Its: CITY OF BREMERTON Date: By: Lynn Horton, Mayor ATTEST: Kathleen McCluskey, Clerk First Addendum to Operating Agreement Pa(~e 2 of 3 APPROVED AS TO FORM: Loren D. Combs, City Attorney b~2497~contract~admiradd~1 .doc First Addendum to Operating Agreement Paae 3 of 3