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HomeMy WebLinkAboutRotary Club of Fresno 3rd Amd to Amphitheater AgmtfRC�4" riles REPORT TO THE CITYCOUNCIL March 3, 2005 AGENDAITEMNO. 9:00am"FIA COUNCIL MEETING 3/03/09 oecr� CITY MMUa� ajo�l FROM: RANDALL L. COOPER. Director Parks, After -School, Recreation and Community Services Department BY: PAUL MELIMAN, Administrative Manager¢ WILLIAM BROOMFIELD. Special Events Manager Parks. After -School, Recreation and Community Services Department SUBJECT: 1) APPROVE THE THIRD AMENDMENTTO ROTARY AMPHITHEATER AGREEMENT BE'RA EEN CITY OF FRESNO AND THE ROTARY CLUB OF FRESNO 2) APPROVE THE 477"AMENDMENT TO MASTER FEE SCHEDULE RESOLUTION NO. 80-420 REVISING RESERVATON FEES FOR THE WOODWARD ROTARY AMPHITHEATER RECOMMENDATIONS Staff recommends that the City Council approve the attached third amendment to the agreement between the City and Repay Club 0 Fresno and the 4,rih Amendment to Master Fee Resolution No. 80-020 revising the reservation fees for the Woodward Rotary Amphitheater. and that the new fees become effective March 16, 2009. The first phase of Amphitheater tee amendments was adopted on July 29, 2008, when Council approved the second amendment to. me agreement with the Rotary Club of Fresno for the operation of the Amphitheater, In which all rights to concessions now vest exclusively with the City and the Improvement Fee (charged per attendee) was updated The attached third amendment amends the agreement one additional time to reflect that since July, the City has worked with the Rotary club to wend the percentage charged on concession sales from the existing 20% to 35% to reflect concession agreements in place at comparable venues. This report will communicate the final phase of fee amendments required to support the financial strategy required for the Woodward Park Rotary Amphitheater to become self sustaining while ensuring professional, ofident operations and providing for continued capital investment. The management and operation of the Amphitheater currently rests with PARCS, however the Department will be working with the City Managers Office going forward to investigate the possibility of outsourcing to a management company. The proposed fees are necessary in the interim to ensure the continuetl success of the venue based upon a balance of preserving public access, meeting cost recovery targets, and we'Ighing competitive factors: all of which are detailed in this report. EXECUTIVE SUMMARY The recent Improvements at the Woodward Park Rotary Amphitheater have transformed it into one of the premiere outdoor entertainment venues in the Central Valley. The Amphitheater has hosted 27 events in 2008 with an average attendance of over 1,900 per event. The primaryddver of this increased usage is the Department's focus on promoting the Amphitheater and recent Improvements to make it a more attractive and viable entertainment venue. viemnrtamcbmvMll oma =. Ric r Sofa9oswnnoo�i= ��+R REPORT TO THE CITY COUNCIL WOO Nerd Rotary Amphitheater Third Amendment a Participant Fee Amendment Mamh3,2009 Page 2 of a The first phase of Amphitheater Improvements included $1.740,0001 for the shade structure over the entire venue; increasing the seating capacity from 3,000 to over 4,000, upgrading the landscaping, adding mister stations. electrical repairs, and upgraded power for sound& lightting. Future improvements to fully build out the Amphitheater will include: building a green room ark dressing rooms, adding three restroom facilities, an additional concession building, nraadng two vendor pavilions, and adding additional parking and A new pedestrian entrance. The total cost of Me remaining buildout is approximately $2.5 million. Will these significant investments, the facility Is expected to operate as an enterprise: actiuiry, generating IWA of [as own] revenue needed to support operations, fund new amenities, and provide for ongoing capital Improvement funds to maintain the facility. For example, the fabric used for Me new shade rnucture has an expected Its of 10-12 years, and will require approximately $150,000 for its eventual replacement. Without an ongoing abdicated funding stream for facility Improvements, the Department will be unable to sustain the high level of amenities needed to attract events year after year. In addition to the required funding for ongoing Improvements and repairs to sustain the Amphitheater, the Increased usage and additional appeal trandates to higher operagng costs for event staff utilities, maintenance, and equipment rentals. The Department proposes to adjust reservation fees from the current flat rate rental structure to a variable 'percentage of gross ticket sales formula (detailed beginning on page five) that ensures organizers Pay Meir fair share of event proceeds while maintaining access for non-profit organizations. Reservation fees must afro generate sufficient revenue to cover all operating costs and provide for capital improvements while remaining competitive within our local and regional markets Why Now The timing of this fee amendment is crucial in that the Amphitheater has gone through one season with drastically improved usage, leading to increased name recognition, and has allowed event organizers and the public at large to seethe potential of further developing the venue. Asa pees ctive measure, the Department has already been discussing amending reservation fees with all event organizers at the time of their particular event booking. Most of the organizers were surprised at how low the current fees are and fully expected to hear that rates would be increasing for the next season. Beyond this. the timing for a fee amendment he impodam as many of the events were successful this year because me Department put everything together on a very limited budget (at times Impacting operating funds for other programs) and extensive use of volunteer labor. The Amphitheater simply will not main Me status of a Pro)essional enferfainment venue without a dedicated budget for staff, operations, and continued capital improvements; something that can be funded finitely from event evenue if managed proacgvely. Adopting 'wail and seeapproach to revising Amphitheater fees will result in another year of Insufficient revenue to fond continued capital improvements, and the less of momentum and public excitement that has bull up this year. Current Situation As specified In file Master Fee Schedule, the Rotary Amphlhealer is presently rented out at the same rate as other PARCS AmphlMeaters and Group Activity Areas; specifically the Eaton Plaza Amphitheater antl Group Activity Areas at Woodward, Holding and the Regional Sports Complex. These venues do not have Me same level of amenities and operating costs as the Rotary Amphitheater, requiring a differentiation of tees changed for its use. The first phase of this differentiation was completed on July 29, 2008, when City Council adopted the second amendment to the agreement with the Rotary Club W Fresno for Me operation of the Amphitheater, in which all rights to concessions now vest exclusively whe the City and the Improvement Fee (charged per attendee) was updated. 1$1 5millbnv v WNhYwd fnM the 2001 Bond ath the i¢malnip0 f2an.CW rundeE hen the uralkcared ismon of the Pad, rater Fee Tssha¢ounr per the 401' AAO. REPOPT TO THE CITY COUNCIL Worried! Rotary Amphitheater Third 4menomem 8 Reservation Fee Amendment Mand 3, 2009 Page 3 of 8 City will. corlect 20% (revised to 35% per the atlached 3" amendment) of to gross sales of ell food and beverage tram concessionaires , with 25% payable to the City and 10% to Rotary. (Rotarysell then re- invest the pr0caeds into facility build -out) • The improvement fee (charged per attendee) will be $1.00 until January T 2009, when it will increase to $2.00. The tee will increase one last lime January 1, 201010 $3.00. The eventorganizer typically Losses this on to the ticket purchaser in the ticket price. The Department has conducted a comparison of the current rental fees to Me fee levels necessary for the Amphitheater M be self-surreining ti.e. achieve 100% cost recovery). An Organization can currently reserve the Amphitheater for lust a$500 flat fee for any eventexpected to draw more than 500 people. Average attendance at the 26 events this year of the Amphitheater has been approximately 1,900 people, with an average 500complimentarytickeis offered per event Under the current fee structure the Amphitheater cannot be self-sustaining and will continue to be underpricedrelative to its peers, using Me assum brons below for stabilized usage • 40 events per year with 80% of events being admission -charged restating in the per attendee fee being paid. (32'admission -charged l8 non -admission -charged) • 1,500 average cold tickets per admission -changed event $1,000 average concession revenue per admission charged event (20% of the gross sales of food & beverage), Assume a reduced $500 average concession revenue for non admission changed events. These assumptions would result in forecasted annual revenue of $153,200 in 2009 and $201.200 in 2010 and beyond, which falls well short of Me operating and capital requirements of the facility'. Budget Forecast- Current Fee Structure Event Assumptions 20011 2010 f0rwainol 32 Admission Charged Events x $500 flat rental lee is 16,000 $ 18.000 32 AdmisvomCharged x 1,500 paid tickets x 96.000 14G,000 $2.00 (ciaxiI $3D0 (2010) Improvement Fee 32 AdmissionChargedEvents x $1,00G sag Concession tea 32.000 32,OOo 0 non Admission Charged Events x $500 flat rental tee 4,090 4,000 e non -Admission Charged x Who sea Concession fee 4,000 4,000 Anticipated Advediong Revenue 1,200 i'do Total Annual Revenue S 153,200 5 201,200 Average Revenue par Event S 3,830 $ S,o30 Annual Operating&Capital Requirements (sea pg 3 for derail) S 2911000 $343,200 Required Average Revenue per Event $ 7,250 S 8drat Net Annual Operaliona 5(13'1100) $042,W0) Net Operations Per Evert 14D ev n 5 3,420 S 31 As you will note, the primary driver of revenue Is Me [per attendee] Improvement Fee charged on admissi0n- ohargedeverms While the revenue generated from Me Improvement Fee is significant her current lee structure is net suf is ent M make the Amphitheater a self-sustaining operation and complete the buld-out of Me facility. REPORT TO THE CITY COUNCIL WWdixi Battery Amphitheater TM1IN Amendment 8 Reservation Fee Amendment All 3, M09 Page 4018 TM Four Success Factors The Department has completed an exhaustive review of the operating and capital needs of Amphitheater through the lens of the competitive environment that It operates in. The result was the identification at the fallowing success factors: T Provide adequate staffing & resources to manage rhe facilay In an efficient & profesdaral manner 2. Establish a pricing schedule that ensures organizers pay their fair share of event proceeds while maintaining access for non-profit organizations. 3. Generate sufficient revenue to cover all operating costs and provide for capital improvements 4. Be competitive within our Local and Regional Markets Success Factor N I —provide adequate studying & resources to manage Me laaliry in an efficient & professional manner In order to illustrate Me basd for a fee amendment, N is necessary to Vessel the required operating and capital budget for the Amphitheater to be successfully operated as one of the premiere outdoor enter anment venues in the Valley. The hlmorlral operating expenses of me la ndily are not reflective of Me future as current improvements have vastly improved the marketability, demand, and corresponding use of this venue. The additional amenities also pose an increased responsibility for the City to plan for their eventual repair and replacement. Amphitheater Annual Operating & Capital Budget Dceratirg Budget Detail FacIIIry Manager d4ill, fringe) 202 $ mul 2010 Orin ingt $ 51 Overhead (phone, PC, mueage, enc.) 5,000 Eo00 Customer suppon a Evoking Fees 25,000 25oW Event Staff(avg a people x 4 his x$1 ore) 15.000 15,01x1 Maintenance staff (1.00 FTE tamp MW 1) 30.200 m2W Venue Supplies Custodial 7,500 ]',500 really Repalm 5.000 So00 Utilities 10.000 101 Venue Marketing & Promotion 10,000 later) Equipment Renals 25.000 25,000 Equipment service&Depreciation 10.000 10,000 Total Est Annual Operating Budget S200,130 $200,700 CAPAW Improvement Program Budged Equipment Acgwsidem 5 0 $ 25000 Equipment Replacement(non-Fleet manatee) 0 2.500 Shade Structure Depreciation 15, am 15.000 Annual Conference to Facility Hold Out 74300 100,000 Toll Annual Cepdal Program $891300 5W..500 Total Annual operating is Caplbl Requirements $ 290,000 $ 343.200 Average N Annual Events 4p 40 Regulate! Average Revenue Per Evers $ 7.250 $ 9,590 The budget shown above is intended to capture me full -most of Me operating and capital improvement needs of the facility including a full time Facility Manager (The Department events and outreach team will most likely use Me Facility Manager to coordinate other evems in Me off-season mki The 2009 budget shown above Inclludes $25000 for equipment rentals, however due to Me ongoing need for Me equlpol it is more rest- REPORT TO THE CITY COUNCIL W0.Wwartl Rotary Amphitheater Third Amendment 8 Reservation Fee AmeMment Meet 3, 2009 Page 5 ci8 effective to purchase than one The 2010 (ongoing) budget includes an allocation for equipment acqulsNon. The following table illustrates the necessary equipment and related acquisition costs: FToW n Coat $15,000 ht Towers- Palling Lot Lighting 36,000 trol Mmefs 10,000 haim 5,000 Egolgmenl 10 WO 6]6,Igo The acquisition cost for the equipment will W spread over roughly a threesyear period As the Departoent acquires more equipment, the corresponding rental expenses will decrease. and free up resources to ether fund unforeseen equipment needs oraccelerate the facility build -out. Suttees Factor X2—Establish a pricing schedule thatensures organizers pay their fair sham of event proceeds while maintaining access for non-pmtit organizations. In order for the Amphitheater to be self-sustaining (achieving 100% cost recovery), the average revenue per event would need to be $8,589- based upon the operating and capital budget presented above. Under the current fee structure. the forecasted per event revenue is $3,830 in 2009 and $5,030 in 2010 and beyond. So. even with the Improvement Fee at the highest level of $3.00 in 2010 and beyond. the City is short $$550 per event for an ongoing annual deficit of $10$000. Assuming that no reductions are made to the above budget that would impact the level of sconce or capital improvements at the facillty, the Department has identified three options to fund the $142.000 annual deficit, Option Y1 - Allocate additional General Fund dollars to subsidize the facility. This option would result In less money for City-wide park Tumescence. Given the specialized (niche) use and revenue generation potential of this facility, this option is not recommended. Option p2- Reallocate approximately 73% of the caotal porion (51.00 of $3.00) of Woodward Park gate fees to. the Amphitheater budget. This option would reset in a significant reducvon in available capital improvement funds for Woodward Park and a deterioration of park ameirties. This option is not recommended either as the scope of capital needs at regional parks exceed far beyond the Amphitheater, Opton83—(Recommended)'. Amend the current fee struddre of the Amphitheater so that full cost recovery can be achieved and fees can be competi9ve within the venue's local and regional markets'. Proposed Fee Structure • Increase Amphitheater use fees from a flat fee of $500 to $1500 orb%ol the gross ticket sales. whichever is greater. This is the most important charge to the Amphitheater fee structure. The percentage of gross ticket Miss is a typical fee arrangement found at entertainment venues, and allows for proceeds to the City to be automatically adjusted for fluctuations In the market and provides assurance to event providers If ticket sales do not meet projections. Based on an average ticket price of $20.Oo and t, 500 paid tickets per event, it is undamped that most events will be subject to the 8% of gross ticket sales. The 8% of gross ticket sales will be In affect for Me tied year (2009), with the percentage being increased to 10% for the 2010 season and beyond. REPORT To THE C" COUNCIL Woodward Relary Amphitheater Thirb AmarMment s Recension FM Amendment Penh 3, 2009 Page B W a • The Improvement fee will continue to be Wllected for all admission -charged events_ The event organizer Wil have the ability to after up to 200 complimentary tickets per event. The City will odium the Improvement fee from the organizer I more than 200 complimentary tickets are offered (per tickeVaUove 200) • For norr-profit organizations wishing to hold an admissiomabaroed event, the City would offer the venue at the current fee of $500 Wdhoulthe percentage of gross ticket sales option, plus collection of the Improvement Fee. It is important to note that the Improvement Fee is typically passed on to Me ticket purchaser and would not adversely impact me non-profit organization. • For non-profit organizations wishing to hold a non admission emerged event, a $1 500 flat rental fee would apply, with no Improvement Fee being charged It Is important to remember that this facility is not the only venue available in our Park system to non-proflt organizations. They will still have the ability 10 rent the Forton Plaza Amphitheater and Group Activity Areas at all three regional parks at the previous flat rate. • With the approval of the washed! third amentlment to the agreement with the Rotary Club, me City will receive 35"'= of the gross sales of all food and beverages }mm concessionaires. • In addition to reservation.ticket, and concession revenuer events at Amphitheater generate atldltlonal parking fees at Woodward Park. Ace Parking Management has begun trackirg parking revenue for Mese events separately. The Departrnent plans to allocate the parking revenue generated by Amphitheater events specifically to the boasting and capital needs of the facility. • DependiN upon schedule availability the Amphitheater will be available for rehearsals at$350Par day - • Standard event equipment such as Wble4chaus, crowd control owners, and scissor in will be available for rental. The mobile stages will be also be available at the established rate of $1.200 par day. Technical crews are scheduled for rehearsals and performances as needed, and paid for by the protlucer. Costs for crew members are billed at prevailing wage. Success Factor #3 -Generate sufficient revenue to cover all operating costs and provide for capeal improvements As stated earlier. the Department expects the venue to become 100% self-sufficient, covering all operating costs and funding an ongoing capital improvement program. This section will demonstrate the effect of the revised fee structure using the same assumptions of facility activity (a of events) as before 40 events per year with BVI, of events being'admission -charged resulting In the per attendee fee being paid. (32' admission -charged'/8 non -admission charged) • 1.500 average paid tickets per admission -charged event at an average $20.00 ticket price • Assume 200 complimentary tickets per admission -charged event • $1,000 average concession revenue per admission -charged event (359% of Me gross sales of food & beverage). Reduced $500 average concession revenue for winadmissioncharged events. • Allocation of a portion Woodward parking revenue generated how Amphitheater events, REPORT TO THE CITY COUNCIL WeotivreM Rosary Amphitheater TMrd Amendment 8 Reservation Fee Amendment Mande 3.2009 Page 9 of S Financial Impact of When the percentage of gross ticket sales goes to 10%And! the Improvement Fee goes to $3:000 in 2010, Me average revenue per event of 56,930 will then meet and exceetl the operating and capital budget requirements of the facility. The expected net income of 5350 per event will be re -invested into the Amphitheater's capital improvement program. helping to accelerate the facility build -out. The Department projects that revenue targets WTI be met or exceeded over the next wveral years due to Me following factors: As the population grows and name recognition increases, the facility will hold more than 40 everts annually. • Event attendance will increase Average ticket prices will exceed $20 Advertising opportunities will be actively pursued, including Me passible naming of the venue. Suppose Fecror se -Be Competitive Will our Local anal Regional Merkefs The Department did not wish to bring fees forward based solely on cost recovery targets. Recognizing plat the venue will be competing for business with other entertainment venues In the Central Valley, Staff surveyed comparable entemminment venues for their fee structures and found Me use of the'pement of gross aced salesapproach i0 be very common. It should be noted Mat there were several priesely-lwned ourdoor Amphitheaters in the State that Staff attempted to obtain fee Informatlon for however those organizations w0uld not share their fee stmchure. Adhough we do not have the official fee structures for those facllMies, Staff believes that the percent of gross ticket sales' method is also used at these venues. 2008 $sewn 2010 Sown fin.vani 2008 fk akdvr tar Admissipn-ChmymI Events x 52,400 rental lee 'Assumes 1,50t520Ncket=$30;000. Max- talf1p�realor than$1,500 $ ]6;00 2010 geewn(OrgOing): 32 Admission Charged Events x$3,600 rental lee Assumes 1,600 x 5201tickel=$MEI (10%- 33, 000 and greater than $1,500) $ 991000 32 AdmissionChargedEvents x 1,500 paid tickets x Who 20091$300(Mal Improvement fee 96,000 144000 32 ammundson-Cheread Events x $1.000 ang Concess0n has 32,000 8200 9 non- Admission Charged Events x$1,500 flat rental lee 12,00 12,000 seen -Admission CMM dEveMsx$500av Concessionlw 4,00 4,000 Anticipated Advertising Nave rm 1,200 120 Anticipated Event Parking Revenue fi9,00 6800 0,700 did attermarkAeseash 3 persons per Par x $3.00 x 40 events Tout Annual Revenue S 29op00 is 35],20 Average Revenue per Event S 7,250 S 8,830 Total Annual Operating d Capital assessment s29o,00 $343.200 Featuired Average Revenue per Event S 7125D $ 3,580 Net Annual Operations S 0 514,000 Not Otsocial Per Event S 0 IS 350 When the percentage of gross ticket sales goes to 10%And! the Improvement Fee goes to $3:000 in 2010, Me average revenue per event of 56,930 will then meet and exceetl the operating and capital budget requirements of the facility. The expected net income of 5350 per event will be re -invested into the Amphitheater's capital improvement program. helping to accelerate the facility build -out. The Department projects that revenue targets WTI be met or exceeded over the next wveral years due to Me following factors: As the population grows and name recognition increases, the facility will hold more than 40 everts annually. • Event attendance will increase Average ticket prices will exceed $20 Advertising opportunities will be actively pursued, including Me passible naming of the venue. Suppose Fecror se -Be Competitive Will our Local anal Regional Merkefs The Department did not wish to bring fees forward based solely on cost recovery targets. Recognizing plat the venue will be competing for business with other entertainment venues In the Central Valley, Staff surveyed comparable entemminment venues for their fee structures and found Me use of the'pement of gross aced salesapproach i0 be very common. It should be noted Mat there were several priesely-lwned ourdoor Amphitheaters in the State that Staff attempted to obtain fee Informatlon for however those organizations w0uld not share their fee stmchure. Adhough we do not have the official fee structures for those facllMies, Staff believes that the percent of gross ticket sales' method is also used at these venues. REPORT TO THE CITY COUNCIL WmNvard Rotary Amphnbeater Tool Amendment 8 Reservation Fee Amendment March 3, 2009 Pegs e a e Comparable Ampbiffi ters & Local Venues Venue receptor Cepecry Assy Usefee Aser ie oMerfoes n Evam wo74wam Ror.ry Frasm. Cq q,00a a%(2039)rm9(2010) o1 $1.5WMey So W per American for gmp"heAer Cases neral sales, or$1W Acm6yon.Charged erxrim whB:hever is greater 20h. Curs Cmowsiore -S1 -WWdsv Ior rareness wllliem Series Frenno.CA 2,353 Are or 10}01 Grove; n2 No me" deal =man Tweeter Tkkd salesv.Lichevarm out at ready rates. RBler. Greek Treater Los Angelm, 5, Mal t Ok or Gross T[kel Sole B. err 51,0.N/$13W SSW non�Refurdl CA Upon wriCheverls greeter GepeMing on Reseval'gn Fee mandarlae for Manassas Jell Ma"NenSCI Ford HolnW . 1.250 or 92 0. $1 WRetained Na ainer Ret$221 Anneal CA Negal'laled%ofGtiossss Worynue: radial Non-Pm41 Rehearsal Mesa: No, Count flaw: $3,500 A $1790aday wrijaral alsovillee Masa seen easier Mesa, q2 4.950 12% of Gross Tonal Salw', or Flat Rues can $3 W per Anevger SIRW"obeear eater dune 'ale0 wecer Pant Events s10cNoa variable S5,3mfcay $d,llMday s%zs%'ol CprcB%gy Cotler CA $o,t Tani E3,MNdayresin - pmrd No sten lltluem, mmam nal in hourly.miss. sensor Papebn. HE 1350 $I RGJ.I Ts GmGmy Tons $1,200 we Amphnhraterat Sees warned Creek Nnowile Owes Knovale, unkmwn $1,OWmID%NGron S1.versay No$reitlindudsl changed Mlphtlhader IN Tbel SwNs vfiltlrever is $]SNcey nom out hoody ralee. realer proof As mentioned eadler, the'percentage of gross ticket salesmethod was a common lee arrangement found at other outdoor entertainment venues. This lee structure allows for the City to gat its fair share' of event proceeds to cover operating antl capital requirements, while not overburdening the event organizer with high fixetl costs. The timing of this fee amendment is crucial In that the Amphitheater has gone through one season with drastically increased usage, leading to name recognition, antl allowed event organizers and the public aPlarye to see the potential of further developing the venue. The Amphitheater simply will not Spain the status of a professional entertainment men le Albert a dedicated budget for staff, operations, and continued capital Improvements, something that can be funded entirely from event revenue if managed proactively. Adopting a 'wan and see' approach to revising Amphitheater tees will result in another year of insufficient revenue to fund confirmed capital improvement, and the loss of momentum antl public excitement that has built up this year. Attachments: Master Fee Schedule Amentlmeet SAmendment to the Rotary Amphitheater Agreement with the Rotary Club of Fresno July 29, 2008 Council Report re'. 2 Amendment to Rotary Club Agreement & Restoration Fee Revision THIRD AMENDMENT TO ROTARY AMPHITHEATER AGREEMENT THIS THIRD AMENDMENT TO AGREEMENT ("Amendment") made and entered into as of this day of , 2009, amends the Agreement heretofore entered into between the CITY OF FRESNO, a municipal corporation, hereinafter referred to as "CITY," and the ROTARY CLUB OF FRESNO, a California nunprofit corporation, hereinafter refened to as "ROTARY." RECITALS WHEREAS. CITY and ROTARY entered into an Agreement, dated August 25, 1992 for the design and construction of an amphitheater, as once amended, hereinafter collectively retuned to as "Agreement;" and WHEREAS, CITY and ROTARY desire to modify the Agreement in certain regands, upon the terms and conditions herein. AGREEMENT NOW, THEREFORE, in construction of the tonguing and of the covenants, conditions and mancises hereinafter crammed, to he kept and performed by the respective patties, the parties agree that the aforesaid Agreement be emended as follows: 1. Paragraph 17, subsection A, shall be revised to read: A. All non-party event permittees, licensees, promoters, and/or other users shall (i) pay the CITY twenty five percent (25%) of the amount determined by gross event revenues net only of sales/excise tares, and (ii) pay the ROTARY ten percent L(Shi of the amount determined by gross event revenues net only of sales/excise taxes. In the event ROTARY ams as a permittee, licensee, promoter and/or other user the ROTARY shall pay the CITY twenty five percent (25%) of the amount determined by gross event revenues net only of sales/excise taxes. In the event the CITY nets as a permittee, licensee, promoter and/or other user (other than as to concessiona) activities as defined herein) the CITY shall pay the ROl'ARY ran percent (IM) of the amount determined by gross event revenues net only of salesrexcis t taxes. For purposes of this section the term "gross event revenues" includes only all revenues generated by and/or arising from concession(s) activities. 2. All capitalized terms used in the Ameruhnem, urdess otherwise defined herein. shall have the meanings assigned to such terms in the Agreement. 3. Except as otherwise provided harem, the Agreement remains m full force and effect. Page I of 2 3. Except as otherwise provided herein, the Agreement remains in full force and effect. M WITNESS WHEREOF, the paries have executed this Amendment at Fresno, Califomie the day aW year first above wdren. CRY OF FRESNO, ROTARY CLUB OF FRESNO a municipal cowraiion A California nonpmfit corpomdon By: Randall L. Cooper By: Title: Director Title President ATTEST: REBECCA E. JCJ.ISCH City Clerk m Deputy APPROVED AS TO FORM: JAMES C. SANCHEZ City —}/Attomaor� By = aF. "[4MJti Aer I=o Page 2 af2 REPORTTOTHECRVCOUNM AGEIDAITEMNO. COUN�C,I,L MMMEECgET tam°•"'�"' "'"'^ �.� _ — N k&Al RANDAUL L COOPER. Dimdnr Parks, ANcSrhod, Recreation and C�(o(((m��ments Services DapereM M JERRY HAYNES, Jusbasm Duacear� PAUL MELIMAN, Aulministra ve Mdd�kg9 Ease, MarStlgol. Recreation and Community SeMces Depamnxt t) APPROVES MNDAME OMENETOMTARYAMPHITHEATEHAGHEF NT 8E EENTHECRYOFFRESNOMOTHEROTARYCLUBaFRESNO 2) APPROVETHE4ni AMENDMENTTOMASTERFEESCHMULEtiE MION N(18 REVISING THE IMPROVEIAENFFEE FORTISWOUDWARD ROTARY AMPHITHEATER KEY RESULT MEA Cl6tomer5e0Aaclim RECOMMENDATIONS assOnsmands Mat that City CWrcil appove Me 1) Second emsMiaM Is Rotary Amqutlmlar Agraement bout Me CItY of Fresno (Cly) and Fesno Romry Club (Ropy) and 2) the 472"' Amendment to Mester Fee Amba No. SD420 revising Me realmlion fee for the Woodward notary AmpHdlemer, and Met this new Easel eflIsUive August 9, OX8, SUMMARY Me Second amendment is la Nannette Me (NON91on regarding me Under Me gorysed second amendment, all na s Ip xnmesimn x91. 1 night In rGam all posts. of its concession ABMs, the City agrees W Me fdlomrig. Invest $1.000,CW ter Amqutllealer improvements consistent x1M constitutional and loeal law requiremems. Ifiv tats elreeEyteken pace tMwyl Me Park don0 paceeds. cm M Amendment to Agreement seasonal Clry add loosely r8. 2008 2 • Assume Me reaporoido of MeseconMa assfin inter'sum. • Complete Me aes[aectlota Meuse. er mtlirg iMudlrg Me caubutllondtlla east atelmay al Me eaNe& ppssibb Eine. yagraesto Memkow : • Coni a minimum of$W.B0o lw a mutually parasol upon oastal imprwemart prolecl(s)for Me MrphiiMeater. • The Rnarymalopdmpurcbambr Me AmpxdheetersMllexplre December31.2016. Atleeel optlms 9M by Rotarystlall ba fanned in a pKwtl of le years for a mmun m d Waviness In any detonator year. • Seat OlNlms he lees states wJl not dd doMsidered as pad of the 10 events pressously maintained. • The AmpM1mtaler pen ddket handsoneem lee amount stall ba phase! In at ElOMket after January 1. 20B W.0plicket ether January 1, 2009 and B3.o6M1kEd ether January 1.2010. season Reven Bbn to Me above conlreWal Momosiona, a now eeaLm has been added a to asraemere wNch as to 8bmbm of grpas evert mnconadi revenue between the City and Rotary, Adoc irg to M's n, aN Mmparty e1e1t pormasea, Ilcerbee9, extini under other wows shall pay Me Qty 1tlK 0Wave commsibn (esenwis net only ofmles/m Jse Ivies, and My Me Rotary 10M of Bross avmt contestant res not "of seleyudse Wes. endow chair user chat Rotary vmun repor v 11) d slim w IrrpMWmvemem ro me Iiserlsee, Math a ro all reventws garyreted byndMr Main 1vm comisai and pool Isolated mpMtlwsrer Mui a coved Pi to begin crlargng a reduced Et (Kendall fee, with a r to reach a$3.DJ par icast Identical In pmceetls receivM from gross event the tenet fee revenue WI DB used lot Me openvin and behalf hnprovement needs of KEY OBJECTIVE BALANCE The amondrarRv the dietary conoM WU Movade more amentias la Tren09 cnizms to enjoy w voting Wocdead Park Al%of Undoubtedly generate posave eapereraas In dithers. City empbyees ail also hovean0rngeeal ants to ewixanivlfios- PARCRis levereaug Ciry laths bypenmetng wlM Rolery fM WnA'IVed )mINOVemen6lo me WdxlwarJ &npiammater. �j Jury Pg, gW8 Page 3 e last I to two& re vlteCin what ravened lacilgy more lees. Me per tectal p1mvOme al fes win aMw the Cim, 10 geralrate sugM^ant C, can' to me Amphilmmalw seat sal pail hsps far capthal Improvements, The Was poor 'pM1as H lo' 1Ire the lee will al custunors ca entrance mipravannras to that vena over me next aeverel years ba value in me face Merged. Moral an a mnservetlM esamem d 32 seam pe year abor an > 1.500 amoebas each, Me Octel file sell protein 11,48,003 annuely, %fik8 all Ca used to oH9et rho Ue all fed EY Nerdarwe leets. AlM's Moore, Me Oeperlmem estimates the revenue from 10% of groes event COrcre in revenue to he$10." annuallh,. v mane in room to Ctvn co rn Me ratio Bo pan to retial, the rental rates forma Amphitheater. ellen 0 the 10%0 goat teem mraosalon reviews,'pheotdm per tinker fee, seal rebleed be that Me AmpMMealer WHI Oso n to Operas as an enterpise; generating sufficient reveroe b oral craft, fund fuller capital improvenerrta, sena pace Nnds Imo a reserve to repair end AmeMment to Holary AmpMlhaater Agreamem feaster Fee SGwdWe PmenMreM MONO AMENDMENTTO ROTARY AMPHITHeA R Gp�y THIS SECOND AMENDMENT TO AGREEMENT FAmandmemr) made and entered Into as of Ihis tat day of February, 2008, amardg Me Agreement heretofore entered Into between the CITY OF FRESNO, a municipal corporation, heremner ne Rlad to as'CIW,, and Me ROTARY CLUB OF FRESNO, a Canfomh oonprofa Corporator, hereinafter referred Io as'ROTARY•. RECITALS WHEREAS, CITY am ROTARY entered into an Agreement, dated August 26, 1992 for Me design and Om4taKilkal of an amphlheater, W onw amended, hereinafter collectively referrad to as'Agreemead-am WHEREAS. CITY and ROTARY desire le modify Me Agreement In certain regards. upon the terms add CondMorrs herern. AGREEMENT NOW, THEREFORE, in consideration of the MMMOIrg and of Ma covenants, nenz*d: conditions, add premises h mfnarkr curtained, M be kept and Warned by the tive pedes, Ma pmEes agree Bret Me folksy Drag sae Agreement be amended as 1. For purposes of this Agreement Me to" 'CITY" Shelf InCMtle as dedgnee thereof. M the discretion of Me City's Director of Pinks and ROCoal lon, Fresno United Neighborhood, (FUN) a Cannabis nonprofit corporation, Sninam WCO'shtem will approval by FUN. The foratinkg shall not however, repave CITY of its obligations Under has Agreement. heroby 1¢lnlilAll n as granted to ROTARROTARY to opemle Amphilhealar Concessiorts) are inCludmg the right to retain all h veemaOjl eNter s e the CITY Pmlas, ssiongI 10 the mtlout lellna hereof yR For purposes of MTs son or the is" Of beverages means rchandse of on any arM an setas by any person or ontlly of food, beverages, and Merchandise m every dM and rm phi omumng on the Amphitheater pertllsag, nr Bd)eCenl MereN II Bold la Amphitheater event attendees. 3. In ccnsoemoon of ROTARY'S termination of its corrpeauon light as Provided for harem. CITY as lead and awarding agency agrees to invest $1,0oo,og0 of allocated and available Pads funds, Consistent with catstlludonel and focal law repulrements, on Amphitheater ImPmVemenh M be commenced on or about January i, 2008' min to responsoly promote its use. CITY agrees to proceed with the cornpletmn Of Me east seclon of the Wand tl¢r seating Indudmg the Construction of the east maim2y at the eadlesl posslNla time. ROTARY will coninbule a mimmum of $50." for a mdually agreed upon capital Improvement proloctla), a. At rights gmOle to ROTARY 10 heal and sell seal Opium for events at the Amphitheater shall expire on December 31, 2016. It 5 understood and agreed 'hat all seal options sold by Runny shall be hovered for a pared of ren (10) years cemmerclA) with Me year Mal the seat option hdders may exercise the option b purchase rickets for their spedf a seats for a minimum of ten (10) e✓en's Many calendar Yost . CRY will scalds ussfs of Me Amphitheater for free conceds or similar evens to nodfy seal option Women of such averts, bN such events will trot moratorium one a Me minimum ten (10) Buena. S. Concurrent wfih Me efieceve de of Mh Second Amendment, the Amphitheater Ticket Surcharge amount refererxad in Section T of Me Agreement shag be $lmclmt after January 1, 2008, $?/halm( after January 1, 2009, and S&Titket after Janua"10. e. The following is added to the Agreement as new Segbn 17: '17. Allocation Of Revenue and Fxpensesunless otherwise expressly provided harem: A. All rwnpaM erred permilteee, immense. promoters amour other users shati (f) pay the CITY ten pem9Al (10%) Of Me amount determined by grass event revenues net only of ameauselse taxes, and (fl) pay Me ROTARY tan percent (10%) of the WIDUM daaonirred by gross even revenues net only of calesrexcea taxes In the event ROTARY ads as a Panama. liconses, promoter eMlor other user the ROTARY shall Pay the CRY tan percent (10%) of oho amount determined by grass event revenues Pat only of seles/exdra laves. In Me evert Me CITY acts as a pannNee, licensee, prammer amour ether user (other than as 10 concessions Activities az defined herein) the CITY shad pay the ROTARY ten percent (10%) d Me amount determined by gross event enues nut only d seas/excisa pu laxer. For rposes m Mos sasllorl the tarevrts 'gross even) revenues' means All revenues generated by erdror Boeing from co'ressbn(s) activities. B. All such FOMIMnm to Me CITY mayor ROTARY shall be moo rot stet Man the end of the next business day fopowing the earlier Of imudce for payment or Ma day IO which such revenues are realized ared shall beby an appropriate accounting to CITY and ROTARY, suchaccountingmoo be sulllcanl uMer generally accems accounting principles. C. Unless Pharisee expressly agreed In writing by the ponies hereto am entrust such event carmirous, licensees, promoters ander other users, all costs and expenses arisirq out of of rested to such event(s) shall be home seely by the event pelmmees. Iloerlsees, promoters ariNar other users.' ]. All capitalized terms hard In the Amendment, unties otherwise Method herein, shall have the meanings Maligned to such terms to Me Agreement. 8. Except as dhenwlsa provided herein, the Agreement remalns In lull force am erred. IN WITNESS WHEREOF, Me Pah" have ececued this Amendment at Fresno, Califomia, the May and year tm above marten. CITYOFFRESNO ROTARY CLUB OF FRESNO, a nhuncipal mrpoaaheh a Caliiotni M ton By Randall L.Cooper By OanE Title Director Thai President AITEST: REBECCAE. KLISCH City Clork By. Deputy APPROVED AS TO FORM: JAMES C. SANCHEZ City Attorney By: (. 19.of Delany zt,1(k RESOLMON IRL A RESOLUTION OF THE COUNCIL OF THE CITY OF FRESNO ADOPTING THE 472nJ AMENDMENT TO THE MASTER FEE SCHEDULE RESOLUTION NO. 85120 INCREARING MIOOMANO PARK ROTARY AMPHITHEATER IMPROVEMENT FEE IN RIE PARKS SECTION BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FRESNO, THAT Me MeaW Fat SCM1OEWe Rewlutlm No. B 20 Im and Is Nraby anwNta m o Iiilh Rg Ropry AmpNµmNr In IxI tN Fs N WrotagE Peh b aiv n®w Ile etoaeJ aog dtl l W Mt pfMmeM a bPKKM Na CRy 0 Fe srtl Ma Rdey CWb U kealn. roNra1 Ipyq oI Ma Maabr Fte B 1ta8yb en Ntlg] eM nIBEa a pv1 oTM6 ReplNbn.n, THAT Itte Nell pe[pnu efl sAuAml B, 2008. CLERICSCERIIFCATN)N STATEOFCALIFORNIA ) COUNIYOFFRESNO )a. CITYOFFRESNO ) I, REBECCA E. KUSCH, Cly CMI U Me CBy N Fe . aMMy Mal Ma klapokp Rwdulkn waa ado by Mt Ctanaa N tle CKy N Ereano. CNIbmM, N a RSUN, n g R .WW an Ma_Wy of .2008. AYES: NOES: ABSENT: ABSTAIN: Mayor Approsl: "OrAppmvNR10 R BIN Maw Vsb: CouMIOrenMe VeM: 2WB REBECCA E KLISCH CFy CMK APPROYEO AS TO FORM CITY ATTORNEP OFFICE BYl_I Tai Yuki mdp($r. Deputy Oi AtWW CITY OF FRESNO MASTER FEE SCHEDULE PARRS, AMR SCX00], RECREATION AND COMMUNITY SERVICES Fa FY SM MH O,i PARCSh Om Ing amm kQ hag Per a9rea n Rotary Cub of Frmno. F.eaPeseo'pNon cu m, Nw J4 , py pB i VB.] Am iNealy mRwemw Fee atleMee A. aenrzooe tmaar eaaaea Aaa tmvmoa z.ob P.r Aeatmvwto ioa Per .�mbaw Afl » dl mmrm,mmm.M.00iee T l YFa riam.t� (JWy e)neva rnW CITY OF FRESNO MASTER FEE SCHEDULE AMENDMENT DETAIL PARKS, AFTER SCHOOL. RECREATHIN AND COMMUNITY SERVICES V DWARD PARK ROTARY AMPHITHEATER IMPROVEMENT FEE TM D.yeNreN �eebnmenEs ft Idbwing Ww W Pv Ro MPHINa+br ImVm'Nmant Fw ailw4reR pa ma �nament xM 11ie Rppnry LM N Frepm. Wo[QxvE PVF Rotary A PLI1FeaWImprswnbnlF AeWOP1p 8 $I.NPmatl do maolmiNB 92.WWallukee As.M01mimo $3,WPwal dw VFS Man6aanxtlrbmm lmuxwwnb25 ✓Ws: NFB mlNaR(Jlpury ]ptljp4w[y:35Ty CITY OF FRESNO MASTER FEE SCHEDULE Nl 4w eikeew 01,151M "poor, pbrc ,ft,p MFSn drnwa MR IJe Xgy)nznlm 1]7 ru Fye) E_ ee c°a Wkne AmpFppalwv and RpMul Park Gmup A Hy Areas %,®m 9mD0 (Sa (Eaon Rem. Wm W Park Apfthwar'. WaW . egyyye RmEM1g6 R¢pLnal SpMe Park Group MMlk, Mess) WPMS Prlmp w rm.G pgrq Grwp Lx Up 10 200 Aww 2D1 bS WQ00 PnrSM NW al mage WP Mfka M Groupslw upmmD taut) mi w ma 17500 (Nar m MD.W mdkgxmnmail apmwreE GrowponwreEw Grouppw', ¢ m 201 w 1o50D -0. Orer500 Perlwmarce pv1E 25.00.5N.00 IfIXH4 roprn0ede upm suaemla germbl PoMolMg aprearrenr In evnNarlm nip alrotDreW uW^4nn9enE fmEkMaf G Nn9 G 34 (Upb W%reluM a MPeMm w the conk,, W to lxlllYylarmielepm oilM rMMegrttlwN) mrp Vzo Uplom mD 25 0,00 Ai b E 0 5wm Qer FGO y.000.W Xere Cpen� J Oaprnr n Wain uy' NanWnaNtlnunMOlMwGeehony re¢ervm x -ire Nl 4w eikeew 01,151M "poor, pbrc ,ft,p MFSn drnwa MR IJe Xgy)nznlm 1]7 ru Fye) CITV OF FRESNO MASTER FEE SCHEDULE 9ENtffIUe�CRWADQN FEES WootlwaN PahE Entrance Fef ��� BWm nouglIvelncee 456 J M WovM rd Fmk Plenp labs Rerervariurr Fee. Yaar rcunJ l nor table FWI Wn PH F'+ aCo 10W 500 FiMa abdlgc 2500 12M W00,I Prove Epveerrlan Ahe Eminence Fee"' Year Round Iper Hunan 4eWr c.A I � Waodl+aN Pah Rab+Y AWPPMN+M'.. One" prpvµ Mardpeew.rl(I Fork, Fm See lMvelcpmenl Fees OgaVron4uGM Director 1, tln ChM nY(Mre+rcenNy rq Mmu w w� e]1M+rnerorc �0f1e d' In ++Wr+rrJ Oanrrrn ary A Ae nee emm�rnekas.rwy5lr+rwveJ ro Y gmupen pe In 01tarenILMrnrbyuaerag eW +Vl+am Ip Opm) nA4ypam pl2 sMum n]p,m W 10 on vN Mlrvrvynry 41 emoren referee Gmmr N+rgws+q u mM rM spare M b +ppY ewrro Y.Yr rq Jelnn nex w y w IY rnun Fenmryb ryWdypyrF}yn+Dory obr lAe Jur&knMap Y b�iwJmMelpgl pd4he p'Ypee Penon plxveLererar .+nunnwen+eurrnrd 8l wewlia grnN+n Ah" here IIMI u+e.mwJm.Y unu.I.rr xooeneoprene, ,� r>,wr: pale 4 osv -air. oiitx Csi THIRD AMENDMENT TO ROTARY AMPHITHEATER ACREEMENT THIS THIRD AMENDMENT TO AGREEMENT ("Amendment') made and entered into as of Nis 3rd day of march , 2009, nations the Agreement heretofore catered into between the MY OF FRESNO. a municipal corporation, hereinafter referred to as "CITY. and the ROTARY CLUB OF FRESNO, a California nonprofit corporation, hereinafter referred to as'ROTARY." RECITALS WHEREAS, CITY and ROTARY entered into an Agreement. dated August 25. 1992 for Ne design and construction of an amphitheater. as once amended, hereinafter collectively referred to as "Agreement.' and WHEREAS. CITY and SO I'ARY desire to modify the Agreement in certain regards, upon the terms and conditions herein. AGREEMENT NOW. THEREFORE in consideration of the foregoing and of the covenants, conditions and premises hereinafter contained, to be kept and performed by Ne respective parties, the Ponies agree that the aforesaid Agreement be amended as follows: I. Paragraph 17, subsection A, shall be revised to read: A. All ran -parry event permittees, licensees, prominent, andlor other users shall til pay the CITY twenty five percent (25%) of the amount determined by gross event revenues net only of mics/excise totes, and (it) pay the ROTARY ten percent (10%) or the amount demrnined by gross event revenues net only of sles/excise naves. In the event ROTARY acts as a permittee. licensee, promoter and/or other user the ROTARY shall pay the CI fY twenty live pement (25%) or the amount determined by gross event revenues net only ol'salenexcise rates. In Ne event me CITY acts as a permittee, licensee, promoter and/or other user (ether Nan as to concessiords) activities as defined herein) the CITY shall pay Ne ROTARY ten percent (10%) of Ne amount determined by gross event revenues net only of sales/excise axes. For proposes of his section Ne term "gross event re includes only all revenues generated by and/or arising from conte sion(s) activities 2. All capitalized terns used in the Amendment, uNess otherwise defined herein. shaft have the meanings assigned to such terms in the Agreement. 3. Except as otherwise provided herein. the Agreement remains in full force and effect. Page I oft 3. Except a otherwise provided herein. the Agreement remains in RiH force and effect. IN WITNESS WHEREOF. the parties have executed this Ameadmem at Fresno, California the day and year first above written. CFFY OF FRESNO, ROTARY CLUB OF FRESNO a municipal coryoridon ACalifornia nonprofit corporation By. ct ndd11 Cooper By: Title: Director Title: President ATTEST - REBECCA E. KLISCH City Clerk BYu Deputy Ca/Ie jb{j APPROVED AS TO FORM: JAMES C. SANCHEZ City By: m BrMuy KEavn[4701A M I Page 2 ort March 3, 2009 m ndl Adop[ipn: 3/3/09 Mayor Approval: TO: MAYOR ASHLEY SWEARENGIN Rt ErDVE� Mayor Veto: yyyy FROM: REBECCA E KLISCH, CkTC 70PYAR Overridede Request: CM Clerk 10 PM 2:45 SUBJECT: TRANSMITTAL OF COUNCIL ACTION FOR APPROVAL OR VETO At the Council meeting of 3103109, Council took legislative action entitled Appv 0'a amndmnt to Rotary Amphitheater agrmnt w/Rotayr Club of Fresno, Item No. 9:00 a.m. #A, by the following vote: Ayes Borgeas, Brand Caprioglio, Cages, Peres, Xiong. Sterling Noes None Absent None Abstain None Please indicate either your formal approval or veto by completing the following sections and executing and paling your avian. Please file the completetl memo with the Clerk's office on or before March 13, 2009. In computing the ten day period required by Charter, the first day has been excluded and the tenth day has been included unless the 10'h day is a Saturday, Sunday, or holiday, in which case it has also been excluded Failure to file this memo with the Clerk's office within the required time limit shall commune approval of the ordinance, resolution or action, and k shall take effect without the Mayors signed approval. Thank you. ............................................. APPROVED: ETOED for the following reasons: (Written objections are required by Charter; attach additional sheets it necessary.) Date' Ashley Swear gin. Mayor COUNCIL OVERRIDE ACTION: Date: Ayes Noes Absent Abstain March 3. 2009 council Adoption: 3/3/09