HomeMy WebLinkAbout08-91A i
Resolution No. 08-91 A
RESOLUTION
AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH
THE ELGIN SYMPHONY ORCHESTRA
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Olufemi Folarin, City Manager,and Diane Robertson, City Clerk,be and are hereby authorized and
directed to execute a Purchase of Service Agreement on behalf of the City of Elgin with the Elgin
Symphony Orchestra for youth programming and general operational support, a copy of which is
attached hereto and made a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: April 9, 2008
Adopted: April 9, 2008
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
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PURCHASE OF SERVICE AGREEMENT
THIS AGREEMENT is made and entered into this IS4%day of 2008, by
and between the CITY OF ELGIN, Illinois, a municipal corporation(hereinafter referred to as the
"City"),and Elgin Symphony Orchestra, a not-for-profit corporation organized and existing under the
laws of the State of Illinois (hereinafter referred to as the "Service Provider").
WHEREAS, the City has determined that it would serve a beneficial public purpose to enter
into an agreement with the Service Provider for the Service Provider to provide certain contract
services as described in this agreement; and
WHEREAS,the Service Provider represents that it has the necessary expertise and experience
to furnish the Subject Services upon the terms and conditions set forth in this agreement.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as fellows:
1. The Service Provider shall provide all of the services pursuant to the terms and
conditions and on the dates and times as described in the document entitled Elgin Symphony
Orchestra- Scope of Services for 2008 Purchase of Service Agreement, attached hereto as Exhibit A
and made a part hereof(such services including the terms, conditions,dates and times are hereinafter
referred to as the "Subject Services"). In the event of any conflict between the provisions of this
agreement and the provisions in Exhibit A,the provisions of this agreement shall control. The Service
Provider represents and warrants that the Service Provider has the skills and knowledge necessaryto
conduct the Subject Services provided for in Exhibit A and that the Subject Services set forth in
Exhibit A are integral parts of this agreement and may not be modified, amended or altered except by
a written amendment to this agreement agreed to and executed by both parties hereto.
2. The Service Provider shall address all inquiries and requests made pursuant to this
agreement to the Assistant City Manager of the City or his designee.
3. In connection with the Subject Services to be performed on other than Cityproperties,
the Service Provider warrants and agrees to maintain all facilities and equipment used in the
performing of the Subject Services in a clean, sanitary and safe condition and free from deflects of
every kind whatsoever. Service Provider agrees and warrants that the Service Provider will
periodically inspect all of such facilities and equipment for such purposes. Service Provider also
warrants that the Service Provider and the Service Provider's facilities and equipment used in the
performing of the Subject Services are not now, nor shall be during the term of this agreement in
violation of any health,building, fire or zoning code or regulation or other applicable requirements of
law. In connection with the Subject Services on properties owned or controlled by the City,Service
Provider agrees and warrants to use,and to cause persons participating in the Subject Services to use,
through proper supervision and control, all facilities with due care, and to report all defects in or
damage to any such facilities, and the cause thereof, if known, immediately to the Assistant City
Manager of the City.
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4. The City shall reimburse the Service Provider for the Subject Services under this
agreement the total amount of Two Hundred Twenty-Six Thousand Svc Hundred Eighty Dollars
($226,680). Such payment by the City to the Service Provider shall be made in two instalb=nts of
One Hundred Thirteen Thousand Three Hundred Forty Dollars($113,340). The first aforementioned
installment payment shall be made within 30 days of the date of this agreement. The second
aforementioned installment payment shall be made on or before July 30,2008. However,the second
installment payment shall not be made prior to a days after the Service Provider's submission of the
budget document and audited financial statement documents referred to in paragraph 6 of this
agreement.
5_ The Service Provider shall apply the monies to be paid by the City to the Service
Provider pursuant to the proceeding paragraph hereof solely to operating expenses such as staffsalary
and benefits,meeting expenses,and expenses associated with the Subject Services to be provided by
the Service Provider pursuant to this agreement.
6. The Service Provider shall complete, maintain and submit to the Assistant City
Manager of the City, or his designee, any and all records, reports and forms relating to the Subject
Services in this agreement as requested by the City. Without limiting the foregoing, the parties
further agree as follows:
A. The Service Provider shall provide a budget to the City which shall
reflect the projected distribution of funds received from the City
pursuant to this agreement during the term of this agreement. The
budget shall be submitted to the Assistant City Manager of the City
prior to any payment by the City.
B. The Service Provider shall provide written performance reports
detailing the disbursements of the monies to be paid by the City to the
Service Provider pursuant to this agreement. The reports shall be
j provided to the City quarterly on March 31, 2008; June 30, 2008;
September 30, 2008; and December 31, 2008.
C. The City has the right to review all accounting records of the Service
Provider related to the use of the monies to be paid by the City to the
Service Provider pursuant to this agreement upon 72 hours advance
notice from the City to the Service Provider.
D. The Service Provider shall have an audit performed on its financial
statements for the year ending December 31, 2007. The audit must be
performed by an independent certified public accountant recognized in
good standing by the American Institute of Certified Public
Accountants and licensed in the State of Illinois_ The Service Provider
shall provide the City with two copies of the said audited financial
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statement along with the management letter and any other
correspondence related to internal control matters on or before July 15,
2008. These statements shall be submitted to the Assistant City
Manager at City Hall, 150 Dexter Court, Elgin, Illinois 60120-5555.
7. In the event this agreement is terminated, or in the event the Subject Services for
which the City funds provided herein are to be applied are discontinued, or the Service Provider
ceases its operations prior to December 31, 2008, the Service Provider shall refund to the City on a
prorated per diem basis the funds paid hereunder for the portion of the year remaining after any such
termination or for the portion of the year the Subject Services were not conducted.
8. Service Provider agrees and warrants that notwithstanding any other provision ofthis
Agreement that in connection with the performance and/or providing of the Subject Services in this
Agreement that the Service Provider shall comply with all applicable federal, state, city and other
requirements of law, including, but not limited to, any applicable requirements regarding prevailing
wages, minimum wage, workplace safety and legal status of employees. Without limiting the
foregoing, Service Provider hereby certifies,represents and warrants to the Citythat all ofthe Service
Provider's employees and/or agents who will be performing and/or providing the Subject Services
with respect to this Agreement shall be legal residents of the United States. Service Provider shall
also at its expense secure all permits and licenses, pay all charges and fees and give all notices
necessary and incident to the due and lawful performance of the Subject Services to be provided for
in this Agreement. Service Provider shall also perform and provide the Subject Services with due
care. The City shall have the right to audit any records in the possession of control of the Service
Provider to determine the Service Provider's compliance with the provisions of this section. In the
event the City proceeds with such an audit, the Service Provider shall make available to the City the
Service Provider's relevant records at no cost to the City.
9. The City of Elgin shall be recognized as a sponsor of the Service Provider and shall
receive the benefits of sponsorship consistent with the level of support provided in this agreement. At
a minimum, the City's support shall be acknowledged on all print materials promoting the Service
Provider's organization, press releases,radio advertising,web page information and event program(s)
through the following mandatory funding identification statement: "Funding for the organization is
provided in part throw� the City of Elgin". Three samples of this acknowledgement shall be
provided to the City. A logo provided by the City to the Service Provider shall be used for this
purpose.
10. In all printed materials in which a City seal or logo is deemed appropriate,approval by
the Public Information Officer of the City is required prior to printing.
11. The term of this agreement shall commence from the date of the execution hereof and
continue through December 31, 2008.
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12. This agreement shall not be construed so as to create a partnership, joint venture,
employment or other agency relationship between the parties hereto. Service Provider understands
and agrees that the relationship of the Service Provider to the City arising out of this agreement shall
be that of an independent contractor. It is expressly agreed and understood that the Service Provider
and the Service Provider's officers, employees and agents are not employees of the City and are not
entitled to any benefits or insurance provided to employees of the City.
13. If either party violates or breaches any term of this agreement,such violation or breach
shall be deemed to constitute a default, and the other party has the right to seek administrative
contractual or legal remedies as may be suitable to the violation or breach; and, in addition,if either
party by reason of any default, fails to within fifteen(15) days after notice thereof by the other party
to comply with the conditions of the agreement, the other party may terminate this agreement.
Notwithstanding the foregoing, or anything else to the contrary in this agreement,no action shall be
commenced by the Service Provider against the City for monetary damages. In the event any legal
action is brought by the City for the enforcement of any of the obligations of the Service Provider in
this agreement and the City is the prevailing party in such action, the City shall also be entitled to
recover from the Service Provider reasonable interest and reasonable attorneys fees.
14. Notwithstanding any other provision hereof;the City may terminate this agreement at
any time upon thirty (30) days prior written notice to the Service Provider. In the event this
agreement is so terminated, the Service Provider shall be paid fbr services actually performed, and
reimbursable expenses actually incurred prior to termination, except that reimbursement shall not in
any event exceed the total amount set forth under paragraph 4 above. Additionally, in the event this
agreement is so terminated,the Service Provider shall immediately cease the expenditure ofany funds
paid to the Service Provider by the City and shall refund to the City any unearned or unexpended
funds.
15. To the fullest extent permitted by law, Service Provider agrees to indemnify, defend
and hold harmless the City,its officers, employees, agents,boards and commissions from and against
any and all claims, suits,judgments, costs, attorney's fees, damages or other relief; including but not
limited to worker's compensation claims, in anyway resulting from or arising out ofnegligent actions
or omissions of the Service Provider in connection herewith, including negligence or omissions or
agents of the Service Provider arising out of the performance of this agreement and/or the Subject
Services. In the event of any action against the City, its officers, employees, agents, boards or
commissions covered by the foregoing duty to indemnify,defend and hold harmless, such action shall
be defended by legal counsel of the City's choosing. The provisions of this paragraph shall survive
any expiration and/or termination of this agreement.
16. The Service Provider shall provide, pay for and maintain in effect, during the term of
this agreement, comprehensive automobile liability insurance covering all owned, non-owned and
hired motor vehicles used in connection with the Subject Services with limits of not less than
$500,000 per occurrence for damages to persons or property. The Service Provider shall also
provide, pay for and maintain in effect, during the term of this agreement, worker's compensation
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insurance in amounts required under the laws of the State of Illinois. At the request of the City the
Service Provider shall provide to the City certificates of insurance regarding the insurance required in
this paragraph.
17. No official,director, officer, agent or employee of the City shall be charged personally
or held contractually liable under any term or provision of this Agreement or because of their
execution, approval or attempted execution of this Agreement.
18. In all hiring or employment made possible or resulting fromthis Agreement,there shall
be no discrimination against any employee or applicant for employment because of sex, age, race,
color, creed, national origin, marital status, of the presence of any sensory, mental or physical
handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply
to,but not be limited to,the following: employment advertising, layoff or termination,rates ofpay or
other forms of compensation and selection for training, including apprenticeship.
19. No person shall be denied or subjected to discrimination in receipt ofthebenefit ofany
services or activities made possible by or resulting from this Agreement on the grounds of sex,race,
color, creed,national origin, age except minimum age and retirement provisions,marital status or the
presence of any sensory, mental or physical handicap. Any violation of this provision shall be
considered a violation of material provision ofthis Agreement and shall be grounds for cancellation,
termination or suspension, in whole or in part, of the Agreement by the City.
20. The parties intend and agreed that,if any paragraph, sub-paragraph,phrase,clause or
other provision of this Agreement, or any portion thereof, shall be held to be void or otherwise
unenforceable, all other portions of this Agreement shall remain in full force and effect.
21. This Agreement and its exhibits constitutes the entire Agreement ofthe parties on the
subject matter hereof and may not be changed, modified, discharged or extended except by written
amendment duly executed by the parties. Each party agrees that no representations or warranties
shall be binding upon the other party unless expressed in writing herein or in a duly executed
amendment hereof.
22. This Agreement shall be deemed to have been made in, and shall be construed in
accordance with the laws of the State of Illinois. Venue for the resolution of any disputes or the
enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane County,
INinois.
23. The Service Provider certifies hereby that it is not barred from bidding on a public
contact as a result of a violation of 720 ILCS 5/33E et seq_ or any similar state or federal statute
regarding bid rigging.
24. As a condition of this contract, the Service Provider shall have written sexual
harassment policies that include, at a minimum, the following information:
A. the illegality of sexual harassment;
B. the definition of sexual harassment under state law;
C. a description of sexual harassment, utilizing examples;
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D. the vendor's internal complaint process including penalties;
E. the legal recourse, investigative and complaint process available through the Illinois
Department of Human Rights, and the Illinois Humana. Rights Commission;
F. directions on how to contact the department and conunission;
G.protection against retaliation as provided by Section 6-101 of the Human Rights Act.
A copy of the policies must be provided to the Department of Human Rights upon
request (775 ILCS 5/2-105).
25. AD notices, reports and documents required under this Agreement shall be in writing
and shall be mailed by First Class Mail, postage prepaid, addressed as follows:
As to the City: As to Service Provider:
City of Elgin Elgin Symphony Orchestra
150 Dexter Court 20 DuPage Court
Elgin, IL 60120-5555 Elgin, IL 60120
Attention: Sean Stegall Attention: Karen Kay
Assistant City Manager Interim Executive Director
With a copy to:
William A. Cogley, Corporation Counsel
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
26. This agreement is and shall be deemed to construe to be a joint and collective work
product of the City and the Service Provider and, as such, this agreement shall not be construed
against the other party, as the otherwise purported drafter of same, by any court of competent
jurisdiction in order to resolve any inconsistency, ambiguity,vagueness or conflict,if any,ofthetenns
and provisions contained herein.
27. This agreement shall be binding on the parties hereto and their respective successors
and permitted assigns. This agreement and the obligations herein may not be assigned by the Service
Provider without the express written consent of the City which consent may be withheld at the sole
discretion of the City.
IN WITNESS W1IEREOF,the undersigned have entered into executed this agreement on the
date and year first written above.
CITY OF ELGIN, a municipal Elgin Symphony Orchestra
Corp on
By: � B
City ' er `
Attest:
Gi G s- ►
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EXHMIT A
ELGIN SYMPHONY ORCHESTRA— SCOPE OF SERVICES FOR
2008 PURCHASE OF SERVICE AGREEMENT
1. The ESO shall apply$35,000 of the aforementioned $226,680 to Youth Initiatives. The
ESO shall provide youth programs, including but not limited to, Petite Musique, Rids
Konzerts, In-School Music program, Apprentice Program, and the Homeschool
Subscription series.
2. The ESO shall apply$30,000 of the aforementioned $226,680 to office and salary
expenses related to their location at 20 DuPage Court, including their box office. In
exchange, ESO shall maintain and operate a box office in the Center City Area throughout
the year.
3. The ESO shall apply$63,000 of the aforementioned $226,680 to general operational
expenses.
4. The ESO shall apply$5,000 to an Elgin Restaurant Reservation Program, through which
the ESO shall offer to make dinner reservation at Elgin restaurants for ESO patrons at the
conclusion of every telephone or walk-up sale.
5. The ESO shall apply$2,680 of the aforementioned $226,680 to cover janitorial services as
outlined in section 4 of the Office Lease agreement made and entered into April 11, 1996.
6. The ESO shall apply$18,000 of the aforementioned $226,680 to cover expenses for the
public performance at FoxFire Fest on August 1, 2008 at Festival Park.
7. The ESO shall apply$73,000 of the aforementioned $226,680 to cover expenses for the
matinee series for 2008.
8. ESO shall be granted an additional 10 percent discount on Hemmens usage fees, including
hall rates and equipment charges should it hold more than 15 performances in a calendar
year at the Hemmens Cultural Center.
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March 21, 2008 -�:
TO: Mayor and Members of the City Council =
FROM: Olufemi Folarin, City Manager �, ; c}pY,,rrn„;;;e :�'Ii;Citi:_n<
Sean Stegall, Assistant City Manager
SUBJECT: Purchase of Service Agreement with Elgin Symphony Orchestra
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to consider a Purchase of Service Agreement with the Elgin Symphony Orchestra
(ESO) for youth programming and general operational support.
RECOMMENDATION
It is recommended that the City Council approve the Purchase of Service Agreement with the
ESO in the amount of$226,680.
BACKGROUND
For several years, the City of Elgin has provided financial support to the ESO for general
operation support. This support has continued with acknowledgement that the presence of the
Symphony helps establish Elgin as a regional center for the performing arts, drawing over 49,000
ticketed patrons into the community each season.
The City's 2008 Budget includes $226,680 to fund this Purchase of Service Agreement. This
includes $135,680 in general operational support, $18,000 for the performance at Fox Fire Fest,
and $73,000 for matinee performances. In years past, the Purchase of Service Agreement has
only provided for the general operational support. In 2008, staff has included the additional
annual support for the performance at Fox Fire Fest and matinee performances.
In addition to the general operational, the City also supports the ESO through the provision of
office space at 20 DuPage Court, at an estimated value of $40,181 per year. The ESO also
receives a 45% discount on rental fees and a 10% discount on equipment at the Hemmens
Cultural Center.
The ESO has met all the requirements of the 2007 Purchase of Service Agreement.
O
Purchase of Service Agreement with Elgin Symphony Orchestra
March 21, 2008
Page 2
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
FINANCIAL IMPACT
The cost of the Purchase of Service Agreement with ESO totals $226,680. There are sufficient
funds budgeted (5226,680) and available ($226,680) in the Riverboat Fund budget, account
number 275-0000-791.80-11, to enter into this agreement.
LEGAL IMPACT
None
ALTERNATIVES
1. The Council may choose to approve the Purchase of Service Agreement with the Elgin
Symphony Orchestra as presented.
2. The Council may choose to modify the provisions of the Service Agreement with the
Elgin Symphony Orchestra as presented.
3. The Council may choose to reject the Purchase of Service Agreement with the Elgin
Symphony Orchestra as presented.
Respectfully submitted for Council consideration.
rkh/SRS