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03-57 Resolution No. 03-57 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 Ed Schock, Mayor, and Dolonna Mecum, 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: February 26, 2003 Adopted: February 26, 2003 Omnibus Vote: Yeas : 6 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk PURCHASE OF SERVICE AGREEMENT THIS AGREEMENT is made and entered into this day of_j'fj pO-k C H- 2003 , by and between the ELGIN SYMPHONY ORCHESTRA ASSOCIATION, an Illinois not-for-profit organization, (hereinafter referred to as the "ESO" ) and the CITY OF ELGIN, Illinois, a municipal corporation, (hereinafter referred to as the "CITY" ) . WHEREAS, City has determined it to serve a beneficial public purpose to maintain the Elgin Symphony Orchestra as the largest cultural organization in the Fox Valley and as Illinois' s largest symphony orchestra outside the City of Chicago; and WHEREAS, The City has further determined it to serve a beneficial public purpose to assure that its youth are extended a diverse offering of stimulating activities which provide potential life-long benefit; and WHEREAS, The ESO provides over 25, 000 tickets each season to residents of Elgin, and draws over 49, 000 ticketed patrons into Elgin each season and acts as the City' s cultural ambassador via its radio broadcast series that reaches over one million worldwide listeners; and WHEREAS, the ESO provides over 15, 000 students each season with stimulating musical experiences. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby mutually acknowledged, the parties hereto hereby agree as follows: 1 . The City shall pay to the ESO the sum of $168, 000 within thirty days of execution of this agreement . 2 . The ESO shall direct all initial inquiries and requests made pursuant to this agreement to the Management Assistant in the City Manager' s office. 3 . The ESO shall apply $75, 000 of the aforementioned $168, 000 to Youth Initiatives . The ESO shall provide youth programs, including, but not limited to, Petite Musique, Kids Konzerts, In-School Music Program, Apprentice Program, and the Homeschool Subscription series. 4 . The ESO shall apply $30, 000 of the aforementioned $168, 000 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. l 5 . The ESO shall apply $63, 000 of the aforementioned $168, 000 to general operational expenses . 6 . ESO shall provide the City two written reports detailing the disbursement of the aforementioned $168, 000 . These reports shall be provided to the City Council by May 31; 2003, and December -31, 2003, and shall include a report of all programs funded by City. The reports shall be submitted to the City Manager' s Office, 150 Dexter Court, Elgin, IL, 60120 . This report shall include, but not be limited to, a summery of public performance offering, gross tickets sold, activities offered for youth, attendance numbers for said activities, and a breakdown of the $30, 000 in office expenses. 7 . ESO shall provide City with financial statements relative to the organization' s total operations . These statements shall be provided on or before July 31, 2003 and December 31, 2003 . 8 . The City shall have the right to review all accounting records related to the use of the $168, 000 given 72 hours notice, and at a time agreed upon by both parties. 9. The City of Elgin shall be recognized as a sponsor of ESO and shall receive the benefits of sponsorship consistent with the level of financial support provided in this agreement. At minimum, the City' s support shall be acknowledged in all brochures promoting the organizations or event, WEB page information and event program(s) . Three samples of this acknowledgment shall be provided to the City. A logo provided by the City shall be used for this purpose. 10 . ESO shall be granted an additional 10% discount on Hemmens usage fees, including hall rates, labor and equipment charges, should it hold more than 15 performances in a calendar year at the Hemmens Cultural Center. 11 . ESO shall not apply for or accept financial support from any funding program administered by a City-appointed board or commission and supported by City funds. 12 . To the fullest extent permitted by law, ESO agrees to indemnify, defend and hold harmless the City, its officers, employees, boards and commissions from and against any and all claims, suits, judgments, costs, atto'rney' s fees, damages or other relief arising out of any reckless or negligent acts or omissions of ESO' s officers, employees or agents in the performance of this agreement . 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. 13 . This Agreement shall be in full force and effect from the date of its execution through December 31, 2003 . 14 . The terms of this agreement shall be severable. In the event any of the terms or provisions of this agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect . 15 . This agreement shall not be construed so as to create a joint venture, partnership, employment or other agency relationship between the parties hereto. 16 . This agreement shall be subject to and governed by the laws of the State of Illinois . Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this agreement or its performance shall be in the Circuit Court of Kane County, Illinois. CITY OF ELGIN ELGIN SYMPHONY ORCHESTRA ASSOCIATION gy By Ed Schock Michael Pastreich Executive Director Attest : City Clerk City of Elgin Agenda Item No. • • February 7, 2003 NEIGHBORHOOD VITALITY TO: Mayor and Members of the City Council s FROM: Olufemi Folarin, Interim City Manager SUBJECT: Purchase of Service Agreement with Elgin Symphony Orchestra PURPOSES 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 . • BACKGROUND For several years, the City of Elgin has provided financial support to the ESO for youth programming and general operation support . The City also supports the organization through the provision of office space at 20 DuPage Court . This support has continued with the 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 community also benefits from the variety of youth programming provided by the ESO, such as through its collaboration with Hamilton Wings to present the program Students Creating Opera to Reinforce Education (SCORE! ) The same high quality programming can be expected in 2003 . The 2003 Municipal Budget includes a contribution to ESO in the amount of $193 , 000 to be used for operational support (office and salary expenses) and youth programming, including the In- School Music Program, Homeschool Subscription Series, and Kids Knozerts . The subject Purchase of Service Agreement provides for a contribution of $168, 000 . This reduced amount reflects the expenses attributable to the SCORE! Program. Unlike past years, in 2003 , ESO will no longer serve as a fiscal agent for • Hamilton Wings . Hamilton Wings has requested that funds previously included in the City' s contribution for SCORE! be given directly to Hamilton Wings to administer. ESO has been consulted and agreed to a reduction in its funding in the amount ($25, 000) which would be used for the SCORE! Program. t • Purchase of Service Agreement with Elgin Symphony Orchestra February 7, 2003 Page 2 A separate Purchase of Service Agreement will be developed with Hamilton Wings . ESO will continue to collaborate with Hamilton Wings to implement SCORE! COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Elgin Symphony Orchestra FINANCIAL IMPACT There are sufficient funds budgeted and available in the 2003 Budget ($193 , 000) in the Riverboat Fund, Contributions, Account Number 275-0000-791 . 80-11, to enter into an agreement with the Elgin Symphony Orchestra in the amount of $168, 000 . GAL IMPACT None. • ALTERNATIVES 1 . Approve the Purchase of Service Agreement with the Elgin Symphony Orchestra as presented. 2 . Modify the provisions of the Service Agreement . 3 . Reject the Purchase of Service Agreement as presented. RECOMMENDATION It is recommended that the City Council approve the Purchase of Service Agreement with the Elgin . Symphony Orchestra, providing for funding in the amount of $168, 000, as presented. Respectfully submitted, 0 Oluferrii jolari Inter' ity Man ger • DKN/od