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Maintenance & Operating Agreement COMMUNITY THEATRE MAINTENANCE AND OPERATING AGREEMENT This Agreement made this 17th day of December, 2007 by and between the City of Salina, Kansas, a Kansas municipal corporation, hereinafter referred to as the CITY and the Salina Community Theatre Association, a Kansas nonprofit corporation, hereinafter referred to as the SCT A. WHEREAS, the SCTA is a private, nonprofit corporation organized under the laws of the State of Kansas for the propose of establishing a community theatre and promoting a better understanding of theatre; and WHEREAS, the SCTA operates the Salina Community Theatre in a theatre facility (the "Theatre") located at 303 East Iron Avenue that serves as a major community resource for theatre and is open to all members of the public; and WHEREAS, the SCT A through its staff otTers to the community a comprehensive educational and performance program; and WHEREAS, the SCT A is the only provider of theatre educational and performance opportunities for young people in grades K-8 and for the home schooled in this region; and WHEREAS, the SCT A has been a foundation in the cultural, educational, and volunteer landscapes in Salina for over 45 years; and WHEREAS, the CITY has transferred ownership and SCT A has acquired ownership of the Theatre, the real estate upon which the Theatre is located and the immediately surrounding real estate (collectively, the "Theatre Real Estate") legally described on the attached and incorporated Exhibit A. WHEREAS, the current working relationship between the City and SCT A relating to operation of the Theater is addressed in an Agreement between the City and SCTA dated January 12, 1970; which Agreement should be updated to address the maintenance and operation of the Theatre. The CITY and the SCT A agree as follows: Section 1. SCT A Duties. The SCT A shall be responsible for the following items: A. The title to the Theatre Real Estate and all related responsibilities not delegated to the CITY under this agreement shall remain in the name of Salina Community Theatre Association, and its successor organization, if any, throughout the term of this Agreement. B. The SCTA shall annually pay the City $3000.00 for use by the City in fulfilling the maintenance responsibilities set forth in Section 2.C below. Any future capital improvements to the Theatre by the SCTA (e.g. the orchestra pit lift) will also be covered under this provision. C. The SCT A shall maintain insurance coverage on all' personal property located in the facility; shall maintain general liability coverage for the operation of the Theatre in an amount deemed sufficient by both the SCT A and the CITY; and, during periods of construction of any additions or improvements to the Theatre, shall maintain an appropriate amount of builders risk coverage. Section 2. CITY Duties. The CITY shall provide the following services: A. The CITY shall continue to pay for water, sanitary sewer, electrical, and natural gas services for the THEATRE following the transfer of title to the Theatre Real Estate from the CITY to SCT A. B. The CITY shall provide routine janitorial services including routine sweeping and cleaning of the building proper and restrooms, replacing light bulbs and lighting repair not associated with theatre productions, and removing trash. Routine janitorial service shall not include: 1. Cleaning of backstage areas or scene shop; 2. Cleaning after classes, demonstrations or rehearsals; or 3. Furnishing paper or cleaning products for classes, demonstrations either in the class or for clean up. C. The CITY shall maintain the Theatre, including the necessary maintenance, repair, or replacement of plumbing and plumbing fixtures, heating and air conditioning systems, electrical systems not associated with theatre productions, the marquee, and the roof. The maintenance 2 responsibility of the CITY shall not include any proposed productions, storage or protection of personal property owned and under control of the SCT A, or educational or other SCT A programs. D. The CITY will maintain the landscaping around the THEATRE. E. The CITY will provide snow removal from the sidewalks and parking areas at the THEATRE. F. The CITY will provide commercial property insurance rated at replacement value on thc existing Theatre and any future building additions or improvements as owned by the SCT A. Section 3. Effective Date. This Agreement shall become effective January 1,2007 (the "Effective Date"). Section 4. Term and termination. This Agreement shall remain in effect until December 3 I, 2057. If within this period, the SCT A sells or otherwise disposes of the property described herein, this Agreement shall be terminated. Section 5. Reqnired reports. The SCT A shall submit annually to the City Manager or others designated by the City Manager the following items: A. Before September 151 of each year (the beginning of the SCT A's fiscal year), the annual proposed budget and program of services for the SCT A for the next fiscal year; and B. The SCT A's annual report and audit within 30 days of completion by the independent auditors. In addition, if and when the SCT A has any plans that significantly relate to changes or additions in the physical building, the City Manager shall be informed of such changes as they relate to this agreement before such building changes or additions are implemented. Section 6. Termination of prior agreement. It is the intent of the parties that on the Eflective Date this Agreement shall serve as a substitute and replace the prior agreement dated January 12, 1970, which shall be deemed terminated as of the Effective Date of this Agreement. 3 Section 7. Binding effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their successors and assigns. SALINA COMMUNITY THEATRE ASSOCIATION By: CITY OF SALINA, KANSAS By: m~E~ Alan E. lilla, Ma r ATTEST: By: 4