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Renovation Maint. Util Janitor . AGREEMENT This agreement made this 18th day of December, 1989 by and between the City of Salina, Kansas, a Kansas municipal corporation, hereinafter referred to 'as the CITY and Salina Art Center, Inc., a Kansas nonprofit corporation, hereinafter referred to as the CENTER. WHEREAS, the CENTER is a private, nonprofit corporation organized under the laws of the State of Kansas for the purposes of establishing and maintaining a community art center and promoting a better understanding and appreciation of the visual arts; and WHEREAS, the CENTER provides a facility that serves as a major community resource for the visual arts and is open to all members of the public; and WHEREAS, the CENTER through its professional staff, offers to the community a comprehensive and ongoing program of art exhibits and art educational programs; and WHEREAS, the Center has acquired ownership in the property described as Lots 158 and 160 on Santa Fe Avenue in the original Town (now City) of Salina, Saline County, Kansas, referred hereinafter as 236 and 238 South Santa Fe A venue; and WHEREAS, the CITY has completed a major redevelopment of the Salina downtown area with the objective to help to ensure the economic and cultural vitality of the community; SO NOW, THEREFORE The CITY and the CENTER agree as follows: Section 1. CENTER Duties. The CENTER shall be responsible for all of the following items: A. The title to the property and all related responsibilities not delegated to the CITY under this Agreement shall remain in the name of the Salina Art Center, Inc., and its successor organizations, if any, throughout the term of this Agreement. B. The CENTE R shall remodel the property located at 236 - 238 South Santa Fe, including installation of: 1. a new heating and air conditioning system. 2. all new plumbing, wiring and fixtures. 3. new flooring and wall coverings. In addition to applicable building and fire code requirements, the remodeling shall be subject to approval by the City Manager regarding matters of safety, structural integrity and maintenance. Except for payment of utility expenses under Section 2(A) below, the duties of the CITY under this Agreement shall not commence in relation to 236 - 238 South Santa Fe until the remodeling has been completed and approved by the City Manager. C. The CENTER shall annually deposit, in cash, not less than $1,500 in a capital replacement fund to finance future maintenance, repair, or replacement of the roof or mechanical systems. The fund shall be invested in a proper manner and in accordance with K. S.A. 12-1675. Expenditures from this fund shall be mutually agreed upon by the City Manager and the CENTER. D. The CENTER shall maintain insurance coverage on all personal property located in the facility and shall maintain general liability coverage for the operation of the CENTER in an amount deemed sufficient by both the CENTER and the CITY. Section 2. CITY Duties. The CITY shall provide the following services: A. The CITY shall pay for water, sanitary sewer, electricity and natural gas services for both properties beginning January 1, 1990. B. The CITY shall provide routine janitorial services including routine sweeping and cleaning of the building proper and restrooms along with replacing light bulbs and lighting repair, except in the case of special lighting for exhibits. Routine janitorial service shall not include: 1. Dusting or maintenance of exhibits. 2. Cleaning after art classes, educational classes and other demonstrations. 3. Wall treatments for exhibits. 4. Furnishing paper or cleaning products for art classes, educational classes or other demonstrations, either in the class or for the clean-up. C. The CITY shall maintain the facility, including necessary maintenance, repair, or replacement of hot water heaters, heating and air conditioning systems, and the roof. The maintenance responsibility of the CITY shall not include any work necessary for purposes of art exhibits, storage or protection of personal property owned or in the control of the CENTER, or educational or other CENTER progrems. Expenditures for the maintenance of the facility shall first be paid from the capital replacement fund referred to in Section 1 (B) above. D. The CITY shall maintain multi-peril insurance coverage for the building improvements on the property. Section 3. Effective date. This AGREEMENT shall become effective January 1, 1990. Section 4. Term and termination. This AGREEMENT shall remain in effect until December 31, 2037, provided that either party may notify the other party by July 1 annually of their intent to terminate this AGREEMENT effective January 1 following; however, within this period, the AGREEMENT may be modified by the mutual consent of the parties. If within this period, the CENTER sells or otherwise disposes of the property described herein, this AGREEMENT shall be terminated. In the event of dissolution of the CENTER during the term of this AGREEMENT, the exempt organization or organizations to which the net assets of the CENTER shall be distributed pursuant to Article IX of the Articles of Incorporation of the CENTER shall be determined jointly by the CENTER, City Manager and the Salina Arts and Humanities Commission, with the approval of the governing body of the CITY. Section 5. Required reports. The CENTER shall submit annually to the City Manager or others designated by the City Manager the following items: A. Before August 1 of each year the annual proposed budget and program of services for the CENTER for the next fiscal year. B. The CENTER1s annual report and audit within 30 days of completion by the independent auditors, I n addition, if and when, the CENTER has any plans that significantly relate to the building, the Salina Arts and Humanities Commission and the City Manager shall be informed in a timely way of those plans. Section 6. T ermi nation of prior ag reement. It is the intent of the parties that this Agreement serve as a substitute for the agreement between the parties dated June 15, 1987, which prior agreement is hereby terminated as of the effective date of this Ag reement. . Section 7. Binding effect. This AGREEMENT shall be binding upon and shall inure to the benefit of the parties hereto, their successors and assigns. CITY OF SALINA, KANSAS c3t~rfJM?!:~ [S EA L] ATTEST: j ~ lA.A-~ S ,,^-, uv (;v Jacqueline Shiever, City Clerk SALINA ART CENTER, INC. Chairman, Board of Directors