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ADDENDUM TO LEASE AGREEMENT C .f �:W �R ,�-.5 r, rn R
BETWEEN CONTRACT NO
THE CITY OF FORT WORTH
AND
CASA MANANA MUSICALS, INC.
WHEREAS, the City of Fort Worth (City), a home-rule municipal corporation
situated in Tarrant County, Texas, and Casa Manana Musicals, Inc., have heretofore
entered into a Lease Agreement on file in the office of the City Secretary of Fort
Worth as City Secretary Contract No. 19139; and
WHEREAS, under said Lease Agreement, dated June 4, 1992, Casa Manana
agreed to pay all costs associated with operation of the city-owned Casa Manana
Theatre complex; and
WHEREAS, the boiler at the theatre has deteriorated with age and can.no
longer be safely operated; and
WHEREAS, Casa Manana does not have sufficient funds available to fund the
cost of boiler replacement and associated costs, and
WHEREAS, City has agreed to provide initial funding in the amount of $39,990
for the cost of boiler replacement in order to preserve the city's property; and
WHEREAS, Casa Manana has agreed to repay these funds in equal monthly
installments over an eighteen month period, said monthly payment amount to be
dependent upon the final cost of the project; and
OFFICIAL �
CUY SECRETARY
F%T* WOR
TH +'�
WHEREAS, this has been approved by the Fort Worth city Council and by the
Board of Directors of Casa Manana;
NOW THEREFORE, the City and Casa Manana, acting by and through their
duly authorized representatives, hereby make and enter into the following financing
agreement:
1. city agrees to make payment to Casa Manana of funds in a total amount of
$30,000.00. Casa Manana agrees to use the funds only for the purpose of replacing
the boiler in the Casa Manana Theatre.
2. For value received, Casa Manana promises to pay to the City the sum of
$30,000.00 in monthly installments over an eighteen (18) month period, with the first
payment being due December 15, 1094, and subsequent payments due on the 15th
of succeeding calendar months. The monthly payment schedule will be as shown in
Attachment A, unless the total cost of the project is less than $80,000, in which case
the payment schedule will be altered such that the first payment will be the sum of
the difference between the actual cost and the $30,000 advance plus 1118 of the
actual project cost, with the remaining monthly payments being 1118 of the actual
project cost.
3. The parties agree that once it has completed all required payments under
this agreement, Casa Manana is eligible for a Major Maintenance credit for the cost
of the boiler replacement work, in accordance with the procedure set forth in Section
4.1.(a) of the Lease Agreement. The amount of the eligible credit shall be net of
interest costs, to be calculated as the difference of the actual funding amount minus
he interest amount that would have been charged, assuming an 8.5% interest rate.
The amount of the eligible credit based upon a $30,000 advance is shown on
Attachment A. This amount shall be adjusted should the payment schedule be
altered as discussed in Section 2. Should Casa Manana default in the payment of
any installment as required by this agreement, it shall forfeit its right to request any
Major Maintenance credit for the boiler replacement work.
4. It is understood and agreed that time is of the essence regarding this
agreement and that on default in the payment of any installment, or any part thereof,
when due, the city, at its election, may accelerate the unpaid balance and declare
the same due and payable,immediately without presentment for demand for payment
of any past due installment or of any remaining unpaid balance and without notice of
intent to accelerate the payment of the unpaid balance. The failure to the City to
exercise its option to accelerate the maturity of this agreement at any time shall not
constitute a waiver of its right to exercise said option with regard to any future default.
5. No delay or admission on the part of the City in exercising any right
hereunder shall operate as a waiver of such right or any other right under this
agreement. A waiver on any one occasion shall not be construed as a bar to or a
waiver of any right or remedy on any future occasion.
6. city reserves the right to audit the financial records of Casa Manana in
connection with the advancement of any funds hereunder.
7. The term of this Addendum shall be for a term beginning November 7,
1994 and ending on or before May 15, 1996.
EXECUTED on this, the 30 of November, 1994
ATTEST: CITY OF FORT W RTH 2A
% Bob Terrell
City Manager
APP OVED AS TO FORM r - SA-M M CA INC.
Assistant City A ney
Name:
Date: �/- - 9 Y
Title:
Contract Authorization
M&C G-10875
Date: November 7. 1994
ATTACHMENT A
CASA MANANA BOILER REPAIR AMORTIZATION
ASSUMPTIONS
Advance Funding Amount $30,400.00
Actual Project Cost $30,004.00
Interest charge 0.00%
Period in Months 18
Base Year 1994
Base Month December
Monthly Payments $1,886.67
PAYMENT SCHEDULE
Beginning Cumulative Cumulative
Year Month Balance Payments Principal Interest Principal Interest
1994 December $34,000.04 $1,666.67$1,666.67 $0.00 $1,666.67 $0.00
1995 January 28,333.33 11666.67 11666.67 $0.04 31333.34 6.66
February 26,666.66 1,666.67 1,666.67 $0.00 5,040.01 8.66
March 24f 999.99 1 ,666.67 1,666.67 $0.00 6,868.68 0106
April 23,333.32 1 ,666.67 1,666.67 $0.00 8,333.35 0.00
May 21,666.65 11666.67 11666.67 $0.00 10,000.02 0.00
June 19,999.98 11666.67 11666.67 $0.00 11 r666,69 0.00
July 18,333.31 11666.67 11666.67 $0.00 13,333.36 0.00
August 16,666.64 1 ,666.67 11666.67 $0.00 15,000.03 0.00
September 14,999.97 1 ,666.67 1,666.67 $0.00 161666.70 0.00
October 13,333.30 1.666.67 1,666.67 $0.00 18,333.37 0.00
November 11,666.63 1,666.67 1,666.67 $0.00 20.000.04 0100
December 9,999.96 1 ,666.67 1,666.67 $0.00 211666.71 0.04
1996 January 8,333.29 1 ,666.67 1,666.67 $0.00 23t333-38 0.00
February 61666.62 11666.67 11666.67 $0.00 25,000.05 0.00
March 4,999.95 1 ,666.67 1,666.67 $0.04 26,666.72 0.00
April 3,333.28 1,666.67 1,666.67 $0.00 28,333.39 0.00
May 1,666.61 11666.61 1,666.61 $0.40 30,000.00 0.00
ALL PAYMENTS ARE DUE ON OR BEFORE THE 15TH OF EACH MONTH
ELIGIBLE MAJOR MAINTENANCE CREDIT BASED UPON
ABOVE PAYMENT SCHEDULE (@8.5% INTEREST) 27.940.91
City
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rt 'a
Mayor and Council Commun;rca
DATE E FERENCE NCTMSER G.108 5 LOG NAME PAGE
11/08/94 52CASA 1 of 2
SUBJECT APPROVAL OF PAYMENT TO CASA MANAMA MUSICALS, INC., TO FUND BOILER
REPLACEMENT AT CASA MANAMA THEATER
REC MMENDATION:
It is recommended that the City Council:
1. Adopt the attached supplemental appropriations ordinance increasing estimated receipts
and appropriations in the Capital Projects Reserve Fund by $30,000.00 from increased
revenues, and
2. Authorize the transfer of $30,000.00 from the Capital Projects Reserve Fund to the General
Fund, and
3. Adopt the attached supplemental appropriations ordinance increasing estimated receipts
and appropriations in the General Fund by $30,000.00 from increased revenues, and
4. Approve a payment in an amount not to exceed $30,000.00 to Casa Manana Musicals,
Inc. (Casa Manana), to fund the replacement of the original boiler at the Casa Manana
Theater, with Casa Manana Musicals, Inc., agreeing to repay the city over an eighteen {1 S)
month period.
DISCUSSION:
In mid-October, Casa Manana Musicals, Inc., notifies the City that the 37 year old boiler in the
city-owned theater was no longer operable. Since the city maintains insurance coverage on the
boiler, the Risk Management Department arranged for an inspection by a representative of the
insurance company. The inspection indicated that the boiler has significantly deteriorated with
age and does not meet current code requirements. Preliminary cost estimates for both repair and
replacement of the unit indicated that replacement is the most cost effective course of action.
However, since the City's boiler insurance only covers "sudden and accidental" losses, this is
not a covered foss.
Under the terms of its lease with the City, Casa Manana Musicals, Inc., is responsible for
replacement of the boiler. However, Casa Manana does not have sufficient cash reserves
available to fund this replacement and has requested advance funding from the City in an amount
not to exceed $30,000.00 to cover the cost of replacing the boiler and a minor amount of
asbestos abatement. Casa Manana will repay the City in equal monthly installments over an
eighteen month:period.
The total amount paid by the City will not exceed the actual project cost. The monthly payment
amount will be dependent upon final costs.
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City of Fort Wcqfk Texas
1111fayor arn,111d, iCounAal C-,�ommunication
DATE REFERENCE NUMBER LOG NAME PAGE
11/08/94 52CASA 2 of 2
SUBJECT APPROVAL OF PAYMENT TO CASA MANANA MUSICALS, INC., To FUND BOILER
REPLACEMENT AT CASA MANANA THEATER
Funding for this payment will be provided from the Capital Projects reserve Fund.
FISCAL INFORMATION CERTIFICATION:
The Director of Fiscal Services certifies that upon approval of the above recommendations and
adoption of the attached appropriations ordinances, funds required for this payment will be
available in the current operating budget of the General Fund. The cash balance in the Capital
Projects Reserve Fund after this transfer will be $5,358,093.00.
MG:I
Submitted for City Manager's FUND ACCOUNT CENTER T AMOUNT' CITY SECRETARY
Office by: (to)
(1)GC 10 472040 013010001004 $30,000.00
Mike Groomer 6140 (1)GC 10 538470 013010001004 $30,000.04
Originating Department Head: (2)GG01. 472236 0131044 $30,000.00
(3)GG01 472235 0131044 $30,404.00
as
Mike Groomer 6140 (3)GG41 539120 4906244 $30,440.00
For Additional Inro rmation (from)
Contact: (2)GC 10 538074 013010001000 $30,400.00
GG01 539120 4905204 $30,040.00
Mike Groomer 6140