Common use of Performance Terms Clause in Contracts

Performance Terms. OCF agrees to abide by the following terms and conditions and provide the following documentation to the City: (a) OCF will develop and revise a strategic plan. The initial strategic plan will be drafted on or before October 15, 2011. (b) OCF will prepare an annual report within 90 days of the close of its fiscal year, and will invite the public to a meeting on the report, encouraging community input. OCF will prepare performance projections for 2012 based on the most recent ODC annual report. The baseline for establishing goals and measuring performance shall be based on the annual report for fiscal year 2012-2013, as set forth in Section (2)(g) herein. (c) OCF will operate the Overture Center in a financially sound manner measured as follows: (i) OCF will generate earned and contributed revenue which together with the City subsidy, as described in Section 4 below, will result in sound financial operations, as detailed below. (ii) The annual audited financial statements, prepared in accordance with GAAP, shall contain an unqualified opinion as to going concern status. Such records will be available for City review as described in the Structural Agreement. (iii) The annual audited financial statements shall contain positive unrestricted net assets when adjusted for the amount invested in capital assets (also called expendable net assets, i.e., excluding the assets and liabilities associated with capital assets). (iv) The annual audited financial statements shall not indicate a carry-forward operating deficit that is greater than 5 percent of expendable net assets as defined above, or 5 percent of the current year’s budget, whichever is larger. (v) In the event OCF does not achieve the financial standards outlined in 2 (c) (i) through (iv) above, OCF will provide the City a plan to remedy the issue, and will provide evidence of progress on that plan by June 30, 2013. (vi) These financial performance standards will be in effect beginning July 1, 2012, which is the first full fiscal year of OCF operation. (d) OCF will prepare balance sheets and audited financial statements in accordance with GAAP within 90 days of the closing of its fiscal year and will provide copies to the City in a timely manner. Such records will be available for City review as described in the Structural Agreement. (e) OCF will act to create a capital reserve fund in the amount of $5 million. From July 1, 2012 through June 30, 2014, OCF shall use its best efforts to accumulate a capital reserve fund of $1 million with the balance of the capital reserve fund to be accumulated by June 30, 2017. (f) An initial plan for fundraising shall be developed on or before October 15, 2011. (g) OCF’s commitment to educational and community programming, including free or reduced cost programs and outreach will be measured as follows: (i) The annual report for fiscal year 2012-2013 will identify the number of programs delivered and the number of people reached through events presented or co-presented by OCF and its resident companies. The data from this initial annual report will be used to create a baseline for establishing goals and measuring performance in subsequent years. (ii) The annual report for fiscal year 2012-2013 will identify the number of free or reduced cost programs delivered, the number of people reached through such programs, the number of ticket subsidies provided and the dollar value of such subsidies. The data from this initial annual report will be used to create a baseline for establishing goals and measuring performance in subsequent years. (iii) The annual report for fiscal year 2012-2013 will identify the number of persons living within the City served for ticketed events. Such data cannot be generated for attendees at non-ticketed events, group ticketing or all resident company programs. The data from this initial annual report will be used to create a baseline for establishing goals and measuring performance in subsequent years. (iv) The annual report will identify the total value of rent subsidy provided to local arts organizations (including resident companies) or artists for the use of Overture Center. (h) OCF will prepare an initial plan for institutional marketing on or before October 15, 2011.

Performance Terms. OCF agrees to abide by the following terms and conditions and provide the following documentation to the City: (a) OCF will develop a revised and revise a updated strategic plan. The initial updated strategic plan will be drafted and provided to the City on or before October 15June 30, 20112016 (Whenever this Agreement states that OCF is to provide something to the City, it will be provided to the Mayor’s Office and the Madison Arts Commission (MAC)). (b) OCF will prepare an annual report within 90 days of the close of its fiscal year, and will invite the public to a meeting on the report, encouraging community input. OCF will prepare performance projections for 2012 2016 based on the most recent ODC OCF annual report. The baseline for establishing goals and measuring performance shall be based on the annual report for fiscal year 20122015-20132016, as set forth in Section (2)(g) herein. The City and OCF will discuss during 2015-2016 the feasibility of restricting a portion of the grant from the City to be designated for certain uses. (c) OCF will operate the Overture Center in a financially sound manner measured as follows: (i) OCF will generate earned and contributed revenue which together with the City subsidy, as described in Section 4 below, will result in sound financial operations, as detailed below. (ii) The annual audited financial statements, prepared in accordance with GAAP, shall contain an unqualified opinion as to going concern status. Such records will be available for City review as described in the Structural Agreement. (iii) The annual audited financial statements shall contain positive unrestricted net assets when adjusted for the amount invested in capital assets (also called expendable net assets, i.e., excluding the assets and liabilities associated with capital assets). (iv) The annual audited financial statements shall not indicate a carry-forward operating deficit that is greater than 5 percent of expendable net assets as defined above, or 5 percent of the current year’s budget, whichever is larger. (v) In the event OCF does not achieve the financial standards outlined in 2 (c) (i) through (iv) above, OCF will provide the City a plan to remedy the issue, and will provide evidence of progress on that plan by June 30, 20132016. (vi) These financial performance standards will be in effect beginning July 1, 2012, which is the first full fiscal year of OCF operation. (d) OCF will prepare balance sheets and audited financial statements in accordance with GAAP within 90 days of the closing of its fiscal year and will provide copies to the City in a timely manner. Such records will be available for City review as described in the Structural Agreement. (e) OCF’s commitment to create a capital reserve fund will be measured as follows: (i) Pursuant to the Structural Agreement and under the initial Annual Performance Contract, OCF agreed to use its best efforts to accumulate a capital reserve fund of $1,000,000 by June 30, 2014. (ii) In fiscal year 2012-2013, the OCF Board of Directors designated $700,000 in net assets in a “Board Designated Reserve” as its initial installment that could be used to meet the intent of the Structural Agreement. In addition, since January 1, 2012, OCF has expended $1,454,826.00 for capital improvements for the Overture Center. (iii) OCF has used its best efforts to meet its obligations for a capital reserve fund. (iv) OCF will act continue to use its best efforts to create a capital reserve fund in the amount of $5 million. From July 1, 2012 through June 30, 2014, OCF shall use its best efforts to accumulate a capital reserve fund of $1 million with the balance of the capital reserve fund to be accumulated by June 30, 2017. (f) An initial updated plan for fundraising shall be developed and provided to the City on or before October 15, 20112016. (g) OCF’s commitment to arts, educational and community programming, including free or reduced cost programs and outreach will be measured as follows:set forth in this paragraph (recognizing that in some cases it may not be feasible to obtain such information, and some data cannot be generated at all, e.g. for attendees at non-ticketed events, group ticketing or all resident company programs). Because some of the data provided to the City for the 2014-2015 season was not easily available, OCF and the City agreed to work together to complete the information and OCF shall present it to the City in the first quarter of 2016. In future years, OCF shall provide this data and information to the City on or before September 30 of each year, including September 30, 2016. (i) OCF will establish goals and objectives for the portion of the grant from the City used for arts, educational, and community programming for 2015-2016, and will provide that information to the City. OCF will provide to the City as part of the 2015-16 report the amounts used for arts, educational, and community programming, identifying each program supported with City funds. (ii) The annual report for fiscal year 20122015-2013 2016 will identify the number of programs delivered and the number of people reached through events presented or co-presented by OCF and its resident companies. The data from this initial annual report will be used to create a baseline for establishing goals and measuring performance in subsequent years. (ii) The annual report for fiscal year 2012-2013 will identify the number of free or reduced cost programs delivered, identifying, where feasible, the number of people reached through such citizens of Madison attending the programs, the number of ticket subsidies provided and the dollar value of such subsidies. The data from this initial annual report will be used to create a baseline for establishing goals and measuring performance in subsequent years. (iii) The annual report for fiscal year 20122015-2013 2016 will identify the number of free or reduced cost programs delivered and the costs of providing such programs, where feasible, the number of citizens of Madison reached through such programs, where feasible, and the number of ticket subsidies provided to Madison citizens and the dollar value of such subsidies. The data from this annual report will be used to create a baseline for establishing goals and measuring performance in subsequent years. (iv) The annual report for fiscal year 2015-2016 will identify the number of persons living within the City served for ticketed events and the amount spent for these events. Such data cannot be generated for attendees at non-ticketed events, group ticketing or all resident company programs. The data from this initial annual report will be used to create a baseline for establishing goals and measuring performance in subsequent years. (ivv) The annual report for 2015-2016 will identify the total value of rent subsidy provided to local arts organizations (including resident companies) or artists for the use of Overture Center. (vi) The annual report for 2015-2016 will identify the number of Madison-based artists contracted for services and the amount spent. (vii) The Report must include, to the extent available, the number of participants and the costs of the programs reflected in the “Madison Arts Commission Arts Education, Overture 2014-1015 Season” spreadsheet which is an attachment in the Legistar file. That Report will also include participants and costs for Arts Education, Any Given Child, and Racial Equity Initiatives. OCF will identify and provide to the City its efforts at engagement with communities of color. To the extent some of this information is not available by September 30, 2016, OCF will provide the information in the first quarter of 2017. (h) OCF will prepare and provide to the City an initial updated plan for institutional marketing on or before October 15, 20112016.