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CC 08-18-2020 Item No. 17 Lifetime Agreement Amendment_Staff PresentationCupertino City CouncilAugust 18, 2020Lifetime Agreement AmendmentCC 08-18-2020 Item No. 17 Agenda●Current agreement terms●Proposed amendment●Limitations●Recommended action Objective●To consider an amendment to the Lifetime Agreement due to the economic impacts of COVID-19, and Sports Center closure for the seismic retrofit●FY 2019-2020●FY 2020-2021 Current Agreement●Lifetime offers programs and activities at the Sports Center●City provides Lifetime office, retail, and programming space●Compensation Terms●The City receives a portion of Lifetime’s revenue in the form of a flat fee or 16% of total annual gross revenue, whichever is greater●Compensation is split into 8 payments per fiscal year Proposed AmendmentFY 19-20 seventh payment●Waive the flat fee ($42,500)●Sports Center closed • March 16 to June 14 ●Programs resumed with restricted operations•June 15 Proposed AmendmentFY 20-21●Remove the flat fee●Increase the percentage of gross revenue charged to 23% per payment Limitations: COVID-19●Class ratio●Camp participants●Limited program availability Limitations: Seismic Retrofit●Closure: September to December●Elimination of the office, retail, and indoor programming space●Reduction of outdoor program space Recommended Action●Authorize the City Manager to amend the current agreement with Lifetime Tennis Inc., DBA Lifetime Activities Inc. to adjust the compensation accepted by the City from March 13 to May 26 and for Fiscal Year 2020-2021 due to the impacts of COVID-19 and Sports Center retrofit. Questions●Dana Gill, Founder & CEO of Lifetime●Kevin Khuu, Management Analyst Parks & Recreation Department