HomeMy WebLinkAboutresolution.council.093-18 RESOLUTION #93
(Series of 2018)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN,
COLORADO, APPROVING AN OPERATING AGREEMENT BETWEEN THE
CITY OF ASPEN AND WEBOPS, LLC AUTHORIZING THE CITY
MANAGER TO EXECUTE SAID OPERATING AGREEMENT ON BEHALF
OF THE CITY OF ASPEN, COLORADO.
WHEREAS, there has been submitted to the City Council an operating
agreement for continued operation of the Wheeler Bar and other designated areas
pursuant to a tavern license between the City of Aspen and WeBops, LLC a true
and accurate copy of which is attached hereto as Exhibit " A";
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF ASPEN, COLORADO,
That the City Council of the City of Aspen hereby approves that Contract
for continued operation of the Wheeler Bar and other designated areas pursuant to
a tavern license between the City of Aspen and WeBops, LLC a copy of which is
annexed hereto and incorporated herein, and does hereby authorize the City
Manager to execute said agreement on behalf of the City of Aspen.
INTRODUCED, READ AND ADOPTED by the City Council of the City of
Aspen on the 11`h'day of June 2018.
J
Steven Sk ron,Wayor
1, Linda Manning, duly appointed and acting City Clerk do certify that the
foregoing is a true and accurate copy of that resolution adopted by the City
Council of the City of Aspen, Colorado, at a meeting held June 11, 2018.
Linda Manning, City Cie k
OPERATING AGREEMENT
This Operating Agreement (hereinafter referred to as the "Agreement") is entered into as of
this of 2018, by and between WeBops LLC, a Colorado limited
liability company(hereinafter"WeBops"), and City of Aspen, a Colorado Municipal
Corporation organized under the laws of the State of Colorado (hereinafter the "City"), concerns
and specifies the following:
RECITALS:
WHEREAS, the City is the current holder of a tavern license for the sale of alcohol on
its property located within the Wheeler Opera House, Aspen, Colorado (hereinafter the "Liquor
License");
WHEREAS, WeBops has managed or operated through a service agreement the bar in
the second floor space of the Wheeler Opera House pursuant to this tavern licenses since
September 1, 2017;
WHEREAS, the City and WeBops wish to terminate any prior agreements and enter into
this agreement for the continued operation of the second floor bar, known as the Wheeler Bar,
and other designated areas,pursuant to a tavern license that will be jointly held by the two parties
on terms as set forth herein;.and
WHEREAS, the Parties wish to grant such rights to each other under the terms and
conditions of this Agreement.
NOW THEREFORE, in consideration of the promises and covenants contained herein
and for other good and valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, the Parties hereby agree as follows:
1. Liouor License Transfer. The parties hereby agree that the current Wheeler Tavern License
Will be transferred from the City of Aspen to the City of Aspen and WeBops. WeBops will
file all necessary and appropriate documents to complete the transfer.
2. Management and Operation WeBops shall operate and manage the Wheeler Bar, the Bar
Storage Areas, and the license areas set forth in Exhibit "B", attached'hereto, in a competent
and professional manner pursuant to the terms set forth at Exhibit A attached hereto and by
this reference incorporated herein.
3. Term. This agreement shall commence upon the completion of the transfer of the Liquor
License from the City of Aspen to the City of Aspen and WeBops and shall continue until
August 31, 2020 unless sooner terminated pursuant to the terms of this agreement.
4. Payments. Funds and receipts generated pursuant to this operation of the bar and the Tavern
license shall be distributed and paid pursuant to the terms set forth in Exhibit A, attached
hereto.
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5. Non-Assignability. Both parties recognize that this Agreement cannot be transferred,
assigned, or sublet by either party without prior written consent of the other. Sub-
Contracting, if authorized, shall not relieve the WeBops of any of the responsibilities or
obligations under this Agreement. WeBops shall be and remain solely responsible to the City'
for the acts,errors, omissions or neglect of any subcontractors'officers,agents and
employees,each of whom shall, for this purpose be deemed to be an agent or employee of
the WeBops to the extent of the subcontract.The City shall not be obligated to pay or be
liable for payment of any sums due which may be due to any sub-contractor.
6. Termination. WeBops or the City may terminate this Agreement, without specifying the
reason therefor, by giving notice, in writing,addressed to the other patty, specifying the
effective date of the termination..No fees shall be earned after the effective date of the
termination. Notwithstanding the above, WeBops shall not be relieved of any liability to the
City for damages sustained by the City by virtue of any breach of this Agreement by the
WeBops.
7. Indemnification. To the extent allowed by law,the parties hereto hereby agree to indemnify and
hold harmless each other,their officers, employees, insurers,and self-insurance pool, from and
against all liability,claims,and demands,on account of injury, loss, or damage, including claims
arising from bodily injury, personal injury,sickness,disease,death,property loss or damage,
which arise out of or are in any manner connected with this contract, if such injury, loss,or
damage is caused in whole or in part by,or is claimed to be caused in whole or in part by,the
negligent act,omission, error,of the party, any subcontractor of the party, or any officer,
employee, representative, or agent of the party or of any subcontractor of the party, or which
arises out of any workmen's compensation claim of any employee of the party or of any
employee of any subcontractor of the party.
8. WeBops's Insurance.
WeBops agrees to procure and maintain, at its own expense, a policy or policies of insurance
sufficient to insure against all liability,claims, demands, and other obligations assumed by
the WeBops pursuant to Section 7 above. Such insurance shall be in addition to any other
insurance requirements imposed by this contract or by law. The WeBops shall not be relieved
of any liability, claims, demands, or other obligations assumed pursuant to Section 7 above
by reason of its failure to procure or maintain insurance,or by reason of its failure to procure
or maintain insurance in sufficient amounts, duration, or types.
WeBops shall procure and maintain, and shall cause any subcontractor of the WeBops to
procure and maintain,the minimum insurance coverages listed below. Such coverages shall
be procured and maintained with forms and insurance acceptable to the City. All coverages
shall be continuously maintained to cover all liability, claims, demands, and other obligations
assumed by the WeBops pursuant to Section 7 above. In the case of any claims-made policy,
the necessary retroactive dates and extended reporting periods shall be procured to maintain
such continuous coverage.
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(i) N"arkers'Compensation insurance to cover obligations imposed by applicable laws for
any employee engaged in the performance of work under this contract, and Employers'
Liability insurance.with minimum limits of FIVE HUNDRED THOUSAND DOLLARS
($500,000.00) for each accident, FIVE HUNDRED THOUSAND DOLLARS
($500,000.00)disease - policy limit, and FIVE HUNDRED THOUSAND DOLLARS
($500,000.00) disease - each employee. Evidence of qualified self-insured status may be
substituted for the Workers' Compensation requirements of this paragraph.
(ii) Commercial General Liability insurance with minimum combined single limits of ONE
MILLION DOLLARS ($1,000,000.00) each occurrence and TWO MILLION'DOLLARS
($2,000,000.00) aggregate. The policy shall be applicable to all premises and operations. The
policy shall include coverage for bodily injury, broad form property damage(including
completed operations), personal injury (including coverage for contractual and employee
acts), blanket contractual, independent contractors, products, and completed operations. The
policy shall contain a severability of interests provision.
(iii) Comprehensive Automobile Liability insurance with minimum combined single limits for
bodily injury and property damage of not less than ONE MILLION DOLLARS
($1,000,000.00) each occurrence and ONE MILLION DOLLARS ($1,000,000.00) aggregate
with respect to each WeBops's owned, hired and non-owned vehicles assigned to or used in
performance of the Scope of Work. The policy shall contain a severability of interests
provision. If the WeBops has no owned automobiles, the requirements of this Section shall be
met by each employee of the WeBops providing services to the City under this contract.
The policy or policies required above shall be endorsed to include the City-and the City's
officers and employees as additional insureds. Every policy required above shall be primary
insurance, and any insurance carried by the,City, its officers or employees, or carried by or
provided through any insurance pool of the City, shall be excess and not contributory
insurance to that provided by WeBops. No additional insured endorsement to the policy
required above shall contain any exclusion for bodily injury or property damage arising front
completed operations. The WeBops shall be solely responsible for any deductible losses
under any policy required above.
The certificate of insurance provided to the City shall be completed by the WeBops's
insurance agent as evidence that policies providing the required coverages, conditions, and
minimum limits are in full force and effect,and shall be reviewed and approved by the City
prior to commencement of the contract. No other form of certificate shall be used. The
certificate shall identify this contract and shall provide that the coverages afforded under the
policies shall not be canceled, terminated or materially changed until at least thirty (30) days
prior written notice has been given to the City.
Failure on the part of the WeBops to procure or maintain policies providing the required
coverages, conditions, and minimum limits shall constitute a material breach of contract upon
which City may immediately terminate this contract, or at its discretion City may procure or
renew any such policy or any extended reporting period thereto and may pay any and all
premiums in connection therewith, and all monies so paid by City shall be repaid by WeBops
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to City upon demand, or City may offset the cost of the premiums against monies due to
WeBops from City.
City reserves the right to request and receive a certified copy of any policy and any
endorsement thereto.
The parties hereto understand and agree that City is relying on, and does not waive or intend
to waive by any provision of this contract, the monetary limitations (presently$350,000.00
per person and $990,000 per occurrence)or any other rights, immunities, and protections
provided by the Colorado Governmental Immunity Act, Section 24-10-101 et seq., C.R.S., as
from time to time amended, or otherwise available to City, its officers, or its employees.
City's Insurance. The parties hereto understand that the City is a member of the Colorado
Intergovernmental Risk Sharing Agency (CIRSA)and as such participates in the CIRSA
Proper-ty/Casualty Pool. Copies of the CIRSA policies and manual are kept at the City of
Aspen Risk Management Department and are available to WeBops for inspection during
normal business hours. City makes no representations whatsoever with respect to specific
coverages offered by CIRSA. City shall provide WeBops reasonable notice of any changes in
its membership or participation in CIRSA.
10. Completeness of Agreement. It is expressly agreed that this agreement contains the entire
undertaking of the parties relevant to the subject matter thereof and there are no verbal or written
representations, agreements, warranties or promises pertaining to the project matter thereof not
expressly incorporated in this writing.
11. Notice. Any written notices as called for herein may be hand delivered or mailed by
certified mail return receipt requested to the respective persons and/or addresses listed above.
12. Non-Discrimination. No discrimination because of race, color,creed, sex, marital status,
affectional or sexual orientation, family responsibility,national origin, ancestry, handicap,or
religion shall be made in the employment of persons to perform services under this contract.
WeBops agrees to meet all of the requirements of City's municipal code, Section 13=98,
pertaining to non-discrimination in employment.
13. Waiver. The waiver by the City of any term,covenant,or condition hereof shall not
operate as a waiver of any subsequent breach of the same or any other term. No term,covenant,
or condition of this Agreement can be waived except by the written consent of the City,and
forbearance or indulgence by the City in any regard whatsoever shall not constitute a waiver of
any term, covenant, or condition to be performed by WeBops to which the same may apply and,
until complete performance by WeBops of said term,covenant or condition, the City shall be
entitled to invoke any remedy available to it under this Agreement or by law despite any such
forbearance or indulgence.
14. Execution of Agreement by City. This Agreement shall be binding upon all parties hereto
and their respective heirs, executors, administrators, successors, and assigns. Notwithstanding
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anything to the contrary contained herein, this Agreement shall not be binding upon the City
unless duly executed by the City Manager of the City of Aspen.
15. Illegal Aliens- CRS 8-17.5-101 & 24-76.5-101.
(a)'Purpose. During the 2006 Colorado legislative session, the Legislature passed
House Bills 06-1343 (subsequently amended by HB 07-1073) and 06-1023 that added new
statutes relating to the employment of and contracting with illegal aliens. These new laws
prohibit all state agencies and political subdivisions, including the City of Aspen, from
knowingly hiring an illegal alien to perform work under a contract, or to knowingly contract
with a subcontractor who knowingly hires with an illegal alien to perform work under the
contract. The new laws also require that all contracts for services include certain specific
language as set forth in the statutes. The following terms and conditions have been designed
to comply with the requirements of this new law.
(b) Definitions. The following terms are defined in the new law and by this reference are
incorporated herein and in any contract for services.entered into with the City of Aspen.
"Basic Pilot Program" means the basic pilot employment verification program created in
Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th
Congress; as amended, that is administered by the United States Department of
Homeland Security.
"Public Contract for Services" means this.Agreement.
"Services" means the furnishing of labor, time, or effort by a Contractor or a
subcontractor not involving the delivery of a specific end product other than reports that
are merely incidental to the required performance.
(c) By signing this document, WeBops certifies and represents that at this time:
(i) WeBops shall confirm the employment eligibility of all employees who are
newly hired for employment in the United States; and
(ii) WeBops has participated or attempted to participate in the Basic Pilot
Program in order to verify that new employees are not illegal aliens.
(d) WeBops hereby confirms that:
(i) WeBops shall not knowingly employ or contract new employees without
confirming the employment eligibility of all such employees hired for employment in the
United States under the Public Contract for Services.
(ii) WeBops shall not enter into a contract with a subcontractor that fails to
confirm to the WeBops that the subcontractor shall not knowingly hire new employees .
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without confirming their employment eligibility for employment in the United States
under the Public Contract for Services.
(iii) WeBops has verified or has attempted to verify through participation in the
Federal Basic Pilot Program that WeBops does not employ any new employees who are
not eligible for employment in the United States; and if WeBops has not been accepted
into the Federal Basic Pilot Program prior to entering into the Public Contract for
Services, WeBops shall forthwith apply to participate in the Federal Basic Pilot Program
and shall in writing verify such application within five (5) days of the date of the Public
Contract. WeBops shall continue to apply to participate in the Federal Basic Pilot
Program and shall in writing verify same every three(3)calendar months thereafter, until
WeBops is accepted or the public contract for services has been completed, whichever is
earlier. The requirements of this section shall not be required or effective if the Federal
Basic Not Program is discontinued.
(iv) WeBops shall not use the Basic Pilot Program procedures to undertake pre-
employment screening of job applicants while the Public Contract for Services is being
performed.
(v) If WeBops obtains actual knowledge that a subcontractor performing work
under the Public Contract for Services knowingly employs or contracts with a new
employee who is an illegal alien, WeBops shall:
(1) - Notify such subcontractor and the City of Aspen within three days that
WeBops has actual knowledge that the subcontractor has newly employed or contracted
with an illegal alien; and
(2) "Terminate the subcontract with the subcontractor if within three days of
receiving the notice required pursuant to this section the subcontractor does not cease
employing or contracting with the new employee who is an illegal alien; except that
WeBops shall not terminate the Public Contract for Services with the subcontractor if
during such three days the subcontractor provides information to establish that the
subcontractor has not knowingly employed or contracted with an illegal alien.
(vi) WeBops shall comply with any reasonable request by the Colorado Department
of Labor and Employment made in the course of an investigation that the Colorado
Department of Labor and Employment undertakes or is undertaking pursuant to the
authority established in Subsection 8-17.5=102 (5), C.R.S.
(vii) If WeBops violates any provision of the Public Contract for Services pertaining
to the duties imposed by Subsection 8-17.5-102, C.R.S. the City of Aspen may terminate
the Public Contract for Services. If the Public Contract for Services is so terminated,
Contractor shall be liable for actual and consequential damages to the City of Aspen
arising out of WeBops's violation of Subsection 8-17.5-102, C.R.S.
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(viii) If WeBops operates as a sole proprietor, WeBops hereby swears or affirms .
under penalty of perjury that the WeBops (1) is a citizen of the United States or otherwise
lawfully present in the United States pursuant to federal law, (2) shall comply with the
provisions of CRS 24- 76.5-101 el seg., and (3) shall produce one of the forms of
identification required by CRS 24-76.5-103 prior to the effective date of this Agreement.
16. Warranties Aeainst Continpent Pees Gratuities Kickbacks and Conflicts of Interest.
(a) 'WeBops warrants that no person or selling agency has been employed or retained to
solicit or secure this Contract upon an agreement or understanding for a commission,
percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide
established commercial or selling agencies maintained by the WeBops for the purpose of
securing business.
(b) WeBops agrees not to give any employee of the City a gratuity or any offer of
employment in connection with any decision,approval, disapproval, recommendation,
preparation of any part of a program requirement or a purchase request, influencing the
content of any specification or procurement standard, rendering advice, investigation,
auditing, or in any other advisory capacity in any proceeding or application, request for
ruling, determination, claim or controversy, or other particular matter, pertaining to this
Agreement, or to any solicitation or proposal therefore.
(c) WeBops represents that no official, officer, employee or representative of the City
during the term of this Agreement has or one (1) year thereafter shall have any interest, direct
or indirect, in this Agreement or the proceeds thereof, except those that may have been
disclosed at the time City Council approved the execution of this Agreement.
(d) In addition to other remedies it may have for breach of the prohibitions against
contingent fees, gratuities, kickbacks and conflict of interest, the City shall have the right to:
I. Cancel this Purchase Agreement without any liability by the City;
2 Debar or suspend the offending parties from being a WeBops Aspen LLC,
contractor or subcontractor under City contracts;
3. Deduct from the contract price or consideration, or otherwise recover, the
value of anything transferred or received by the WeBops; and Recover such value From
the offending parties.
17. General Terns.
(a) It is agreed that neither this Agreement nor any of its terms, provisions,
conditions, representations or covenants can be modified, changed, terminated or amended,
waived, superseded or extended except by appropriate written instrument fully executed by the
parties.
(b) If any of the provisions of this Agreement shall be held invalid, illegal or
unenforceable it shall not affect or impair the validity, legality or enforceability of any other
provision.
(c) The parties acknowledge and understand that there are no conditions or
limitations to this understanding except those as contained herein at the time of the execution
hereof and that after execution no alteration,change or modification shall be made except upon a
writing signed by the parties.
(d) This Agreement shall be governed by the laws of the State of Colorado as from
time to time in effect.
18. License transfer. At the end of the term set forth in paragraph 3, above, or upon any
termination of the Agreement pursuant to paragraph 6, above, WeBops agrees to consent to the
transfer of the Liquor License from WeBops and City to the City or the City's designee or both.
In the event that WeBops fails to execute the documents necessary to finalize such transfer,then
this agreement shall be deemed full authorization and consent to such transfer.
19. Prior Agreements. All prior agreements regarding the Wheeler Bar are hereby terminated.
IN WITNESS WHEREOF, the parties hereto have executed,or caused to be executed by their
duly authorized officials, this Agreement on the date first written above.
City of Aspen: WeBops:
By: t��� By:
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EXHIBIT A TO OPERATING AGREEMENT
Operating Space and License Area:
Wheeler Bar and Bar Storage Areas including all equipment in the areas, as well as the
areas described as follows: See, Exhibit "B", attached hereto.
Operating Manager:
WeBops.must appoint General Manager for the Wheeler Bar who is acceptable to the
City of Aspen. In addition, WeBops shall appoint an acting bar manager for the Wheeler
Bar who must pass the standard and required background check, and will be listed on
the Liquor License. Evidence of passing standard checks must be submitted to the City.
Gross Sales Distribution:
WeBops and the City will divide the monthly gross sales with 5% paid to the City and the
remainder to WeBops. WeBops agrees to pay the City its share of monthly gross sales on
the 15°1 of each month beginning. If the payment is not received on or before the 15ih,
WeBops shall pay the City a late charge of five percent (5%)on such overdue amount. The
parties hereby agree that such a late charge will represent a fair and reasonable settlement
of the cost that the City would incur by reason of the late payment by WeBops.
Acceptance of such late charges by the Wheeler shall in no event constitute a waiver of
WeBops's default with respect to such overdue amount, nor prevent the Wheeler from
exercising any of the other rights and remedies granted hereunder unless the entire amount
due, plus late charge, is accepted by the City. In addition, any sum for which WeBops
shall be obligated to the Wheeler, which is not received on the due date thereof, shall bear
interest at the rate of five percent (5%) per annum from and after the due date until paid.
Cost and Expenses: /
WeBops shall assume all costs involved with operating the Wheeler Bar including food and
beverage costs, labor, insurance, license(s), etc. Collecting and remitting all appropriate taxes,
fees, and documentation is the sole responsibility of WeBops.
Operating System:
WeBops will operate using the Wheeler POS, and will pay annual rent of$2,500 per year
liar the use of that system.
Operating Schedule:
WeBops Agrees to operate bar I hour prior to each public event, staying operational until
at least intermission or until mutually agreed upon time. Agrees to operate as needed for
private events, TBA based on schedule.
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Food and Beverage Menu:
Price and product menu will be submitted to the Wheeler for approval upon the execution
of this Agreement, and no later than 5 business days prior to the first bar opening. Any
price changes following the initial approval must be approved in writing by the Wheeler's
Executive Director. The Wheeler requires that aflbrdable pricing is available, requiring a
suggested range of$5 - $18. All prices will be mutually approved by the Wheeler and
WeBops. II'priccs cannot be mutually agreed upon, the agreement will be terminated.
Appearance:
WeBops staff will maintain a professional appearance while working at the Wheeler Bar,
and uniform/attire shall be agreed upon between WeBops and Wheeler Management prior
to opening. WeBops Aspen logos should not be present on working bartenders.
Licenses:
WcBops will operate under a tavern license issued to the City and the WeBops and agrees
to abide by all rules and regulations of the State of Colorado, City of Aspen, and Pitkin
County. WeBops will actively protect the liquor license and agrees to and shall save,
hold and keep harmless and indemnify the City from and against any and all liquor code
violations caused by WeBops. Any violations of state or local liquor code provisions will
be grounds for immediate termination of this agreement.
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stwscr G:fth electric: 160 - 171
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fourth electric: 142 - 159'
third electric: IV, - 141
second electric: 106. - 123
first electric: 82 - 105
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