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Exhibit 7 <br />5.0 OPERATIONAL RESPONSIBILITIES <br />5.1 Accounting. Operator shall collect all fees as indicated herein and agrees <br />that it will provide the City with an annual accounting, thirty (30) days after the end of <br />each contract year showing the amount of fees collected per calendar year and the <br />Facilities gross revenue per month for the calendar year. Operator will also provide the <br />City with data showing the breakdown between residents and non-residents using the <br />Facilities, thirty (30) days after the end of each contract year. City may request detailed <br />financial statements, including balance sheets, profit and loss, or income statements to <br />support the accounting and Operator shall provide such documentation within ten (10) <br />days of City's request. <br />5.2 Audit. Annually, Operator shall hire a certified public accountant to conduct <br />an audit their financial statements for the tennis center and provide that audit to the City <br />within sixty (60) days of their operating yearend. City will have the right but not the <br />obligation to hire a certified accountant to conduct an annual audit of the Facilities <br />financial statements including balance sheets, profits and losses and income and bank <br />statements. <br />5.3 Quality of Service. Service to the public is of prime concern to City and part <br />of the consideration for this Agreement. Therefore, Operator agrees to manage, operate <br />and conduct its operation in a first-class manner, providing similar activities, programs <br />and services. Operator, following receipt of written notification therefore, shall <br />immediately withdraw or remove from sale any goods, services, and/or merchandise <br />which may be found objectionable to the Executive Director based on findings that the <br />provision of such terms are not in the best interest of the public welfare. <br />5.4 Compliance with Laws, Rules and Regulations. Operator shall conform to <br />and abide by all municipal and City ordinances, and all State and Federal laws and <br />regulations, insofar as the same or any of them are applicable; and where permits and/or <br />licenses are required for the Agreement, any related activity, and/or construction <br />authorized herein, the same must be first obtained from the regulatory agency having <br />jurisdiction thereover. Further, Operator shall conform to and abide by all rules and <br />regulations and policies of the City Council, the Executive Director of the Parks, and any <br />other City departments insofar as the same or any of them are applicable. <br />5.5 Disorderly Persons. Operator shall use its best efforts to permit no <br />intoxicated person or persons, profane or indecent language, or boisterous or loud <br />conduct in or about the demised premises and, if necessary, will call upon the aid of <br />peace officers to assist in maintaining peaceful conditions. <br />5.6 Illegal Activities. Operator shall not knowingly allow the use or possession of <br />illegal drugs, narcotics, or controlled substances on the Facilities or any other activities <br />that are prohibited by City ordinances or other applicable regulations. <br />#20089v2 <br />250-8 <br />