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5.0 OPERATIONAL RESPONSIBILITIES 5.1 Accounting. Operator shall collect all fees as indicated herein and agrees that it will provide the City with an annual accounting, thirty (30) days after the end of each contract year showing the amount of fees collected per calendar year and the Facilities gross revenue per month for the calendar year. Operator will also provide the City with data showing the breakdown between residents and non-residents using the Facilities, thirty (30) days after the end of each contract year. City may request detailed financial statements, including balance sheets, profit and loss, or income statements to support the accounting and Operator shall provide such documentation within ten (10) days of City's request. 5.2 Audit. Annually, Operator shall hire a certified public accountant to conduct an audit their financial statements for the tennis center and provide that audit to the City within sixty (60) days of their operating yearend. City will have the right but not the obligation to hire a certified accountant to conduct an annual audit of the Facilities financial statements including balance sheets, profits and losses and income and bank statements. 5.3 Quality of Service. Service to the public is of prime concern to City and part of the consideration for this Agreement. Therefore, Operator agrees to manage, operate and conduct its operation in a first-class manner, providing similar activities, programs and services. Operator, following receipt of written notification therefore, shall immediately withdraw or remove from sale any goods, services, and/or merchandise which may be found objectionable to the Executive Director based on findings that the provision of such terms are not in the best interest of the public welfare. 5.4 Compliance with Laws, Rules and Regulations. Operator shall conform to and abide by all municipal and City ordinances, and all State and Federal laws and regulations, insofar as the same or any of them are applicable; and where permits and/or licenses are required for the Agreement, any related activity, and/or construction authorized herein, the same must be first obtained from the regulatory agency having jurisdiction thereover. Further, Operator shall conform to and abide by all rules and regulations and policies of the City Council, the Executive Director of the Parks, and any other City departments insofar as the same or any of them are applicable. 5.5 Disorderly Persons. Operator shall use its best efforts to permit no intoxicated person or persons, profane or indecent language, or boisterous or loud conduct in or about the demised premises and, if necessary, will call upon the aid of peace officers to assist in maintaining peaceful conditions. 5.6 Illegal Activities. Operator shall not knowingly allow the use or possession of illegal drugs, narcotics, or controlled substances on the Facilities or any other activities that are prohibited by City ordinances or other applicable regulations. M20089v2