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Page 3 Fairground Committee May 20, 1991 Association and the Paris Rodeo and Horse Club. Councilman Bell said he did not know if we could pull Section 2.02 out of that lease and insert it into the lease between the City and the Fair Association. Councilman Bell said that there are other thing that is going to have to be greatly expanded. Councilman Bell pointed out that what is not defined in the City's lease with the Fair Association is gross receipts, it does not explain it, break it out, or clarify it. City Attorney Haynes advised that the sublease is an instrument agreed upon by the Fair Association and the Paris Rodeo and Horse Club, and it is completely separate and apart from the lease the City has with the Fair Association, that the language has been in the City's lease for approximately 30 years. City Attorney Haynes did say that there has never been a question regarding gross receipts before. Councilman Bell told the Committee that in checking for background information, he does not feel there is any question that the Fair Association is spending the 10% required by the lease, but the definition that they are going to spend 10% of annual gross receipts is not defined. Council Bell gave an example of, do you take the gross receipts off the bingo operation, which is $118,000.00, or do you take the gross receipts off of their consolidated statement, which shows a net income of $41,000.00 for the bingo operation. Councilman Bell asked the question, is gross receipts all of the bingo receipts? City Attorney Haynes answered no, because State law says it is not, if State law did not define gross receipts, then it would be the total amount of receipts from bingo. City Attorney said that according to State Law, you have to give back a certain amount for prizes, and the amount of the prizes is not taxed. Chairman Burnett asked City Attorney Haynes if the State Law states that the amount of the prizes can not be included as gross receipts? City Attorney Haynes answered no, but it says it is really not income, and gross receipts is something even larger normally than income. Councilman Bell told the Committee that in discussions with parties, he was under the impression that the City of Paris was named as an additional insured on all liability policies, but in checking, found out that is not true, and requested that the Council request an amendment to all leases that the City be named in all liability insurance policies as an additional insured. After further discussion, a motion was made by Councilman Bell to recommend to the City Council that the City Attorney get with a representative from the Fair Association in order to amend their lease with the City of Paris, clarifying Gross Receipt, and to use as a guide Article 2 of the sublease between the Fair Association and the Rodeo and Horse Club and to also address bingo. The motion was seconded by Councilwoman Smith, and carried 3 ayes, 0 nays