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HomeMy WebLinkAbout2008-08-27-08 specialAugust 27, 2008 5:30 p.m. WORK STUDY SESSION 1. ROLL CALL 2. WORK STUDY SESSION a. WORK STUDY SESSION EXPLORING POTENTIAL FUNDING FOR THE ALEX RO A AUGH CENTER AND POTENTIAL FACILITY MANAGEMENT OF T ALEX ROAAUG CENTER. 3. PUBLIC COMMENT 4. ADJOURNMENT Please be advised that the City needs to be notified 24 hours.in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 7:30 am to 5:00 pm I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 24 hours prior to the meeting set forth on this agenda. Dated this 22nd day of August, 2008. Linda Brown, City Clerk I ITEM NO. Work Study 5 PM DATE: August 20, 2008 AGENDA SUMMARY REPORT SUBJECT: WORK STUDY SESSION EXPLORING POTENTIAL FUNDING PORT E ALEX RO BAUGH CENTER AND POTENTIAL FACILITY MANAGEMENT OPT E ALEX RO AU H CENTER. On June 4th, a work study session was held to discuss the current status of the Ukiah Valley Cultural and Recreation Center (UVCRC) also known as the Alex Rorabaugh Center (ARC). The Alex Rorabaugh Center is a 21,000 square foot multi-purpose community center located at 1640 S State Street. The information that was presented during the June 4th work study session is included as Attachment #1. The discussion items included the potential forthe Ukiah Redevelopment Agencyto provide funding forthe completion of the ARC gymnasium facility and the potential for the City of Ukiah Community Services Department Recreation Division to manage the operations of the ARC facility. The outcome of the study session was a list of questions. Continued on Page 2 RECOMMENDED ACTION: Receive status report and provide direction to staff. ALTERNATIVE COUNCIL POLICY OPTIO : N/A Citizen Advised: N/A Requested by: Ukiah Valley Cultural and Recreation Center Prepared by: Katie Merz, Community Services Supervisor and Sage Sangiacomo, Community Services Director Coordinated with: Jane Chambers, City Manager Attachments: 1. ARC status update originally presented June 4, 2008 2. Sample RDA Resolution 3. Draft Management Operating Agreement APPROVED: C'a,". J e Chambers, City Manager The following list includes the June 4th questions and subsequent answers from staff. The questions and answers are split into two categories with the first covering the use of Redevelop funds for the completion of the building, and the second covering operational management of the facility. RedeveloRment funds to support construction of the /ARC gymnasium: Question: What is the timeline for implementation? Staff has been in contact with the other potential supporting agencies including the County of Mendocino, Ukiah Unified School District and Mendocino College. Once authorized by the City Council, Staff will proceed with finalizing the agreements and securing the contributions. Staff has prepared a sample resolution with the required findings to utilize RDA funds. This draft document is included as Attachment #2 for review. Each of the identified partners would have to have the item approved by their respective governing bodies. UVCRC is ready to proceed with issuing the RFP for completion of the gym and managing the final phase of construction. Question: What are the long term liabilities with the use of RDA funds for the completion of the gym? There are no statutory obligations or commitments for the length of operation of the facility if RDA funds are used to complete the construction. Question: What are the existing liabilities with the CDBG funds utilized for the facility? Remedial action for noncompliance issues is a liability for the City, specifically related to the $1,000,000 funded from CDBG With the City identified as the local recipient. Findings of noncompliance could include failure to achieve the primary program objectives and failure to provide the required records related to the use of CDBG funds. The sanctions taken to remedy the noncompliance could include repayment of funds (partial or all) and the suspension of future funding. The City has three potential liability issues: 1. Given that the grant has not been closed out due to noncompliance issues with the required recordkeeping during the construction of the project, the City is subjected to remedial action. Note that professional support is being acquired to help resolve the reporting compliance issues and finalize closeout. 2. The failure to complete the gym portion of the facility may be viewed as noncompliance given that the gym was leveraged as a match component of the project. 2 3. The City is under contract with the Department of Housing and community development to maintain the facility as specified in the grant application at least through 2010. Failure to meet the documented objective of providing alternative youth activity for the targeted income group could result in sanctions including the repayment of the grant. Question: What is the distribution of RDA funds including pass through and capital outlay agreements? Could this project be use as a catalyst to change the formulas for distribution to the other agencies? The URA's financial advisors are in the process of preparing a matrix demonstrating the distribution of RDA funds. Given that each of the agencies would be equally contributing partners in the completion of the facility, it is unlikely that these agencies would be willing to give up.any additional funds by agreeing to changes in their agreements with the URA unless other leverage can be identified. The agreements with Ukiah Unified and Mendocino College for RDA funds are capital outlay agreements that have to conform to redevelopment law and have to be used in a manner consistent with the URA's redevelopment objectives . requiring URA approval. If the URA is willing to consider nondiscretionary pass through agreements, a lesser amount may be considered by these agencies. The agreement with the County is a nondiscretio nary pass through agreement. The pass through is 40% of the tax increment that would have been due to the County without an RDA, increasing to 100% later in the life of the Agency. Funding projects of current interest to the County may be leverage to negotiate a new percentage for the future tax increment. ® Question: If the city steps in or funding from City/County/School is in place to complete the construction of the facility, what happens to the fundraising? Is there opportunity to use RDA funds as.a loan? The UVCRC Board of Directors is committed to continued fundraising efforts for continued improvements and equipment. The operating agreement and/or regulatory agreement for the contribution of RDA funds could include language outlining the UVCRC's obligations for continued fundraising efforts. Contributed RDA funds could be treated as a loan obligation with terms to be set by the Agency. The loan option would allow the Agency to potentially recover funds if future grants become available. -However, staff anticipates limited opportunities for grants or other funding sources that could be used for such purposes. Question: What are the existing priorities for RDA? Council would like to know what projects are pending or in the works, so that they can look at ARC in relationship to other RDA projects. As presented and approved in the 08/09 URA Budget, the major projects include Talmage Road intersection widening, Airport Park Blvd street renovation, engineering for the extension of Airport Park Blvd, and engineering plans for Betty, Clara, and Lorraine Streets. The total for these projects is $2,250,000. The Agency also has $500;000 budgeted for continuation programs including the Fagade and Sidewalk improvement programs. Furthermore, there is $4,500,000 available in cash reserves for other projects. The reserve fund has increased between $600,000 to $2,500,000 per year over the past four years depending on the yearly operation and project costs. The Agency also has the capacity to bond at an estimated amount of $27 million. Projects have yet to be identified for the bonding, but the Agency has expressed interest in the following as identified in the Five Year Implementation Plan: Enhancement of downtown public parking Downtown revitalization improvements along the State Street corridor. • Revitalization of the Palace Hotel property. • Retention of the Mendocino County Court House in the Project'Area. • Development of the Perkins Street Depot property. • Open space, riparian, and recreational facility development. Question: Council requested completion of the 08/09 RDA budget prior to considering the project. What are the implications to the RDA budget? The 08/09 RDA budget is complete and approved. At this time, Staff has received strong interest from the County of Mendocino and Ukiah Unified School District to consider the funding collaboration needed to complete the project. The estimated cost of completion and debit retirement for the project is $1,491,527. With three agencies participating, the contribution from each is $497,175. If four agencies participate (including the College), the contribution from each is $372,882. Operational Management of the A C: Background The ARC was opened in March of 2007 with a facility management plan that named the Ukiah Boys and Girls Club as the facility manager. The Boys and Girls Club provides services for afterschool and summer youth programming. In January 2008, the Boys and Girls Club closed their operations and reduced their staffing due to financial constraints. At that time the UVCRC board determined the need to secure a new agency to manage the facility. The City of Ukiah Community Services Department provides services in the areas of facility rentals, management, building maintenance, activity programming, collaborative events, and so forth. The Community Services Department could utilize existing services to undertake management and operation of the ARC. t Question: What would the relationship between the City and UVCRC look like? The City and UVCRC have researched similar agreements in other jurisdictions and have begun development of a draft operation agreement, included as Attachment #3. The agreement has been structured in such a way to provide a clear exit strategy and limited liabilities. The following is a summary of that agreement: The draft operation agreement utilizes the City's experience in recreation/leisure programming and facility management while ensuring that the UVCRC remains responsible to the mission of expanding access to recreational opportunities for children and youth while improving the health of youth, families, and the community for the ARC's operations including its financial performance. The City, using City employees, will manage the operation of the ARC facility in an effort to maximize the programs offered and better control the expenses of operating the ARC. Specifically, administrative costs will be reduced by utilizing existing resources and. staff. UVCRC will retain title to the grounds, buildings, structures and all other improvements, and its equipment. In addition, UVCRC will continue fundraising and contribute toward the capital reserve thus ensuring long term stability of the ARC facility. The net operating gain or loss formula will be negotiated if directed by Council to move forward with the agreement. The draft operating agreement with the UVCRC has been structured to provide a clear exit strategy including but not limited to options for termination. The term, as stated in the agreement, is set for five years with provisions to allow either party to request an early termination after one year. The agreement also outlines provisions for termination beyond the first year. Either party may choose to terminate the agreement and exit their contractual obligations of any time by providing written notice and observing a six month time period. The budget will be prepared jointly by UVCRC and City staff each year.and must be approved by both the City of Ukiah and UVCRC governing bodies. The intent of the arrangement is that revenues generated by ARC programs and usage will be sufficient to cover operating expenses (including, but not limited to, maintenance and contributions to any capital improvement reserves established in the budget). ® Question: What is the potential for creating a Recreation District and is the ARC a component to a future Recreation District. The creation of a Recreation District would require additional feasibility analysis and a voter initiative. Having the Community Services Department Recreation Division operating and managing services at the ARC could be a catalyst to a future Recreation District. Question: What is the anticipated value for the new ARC Gymnasium facility? What is the capacity for rentals•of the gym? The new ARC gymnasium facility will be a desirable location for large functions, activities, and sporting events. The gym will provide a space for volleyball, basketball, and badminton as well as operating as a venue for private events, presentations, or workshops. It is estimated that the gym will accommodate seated events for up to 600 people. Attachment 1 lex orabau Gymnasium Cultural Recreation Center (ARC) The Ukiah Valley Cultural and Recreation Center (UVCRC) is now the Alex Rorabaugh Gymnasium, Cultural & Recreation Center (ARC). The facility is a 21,000 square foot multipurpose community building which shares a site with the Grace Hudson Elementary School on the southern border of the city of Ukiah, Funding, Land- Ukiah Unified School District (valued at $1,000,000) $1,000,000 County of Mendocino Tobacco Settlement Fund $1,000,000 City of Ukiah Community, Development Block Grant $800,000 California Department of Education $500,000 California Endowment $600,000 S.H. Cowell Foundation Over $1,700,000 in local contributions over 800 contributors Facility Milestones: 1997- Facility planning began for the Ukiah Valley Cultural Recreation Center (UVCRC). The facility was designed and built under the direction of the UVCRC Board which is made up of local business and community leaders. February 2005: Phase 1 was completed providing the structural shell for the entire facility. March 2007: Phase 2 completed the Community Center interior and opened for use with the Boys and Girls Clubs of Ukiah. ® January 2008: Boys and Girls Club closed their programs and reduced their staff leaving the facility nearly vacant. Current Status: Phase 3 to complete the interior of the Gymnasium remains unfinished. ® The loan that was incurred to build the facility is outstanding. ® Additional costs for completing the facility are growing. New facility operations and management plans are being explored to increase broad community use and assure a sustainable facility. UVCRC Board of Directors continues fundraising activities and is working on creating operating/maintenance endowments. Opportunity to secure capitol funding to complete the Gymnasium is limited given local economics and limited funders. i Facility Features Supervised afterschool activities Weekend and evening recreation & education programs 11,000 square foot youth center ® Computer room Music room Arts & crafts room ® Indoor games area Outdoor play area Offices for community based organizations 10,000 square foot gymnasium & stage ® Pull out gym divider 6 basketball hoops Full size tournament basketball court with bleachers Full size theatrical stage 1,350 square foot conference center 3 public meeting rooms with tables, chairs and visual materials Full kitchen UVCRC Project Completion & Debt Retirement UVCRC Debt Service UUSD 94,000 NCCLF Debt 393,569 Total Debt $487,569 Gym Completion Costs Engineer's Construction Estimate 756,489 Other Construction Costs - Soft costs 146,200 Gym Awnings for weather proofing exterior 180,000 Construction Total 1,082,689 10% Contingency 108,269 Total Gym Completion Costs $1,190,958 D funding secured toward construction $147,000 UVA C Loan Fund Deserve $40,000 Total Cost for Construction & Debt Retirement $1,491,527 CITY OF UKIAH ARC General Operating Account EXPENSE ACCOUNT NO. FY 08/09 110 Salaries, Regular $ 15,818 .000 Receptionist (25% Recreation Admin, 25% Parks, 50% ARC) 111 Salaries, Non-Regular $ 20,000 .000 2 Facility Attendant (20 hours per week @ $10.00 per hour) 115 Salaries Overtime and Holidays $ 1,000 141-156 Employee Benefits $ 14,313 .000 Retirement, Workers Compensation Insurance, Group Insurance, Unemployment Insurance, FICA, Medicare. 210 Utilities $ 12',000 .000 City and PG&E utilities (without gym open; Increase to $24000 w/ G ym ) 220 Telephone $ 2,500 .000 Maintenance agreement, long distance and system charges. 250 Contractual Services $ 5,000 .000 Pest Control, Routine Carpet Cleaning 280 Burglar Alarm Maintenance $ 1,000 301 Building Maintenance and Repair $ 21500 .000 Building maintenance and repair 302 Equipment Maintenance and Repair $ 3,000 .000 Heating, air conditioning, and miscellaneous equipment. 690 Supplies $ 7,500 .000 Building maintenance supplies 711 Contribution to Replacement Reserve (699) $ 7,500 DEPARTMENT TOTAL EXPENSE REVENUE Room Rentals Office Rentals City Contribution City Recreation Program Revenue Youth Sports $ Adult Sports $ Recreation Classes $ City Recreation Administration (210 Utilities & 305 Civic Center) Partner by MOU Boys & Girls Club $ DEPARTMENT TOTAL REVENUE PROFFIT/LOSS $ 92,131 r $ 40,000 $ 9,000 $ 13,550 4,800 5,000 3,750 $ 10,000 $ 20,000 20,000 $ 92,550 $ 419 Attachment ##2 RESOLUTION NO. RESOLUTION OFT E CITY COUNCIL OFT E CITY OF UKIA AUTHORIZWG THE S OF FUNDS 1 T (Marne of Agency) CAPITAL OUTLAY FU WITH THE UKIAH REDEVELOPMENT AGENCY AN ACING FINDINGS IN SUPPORT THEREOF. ERAS, 1. The Ukiah Redevelopment Agency ("Agency") maintains a Capital Outlay Fund for the benefit of the,(name of Agency) (")(XX S,pursuant to the 1990 agreement between the XXXX and the Agency ("the Agreement"); and 2. The Capital Outlay Fund consists of the tax increment revenues to the Agency produced by the annual 2% increase in the assessed value of real property within the Agency's Redevelopment Project Area, which would have been received by XXXX, if the A jency and Project Area had not been established; and 3. Pursuant to the Agreement, XXXX n ay request the City Council to approve the disbursement of funds in`the Capital 0utla_y Fund for property acquisition and capital projects proposed by XXXX that comply with Health and Safety Code Sections 33445, 33678, 33679 and other provisions of the Community Redevelopment Law; and 4. Before the City Council may approve a disbursement from the Capital Outlay Fund requested by XXXX, the City Council must conduct a public hearing in compliance with Health and Safety Code Section 33679; and 5. Health and Safety Code Section 33679 requires notice of the public hearing to be published for two successive weeks prior to the hearing in a newspaper of general circulation in the City and a summary of the proposal to be available for public inspection during that two week period; and 6. Notice had been published as required by law and the Summary, a true and correct copy of which is attached hereto as Exhibit A, was available for inspection during the required period; and 7. Health and Safety Code Section 33679 requires the City Council to determine the total funds to be disbursed from the fund and to make specified findings before it can approve the disbursement of said funds; NOW, THEREFORE, E IT RESOLVED as follows: 1: The total taxes to be disbursed on behalf of XXXX from the Capital Outlay Fund for the construction of improvements is 2. Based on the facts as set forth in the attached Exhibit A, the City Council hereby finds: a. The building is of benefit to the project area and contributes to the elimination of blight. b. There are no other reasonable means of financing the construction of the building available to the community. 3. The distribution as requested by!XXXX is hereby approved. PASSED AND ADOPTED by the Ukiah C ty'Council on DATE, 2008, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Douglas F. Crane, Mayor ATTEST: Linda Brown, City Clerk 2 EXHIBIT A T RESOLUTION SUMMARY F PROPOSED EXPENDITURE UKIA REDEVELOPMENT AGENCY (Cnsert Name of Agency) CAPITAL OUTLAY Flt The City of Ukiah created a redevelopment agency ("Agency"), adopted a redevelopment plan, and established a redevelopment project area in 1990. The Agency uses a portion of property,tax revenues to undertake projects and finance improvements to reduce or eliminate blighted conditions in the redevelopment project area. The primary source of income to.a redevelopment agency 'is "tax increment," which is the portion of ad valorem real property tax that results :~rorri the increase in assessed value of real property in the Agency's redevelopment project area over the "base year," which is the year the redevelopment plan is approved. The increment is composed of two parts: the annual 2% increase authorized by Cal. Revenue and Taxation Code Section 110, and the increase resulting from reassessment of real property aflier a sale or after the construction of improvements. In 1990, when the City of Ukiah adopted its redev elopment plan and created the Agency, it entered an agreement ('Agency Name' Agreement") with the -,nsert Agency Name ("XXXX"), among other iocal govern merit agencies. The agreement with ~CXX requires the Agency, to pay into a Capital Outlay Fund for XXXX the 2% of property tax increment above the 1990 base year that goes to the Agency. The agreement authorizes XXXX to request the City Council to approve the disbursement of funds in the Capital Outlay Fund for capital improve Merits proposed by3XXXX that comply with Health and Safety Code Sectaons 33445, 33678;- 33679 and other provisions of the Community Redevelopment Law. Under the agrement and the Community Redevelopment Law, the City Council must conducf 6" ,public hearing in compliance with Health and Safety Code Section 33679 before it.can approve the disbursement of funds in the Capital Outlay Fund for the a -quisition of land or the construction of buildings to be owned by XXXX. XXXX has requested the release of funds from the Capital Outlay Fund to pay for the cost of completing the construction of the gym.facility at Ukiah Valley Cultural and Recreation Center located at 1640 South State Street. Prior to conducting its public hearing on this request, the City is required to make available for two weeks a summary. The summary must state the total amount of taxes proposed to be used for the construction of the building and other 3 improvements, and it must include the facts supporting the findings which are required by Health & Safety Code §33445.' Those findings are as follows: (1) That the buildings, facilities, structures, or other improvements are of benefit to the project area or the immediate neighborhood in which the project is located. (2) That no other reasonable means of financing the buildings, facilities, structures, or other improvements, are available to the community. (3) That the payment of funds for the acquisition, of land or the cost of buildings, facilities, structures, or other improverCients will assist in the elimination of one or more blighting conditions ipside the project. A. Estimate of tames proposed to pay for land and construction of building is $$I$$ B. Facts supporting findings finder Health & Safety Code Section 33445. 1. The UVCRC Byrn is of benefit to -the -project area and contributes to the elimination of biighto L Thy,UVCRC's ,goal is to expand access to recreational opportunities for children and youth while improving the health of youth, families: and the community. ii. The UVCRC` provides structured and informal recreation that can improve overall health and well-being for children and families by' reducing obesity and high-risk behaviors by giving opportunities to develop positive self images. iii. The UVCRC also provides access to health and prevention information; rotating Public Health nurse services (family planning, STD testing';, health screening); youth outreach; anger management and conflict resolution programs; substance abuse prevention programs; adult education opportunities; and gang prevention programs. iv. The UVCRC represents a collaboration between the City of Ukiah, the County of Mendocino, Ukiah Unified School District, Mendocino College District the Ukiah Valley Cultural and Recreational Center, and other county and community-based' organizations. All partners have contributed to the project in substantial ways, and have participated in the planning process. V. The UVCRC is located on the Grace. Hudson Elementary School Campus and provides critical public services to the residents in the 4 Ukiah Redevelopment Project Area. The UVCRC provides recreational opportunities and other services which address the needs of "at risk" youth and families, and thereby contribute to the reduction of blighted conditions in the project area. vi. Children and families in UVCRC's.service area are impacted by poverty and social pressures that create an environment that fosters risk factors and diminishes opportunities for positive development. These problems are exacerbated when children and families do not have safe environments in which to play and exercise. South Ukiah is in particular need of positive development opportunities. Its residents are among the county's most impoverished families. In a survey developed by the Mendocino County Department of Public Health, more than 92% reported incomes below $30,000, regardless of family size (36% had incomes under $12,000, and 50 had incomes of $12,000- $30,000). vii. According to the County's Probation Department, the majority of the county's juvenile probation caseload liyes~within a half-mile radius of the UVCRC. Gang activity is als,p increasing in south Ukiah, and an estimated 75% of the gang caseload for the Ukiah area live in this area. viii. The UVCRC's gym will. provide a location for safe and supervised activities where children and families can be exposed to protective factors including positive role rnodeIs and opportunities to connect and build positive caring relationships, and thereby contribute to the reduction of blighting elements and conditions in the project area. 24 There are hqo othea r-,easonable means o financing the buildings available to the comm'Un'ity i. According to X)CX,; it lacks the means to finance the construction of the gym facility. ii. The use of Capital Outlay Funds in compliance with the request of the X XX for which they have been set aside is consistent with the implementation plan adopted by the Agency pursuant to Health & Safety Code §33490. Specifically, (1) Eliminate and prevent the conditions which lead to the spread of blight by providing the renewal, redevelopment, and restoration of the Redevelopment Project Area, and (2) Promote public safety and economic growth through an improved system of streets, utilities, and public facilities. Insert Date Ukiah Redevelopment Agency Attachment #3 CI OF UKIA AND UKIAH VALLEY CULTURAL AN RECREATION CENTER OPERATING AGREEMENT FOR T ALEX RG AGH CENTER This Agreement ("Agreement") is made this day of , 2008 ("Effective Date"), by and between the City of Ukiah, a California general law city ("City'), and the Ukiah Valley Cultural and Recreation Center, a .California - non- profit corporation (UVCRC") for operations of the Alex Rorabaugfi Center ("ARC") located at 1640 South State Street, Ukiah, California. Recitals A. The UVCRC owns the newly constructed ARC, a 2-4,000 sq~ia're foot community recreation center which includes multipurpose rooms, gymnasium, court yard, office space, and kitchen. B. The City of Ukiah is experienced in Operating community acilities and collaborative recreation/leisure activities in the Ukiah Valley area. C. The City and the UVCRC desire to fske advantage of the City's experience in recreation/leisure programming and facility management while ensuring that the. UVCRC remains responsible to the mission of expanding access to recreational opportunities for children and youth while improy -the health of youth, families, and the community foi` the ARC's operations including its financial performance. D. The parties bPhe,ve they can maximize the programs offered and better control the expenses o'f operating,the ARC if the City, using City employees, manages the operation of the facility. E. The parties desire to set forth the terms and conditions of their relationship in this Agreement with fui-ther details of the actual ARC operations to be set forth in a Nnter Operating` :ian. The initial Center Operating Plan ("COP") is attached to 1I y greement` as;: Exhibit A; however it is intended that specific services this provided 'by each party and the operating relationships may change over the course of-tihi`s Agreement in order to meet community needs. F. The City and. UVCRC commit themselves to work together in the spirit of partnership for the success of the ARC, subject to the terms and conditions of this Agreement, and to deal with each other with fairness, respect, cooperation, and good faith in the operation of the ARC and performance of this Agreement. The City and UVCRC commit to promptly resolve disputes over this Agreement and/or ARC operations. S:\Community Services\Csfiles\Registration_Files\ARC\Council Study Session\Attachment 3 City Of Ukiah - UVCRC ARC Operating Agreement. Doc 1 NOW THEREFORE, the parties agree as follows. Agreement Parties to the Agreement. City is the City of Ukiah, 300 Seminary Avenue, Ukiah, California 95482, with its principal contact for purposes of this Agreement as follows: Director of Community/General Services 300 Seminary Avenue Ukiah, CA 95482 Phone: 707-463-6221 Fax: 707-463-6740 UVCRC is the Ukiah Valley Cultural,,10md Recreation Center, P .O. Box 561, Ukiah, California 95482, with its principal contact fot purposes of this Agreement as follows: Executive Director, UVCRC P.O. Box 561 Ukiah, CA 95482 Phone: 707- 462-8562 Fax: 2. Term. 2.1 The terns of this /agreement shaai commence on the Effective Date and shall teri-ninate on June 3 , 2013, unless earlier terminated by either party as w:,Yvided in Section 2.2 6r extended as provided in Section 2.3. 2.2 In additionlo the provisions of Section 5.6 and 5.7 below, either party may request an't i 1y terry ination of this Agreement after June 30, 2010. Such i request mol be made in writing, and must be made a minimum of six -months in adnce of proposed termination date, unless City and UVCRC muk,pjifly ag.f to a lesser time. Provided that such written request is timely made, termination shall occur upon the specified termination date. This Agreement may be extended for two additional five-year terms upon the written mutual agreement of the parties which agreement must be reached no later than December 31, 2012, for the first extension, and December 31, 2017, for the second extension. The parties may mutually agree to additional extensions beyond this date. Prior to each extension, the parties. shall prepare an evaluation of the ARC operations and present it to the City Council and the UVCRC Board of Directors. S:\Community Services\Csfiles\Registration_Files\ARC\Council Study Session\Attachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 2 3. Management and Staffing. City and UVCRC agree to cooperatively manage and operate the ARC as a successful recreation center for the benefit of the public. A "Recreation Supervisor," or other classification as determined by the City, shall be employed by the City and responsible for all ARC operations. The initial COP is attached to this Agreement as Exhibit, A and, is incorporated into this Agreement by this reference. The COP, among other things, details staff duties and operating relationships. The parties hereby authorize the City of Ukiah City Manager ("City Manager') and the UVCRC Board President ("UVCRC President") to modify in Oriting the COP from time to time as may be necessary to facilitate efficient operations of the ARC consistent with the intent of this Agreement.. The Recreation Supervisor shall be employed by the Gty The City shall provide the UVCRC with opportunities for meaningful and su0stantial input on the ongoing performance of.thexiPecreatien Supervisor. The Recreation Supervisor shall have operational authority for the management and operation of the ARC. The duties and responsibilities of the Recreation Supervisor shall include, bit not be limited I6: a. Managing the ARC~,so that it is developed and maintained as a successful recreational center. b. Managing rentals and, use of the facility. C. PrP~aMgp and administering the annual budget and work plan for ~deveiopment and operation of the ARC. d. Preparing the progress reports and annual budget for the preceding fiscal year for approval by Ilia City Council. e. Organizing, schedrjr~,W and directing City employees, volunteers, and independent contractors assigned to the ARC. f. "f porting on status of operations at the ARC as requested, inc ud ng, b6t4fift-limited to, providing a reports intended for the City Couh k and UIV-CRC Board of Directors. 9b Perfor ng all duties that are usual and customary and normally assoc~ed with the position of a recreation supervisor of a public recreation center. Notwit4sls riding the parties' agreement to cooperatively manage and operate the ARC, City employees working at the ARC are employed solely by the City, and the City retains all responsibilities associated with their employment. UVCRC employees working at the ARC are employed solely by the UVCRC; and the UVCRC retains all responsibilities associated with their employment. The parties agree to cooperate fully with each other in resolving any employment issues. The UVCRC agrees to indemnify and hold the City, its agents, officers and employees harmless from any claim or damage resulting from an employment matter involving a ARC UVCRC employee acting within the scope of employment. The City agrees to SACommunity Services\Csflles\Registration_Files\ARC\Councif Study SessionMachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 3 indemnify and hold the UVCRC, its agents, officers and employees harmless from any claim or damage resulting from an employment matter involving a ARC City employee acting within the scope of employment. The City shall consult the UVCRC Executive Director prior to the selection of the candidate by the City for the position of Recreation Supervisor, either at the initial hire or in future hiring actions. Performance issues on the part of the Recreation Supervisor may be raised by either party and addressed through the dispute resolution process provided for in Section 9.1 of this Agreement. The ARC staff may be comprised of employees of both the City and the UVCRC. It is acknowledged and agreed betvyeen the parties that to achieve the optimum performance of the tgtal ARC Staff, City employees may be directed to work at the ARC of-i' V C activi~&'Ls within the scope of this Agreement and UVCRC errlk~yees'may be directed to work at the ARC on City activities within the. Cope of th:i.s Agreement. The Director of Community/Generai Services fore the City and the UVCRC Executive Director shall meet periodically, to evaluate ARC operations and shall prepare no lateeta, an December 3,1 of each year and present as soon as practicable thereaft r an annual report on -ARC operations to the City Council and the Boa 4 of Directors of the UVCRC. The report shall include user satisfaction data as wr_-J~ a~_q•-data on the financial performance of the ARC. The Director and Executive Director may involve other City and UVCP,' C staff in developr9nt of the an nual report as desired. 4. Ground:9 and Facilities: The UVCRC shall sreta.ip tlifte to the grounds, buildings, structures and all other ` improvements, and its equipment. Subject to approval of the Recreation Supervisor, certain equipment owned by the UVCRC may be used at Athe ARC; provided, however, any such equipment must be identified in , a vvriti% attached to the COP and the equipment must be clearly marked=as UVCRC property on the equipment itself. They 'ty a%;pUVCRC agree that both parties shall continue joint use of the group -affibildings, equipment and other improvements at the ARC in « furthergf'ce of this Agreement. The Recreation Supervisor shall determine g-P the most effective use of the ARC grounds, buildings, equipment and other -improvements subject to the approval of the City's Director of Community -and General Services, or such other individual designated in writing by the City Manager, in consultation with the Executive Director for the UVCRC, or such other individual designated in writing by the UVCRC Board President. S:\Community Services\Csfiles\Registration_Files\ARC\Council Study SessionMachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 4 5. Budget and Funding. 5.1 a. b. C. ~1. The parties agree that it is the intent of the arrangement governed by this Agreement that revenues generated by ARC programs and usage will be sufficient to cover operating expenses (including, but not limited to, maintenance and contributions to any capital improvement reserves established in the budget). (For purposes of this Agreement, "fiscal year" shall mean the twelve consecutive months beginning July 1 of the year first referenced and ending June 30 of the year last referenced. For example, "fiscal year 2008/09" means the period beginning July 1, 2008 and ending June 30, 2009. ) In February of each year, the R-creation Supervisor and the Executive Director of the UVI~CRC` ("Executive Director") shall develop budget assumptions related to the ARC operating budget for the following fiscal yea r. Before March' 15, or on another mutually-agreed upon date, the Recreation Supervisor and E eptive Director shall develop the preliminary prof ed annual ARC operating budget and workplan. The budget will 'i~iude estimated costs anal revenue from rental and activities as well as agreed-upon `r capital improvement reserves. The UVCRC may_agree to the preliminary proposed ARC operating budget andorkplan or 'terminate this Agreement subject to -the notification proviujOns of section 5.6. The proposed annual bud:'et and work plan and the latest progress report will he included Aj:i the City Manager's Recommended Budget, which na~,st C-e-lubmitted to the City Council no later than May 15 each year. -Once the City Council has established the annual operatingt budget, the UVCRC may agree to the ARC operating bu f or terminate this Agreement subject to the notificrataion pry rsions of section 5.6. Once tide annual budget and work plan is approved by the City Counil, that annual budget and work plan shall be implemented by ,MACcreation Supervisor for the upcoming fiscal year. Z,. 5.2 The City shall pay an agreed-upon amount for City programs held at the ARC and other identified usage including but not limited to rental of office space. The foregoing payments shall be made quarterly to the ARC revenue fund managed by the City of Ukiah and shall be due by July 15, October 15, January 15 and April 15. City will provide detailed usage reports along with the documentation of the payments to the UVCRC Executive Director. S:\Community Services\Csfiles\Registration_Files\ARC\Couneil Study. Session\Attachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 5 5.3 The City and UVCRC may agree to a mid-year budget adjustment to the ARC budget in special circumstances including, but not limited to; a significant unexpected expense affecting the ARC operations which could not be reasonably anticipated or controlled. 5.4 The City shall provide UVCRC with quarterly reports on the operating position of the ARC. Both parties agree to maintain agreed-upon customer service standards and accessibility over the course of the year, while recognizing that operations may change over the year in order to meet financial objectives for ARC operations. 5.5 As part of the annual budget and work plan adoption process, the parties will agree on a method for separately accounting for fee-based activities and usage. A budget worksheet for the ini~iai year is attached as Exhibit B. A final annual budget reconciliatronj;`{b~a11K; be prepared no later than October 1 of each year. Any net op `rating gain (calcuia?ted by subtracting approved operating expenses, f~~cluding t a reserve for future capital expenditures, from fee-based act,WWt es ahi"o usage revenue.) shall be distributed to the parties as follows: XX° o to the City and XX% to the UVCRC. Any net operating loss . (calculated by subtracting approved operating expenses, ii"vding a reserve-,for future capital expenditures, from fee-based activities and usage revenue) shatj be paid by parties as follows: XX%`from the City and XX% by transfer offunds from the UVCRC to.the City no later than s1,xty (GO) days after receipt of the final budget reconciliation. 5.6 In the Event that the UVCRC,does not agree to the annual budget and work p1pn as approved by We City Council, this Agreement shall terminate. The U\/G,RC will notify the City in writing that this Agreement shall be terminated six,paptl s-46m the date of notification, or on another dat:.as agreed-upon by ttio parties. Distribution of net operating gain or Ali suspended during the six month notice period. Likewise, the loss sfw UVCRC ON not be obligated to pay the amount of revenue shortfalls, as described in section' 5.5, during the six month notice period. The parties acknowledge and agree that such a termination will require a substantial a~Aount of time to accommodate ongoing obligations at the ARC and to enal full~S#'paration of responsibilities and obligations of the parties. The W:k partiES',gg-r=%e to cooperate reasonably one with the other in such an event to facili>- a such a separation as expeditiously as possible. Termination of this Agreement as provided in this Section (with each party bearing its own costs) shall be the sole remedy of the parties. 6. Programming and Pricing. 6.1 The City and UVCRC will agree upon programming and pricing as part of the annual budget and work plan process. The initial programming and pricing is as described in the COP. S:\Community Services\Csfiles\Registration_Files\ARC\Council Study Session\Attachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 6 6.2 The parties acknowledge that the scope of community services offered at the ARC, including youth, family, intergenerational, special event, and adaptive programming; may evolve overtime. 6.3 Initial program pricing and the pricing philosophy for the ARC are provided in Section XXX of the COP. 6.4 It is intended that the annual City Council approval of the budget and work plan will authorize the City Manager to adjust prices and programming as needed in accordance with a City Council adopted policy or directive. 7. Revenues and Marketing. 7.1 The parties agree that Ukiah Valley residents are intended to be the primary beneficiaries of the ARC, althnusgh the ARC will be available for the use of non-residents as well. To "that end, the parties desire to develop a marketing plan and activity program pricing structure that will accomplish the foregoing goal and will pr=ovide adequ6te revenues to cover annual operating expenditures. The parties afro 'intend to jointly and/or individually seek grants or other sources of funding which may be available to provide eXsting or expanded services and programs at the ARC. Both parties agree to cooperate fully,, one with the other, in such endeavors. 7.2 The parties agree that there shall be no discrimination, based upon race, color, creed, religion, gender, marital status, age, disability, national origin, sexual orientation, or ancestry, in any activity or membership offered pursuant to this Agreement. 8. Audits, Record Retention and Inspection. The parties understand and agree that the City is a public entity and as such is suoject to various laws including, but not limited to, the California Public Records Act; and as such members of the public as well as representatives of governmental agencies have access to and the right to examine, audit, excerpt, copy or transcribe any pertinent transaction, activity, or ether records of each party relating to this Agreement. Such mate`nel, including, but not limited to, all pertinent costs, accounting, and financial records shall be retained by each party for a period of at least five (5)' years after their creation date. Each party grants the other party, at the requesting party's expense, the right to conduct at any reasonable time an audit and re=audit of the books, records and business conducted related to this Agreement and observe the operation of the business so that the accuracy of the above records and any of the invoices for services provided can be confirmed. S:\Community Services\Csflles\Registrabon_Files\ARC\Council Study Session\Attachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 7 In the event of any dispute between the parties as to financial matters, the parties agree, as their sole remedy, to mutually choose an independent auditor to conduct an investigation of the disputed matter. If the parties are unable to mutually choose an independent auditor, each party shall identify one auditor and those two auditors shall choose a third, independent auditor to conduct the investigation. The auditor so named shall be deemed. to have been mutually chosen by the parties. if, as a result of the investigation of the mutually chosen auditor, any adjustment in payment is required by either party, such payment shall be made within sixty (60) days of receipt of written demand for same. The decision of the mutually chosen auditor shall be final and binding upon:,the parties. 9. Dispute Resolution.. 9.1 9.2 9:t3 Operational Issues. Except as othei`uie -pecifically set forth in this Agreement, any dispute concerning day fo day operational decisions in the implementation of this Agreement as further detailed ins the COP shall be resolved by the Director-— of ~Qommunft General Servilc+_Is and the Executive Director of the UVCR8!,.; For any disputes whi`i h - cannot be resolved by these individuals, either party may request that the Ukiah City Manager resolve the dillep.pte after first consulting with the UVCRC Board President. The decision`J'Ahe4,City Mai shall be final. Other Issues. Should other disputes arise between the parties for which a dispute resglution mechanism or remedy iO'NV of otherwise specifically set forth in this Ag,etrnent, and the parties ar,e unable to resolve such matters betweetl thems.10-1ves by. negotiation after the complaining party has provided the other party written~he r"ce.of the complaint and a reasonable opportunity to cure the ~roblemlffien such disputes shall be resolved in the Courts of the w of endocino County in accordance with applicable law anti procedure, including any claims procedures that may be regd f d by law with respect to a general law city. set forth in ,to termina shall 10 Indemnification. iA T tion if either party seeks judicial redress of a dispute as fiction f 9.2, that action shall give either party the opportunity s tefhis Agreement by providing the other part0ffit y six months ten notice of such desire to terminate. The action to .his Agreement described in this section is not intended nor Drsely affect the process set forth in section 9.2. 10.1 The City agrees to indemnify, defend and hold harmless UVCRC, its agents, officer and employees, from and against any and all liability, expense, including defense costs and legal fees, and claims for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, or property damage arising from or connected with City's operations or its services under this Agreement, including any Worker's S:\Community Services\Csfiles\Registration Files\ARC\Council Study Session\Attachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 8 Compensation suits, liability or expense, arising from or connected with services performed by or on behalf of the City by any person pursuant to this Agreement. City's duty to indemnify UVCRC shall survive the expiration or other termination of this Agreement. 10.2 The UVCRC agrees to indemnify, defend and hold harmless City, its agents, officer and employees, from and against any and all liability, expense, including defense costs and legal fees, and claims for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury, or property damage arising,from or connected with UVCRC's operations or its services under this Agreement, including any Worker's Compensation suits, liability or expense, arising from or connected with services performed by or op behalf of the UVCRC by any person pursuant to this Agreement. UV&C's duty to indemnify City shall survive the expiration or other termination of, this Agreement. 11. Insurance. 11.1 General Requirements. Without limiting U\-CRC's indemnification of City .or limiting City's indemnification of UVCRC, UVCRC and City shall each provide and maintain 't its own expense throughout the term of this Agreement the herein6 ter listed programs of insurance covering its operations hereunder. Such insurance providesd, by UVCRC and by City shall be provided by insurers satisfae~toly to City's 'Risk Manager and satisfactory to the UVCRG&S !lxecutive Director, respectively, and a certificate or other evidence ©fcoverage and certified copies of additional insured' endorseMdrits satisfactory to City and UVCRC, respectively, shall be Al vered to the City's Risk' tanager and to the UVCRC's Executive Director, rpspectively. before th effective date of this agreement. It is recognized that City dbrrerq'ftfy provides general liability, workers' Wni ' sation. and auto liability insurance coverage through a combination of self insurance, pooled coverage, and purchased excess insurance coverage. §Ai evidence of coverage shall specifically identify this Agreemht and shall contain the express condition that City or UVCRC, as'' plicable, is to be given at. least thirty (30) days advance .written notic of any modification or termination of any program of h~ insapnce. Al such insurance provided by UVCRC shall be primary to and not bopt 4uting with any other insurance maintained by City. With the exceptlyn of workers' compensation insurance, all such insurance provided by UVCRC and by City shall name "City of Ukiah, its elected officials, officers, employees, agents and representatives" and "Ukiah Valley Cultural and Recreation Center, its officers, employees, agents, and representatives," respectively, as additional insureds. At all times during the term of this Agreement, UVCRC and City shall provide and, maintain the following forms and amounts of insurance: S:\Community Services\Csfiles\Registrabon_Files\ARC\Council Study Session\Attachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 9 a. Liability. Comprehensive General Liability Insurance written on a commercial general liability form or on a comprehensive general liability form covering the hazards of premises-operations, products/completed operations, independent contractors, advertising, contractual, broad form of property damage, and personal injury with a combined single limit of not less than Two Million Dollars ($2,000,000) per occurrence and an aggregate limit of not less than Four Million Dollars ($4,000,000). b. Workers' Compensation. Insurance in an amount and form to meet all applicable requirements of the Labor Co le of the State of California, including Employer's Liability. C. Comprehensive Automobile Liability- Endorsed,. for all owned, non- owned, and hired vehicles with a corilbined stye limit of not less than Two Million Dollars ($2;060,000) per accident. d. Failure to Comply. Failure Qn the parf"of UVCRC or City to procure or maintain required insurance small constitute a material breach of contract upon which City or UVCRC, respectively, may immediately terminate this A pgpment. Notwithstanding this requirement, in the event that UVCRtGv r City fails to procure or keep in effect at all times the insurance coverage required herein, City or UVCRC, respectively, may in° its discretion procure said insurance on behalf of UVCRC or City, respectively. and charge UVCRC or City, respeaJ yely, the full cost of the insprance and administrative costs. 11.2 The,FfpaA~es agree and will ensure-that all ARC staff are trained in all safety related matters as required by lavv or appropriate for the services provided at the ARC. This inr~UCls driminal history checks as part of pre- enapiotnent screening, I 11Y 12. Notices. .q~tice, consent, authorization or other communication to be given shall be in AnY: writing and deemed duly given and received when (a) delivered personally, (b) transmitted, br facsimile, (c) one business day after being deposited for next-day delivery witiv,18 -nationally recognized overnight delivery service, or (d) three business days after being . mailed by first class mail, charges and postage prepaid, and in all cases properly addressed to the party to receive such notice at the last address furnished for such purpose by the party to whom notice is directed. In the case of notices to be given to the City, notice shall be addressed as follows: S-Xommunity Services\Csfiles\Registration_Files\ARC\Council Study Session\Attachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 10 City Manager City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Phone: 707-463-6200 Fax: 707-463-6740 With a copy to: City Clerk City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Phone: 707-463-6200 Fax: 707-463-6740 In the case of notices to be given to'the UVCRC, ;notice shall be addressed as follows: Board President Ukiah Valley Cultural and Recreation Center P.O. Box 561 Ukiah, CA 95482 Phone: 707- 462-8562 Fax: Either party.", gay change its address of other contact information by giving notice in writing to the other party as specified in this section. 13. Ame-ndmews. This Agreement shall only be amended by a writing signed by both parties after approval by the City Council and UVCRC Board of Directors. 14. Appro uafions. The payment f+ny obligations of the City described in this Agreement is subject to the annual ;appropriation of funds for said payments by the City Council. This provision dd s not affect any obligation of the City for payment of funds attributable to a fiscal year for which an annual budget has been approved. 15. Miscellaneous Provisions. 15.1 Good Faith and Cooperation. The City and UVCRC agree that it is in their mutual best interest and in the best interest of the public that the ARC be operated and managed as herein agreed and, to that end, the parties shall in all instances cooperate and act in good faith in compliance with all of S:\Community Services\Csfiles\Registration Files\ARC\Council Study SessioMAttachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 11 the terms, covenants, and conditions of this Agreement and shall deal fairly with-each other. 15.2 Severability. If any provision of this Agreement, or the application of such provision to any party or circumstance, shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement, or the application of such provision to such party or circumstance other than those to which it is held to be invalid or unenforceable, shall not be affected thereby. 15.3 Governing Law. This Agreement shall be governed by.,and construed and interpreted in accordance with the laws of the State of California, without regard to that state's conflict of laws principies. 15.4 Entire Agreement. This Agreement contairt the ent4rz agreement of the parties and supersedes all prior 'to contemporaneous written or oral negotiations, correspondence, understandings and agree,m0ntso between the parties regarding the subject matter hereofi, 15.5 Parties in Interest. Nothing in this Agreement shall confer any rights or remedies under or by`Yreason of this Agreen-rent on any party other than the UVCRC and the City nor shall anything in,-this,. Agreement relieve or discharge the obligation or liability of any third party to any party to this Agreement nor shatl any provisos give any third party any right of subrogation or action over or agtnst any pa`rt'y to this Agreement. 15.6 Waiver. Failure of either party to complain of any action, non-action or defadllt -olAhe oth4t-party shall net. constitute a waiver of such party's rights here under,,vvith respect to such action, non-action or default. Waiver by the U-VCRC or City of any rqi 't or a`tly default hereunder shall not constitute a wai _ ~ Fany`subsequent default of the same obligation or for any other default, t resp-nt or future. No payment by a party, or acceptance by the other .i ~:y, of avsser amount than shall be due from one party to the other. shall treated otherwise than as a payment on account. The acceptance+ a party of a check for a lesser amount, with an eprsemenr statement thereon, or upon any letter accompanying such A i%k that .ich lesser amount is payment in full, shall be given no effect, and'`atY may accept such check without prejudice to any rights or remedi"which it may have against the other party. 15.7 Construction. This Agreement has been negotiated by, the parties and their respective legal counsel and will be fairly interpreted in accordance with its terms and without strict construction in favor of or against any party. 15.8 No Assignment. This Agreement, nor any part of it nor any right or obligation arising from it shall be assigned without the express written consent of the parties. S:\Community Services\Csfiles\Registration_FilesWRC\Council Study Session\Attachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 12 15.9 . Independent Contractor Status. The parties shall at all times be acting as independent contractors. This Agreement is not intended, and shall not be construed to create the relationship of agent, servant, employee, partner, joint venture or association as between the parties. The parties understand and agree that any of their personnel furnishing services to the ARC under this Agreement are employees solely of the party which hired such personnel for purposes of workers' compensation liability and for purposes of receiving all other types of employee benefits. The parties shall bear the sole responsibility and liability for furnishing workers' compensation benefits to any personnel hired by them, for injuries arising from or connected with services performed under this Agreement, and shall bear the sole responsibility and li-~ibility for furnishing all other employee benefits to any personnel hired by there. IN WITLESS WHEREOF, the UVCRC and the City have executed this Agreement as of the day and year first above written. Approved as to form: David Rapport City Attorney City of Ukiah By: Name: Jane Chambers Title: City Manager S:\Community Services\Csfiles\Registration_Files\ARC\Council Study Session\Attachment 3 City Of Ukiah - UVCRC ARC Operating Agreement.Doc 13 City Ukiah City Council Meeting Voluntary Sign-in e Meeting date Name-Please print Address -Please rant m v r g f J// 7 4 -rte August 27, 2008 WORK STUDY SESSION ROLL CALL Ukiah City Council met at a Special Meeting/Work Study Session on August 27, 2008, the notice for which being legally noticed on, August 22, 2008. Mayor Crane called the meeting to order at 5:37 pm. Roll was taken with the following Councilmembers present: Thomas, McCowen, Rodin, Baldwin, and Mayor Crane. Councilmembers absent: None. Staff present: City Manager Chambers, Community Services Supervisor Merz, Director of Community & General Services Sangiacomo, and Deputy City Clerk Currie. 2. WORK STUDY SESSION a. Work Study Session Exploring Potential Funding For The Alex Rorabaugh Center And Potential Facility Management Of The Alex Rorabaugh Center. 5.40.43 PM City Manager Chambers introduced the item. Director of Community & General Services Sangiacomo and Community Services Supervisor Merz presented the item. Recommended Action: Receive status report and provide direction to staff. Councilmember McCowen recused himself from the item due to a potential conflict of interest at 5:46 pm. Public Comment opened 6:52 pm. 6:52:43 PM Public Speaking to the Item not in support: John C. Graff, citizen, and Eric Crane Public Speaking to the item in support: Richard Shoemaker, Ukiah Valley Cultural and Recreation Center; Santiago Simental; Chris Gibson, home owner; John McCowen, speaking from the public podium; Michael Kisslinger, citizen; Steve Dunnicliff, County of Mendocino Analyst; and Tim Thornhill. Councilmember Baldwin left the dais at 7:24 pm. Public Comment closed 7:47 pm. Staff will move forward and meet with the other interested agencies, get proposed agreements, and will report to City Council including timelines and how gym funding will be obtained. Councilmember Rodin left the dais at 7:48 pm. CC 8/27/08 Page 1 of 2 3. PUBLIC COMMENT None. 4. ADJOURNMENT There being no further business, the meeting adjourned at 7:49 pm adjourned Ox A Jnne M. Currie, Deputy City Clerk CC 8/27/08 Page 2of2