HomeMy WebLinkAbout2012-28 Sun House, Museum Policy RESOLUTION 2012-28
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING A THREE YEAR POLICY FOR THE
SUN HOUSE MUSEUM AND COMMITMENT TO NEGOTIATE AN AGREEMENT WITH THE SUN HOUSE
GUILD AND THE GRACE HUDSON MUSEUM ENDOWMENT
WHEREAS,the City of Ukiah,Sun House Guild(Guild)and Grace Hudson Museum Endowment
( Endowment)have a long history of working together to provide for the continuing staffing and
operations of the Grace Hudson Museum and Sun House collections and facilities; and
WHEREAS,the City of Ukiah is now confronted with a significant$1.7 million revenue shortfall in its
General Fund related to the on-going economic downturn and continuing reduction of revenues from
the State of California;and
WHEREAS,the City Council has received a recommendation from the City Manager as part of the FY
2012/13 General Fund budget development that includes a work force reduction of city employees,and
museum employees have been included in that recommendation;and
WHEREAS,the parties involved,the City of Ukiah,the Guild and the Endowment,desire to avoid a work
force reduction of museum personnel;and
WHEREAS,the City Council has determined that use of funds from the City's General Fund reserves may
be made to avoid a work force reduction of museum personnel:
NOW,THEREFORE,BE IT RESOLVED that:
Annual Expenses(estimated based on FY 2012/2013)
Salaries&Benefits $235,481
Operations&Maintenance $62,967
Total Expenses $298,448
Annual Revenues (Estimated)
Attendance/Donations $12,000
Rentals $5,000
Grant $25,000
TOT $75,000
Contribution $45,000
Total Revenue $162,000
Net $136,448
Three Years x Net$409,344 - To be one time contribution by City of Ukiah to GHM "415 Fund"
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1. The City of Ukiah hereby adopts a policy, as set forth below in paragraphs 2-15, for the funding
of the Grace Hudson Museum&Sun House for the three years commencing July 1, 2012 and
terminating June 30,2015,with the cooperation of the Guild and Endowment.
2. The parties agree to negotiate in good faith,during the next three years,for a long term
agreement modifying or replacing or separate from the current agreement between the City of
Ukiah and the Sun House Guild,adopted on January 5,2005.
3. Any new agreement would commence on July 1,2015, unless the parties reach a new agreement
and agree to an earlier date.
4. The parties will continue to operate under the 2005 agreement during the term of this three year
policy.
5. If the parties fail to reach a new long term agreement during the term of this three year policy,
the parties will continue to operate under the 2005 agreement.
6. If the parties fail to reach a new long term agreement during the term of this three year policy,
accounting for the Grace Hudson Museum Operations& Maintenance and Salary&Benefits will
move from the"415 Fund"back to the General Fund (Fund 100,Dept 6150)where they were
accounted for prior to the creation of the fund under this three year policy.
7. The City shall continue to maintain the Grace Hudson Museum Grounds(such Grounds include all
the Grace Hudson Museum&Sun House property and adjoining Grace Hudson Park property
excluding only the Grace Hudson Museum&Sun House buildings).
8. In the event that any expenses during the term of this three year policy exceed current
projections(those projections currently totaling$298,448 per year)and are not offset by
revenues pursuant to paragraph 9 below,the difference shall be reconciled and the parties'share
of the payment thereof shall be negotiated at the end of the three years.
9. All revenue attributable to the Grace Hudson Museum shall be deposited in, or credited to the
"415 Fund"—including, but not limited to,50%of the 2%of the actual TOT each fiscal year, all
rents for the Grace Hudson Museum facilities(excepting city departments and divisions utilizing
Grace Hudson Museum facilities with the understanding that whenever possible outside rentals
receive priority),all Attendance/Donations revenue and all administration portions of grant
monies received for the benefit of the Grace Hudson Museum. These funds shall first be
allocated to offset any difference between projected and actual operations expenses that result
in a shortfall to the City. Any revenues in excess of expenses will be maintained in the"415
Fund."
10. City staff shall continue to manage the facilities rental and shall provide a monthly recap of
income from the facility to the Sun House Guild treasurer.
11. The Grace Hudson Museum has agreed to make the following contributions as long as the City
complies with the three year policy set forth in this resolution:
FY Contribution Date
12/13 $85,000 Fire Protection July 2012
13/14 $-0- July 2013
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14/15 $45,000 July 2014
15/16 $45,000 July 2015
16/17 $45,000 July 2016
12. The Guild has agreed to immediately move forward to contract and install the Fire Protection
System at an estimated cost of$85,000. This sum will be negotiated for reimbursement by the
City as part of negotiations for a long term agreement.
13. The Grace Hudson Museum&Sun House,the Sun House Guild and the Endowment fund shall
have no obligation to incur any new liabilities,whether currently existing or future as a result of
this three year policy. The Grace Hudson Museum,the Sun House Guild,and the Endowment
Fund boards shall have no obligation to take on any new responsibilities for the operation and
management of the Grace Hudson Museum&Sun House as a result of this three year policy.
14. The parties shall issue a joint news release announcing the adoption of this three year policy
within three days of City Council's adoption of this resolution.
15. The Sun House Guild and the Endowment Fund boards have agreed to work together to increase
the Endowment Fund principal to the greatest possible level over the term of this three year
policy.
THE FOREGOING RESOLUTION WAS ADOPTED at a regular meeting of the Ukiah City Council held on
20th day ofJune 2012, by the following roll call vote:
AYES: Councilmember Thomas, Rodin, Baldwin,Vice Mayor Crane,and Mayor Landis
NOES: None.
ABSENT: None
ABSTAIN: None
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Mary Anal andis, Mayor
ATTEST: IL
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