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CITY OF MODESTO COUNCIL AGENDA REPORT

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CITY OF MODESTO COUNCIL AGENDA REPORT Powered By Docstoc
					                        CITY OF MODESTO                                    COUNCIL MEETING

                        COUNCIL AGENDA REPORT                                February 5, 2008


                                                                              January 11, 2008

TO:         Mayor and City Council Members

FROM:       Julie G. Hannon, Acting Director, Parks, Recreation and Neighborhoods Department

SUBJECT:    Management Agreement with the Stanislaus Multi-Cultural Community Health
            Coalition West Modesto/King-Kennedy Neighborhood Collaborative to operate the
            King-Kennedy Memorial Center

CONTACT:    Julie G. Hannon, Acting Director, jhannon@modestogov.com 577-5417


RECOMMENDED COUNCIL ACTIONS:

1. Adopt a resolution approving a Management Agreement with the Stanislaus Multi-Cultural
   Community Health Coalition West Modesto/King-Kennedy Neighborhood Collaborative
   (Collaborative) to manage and operate the King-Kennedy Memorial Center (KKMC), and
   authorizing the Interim City Manager, or his designee, to execute the Management
   Agreement.

2. Adopt a resolution amending the Fiscal Year 07-08 operating budget to re-allocate full-time
   and part-time staffing and operating costs of approximately $55,744 to the Maddux Youth
   Center and approximately $22,527 to the Neighborhood Center at Marshall Park.

I.      BACKGROUND:

In March 1966, the Westside Neighborhood Center Steering Committee was formed to discuss
and address some of the social issues that were occurring on the west side of Modesto. This
group was very interested in pursuing a funding source to build a neighborhood center in west
Modesto. This group wanted to sponsor social and educational programs at a site in the
Westside neighborhood that would help solve some of the identified social issues in the area.

The Westside Neighborhood Center, Inc. (WNCI), a non-profit organization, requested that the
City of Modesto file an application with the federal Housing and Urban Development
Department (HUD), for funds to construct a neighborhood center under the Neighborhood
Facilities Grant Program. The City and WNCI worked on the application to HUD and it was filed
on June 29, 1966. In March 1968, the City of Modesto entered into an agreement with WNCI,
which stated that the Westside Neighborhood Center Inc. would operate and staff the new
facility. This facility was designed to carry out a program of health, recreational, social or
similar community services. Further, the agreement stated that the organization would, at its
own cost and expense, provide all of its own equipment, furnishings and staff necessary to
carry out its programs and operate the neighborhood facility.
                                                                                Mayor & City Council
                                                                        KKMC Management Agreement
                                                                                   February 5, 2008
                                                                                             Page 2




In January 1969, the City and WNCI entered into another agreement, which stated that due to
the lack of an anticipated funding source, WNCI did not have the funding to operate the new
facility, and according to the application filed with HUD for the building funds, the City of
Modesto made a commitment to operate the neighborhood facility in the event the non-profit
organization, WNCI, could not do so. With this action, the City was then responsible for
operating and funding the Westside Community Center, and according to the agreement, the
WNCI became advisory to the City. Since that time, WNCI has become the King-Kennedy
Memorial Center Board of Directors (Board), serving in an advisory capacity to the City.

In May 1969, the name of the community center was changed to the King-Kennedy Memorial
Center (KKMC) and a dedication ceremony occurred on June 29, 1969. Since then, the City of
Modesto has been the primary building manager. Currently, the City of Modesto dedicates
$331,489 annually for the facility, staffing and program budget at KKMC. The facility is host to
all types of activities, including social programs, education sessions, and recreation activities.
The City also sponsors a variety of community organizations and community special events. To
this day, the KKMC is a source of community pride and the home to many activities.

On May 23, 2006, by Resolution No. 2006-317, the City Council authorized staff from the Parks,
Recreation and Neighborhoods Department (PRND) to invite qualified and involved non-profit
501(c) 3 organizations to submit “Letters of Interest” for consideration to enter into a
management agreement with the City of Modesto to operate the King-Kennedy Memorial Center
(KKMC). In June 2006, a “Request for Interest (RFI)” was sent to non-profit organizations that
serve the City of Modesto. Only one non-profit organization, the Stanislaus Multi Cultural
Community Health Coalition West Modesto/King-Kennedy Neighborhood Collaborative
(Collaborative), responded to the RFI. The Collaborative stated that they were interested in
operating the KKMC on a daily basis and working with the City of Modesto to enter into a
management agreement regarding the KKMC facility.

In November 2006, the next step of the process involved the Collaborative responding to a
series of questions more directly related to the oversight and management of the facility.
These questions were more technical in nature and were designed to allow the Collaborative to
explain how they would manage the facility, including reservations relating to city co-sponsored
groups and other interested community agencies. After the questionnaire was returned and
reviewed by staff, this item was discussed at a King-Kennedy Board of Directors’ meeting. This
opportunity allowed the Board to review the answers to the questionnaire and provide input to
the City regarding the potential compatibility between the Board, the City of Modesto, and the
Collaborative.

The Board was supportive of the Collaborative and the City of Modesto pursuing a management
agreement for the day-to-day operations of the KKMC. The Board was interested in making
sure the facility would be available for their meetings and that their events would still occur at
the KKMC if a management agreement is negotiated in the future. The Board voted
unanimously for the City staff to continue to pursue the management agreement concept with
the Collaborative.
                                                                                  Mayor & City Council
                                                                          KKMC Management Agreement
                                                                                     February 5, 2008
                                                                                               Page 3


On June 12, 2007, by Resolution No. 2007-339, the City Council authorized PRND staff to enter
into negotiations with the Collaborative for terms and conditions of a management agreement
for the day-to-day operations of the King-Kennedy Memorial Center. Some of the conditions
that favored this decision were:

       The Collaborative’s long-standing as a non-profit organization in West Modesto with a
       good understanding of the west Modesto community, its residents and those residents’
       needs.
       The Collaborative’s interest in working with the City of Modesto to work through the
       details of a management agreement
       The Collaborative’s strong organization financially.
       The King-Kennedy Memorial Center Board of Directors’ support to the management
       agreement concept between the Collaborative and the City of Modesto.

The basic terms of the proposed management agreement are:

       The term of this agreement shall run from February 6, 2008, to December 31, 2017.
       This ten-year agreement gives both the City and the Collaborative a long-term
       agreement.

       Either party may request to reopen the terms of this agreement during the period April
       1, 2012, through October 31, 2012.

       In addition, either party may request an early termination of this agreement after
       December 31, 2008. Such a request must be made in writing, and must be made a
       minimum of four months in advance of the proposed termination date, unless City and
       Collaborative mutually agree to a lesser time. Provided that such written request is
       timely made, termination shall occur upon the specified termination date.

       The City will continue to schedule regular custodial services at the said facility.

       The Collaborative agrees to follow and uphold the Facility Guidelines, as approved by
       City Council, for daily use and rental use of City-owned facilities, including fees, any
       regulations or procedures set regarding requirements for security personnel, and
       enforcement of the “no alcohol policy” for said facility.

       When rental events which are reserved and staffed by the Collaborative produce
       revenue, the City shall received 20% of said revenue, and the Collaborative will receive
       80% of said revenue.

       The City reserved the right to use the premises and facilities for free according to a
       submitted schedule of annual events and classes.

II.    REASONS FOR RECOMMENDATION:

City staff is recommending the management agreement with the Collaborative for several
reasons:
                                                                                  Mayor & City Council
                                                                          KKMC Management Agreement
                                                                                     February 5, 2008
                                                                                               Page 4




1. If the King-Kennedy Memorial Center is managed by the Collaborative, the City will be able
   to re-program the balance of Fiscal Year 07-08 staffing and program operating costs of
   approximately $55,744 to the Maddux Youth Center and approximately $22,527
   Neighborhood Center at Marshall Park.

   If the management agreement is not approved, the PRND anticipates requesting funding of
   $168,000 for the operation of the Maddux Youth Center for the following items:
           One full-time Administrative Office Assistant II at an annual cost of $48,000.
           One .75 FTE Recreation Coordinator at an annual cost of $45,000.
           Additional part-time salaries in the annual amount of $50,000.
           Additional funds for supplies, contracts and business expenses in the annual amount
           of $25,000.

   If this management agreement is approved, the PRND will continue the majority of the
   programs currently taking place at KKMC, supplement staffing for the expansion of the
   programs at Maddux Youth Center, and cover the majority of the full-time and part-time
   staffing needs at the Neighborhood Center at Marshall Park, with no additional General Fund
   allocation.

2. The City is committed to ensuring that the investment in the KKMC facility infrastructure is
   maintained to the current City standard. Therefore, as part of the agreement, the City will
   continue to support the facility by providing property insurance, custodial service and
   related maintenance functions, at a current cost of approximately $75,000 per year.

3. The Collaborative is a long-standing non-profit organization in West Modesto with a good
   understanding of the west Modesto community, its residents and those residents’ needs.
   Additionally, the Collaborative is very interested in working with the City of Modesto on the
   details of a Management Agreement and is a strong organization financially. The
   questionnaire completed by the Collaborative shows that the Collaborative is willing to abide
   by the City’s current facility use guidelines, purchase the identical software program used by
   the City of Modesto to manage and schedule the facility, maintain the current operating
   hours of the facility and allow not only the City of Modesto, but the King-Kennedy Memorial
   Center Board of Directors to continue to hold important daily programs and monthly special
   events at the KKMC.

4. The staffs of the Collaborative and the PRND have a long-standing relationship based on
   mutual trust and community interest. Although the organizations occasionally disagree on
   issues, the City and the Collaborative have been able to work jointly to overcome
   differences and work towards improving the community.

III.      EXISTING POLICY:

This action supports the City’s Strategic Plan as follows:

H.I.A.4     Seek opportunities for collaboration in other areas: e.g. recreation planning, citizens’
            health and safety academy.
                                                                                Mayor & City Council
                                                                        KKMC Management Agreement
                                                                                   February 5, 2008
                                                                                             Page 5


H.I.A.8    Strengthen communication to increase citizen awareness of City facilities and
           programs.
H.II.A.1.f Build Neighborhood Connections to work on neighborhood-based issues.
H.II.A.2.c Building Relationships with and Increase Services to all sectors of the community.
H.II.A.2.e Recognize and provide support to Organized Neighborhood Groups.

IV.       POLICY ALTERNATIVES:

The Council could elect not to support staff’s recommendation on the agreement, or suggest
changes to provisions of the agreement. The Council could also elect to re-allocate funding to
Maddux Youth Center and the Neighborhood Center at Marshall Park in a different amount.

V.        FISCAL IMPACTS:

The recommended Management Agreement states that the City will continue to provide
custodial and maintenance services at KKMC. The current annual operating budget for King-
Kennedy Memorial Center after a budget reduction adopted by the City Council on December 4,
2007, is $297,589. The City will continue to support the facility by providing property
insurance, custodial service and related maintenance functions, at a current cost of
approximately $75,000 per year. As of January 11, 2008, $172,149 had been encumbered and
expended; approximately $47,170 will remain in the organization, $55,744 will be re-
programmed for the Maddux Youth Center, and $22,527 to the Neighborhood Center at
Marshall Park. The exact amounts of transfer will be based on the actual amounts available on
the day of transfer.

The Management Agreement, if approved, should allow the PRND to operate the Maddux Youth
Center, staff the majority of the anticipated programs at the Neighborhood Center at Marshall
Park, and continue many of the programs at the KKMC with no additional increases to the
General Fund expenditures.

As stated earlier, if the management agreement is not approved, the PRND anticipates
requesting approximately $168,000 for necessary staffing and programming budget at the
Maddux Youth Center, and extra staffing costs for the Neighborhood Center at Marshall Park.

VI.       INTERDEPARTMENTAL COORDINATION:

The operation of the King-Kennedy Memorial Center is the sole responsibility of the Parks,
Recreation and Neighborhoods Department. If the management agreement is approved, the
Parks, Recreation and Neighborhoods Department will work closely with the Collaborative, to
ensure a positive and streamlined transition of management at the King-Kennedy Memorial
Center.

VII.      PUBLIC PARTICIPATION:

Staff has conducted extensive public outreach on this subject including issuing a Letter of
Interest to non-profit organizations that serve the City of Modesto, and meeting with
Community leaders from the west Modesto neighborhood, as well as the King-Kennedy
                                                                              Mayor & City Council
                                                                      KKMC Management Agreement
                                                                                 February 5, 2008
                                                                                           Page 6


Memorial Center Board of Directors. Additionally, this item was discussed at Safety and
Communities Committee meetings and City Council meetings in 2006 and in 2007.

VIII. COMMITTEE RECOMMENDATION:

The Safety and Communities Committee met on November 5, 2007, and recommended the
Management Agreement with the Collaborative.

IX.    ENVIRONMENTAL REVIEW:

This item is an administrative action and does not require an environmental review.

X.     STEPS FOLLOWING APPROVAL:

Staff will forward the Management Agreement to the Interim City Manager, or his designee, for
signature. One copy of the signed agreement will be sent to Stanislaus Multi-Cultural
Community Health Coalition West Modesto/King-Kennedy Neighborhood Collaborative to
operate the King-Kennedy Memorial Center.


Prepared and
Approved By:           ___________________________________________________________
               Julie G. Hannon, Acting Director, Parks, Recreation and Neighborhoods
               Department


Reviewed By: _________________________________________________________________
             James E. Niskanen, Interim City Manager

Attachments: Resolutions (2)

				
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