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HomeMy WebLinkAboutAGENDA REPORT 2016 0302 CCSA REG ITEM 10D ITEM 10.D. CITY OF MOORPARK,CALIFORNIA City Council Meeting of 3-4,2-a0.1 4 ACTION: , MOORPARK CITY COUNCIL tir4.4"o d .� Qdd AGENDA REPORT x°' ico - �s�Fs3. BY: 117-1 . TO: The Honorable City Council 4 t FROM: Jessica Sandifer, Program Mana 'r9 DATE: February 19, 2016 (CC Meeting of 13/02/16) SUBJECT: Consider Amendment to Operating Agreement for the High Street Arts Center with the Moorpark Foundation for the Arts and Resolution Amending the FY 2015-16 Budget for Property Maintenance Funds for 61 High Street. BACKGROUND The Redevelopment Agency of the City of Moorpark (Agency) acquired the High Street Arts Center at 45 High Street ("HSAC") on August 1, 2005, in an effort to preserve a venue for live performances in the downtown area. On February 1, 2012 the State of California eliminated Redevelopment Agencies and responsibility for Agency assets fell to the Successor Agency to the Redevelopment Agency of the City of Moorpark (Successor Agency). On June 6, 2012, the Successor Agency approved an operating agreement with the Moorpark Foundation for the Arts (Foundation) for a three-year term beginning in July 2012. . On July 1, 2014, the Successor Agency transferred the properties at 45 High Street, 33 High Street and 782 Moorpark Avenue to the City of Moorpark for management and disposal in accordance with the adopted Long Range Property Management Plan. In July 2015, the City Council approved a new Operating Agreement ("Agreement") with a three-year term. DISCUSSION The City has recently purchased the property at 61 High Street. The Foundation is the current tenant of this property. The Amendment contains the following changes to the Agreement: • Revising Section 1, Operating Authority, to add the property at 61 High Street. • Revising Section 4, Rent, to add the rental rate for the property at 61 High Street which is proposed to be $3,000/month beginning March 1, 2016. The 97 Honorable City Council March 2, 2016 Page 2 Foundation's previous rent was $3,400/month and was set to increase to $3,600/mo May 31, 2016. The City's proposed rental rate will assist the Foundation by providing them a stable rental amount during the term; rental savings of $600/month; and will pay the City back for its purchase of the property. At the $3,000/month rate, the City will re-coup the costs associated with the property transaction in 25 years. Staff will revisit the rental rate at the end of the three-year term once we have a better idea of the maintenance costs associated with the facility. • Revising Section 7, Use and Obligations of the Foundation, by retitling it Use and Obligations of the Foundation — HSAC and clarifying that the Foundation does not own the rights to the name "High Street Arts Center" and that the City reserves the right to install selected technology and communications equipment at the High Street Arts Center. • Revising Section 10, Utilities, to provide that the Foundation provides for their own phone and internet services at the HSAC. Currently, the City provides both phone and wireless internet services at the High Street Arts Center and the Foundation reimburses the City for the cost of the phone services. Under this revision, the Foundation will be providing all of those services under their own agreements with the Phone and Internet Service Providers. To allow time for the Foundation to make other arrangements that would fit within their budget, staff expects that the implementation of this section will occur by June 30, 2016. However, the City Manager is authorized to extend this deadline if needed. Additionally, the Agreement is clarifying the Foundation's obligation to provide and maintain the burglar alarm systems at all the properties covered by the Agreement, and requires the Foundation to provide the City with an access code for the system. • Revising Section 21, Entry by City, to provide access to the City's technology and communications equipment and to define that the City determines what constitutes an Emergency for purposes of entry. • Adding Section 41, Use and Obligations of the Foundation — 61 High Street and setting out the parameters for the use of 61 High Street by the Foundation to support the HSAC. No other changes have been made to the Agreement. FISCAL IMPACT The amendment to the Agreement will provide $36,000/year in additional revenue, which will be used to offset the costs of purchasing the property from the Endowment Fund (2800). However, we have gained an additional facility, which will likely require maintenance. The Agreement obligates the City to make repairs on major systems such 98 Honorable City Council March 2, 2016 Page 3 as the roof, HVAC systems, and plumbing. Staff is requesting an allocation of $5,000 from the General Fund (1000) for property maintenance and repairs at 61 High Street for the remainder of the fiscal year. Staff will revisit the property maintenance funding for 61 High Street during the budget cycle and appropriate a full years' worth of funding for the next fiscal year, based on expenditures through the remainder of the 15/16 fiscal year. STAFF RECOMMENDATION (ROLL CALL VOTE) 1. Approve Amendment to the Agreement with the Moorpark Foundation for the Arts, and authorize the City Manager to sign the Amendment, subject to final language approval by the City Manager; and 2. Adopt Resolution No. 2016- Attachment: 1. Amendment 2. Resolution No. 2016- 99 ATTACHMENT 1 AMENDMENT NO. 1 TO OPERATING AGREEMENT BETWEEN THE CITY OF MOORPARK AND MOORPARK FOUNDATION FOR THE ARTS This Amendment No. 1 to the Agreement between the City of Moorpark, a municipal corporation ("City"), and the Moorpark Foundation for the Arts, a California non-profit corporation under the IRS code 501 (c) 3, (hereinafter the "Foundation"), is made and entered into the day of , 2016. RECITALS WHEREAS, on September 24, 2015 the City and Foundation entered into an Agreement to have the Foundation operate the High Street Arts Center; and WHEREAS, the City and Foundation now desire to amend the Agreement to modify the Agreement provisions relating to the addition of 61 High Street to the Foundation's operating authority and modify the language relevant to utilities; and WHEREAS, the City and Foundation now desire to amend the Agreement and document said agreement to amend by jointly approving Amendment No. 1 to the Agreement. NOW, THEREFORE, it is mutually agreed by and between the parties to the Agreement as follows: Section 1, OPERATING AUTHORITY, is amended by replacing the first paragraph in this section in its entirety as follows: "City hereby agrees and authorizes the Foundation to operate as hereinafter provided, the HSAC located at 45 East High Street as a performing arts venue. This Agreement shall also include use of 33 High Street for office and rehearsal space for the Foundation's activities relevant to operation of the HSAC; 61 High Street for rehearsal and workshop space and prop storage; and the City's warehouse building located at 782 Moorpark Avenue (Old Fire Station) for storage of costumes, props, and equipment. When the provisions of this Agreement apply to HSAC, 33 High Street, and 61 High Street, the term Premises may be used. Foundation acknowledges that 782 Moorpark Avenue is pending sale to a developer. Upon completion of the sale of the property, City will provide no less than 60-days' notice to vacate the premises. Pursuant to Section 8, no relocation benefits will be provided upon termination of the use of 782 Moorpark Avenue." II. Section 4, RENT, is amended by replacing this section in its entirety as follows: "Foundation shall pay City, without abatement, deduction or offset, rent in the amount of One Dollar ($1.00) per year for use of 45 High Street, 33 High Street and 782 Moorpark Avenue, payable in advance on or before the 1st of July each year of the rental term. For the use of 61 100 High Street, Foundation shall pay City, without abatement, deduction or offset, rent in the amount of Three Thousand Dollars ($3,000.00) per month beginning on March 1, 2016, through the end of the term of the Agreement as stated in Section 2, Term. City acknowledges that Foundation has already paid the City a security deposit of One Thousand Dollars ($1,000.00) for 33 High Street and that, upon close of escrow for 61 High Street, the Security Deposit, paid by Foundation to the prior owner, was transferred to the City in the amount of Three Thousand Dollars ($3,000.00) for 61 High Street." III. Section 7, USE AND OBLIGATIONS OF THE FOUNDATION, shall be retitled USE AND OBLIGATIONS OF THE FOUNDATION — HSAC and is amended by replacing the eighth (8th) paragraph in its entirety as follows: and "On July 19, 2006, the City Council of the City of Moorpark changed the name from the "Theater on High Street" to the "High Street Arts Center", and as such the Foundation has no ownership of the name "High Street Arts Center". The Foundation shall also not have naming rights for the HSAC building generally; however, the Foundation may sell other sponsorship opportunities, such as theater seat sponsorships as a fund- raiser, provided it is acknowledged that such sponsorships shall expire upon termination of this Agreement. Sponsorship shall not include any signage on the exterior of the HSAC building. IV. Section 7, USE AND OBLIGATIONS OF THE FOUNDATION, shall be retitled USE AND OBLIGATIONS OF THE FOUNDATION — HSAC and is amended adding a twelfth (12th) paragraph as follows: "City reserves the right to install technology and communications equipment in locations determined by the City at the HSAC, as necessary. Access to this equipment shall be governed by Section 21." V. Section 10, UTILITIES, is amended by replacing the first three paragraphs in their entirety as follows: "City agrees to provide solid waste and recycling services to Premises, at no cost to Foundation. Foundation is required to provide internet access and monthly telephone services for the Premises, including internet service to the theater box office, and shall pay for said service directly to the service providers. City may, at its own discretion, continue to provide public wireless internet service to the HSAC, but such wireless service is not guaranteed, and City Staff will not respond to Foundation wireless service repair requests. Foundation has until June 30, 2016 to make arrangements to provide these services. The City Manager is authorized to extend this deadline as needed. Until June 30, 2016, the Foundation shall continue to reimburse City for telephone service costs paid by City upon receipt of City invoices. Telephone service Amendment No. 1 to Agreement between City of Moorpark and 101 Moorpark Foundation for the Arts Page 2 reimbursement invoices shall not include a City administrative fee. City further agrees to provide and maintain fire alarm systems for the Premises, including provision of the telephone service required for the system. Foundation further agrees to provide and maintain burglar alarm systems for the Premises, including the telephone service required for the system. Foundation is not required to provide and maintain a burglar alarm system at 61 High Street, however, damage to the building as a result of vandalism or theft shall be the responsibility of the Foundation, at their sole cost and expense. The alarm system at the Theater shall, at a minimum, provide for alarm and motion sensors at all windows and doors per the satisfaction of the City. The City shall inspect the Theater annually to ensure the required alarm measures are installed. The Foundation shall provide the City an alarm code for access to the Premises." VI. Section 21, ENTRY BY CITY, is amended by replacing the entire paragraph as follows: "During the tenancy, City may enter the Premises upon not less than twenty-four (24) hours advance notice and Foundation shall make the Premises available during normal business hours to the City's authorized agent or representative for the purpose of: (1) to show the premises to prospective or actual purchasers, mortgagee, foundations, workmen, or contractors, (2) to make necessary or agreed repairs, decorations, alterations, improvements, or to access City equipment located at the HSAC, and (3) at all reasonable times to examine the condition thereof, including its environmental condition. In an emergency, as determined by the City, City's agent or authorized representative may enter the premises at any time without securing prior permission from Foundation." VII. Section 41, USE AND OBLIGATIONS OF THE FOUNDATION — 61 HIGH STREET is added as follows: "Foundation shall use 61 High Street in support of Foundation's activities at the HSAC, including but not limited performing arts uses, film and other entertainment or training purposes, including special event or other rentals for these purposes. Foundation agrees to obtain Temporary Use Permits (TUP), as required by the Moorpark Municipal Code, for those events to be held at Premises that meet the requirements for a TUP." Amendment No. 1 to Agreement between City of Moorpark and 10 2 Moorpark Foundation for the Arts Page 3 VIII. Remaining Provisions: Except as revised by this Amendment No. 1, all of the provisions of the Agreement shall remain in full force and effect. In Witness Whereof, the parties hereto have caused this Amendment to be executed the day and year first above written. CITY OF MOORPARK MOORPARK FOUNDATION FOR THE ARTS Steven Kueny Michael Marion City Manager President Attest: Attest: Maureen Benson, City Clerk Cara Tedric, Secretary Amendment No. 1 to Agreement between City of Moorpark and 10 3 Moorpark Foundation for the Arts Page 4