02-09-11 Council Agenda - Laserfiche WebLink

Home Browse Search

q o/ m f mma 515 Little Canada Road, Lille Canada, MN 551.17 -1600 (651) 766 -4029 FAX: (651) 766 -4048 www, ci.little- canada. nut.us cc: City Attorney MEMORANDUM TO: Mayor Blesener Members of the City Council FROM: Joel Hanson, City Administrator Jim Morelan, Parks Recreation Director DATE: February 4, 2011 RE: Gym Use Agreement for Little Canada Elementary 1 MAYOR Hill Blcscncr COUNCIL Rick Montour John Reis Michael McGraw Shelly Boss ADMINISTRATOR Joel 1 Hanson Over 20 years ago, the City contributed significant dollars to enhance the construction of the gym area at Little Canada Elementary. That contribution allowed the City to use the space for some of our recreation program offerings. The term of the initial agreement has expired and Independent School District #623 wants to amend the agreement going forward in a manner similar to what they have in place with other cities that use their facilities. Staff has met with Robert Rygh, Director of Human Resources Operations on a number of occasions to work out the details of this agreement. Some of the changes staff negotiated are as follows: The initial draft wanted the City to reimburse ISD #623 for 50% of operating costs that was similar to arrangements with other communities. We pointed out that our utilization was not as frequent as some of the other situations. Based on our usage, the agreement was modified to have us reimburse 25% of operating costs. (This reduced our annual cost from over $14,000 based on 2010 expenditures to just over $7,000.) In the case of damages occurring to the facility, our exposure was reduced from 50% to 25% based on the same logic as outlined in the previous point. The initial term of the agreement was proposed at only five years. They agreed to lengthen the term to 20 years. (There is a 90 -day written notice of cancellation if either party desires to terminate this agreement within the 20 -year term.) This agreement does represent a new expenditure for our recreation programs. We did budget an adequate amount for this cost. We will owe this amount for last year and this year. Subject to comments by the City Attorney, staff recommends approval of the Use Agreement as presented.