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HomeMy WebLinkAbout2003-05-15 Parks & Recreation Packetr ~ NOTICE OF SPECIAL MEETING ) KENAI PARKS 8a RECREA TION COMMISSION SPECIAL MEETING MAY 15, 2003 . CITY HALL COUNCIL CHAMBERS 5:00 P.M. AGENDA ITEM 1: ITEM 2: ITEM 3: CALL TO ORDER & ROLL CALL AGENDA APPROVAL OLD BUSINESS a. Discussion/ Recommendation -- Kenai Recreation Center Partnerin g Agreement Between the Boys 8~ Girls Clubs of the Kenai Peninsula and the City of Kenai. ITEM 4: ADJOURNMENT ~~ 11 ~ • ~~ ~ 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 , _ ~ FAX 907-283-3014 MEM~RANDUM T0: PARKS & RECREATION COMMISSI~N MEMBERS FROM: Carol L. Freas, it Cler DATE: May 9, 2003 ~: SPECIAL PA.RKS & RECREATION COMMISSION MEETING May 15, 2003, 5:00 p, m., Counci I Chambers At their meeting of May 7, the Kenai City Council officiall set the s ecial meetin Y p g you discussed during the May 6 work session. When a special meeting is held, the agenda does not include re orts minute a etc. It is ared d ' p ~ pproval, p own to include only the reason for calling the meeting; in this case to make a recommendation to council in regard to the partnerin a eement between Bo s 8~ Girls • ~ g~ the y Club and the Clty of Kena.i. However, I have included the draft minutes of your May 1, 2003 commission meeting for reference the will be in our Jun ~ Y y e packet for approval). Also enclosed is a copy of the draft a eement and memoran ~' dum from Finance Director Semmens with the analysis used to calculate the savin gs to the Parks & Recreation Department if the city goes forward with this contract. If you have any questions about the meeting, please contact me at 283-7535 or cfrea c~ci. ' , ext. 231 k~na~.ak.us. -..- ~ I I e ,~z clf cc: Linda Snow, City Manager B. Frates, Parks & Recreation Director ~yE%~'/ V ~aw'* CITY QF KENAI "Oil Ca pi~al of Alaska" 210 FIDALGO AVE., SUITE 200 KENAi, ALASKA 99611-7794 ~~`~ ' TELEPH4NE: 907-283-7535 ` FAX: 907 283-3014 MEMORANDUM T0: Parks and Recreation Commission THRU: Linda Snow, City Manager ; FROM: Lawrence A. Semmens, Finance Director DATE: May 8, 2003 ~ SUBJ: Cost saving calculation The attached spreadsheet details the analysis we made to calculate the savin s in the recreation , , , , g department budget if the City contracts vv~th the Boys and G1rls Club for mana ement of the . g recreation center. In early March, when we did this analysis, the working FY 04 budget for the recreation department was $515,972. In order to calculate the savings we determined the amount that would need to be budgeted in the recreation department budget if the Bo s and Girls Club was ~ • • . , y . managulg the recreation center. The budget includes everything assoc~ated vv~th the multi u ose .. . . . , p ~ fac~ty and nordic tra~ls, one half of the d~rector and department assistant I personnel cost ~ utilities, and $125,000 in professional services. The resulting budget was $350,002, a difference of $165,970. We also had to consider the recreation center revenues of $79,200, which would be retained by the Boys and Girls Club. The net was $86,770. The current recreation department budget is $334,587. The largest change is a$21,000 reduction in professional services for ice maintenance. The only direct change to the recreation center portion of this is the $3, 000 in communications. I plan to attend the commission meeting on May 15, ta answer questions on this calculation or the recreation department budget. Recreation Center Analysis 3/5/2003 Budget Prior to B&G Items Staying in th~ Expenditures- Proposal Rec. Budget FY04 Personne~ Budet $ 287, 942 39 785 ~~:~'~~~ .~::::~:::~ ~~ :: ~~~ ~:~~:~~:~~~~~:~: ~~:~~~~~ ~~ :~::::::~~:~ ~~ ~:::::: :~:~~. ~ ( , } ~:~~::::::::~ ::::::~: ~~:::::::~~~~;:;~: ;~ :::: ~:~:~ ~:~~::::::::: 20 81 l :~~~; . ... .. ............. ~ > > Reduction in Personnel Expenditures $ 28T,942 $ (60,402~ FY04 Operating Budgef Offfice Supplies $ 780 Operating Supplies $ 13,500 Small Tools $ 5,500 Snack Bar $ 10,500 Software $ 600 Professional Services $ 101,500 ::~:::~~~~~~ :::::::::..:::::::.. ::::::: ( } 85,000 :~.~ ::~:::~~::~~i~::~:~~~~~t ..... .............................................. :~ .: ................ . . (125,000) ........................ . ... ......... Communications $ 3,520 Transportation $ 2,000 Advertising $ 200 Print. & Binding $ 1,000 Utilities $ 11,000 ~~~~'::~:;::::::~ ~:::::~: ~~~ ~~~:::::::;::~ :::::::: ::~.~~::~iP~1f~:~ :~::::~: 32 000 ( , } ~~~~~~~~~ ~ ~~~~::::~ ~~`:~:::::; :::::: :::::::::~::: ..: ~t..........::~D.. .................. .::::::::::::::::.~::::::::: ::: ~:::: .... ~ 0 45 00 ~ ~ ~ Repair& Maint $ 3,700 Rentals $ 2,900 ::l~~~~;:;~~'~i~:~~~'~~~~:::~:~ ~:: ......................................... :. ................................. .. ~::::~ .. ..... (2,600) . ..... ~Books $ 100 Dues & Publications $ 1,330 Miscellaneous $ 3,900 Operating Budget $ 228,030 $ (289,s00j Total Budget $ 515,972 $ (350,002~ Total Expenditure Reduction Revenues- Rec. Center Sales $ Teen Center Sales $ Basketball Program $ Multi Purpose Rink $ ::::~~Ci:::~€:: : : : ::: :~~:::~~~~:: :: :: ::~:::; .................. ... . .. . ......................: ~........................... ~ : : ::.:: ...... Vending Machines $ Less Revenue $ 55,000 13, 000 10, 000 65,000 1,200 $ 165,9T0 $ (65, 000) 144,200 $ ~65,000~ $ 19,200 Net Savings $ $6~71~ CITY OF KENAi ~~ "Oil Ca pifa! of Alaska" 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 ~.~ ' ~ TELEPHONE: 907-283-7535 FAX: 901-283-3014 MEM4RANDUM T0: Kenai City Council Members Parks and Recreation Commissio embers FROM: Linda L. Snow, City Manager DATE: April 28, 2003 RE: Partnering Agreement with the Boys 8~ Girls Club Enclosed please find a final draft of the Partnering Agreement between the City of Kenai and the Bo s and Girls Club for ' y operation of the Kenai Recreatlon Center. The Agreement has been approved by the Bo s and Girls . Y Club Board of Directors. Every effort was made to include the primary points of emphasis which were brought out b members of the .. , , Y Parks and Recreation Commission, members of the City Council, Boys & Girls Club Board members members ~ of the public and, of course, administrative staff from both parties to the Agreement. To summarize briefl Y~ `~ ~ome of the terms and conditions of the Agreement include the followin : g l. The City is not selling, leasing, or transferring the Kenai Recreation Center facili to the Bo s& • . . . . . . ~' Y Girls Club. The City has no plans to divest itself of this building. 2. The City is contracting professional services to operate the facility, as it does with other facilities it owns, rather than operating the facility itself with city employees. 3. The contract for professional services is a legal document with terms and conditions which must be met by both parties. , 4. The Boys & Girls Club is required to present an annual operations plan and bud~ et to include safe ~ • . . g ~Y and security, an operating schedule for facility use, a fee structure, etc. 5. The Boys & Girls Club is responsible for maintenance and repair of Center e ui ment and for all . . qP ~ anitorial services 6. The City is responsible for maintenance and repair of the building and for utilities. 7. Either party may terminate the Agreement for cause, or the Agreement ma be terminated b mutual . Y Y consent of the parties. 8. The Center will remain open to the public and fees charged must not discoura e ublic use of the gp facility. 9. The Agreement may not be changed or amended unless by written amendment. 10, The Boys & Girls Club will give consideration to city employees to fill o en ositions. p p 11. The Boys & Girls Club is required to make the facility available to other communit user ou s Y ~' p andlor organizations and to continue the practice of making the Center available to Kenai Central and Sk iew Y~ High Schools for after-prom and after-graduation activities at no fee. ' 12. Both the Boys 8~ Girls Club and the Parks & Recreation Commission will desi nate a liaison . , , . . g member that will attend the other s meetings scheduled twice a year to discuss o eration of the Center, p KENAI RECREATION CENTER PARTNERING AGREEMENT between The Boys and Girls Ciubs of The Kenai Peninsula and The City of Kenai In consideration of the mutual promises herein, the City of Kenai (City) and the Bo , , , , L~ Girls Clubs of the Kenai Perunsula (Boys and Girls Club) agree as follows: The City desires to contract with the Boys and Girls Club to manage and o erate the p Kenai Recreation Center. This shall be accomplished through the development and management services of the Boys and Girls Clubs. The management services shall be a year-round function t ensure that the annual operating plan is carried out. This Agreement consists of: A. 34 sections of provisions, consisting of 14 pages; and B. Attachment A, Fee Schedule, consisting of 1 page; and C. Attachment B, Scope of Mana~ement Services, consisting of 4 pages. KENAI RECREATION CENTER PARTNERING AGREEMENT Page 1 of 15 Section 1. De~nitions In this Agreement: A. "Administrator" means the Kenai City Manager or designee, thereafter, as agent for and on behalf of Kenai. B. "City" means the City of Kenai. L~ C. "Center" means the facility known as the Kenai Recreation Center locat at 7 . Caviar, Kenai. D. "Concession" includes all sales or rentals of goods or services in the Center, the parts of the Center where those sales or rentals are made, and equipment or facilities in t Center used for those sales or rentals. , E. "Contractor" means Boys and Girls Clubs of the Kenai Peninsula. r F. "Management" means responsibility for the proper functioning of all Center operations necessary to support the Center's provision of service to the public safel efficiently, including but not limited to, supervision of staff and participants, progr ', scheduling, maintenance, sales, marketing and concessions. Section 2. Contractor's Services A. Contractor shall perform facility management services in accord ,' Attachments A and B, both of which are attached hereto and incorporated herein by referen e. B. The City shall not allow any claim for services other than those described in Attachment B. However, Contractor may provide, at its own expense, any other services that are consistent with this Agreement KENAI RECREATION CENTER PARTNERING AGREEMENT Page 2 of 15 Section 3. Term. A. The term of this Agreement shall begin on the commencement date ' Agreement and extend for three (3) years from the first day of center operation ss terminated sooner as provided herein. B. Upon mutual consent, this Agreement may be renewed for terms of five (5) years. Contractor shall notify the City in writing no less than ONE HUNDRED EIGHTY (18 ~. before current Agreement expires if it intends to renew. C. Contractor acknowledges that the City has no obligation to continue its performance beyond the term of this Agreement, regardless of the degree to which the Contractor's performance is successful. Section 4. Contractor's Responsibility Contractor shall be solely responsible for the faithful performance of all its duties under this Agreement, notwithstanding Contractor's delegation of the actual performance of any duty hereunder to another. Section 5. Annual Operations Plan A. Operations Plan. No later than November 15 of each year, Contractor shall develop and provide the City with the latest version of the Center Operations Plan. The plan should contain, at a minimum, the following: 1. A safety and security plan; and 2. A facility use plan for the Center that includes days of operation and hours open, current booking and scheduling procedures, current fee schedule and other rules governing use of the facility; and KENAI RECREATION CENTER PARTNERING AGREEMENT Page 3 of 15 3. A ~rc~g~a~ sched~~e; and 4. A staffing plan. Section 6. Center Annual Operating Budgets No later than November 15 of each year, the Contractor shall develop and provide the City with the latest version of the Annual Operating Budgets. The proposed bud ets should g include all proj ected and one prior year's actual operating and capital costs for the . . . C~ including a projected tncome and expense statement, and projected year-end balan e s t. Additionally, the budget should include the following detailed proj ections: A. Revenues by category and source; and B. Operating expenses by category; and C. Administrative and general expenses. , Section 7. Exclusive License ~ ~ This Agreement does not lease, demise, rent or otherwise convey any land or interest in lands or real property, including the properry at 221 Caviar known as the Kenai Recr ' Center. Section 8. Right of Entry The City, its officers, agents and representatives shall be permitted to enter the Center premises during operating hours to examine the same. The City will notify the Contr '' requires emergency entry after operating hours. , Section 9. Alterations and Renovations Contractor agrees not to make any alterations or renovations to the Center premises without prior written consent of the City. KENAI RECREATION CENTER PARTNERING AGREEMENT ~ Page 4 of 15 Sect~on 10. Operations and Ma~ntenance Costs The City will be responsible for maintenance and repair of the structure necessita normal wear and tear. The Boys and Girls Club shall be responsible for the mainten ce d repair of the Center equipment, i.e., weight room equipment, pool tables, vending machine. The Boys and Girls Club shall bear the responsibility for the repair of the structure due to any damage or breakage caused by the negligence or intentional act of the Boys and Girls Club or ' ~ (during operating hours) of the Boys and Girls Club. Water, sewer, electrical and natura gas d (non-long distance) telephone service for the Center will be paid by the City. Janitorial services for the Center shall be paid for by the Boys and Girls Club. Section 11. Signs Contractor shall not place or erect poles, lights or devices on the exterior f t ~ Recreation Center or adjacent property without prior written approval by the City. Boys and Girls Clubs signs and advertising devices of appropriate nature are allowed outside of the building. - Section 12. Consideration As consideration for Contractor's undertaking hereunder, the City shall pay an annual ~ payment of no less than ONE H[JNDRED TWENTY-FIVE THOUSAND DOLLARS ($125,000) per year to subsidize the operation of the Kenai Recreation Center. T payment will be made by July 15`~. The annual payments under this Agreement require from future appropriations and are subject to future annual appropriations. The annual payment amount will be reviewed every three (3) years to evaluate the need to change the payment. If sufficient funds are not appropriated for annual payments required under this Agreement, this KENAI RECREATION CENTER PARTNERING AGREEMENT Page 5 of 15 Agreement shall terminate and the City shall not be obligated to make the annual a ent under p Y~ ) , th~s Agreement beyond the then-current municipal fiscal year for which funds have appropriated. The City shall notify the Contractor within seven (7) days of the fail of e Council to appropriate funds sufficient for the annual payments. Pa ents for artial ear ~ p Y payments will be proportional to the number of days the Center is operated. Upon execution of this Agreement, it is the intention of the City that the Agreement run its entire term. . . , ~' Section 13, Termination of Contractor's Services Contractor's services under Section 2 may be terminated by mutual consent of the arties. P Section 14. Termination for Cause A. If either party fails to perform any of the terms, conditions, covenants, obligations under the Agreement, said Agreement might be terminated at the o tion o eith P party. However, as a condition of the exercise of its right of termination under this subsection, a ) party shall notify the other in writing of its intent to terminate this Agreement statin with g reasonable specificity the grounds therefore. Upon receiving written notice from a p ~ other party will have thirty (30) calendar days to cure said default(s). If the other art fail P cure all defaults to the satisfaction of the other party within thirty (30) days after receivin g notice, the City or Contractor may terminate this Agreement. B. If Contractor's services are terminated, for whatever reason, Contracto '- for compensation under this A~reement shall be limited to payments due based on a ro o ion pP number of days the Center was operated. Contributions in kind are not eli ible for g reimbursement unless directed toward approved appraisable improvements to the Center. U on p termination, any alteration or renovation to the Center, approved by the ~ity per Section 9, will KENAI RECREATION CENTER PARTNERING AGREEMENT Page 6 of 15 be reimbursed at fa.ir market value unless the parties have previously otherwise agreed. If necessary, fair market value af such improvements will be determined by a profe ' appraiser. The appraiser will be selected jointly by the parties and the appraisal fee wil be s it equally. Section 15. Repossession of Center A. Upon termination of this Agreement under Section 13 or Section 14, the Ci ~ take possession of the Center and of all facilities thereof. B. Upon termination of this Agreement under Section 13 or Section 14, there shall be a transition period of not greater than ninety (90) days with regard to the removal of Contractor's property from the Center. If Con~actor fails to vacate upon expiration of the transition perio , the City may remove the property at Contractor's expense. Section 16. Duties Upon Termination A. Contractor shall deliver to the Administrator all documents, records, work products, materials and equipment owned by the City and requested by the Administrator. B. Except as provided in this section, termination of Contractor's servic Sections 13 or 14 does not affect any other right or obligation of a party under this Agreement. Section 17. Insurance A. Contractor shall maintain in good standing the insurance described in s ' B of this section. Before rendering any services under this Agreement, Contractor shall 's the Administrator with proof of insurance in accordance with subsection B of this section in a form acceptable to the Risk Manager for the City. B. Both parties shall provide the following insurance: KENAI RECREATION CENTER PARTNERING AGREEMENT . Page 7 of 15 l. Comprehensive general liability, including premises operations, . ) contractual, independent contractors, and personal injury coverage's -- $1,000,0 occurrence. 2. Comprehensive aut~mobile liability -- $1,000,000 combined sin le li ' g nut per accident, to include owned, hired and non-owned vehicles. 3. Employer's Liability and Worker's Compensation for their _ . ~ employees as requlred by statute for each occurrence. 4. Each party shall be named as additional insured for purposes of the operation of the Recreation Center to the extent allowable on all policies (exc t ~P ~orker's Compensation). B. Each policy of insurance required by this section shall provide for no le th thirty (30) days advance written notice to the Cit rior to cancellation or chan e in ins Y p g urance amount and shall be written by an insurer rated A- or better by A. M. Best. C. The City shall provide broad form property damage insurance for the Center D. Contractor shall report all incidents of accident or injury promptly in 'tin the City Manager for Kenai. Section 18. Notice of Claims Each party hereto shall give to the other prompt and timely written notice of an ' Y made or suit instituted within its knowledge that in any way, directly or indirectl , contin e tl Y g Y or otherwise, affects or might affect the other party. KENAI RECREATION CENTER PARTNERING AGREEMENT Page 8 of 15 Section 19. Assignments Unless otherwise allowed by this Agreement or in writing by the Administrato assignment by Contractor of this Agreement shall be void. Section 20. Ownership: Publication, Reproduction and Use of Material A. Equipment and furnishings purchased with Center revenues or Contractor funds shall be the sole property of Contractor. ; ~ B. With the exception of pass-through grants administered by the City, e ip t and furnishings purchased with City funds or any funds provided by grants from the Ci , shall ~ be the sole property of the City marked and inventoried as such with a copy of the inventory forwarded to the City. C. Equipment and furnishings donated to Contractor shall be the sole prop Contractor. D. Prior to occupying the Center, the Contractor and the City shall conduct a walkthrough to investigate and assess the condition of the facility and equipment insi building. Section Z1. Notices Any notice required pertaining to the subject matter of this Agreement shall be either sent via mail by prepaid first class registered or certified mail "Return Receipt Reque , - delivered to the following addresses: Kenai City Manager 210 Fidalgo Avenue Kenai, AK 99611 Phone: (907) 283-8222 FAX: (907) 283-3014 KENAI RECREATION CENTER PARTNERING AGREEMENT ~ Page 9 of 15 Boys and Girls Club of the Kenai Peninsula '} 705 Frontage Road, Suite B Kenai, AK 99611 Phone: (907) 283-2682 FAX: (907) 283-8190 Notices are effective upon of receipt. Section 22. Public Facility It is the City's intention that the Kenai Recreation Center and the ro ams r' d_._., p ~' p t ' ' . 'C~ herein be avallable to the public. The Contractor may not restrict a ro riat u' pP p p c participation at the facility or public access for appropriate use of the facilit . The fees char Y ged by the contractor must not discourage public use and should be consistent with fees char ed for g similar services at other municipal recreation centers. Section 23. Relationship of Parties Contractor shall perform its obligations hereunder as an inde endent contractor of the p City. Kenai may administer this Agreement and monitor Contractor's com liance with ' p lts obligations hereunder. The City shall not supervise or direct Contractor other than as rovi ' p this Agreement. Section 24. Permits, Laws and Taxes Contractor shall acquire and maintain in good standing all ermits, licenses and other p entitlements necessary to its performance under this Agreement. All actions taken b C Y under this Agreement shall comply with all applicable statutes, ordinances, rules and re ul ion g Contractor shall pay all taxes pertaining to its performance under this A reement. g KENAI RECREATION CENTER PARTNERING AGREEMENT Pa e 10 of 15 g Section 25. Non-waiver The failure of either party at any time to enforce a provision of this Agreement shal ' way constitute a waiver of the provision, nor in any way affect the validity of this Agre en or any part hereof, or the right of such party thereafter to enforce each and every provision hereof. Section 26. Amendment. A. This Agreement shall only be amended, modified or changed by a' C~ amendrnent, executed by authorized representatives of the parties. B. For the purposes of any amendment modification or change to the terms and conditions of this Agreement, the only authorized representatives of the pa~ties are: Contractor, Executive Director and Board President, Boys and Girls Club of Kenai Peninsula; City of Kena', City Managero C. Any attempt to amend, modify, or change this Agreement by either an unauthorized representative or unauthorized means shall be void. Section 27. Jurisdiction: Choice of Law Any civil action rising from this Agreement shall be brought in the Superior Co for Third Judicial District of the State of Alaska at Kenai. The law of the State of Alaska shall govern the rights and obligations of the parties under this Agreement. Section 28. Severability Any provision of this Agreement decreed invalid by a court of competent juris ctio shall not invalidate the remaining provisions of this Agreement. KENAI RECREATION CENTER PARTNERING AGREEMENT Page 11 of 15 Section 29. Integration This instrument and all appendices and amendments hereto embody the entire A e ~' of the parties. There are no promises, terms, conditions or obligations other than those c nt ' ed herein; and this Agreement shall supersede all previous communications, representations or contracts, either oral or written, between the parties hereto. Section 30. Inspection and Retention of Records . . . ~ Contractor shall, upon reasonable notlce by the City, make available to the ity, r examination, all of its records with respect to all matters covered by this Agreement for a eriod P ending three (3) years after the date Contractor is to complete performance. Upon request, and within a reasonable time, Contractor shall submit such other information and reports relatin t g its activities under this Agreement, to the City, in such form and at such times as the Ci m reasonably require. Contractor shall permit the City to audit, examine and make copies of such records, and to make audits of all invoices, materials, and other data relating to all matters covered by this Agreement. The City may, at its option, permit Contractor to submit its r to the City in lieu of the retention requirements of this section. Section 31. Employees The Boys and Girls Club shall give reasonable consideration to hiring those qualified employees of the City of Kenai, Parks and Recreation Department, Kenai Recreatio ~ , who have been laid off in FY2003-2004 and who may apply for employment with the Bo s an Girls Club in 2003. Section 32. Third Party Beneficiaries KENAI RECREATION CENTER PARTNERING AGREEMENT Page 12 of 1 S There are no intended third party beneficiaries of this Agreement, and no person other than the named parties to this Agreement (the City of Kenai and the Kenai Peninsula Bo Girls Club) shall acquire any rights under it. Section 33. Liaison The Board of Directors of the Kenai Peninsula Boys and Girls Club and the Kenai Parks and Recreation Commission shall each designate a liaison who shall attend a boardlco '' ~ meeting of the other entity twice a year to discuss the operation of the Center. IN WITNESS WHEREOF, the parties have executed this Agreement on the date and at the place shown below. CITY OF KENAI By: Linda L. Snow City Manager DATE: ATTEST: Carol L. Freas, City Clerk B~YS AND GIRLS CLUB OF T KENAI PENINSULA By; Tina Herford Executive Director DATED: By: Peter Micciche, President of the Board of Directors DATED: KENAI RECREATION CENTER PARTNERING AGREEMENT Page 13 of 15 '~ Approved as ~to~ form: ~ Cary R. Graves City ~ttorney - , ~ _~ . , l KENAI RECREATION CENTER PARTNERING AGREEMENT Page 14 of 15 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this _ day of , 2003, LINDA L. NO , KENAI CITY NiANAGER, being personally known to me or having produced s isfac o evidence of identification, appeared before me and acknowledged the voluntary and authonzed execution of the foregoing instrument. Notary Public for the State of Alaska. My Commission Expires: STATE OF ALASKA } ) ss. THIRD JUDICIAL DISTRICT ) ~ THIS IS TO CERTIFY that on this day of , 2003, TINA HERFO , EXECUTIVE DIRECTOR of the KENAI PENINSULA BOYS AND GIRLS CLUB e' personally known to me or having produced satisfactory evidence of identification, before me and acknowledged the voluntary and authorized execution of the foregoing instrument. Notary Public for the State of Alaska. My Commission Expires: STATE OF ALASKA } ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2003, PETER MIC i~ , PRESIDENT of the BOARD OF DIRECTORS OF THE KENAI PENINSULA BO GIRLS CLUB, being personally known to me or having produced satisfactory evide ce o identification, appeared before me an~ acknowledged the voluntary and authorized execu ' f the foregoing instrument. Notary Public for the State of Alaska. My Commission Expires: KENAI RECREATION CENTER PARTNERING AGREEMENT Page 1 S of 15 a w H x W UW ~a ~ O A H w ~x WU a~ ~w Ww ~w ~ ~ W ~ 0 . ~ ~ ~ ~ ~ ~ ~ ~ . . 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H h ~ ~ ~o ~ ~ ~~ ~; ~~ ~ ~ ~ V ~ V ~ ~~ ~ ~ ~ a ~~ ~ a~ ~~ wv~ ~a~d ~ ~ w ~ 0 ~ w ~ ~ ~ ~ ~ w ~ o ~ ~ ~ ~ ~ ~ o ~ ~ o O ~ ~ ~ ~ t~ ~0 ~ 00 ~ ~qp ~ ~ ~ ~ w • M ~ ~ ~I ~ M !~ ~ ~ ~ ~ " v ~ ~ ~ a ~ ~ M ~~ ~ ~ ~o ~ ~ ~ M ~ ~ ~ ~ b '~ O ~ ~ ~ ~ ~ a C'' Z ~ ~ q~ W w pq ~ ~ x ~ w ~ ~~ ~ ~~ w h ~ o ~ x h y ~~ , ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ a ~ H ~ Q ~ ~o *~ 0 8~ ~ 8 r+ MM ~~ $ O IA ~ 88 o~ N ~0 ~*+ ~~ $ Uf N ~ ~ b ~ ,~ " b ~ w a ~ ., 41 M w w ~ ~0 w ~ ~ ~ ~ w ~ ~ ~ ~ w w ~ ~ W a ~ ~ a a ~ ~ ~ w ~ ~ ~ ~ °~~' z ~ ~ ~ ~ ~ ~ ~ ~ z a~ ~ ~ ~ ~o ~~ 0 a~ 0 e ° ~ KENAI RECREATION CENTER PARTNERING AGREEMENT between The Boys and Girls Clubs of the Kenai Peninsula and The City of Kenai SCOPE OF MfANAGEMENT SERVICES ~ It is the intent of this Agreement to provide a vehicle by which management se ' ay be rendered by Contractor at the Center. Section 1. Management Management of the Kenai Recreation Center by Contractor shall include performan of the following duties: A. Operation. Contractor shall prepare an annual operating budget and an annual operations plan for the Center. Contractor shall work with the Administrator to assure that the Operations Plan meets the requirements and expectations of the City of Kenai. B. Concessions. Contractor may operate Concessions. Cont~actor shall ave e exclusive right to operate concessions in the Center. C. Revenues. Contractor shall collect and retain all revenues generated by the Center. Appropriate methods for financial control and auditing will be implemented. ,ity of Kenai shall not have any liability or responsibility for funding any deficits or any part th reof D. Operational Services. Contractor shall provide all employees and volunteer staff required for the operation of the Center. Attachment B SCOPE OF MANAGEMENT SERVICES Page 1 of 4 E. Fee Schedule. Contractor shall develop and publish fee schedules for all events , ~ and activities at the Center. F. Appearance. Contractor shall keep all facilities of the Center in a c an d sanitary condition during the period of operation. G. Community Services. Contractor sha11 consider input from community residents and groups to provide community services for recreation, education, cultural and leisure activities. ~ Section 2. Scheduling The pa~ies agree that the Contractor shall maintain daily, monthly and annual schedules of services and activities. Section 3. Services A. The parties agree that recreational, educational, cultural, and leisure pro services for all age groups shall be offered to the public during operating hours. Contractor is ~ responsible for defining said services and coordinating all aspects of service offerings. Contractor shall maintain public use services through the Recreation Center. Contract sh make it a priority to provide the following services: l. Toddler Time 2. Home School Gym 3. Senior Exercise 4. Wallyball and Racquetball S. Open Gym Time 6. Volleyball 7. Weight Room and Sauna ~ Attachment B SCOPE OF MANAGEMENT SERVICES Page 2 of 4 8. Men's and Women's Adult Basketball Leagues. B. Contractor agrees to make the facility available to other community user ou s and/or organizations in order to serve the varied interest and needs of the community. C tra or may charge a fee for said programs and/or services. However, Contractor agrees to co traditional practice of making the Center available to Kenai Central High School and Skyview High School for after-prom and after-graduation activities at no fee. Section 4. Operating Hours and Dates ~ Contractor shall operate the Kenai Recreation Center according to a published s e. Sectioa 5. Employees and Volunteers a Con~actor shall comply with all applicable, local, state, and federal laws relating to employment practices. Contractor shall provide, at its own expense, a sufficient numb of employees and/or volunteers to meet the hours of operation and serve the public efficie r Section 6. Fees and Charges A. Contractor will publish, post or otherwise make available all fee schedules. B. Contractor will collect and retain all fees and charges for programs, servi s . rentals. Section 7. Accounting and Reporting Contractor shall maintain such books, records, and accounts of operation as would be considered prudent for such an operation. ,~ Section 8. Cleaning of the Premises A. Contractor will provide all janitorial services and supplies required to keep the Center clean and presentable. Attachment B SCOPE OF MANAGEMENT SERVICES Page 3 of 4 B. Contractor shall not permit any garbage or other refuse -to accumulate on the ~ ) ~ premises. Section 9. Security Contractor shall take all reasonable precautions to prevent unauthorized en Recreation Center including the placing of signs or other devices intended to deter or restrict such entry. Contractor shall develop and follow policies and procedures relating to issuing keys, handling cash and deposits, opening and closin , and dealin with difficult atrons. ~ g g p Section 10. Snow Removal Contractor shall be responsible for snow removal of all sidewalks around the building or leading up to the building of the Recreation Center. Responsibility for snow removal of the parking lot shall be the City's. Section 11. Annual Community Meeting Each January the Contractor will advertise and conduct a public meeting to receive public input into past and future operations of the Center. Minutes of the meeting will be recorded and forwarded to the City of Kenai. Attachment B SCOPE OF MANAGEMENT SERVICES Page 4 of 4 ~~ ~~ ~ KENAI PARKS 8a RECREATIOH COMMISSION ~ MAY 1, 2003 CITY HALL CDUNCIL CHAMBERS ?:00 P.M. AGENDA ITEM 1: CALL TO ORDER 8a ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MINUTES -- April 3, 2003 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS a. Discussion -- Kenai Recreation Center f Boys & Girls Club ITEM b: NEW BUSINESS a. Discussion -- Proposed Meeting Schedules for City Commissions, Committees, Boards and Council on Aging. ~ ITEM ?: REPORTS a. Commission Cha.ir b. Director c. City Council Liaison ITEM 8: COMMISSION QUESTIONS 8a COMMEHTS ITEM 9: PERSONS PRESENT NOT SCHEDULED TO BE HEARD ITEM 10: INF4RMATION a. Council Action Agendas of Apri12 and 16, 2003. b. Beautification Committee Meeting Minutes of April 8, 2003. ITEM 11: ADJOURNMENT KENAI PARKS Sa RECREATIDH COMMISSION MAY 1, 2003 CITY HALL COUHCIL CHAMBERS 7:00 P.M. VICE-CHAIR JACK CASTIMORE, PRESIDING NiINUTES ITEM 1: CALL TO 4RDER 8a ROLL CALL Vice-Cha.ir Castimore called the meeting to order at 7:05 p.m. and roll was confirmed as follows: Members Present: Baxter, Gifford, Sandahl, Castimore, Hultberg Members Absent: Wisniewski, Steiner Others Present: Councilwoman Porter, City Manager Snow, City Attorney Graves, Director Frates, Contract Secretary Roper ITEM 2: AGENDA APPROVAL With no additions and/or changes noted the agenda was approved as presented. ITEM 3: APPROVAL OF MINUTES - Apri13, 2003 The minutes of Apri13, 2003 were approved as written. ITEM 4: PERSONS SCHEDULED TO BE HEARD - None ITEM 5: OLD BUSINESS 5-a. Discussion - Kena.i Recreation Center/ Boys & Girls Club Castimore opened discussion and provided an overview, by section, of the draft agreement between the City and Boys 8~ Girls Club (Club). A five-minute at ease was taken at ?:25 p.m. in order to make more copies of the draft agreement. Meeting resumed at 7:30 p.m. The Parks and Recreation Commission made the following comments regarding the agreement: • Hultberg asked if the reason behind the Club taking over the Recreation Center was the result of a budget shortfall and City Manger Snow confirmed it was and provided a report on the cuts the City would be forced to make in the Recreation Center budget if the Boys and Girls Club agreement is not approved. • Hultberg asked why the City would pay the Club $125,000 to manage the Center and not use the funds to operate it themselves. Snow replied, the $125,000 is a professional service fee and the City could not operate the Center on that amount. Snow added, the City realizes now the Club could take over the Center at less cost and possibly enhance its various programs. Tina Herford, Executive Director of the Club `~ stated the fee would go toward staffing costs to continue the facility. • Baxter asked if the City c~onsidered a grant to offset the ~ 125,000 fee for the Club and Snow replied, the City is not aware of any grants available at this time, however, most grants go toward specific uses and not operational costs. Castimore stated he was familiar with federal educational grants and it is normal to use a portion for administration purposes. Attorney Graves stated the agreement calls for ~ 125,000. If a grant were obtained, it Would be used to enhance programs at the Center. • Baxter asked if the Club were to get additional funds, would the $125,000 fee be reduced. Peter Micciche, President of the Boys & Girls Club 8oard of Directors replied, the agreement is for three years and a reduction could be considered if the Club is doing well after that period. Hultberg asked if the Club received big grants in previous years. Herford stated, the majority of the grants they pursue would not fund the operating costs; rather they are geared towards specific programs. Hultberg asked if it would be easier for the Club to obtain grants if they were partnered with the City, Micciche answered, it may bring additional opportunity for grants and added the Club just hired a person for development so they will be pursuing new grants. Micciche added, the amount of time spent on the agreement urith the City doesn't leave much for pursuing grants. • Hultberg asked if other cities do partnerships like this. Herford replied, the Club has several across the nation and there are two in Anchorage. Graves added, the agreement is modeled with the Mt. View Club in Anchorage and explained that program. Graves stated a copy of the National partnership is available for review. ~ Hultberg, referring to Item 8 in the memorandum referencing the agreement, asked if the fee for general use of the fac' 'ty was the Club's standard fee ) and pointed out, currently the kids don't pay anything to use the Center. Micciche replied, the Club hasn't reached that point yet but users would be required to be members of the Kenai Club. Herford added, the annual fee is ~20 per calendar year and $10 annually for any sibling. Herford continued, no one is ever turned away and they do offer scholarships for those who can't afford the fee. Every child who wants to participate is allowed the opportunity. • Baxter asked what the hours of operation would be and Micciche replied, it is the intent of the Club to keep the same hours and programs until November 15, 2003, at which time there would be an assessment of usage and, if necessary, adjustments would then be made. • Baxter asked about the cuts the City had intended if the Club did not come forth with a proposal. Frates explained the proposed cuts and the use of the facility the past year, pointing out the reduced hours had been discussed previously. ~ Hultberg, referring to Attachment B, page 2, Section 3, Services, hoped the services already provided would be a priority noting he had talked to several seniors who are concerned they would lose their ability to use the facility. Hultberg added, he didn't think the Club realizes just how many seniors would be affected. Micciche stated there has been more inaccurate information passed around than accurate and part of the reason is they were still working through the agreement. Micciche added, because this is such a new process, neither parties have had the PARKS & RECREATION COMMISSION MEETING MAY 1, 2003 PAGE 2 opportunity to get the correct information out. Micciche continued, the section was included in the agreement so they could legally pro~ide the services and let the public be aware they are not going away. ~ Micciche stated it was important to them to write into the agreement the requirement for four meetings per year with the Parks & Recreation Commission as they would rely on the members for their valuable input. Micciche added, the success of the Club in ~~ the community depends upon delivering the right product to the right people and the ~ Commission would be relied upon to let them know what those products are. ~ Sandahl asked if the City and Club received any feedback from anyone since the proposal. Snow stated she had contact with two individuals. Micciche stated he received several phone calls and e-mails, all of which started out negatively until the intent was properly explained and they all became positive. Micciche added, it's very important for the concerned community members to read the agreement so they can see what it really represents and if they are still uncomfortable, they are welcome to meet or contact him to talk it over. ~ Sandahl stated this is the most controversial item he's been involved with in his 20 years with the Commission and he had at least ten to twenty people stop him to voice their concern. Sandahl added, there must be some validity to the Commission if inembers of the community are contacting them instead of the City or City Council. Sandahl voiced concern with the rushed timeline of the agreement and how it was presented; the lack of protocol; and the fact that the Commission was advised of the proposal after the fact. Sandahl also voiced concern about the May 6~ work session for which he had just received notif'ication. He asked how many more work sessions are going to be required before a decision is made and also wanted to know how the Commission would fit into the decision-making process. Sandahl added, the word on the street from close to 100 individuals is, regardless of what happens with the Commission, the agreement is a done deal and it will happen fast. Sandahl asked if action was expected on behalf of the Commission at this meeting since this was the first time the issue was really reviewed. Sandahl also asked, either the Commission be kept in the loop or be taken out of the loop, because it was a very precarious position to be in trying to answer questions from community members when he doesn't know the answers. Sandahl asked the following questions: ~ Why would the City give up one facility (the Center) and at the same time expand another ~the multi-purpose facility) for Arctic Winter Games~ Frates announced there had been talk of enclosing the multi-purpose facility but the Borough made the decision to install temporary enclosures. The restroom facilities would also be temporary. • Assurances should be made to the young people who cannot afford to pay for the facility that they will not be turned away. Graves stated such a clause could be added to the agreement. ~ PARKS & RECREATION COMMISSION MEETING MAY 1, 2003 PAGE 3 • How does the Club intend to handle the skateboard park since it probably ~ would not be moved to its new location until late August? Frates answered, the ) , ., skateboard park was never a part of the Center and will not be the responsib~ty of the Club. Frates added, FAA just gave approval for use of the property at the softball field and funds have been requested for the asphalt and fencing. • Referring to the article in,the paper about Home Depot's interest in the K- Mart property, would there be an opposite knee jerk reaction to this news~ Snow assured the Commission there will be no reverse knee jerk reaction as the Council wants to proceed very cautiously as they are also concerned with other increases which include PERS, insurance premiums, and loss of investment income. Snow added, K- Mart was just a portion of the problem. • What are the actual maintenance and utility cost for the facility? As the information wasn't readily available, Snow stated her office could provide the information. Snow added, the City still owns the Center and will be responsible for its malntenance no matter who is in it. • Sandahl stated he would rather see the money spent on banners to be put toward the recreation center. • Sandahl expressed concern for the future of the men and women's basketball programs. Graves confirmed the programs were included under services in the agreement, noting there had been a lot of feedback on the subject. • Would the Kenai Central High School basketball practice continue at the Center? Herford answered, the Club collaborates with the school district for other programs and will make every effort for this one to continue. Sandahl suggested the issue be put in writing to say the program will be allowed to continue. Micciche stated they would give it all due consideration. ~ • Referring to Section 33, Sandahl stated the term "liaison" means nothin g and another term should be used though he had no suggestion for another. ~ Sandal expressed concern with the insurance and the liability of the City. Graves stated it is common for both entities to carry an additional insured on their policies; in essence there is double coverage. • Sandahl stated it is very important to be able to see the proposed fee schedule of the Club. ; • Sandahl asked why the duration of the agreement is three years and not five. Micciche replied, the typical duration for such an agreement is ten years and the Y weren't comfortable with that length of time, so it was reduced to three years. Graves further explained the reason for the term duration. Commissioner Hultberg had the following questions and/or concerns: • Referring to item 10 of the cover memorandum, Hultberg expressed concern with the employees at the Center losing their jobs and wanted to know why they had to be terminated. Graves answered, the City will no longer manage the facility, therefore, the Club will utilize their own employees. Graves added, the clause in the agreement ensures the Club will consider hiring the current employees. Hultberg again reiterated his concern with the employees losing their jobs and asked what provisions were in place to have someone at the facility the day the Club took PARKS 8~ RECREATION COMMISSION MEETING MAY 1, 2003 PAGE 4 over the facility. Herford answered, interviews would take place prior to them moving into the facility. • Hultberg stated there is a lot of concern with the "little kids» taking over the Center once the agreement is approved. Herford explained the Club has an existing teen program that would be moved to the Center; the rema.ining programs would remain in their current location. • Hultberg asked about the fee for use of the facility and Herford noted, no decision had been made yet with regard to fees. Micciche added, there is a very good chance there would be a fee and reiterated, no child would be turned away if they couldn't pay. ^ Hultberg stated, host cities for the Arctic Winter Games usually get money for buildings and asked if Soldotna would get the money and not Kenai. Frates stated that was a possibility. Additional concerns were noted as: ~ Commissioner Gifford expressed concern with those kids who utilize the Center who don't frequent the Club and don't want to be associated with them. Micciche stated, there are kids who don't want to be associated with the Club but most adapt to change and he hoped that would be the case here. Gifford added, she contacted the Muldoon Club in Anchorage and was unable to speak to the director but the girl she spoke with was very positive about their program. • Commissioner Baxter asked if there was any anticipated close down time for transition purposes. Snow replied, the Club would move right in and no closure is anticipated. • Baxter expressed concern with the issue being pushed too quickly and the City is operating in a panic mode noting it took two years for the Anchorage Clubs to plan and set up a deal. Baxter added, he feels the City should wait and get more people involved in the decision making process to eliminate the misinformation problems that exist now. • Gifford stated she had heard several comments regarding misinformation and she has made very effort to alleviate the fears of the concerned members of the community. • Baxter asked why the City didn't go out to bid on the Center and Snow replied, it was never the intent to go out to bid; the City sought a professional services contract as the City is not interested in opening it up to a gym-type situation. Snow added, she did receive one call from a person interested in the Center and he was advised to write a letter to the City Council. • Hultberg asked if the Council was going to vote on the agreement at their next meeting on May 7~. Snow replied, she didn't think the item was on the agenda. Hultberg suggested that better public relations be done on the issue so that correct information gets out to the community. Snow stated the City prepared a fact sheet and it is available on the website as well as at the Center. It was also noted, Mayor Williams was preparing an article for the newspaper. PARKS 8~ RECREATION COMMISSION MEETING MAY 1, 2003 PAGE 5 ~ Hultberg asked if the Club were aware of the goals and objectives of the Parks and Recreation Commission. Snow replied, they were not and she will make sure they are brought forward. • Castimore e~ressed concern with the Center employees being properly tra.ined in CPR, Herford assured the Commission all their employees are properly trained. • Castimore asked if the Commission is needed if the Center goes away. Councilwoman Porter stated they most certainly would be needed as the City still has the ski trails, skateboard park, multi-purpose facility, softball fields, etc. Porter again listed the cuts all City departments are facing. Discussion took place regarding a decision by the Commission on the issue and Sandahl asked why the issue couldn't be tabled for two or three months to allow adequate time for input from the community. Snow replied, this is the only portion of the budget that had not been approved and it needed to be dealt with as the City could not operate beyond June 30~• Graves suggested, if the Commission is not prepared to make a decision at this meeting, they should attend the work session on May 6~ to voice their concerns. Additionally, a request could go to Council at their May 7~ meeting to approve a special meeting later in May when the Commission could vote on the issue. BREAK TAKEN: 9:05 P.M. BACK TO ORDER: 9:15 P.M. Castimore opened the meeting to public comment and asked that comments be limited to five minutes. Carol Breackle, Keaai, Alaska had the following questions/concerns: • The actual cost involved to the City above the ~ 125,000 to include utilities, specific repair and maintenance, and telephone. • What is the actual cost of insurance and how much the City is subsidizing the transfer of the Center to the Club? Graves replied, the insurance is already being provided under the City's general liability coverage and it would be difficult to break out the actual cost for just the Center. Graves added, the insurance is a cost the City has no matter who is in the facility and Administration is focused on the cost savings to the City as it is a better analysis. • Noted the ~ 125,000 base amount could increase as early as November 15, 2003 and asked if the City would make a special appropriation should the Club be unable to manage the existing resources they have. Graves responded, as with any contract, the parties could amend the agreement. Graves continued, the contract provides a minimum of ~ 125,000 for professional services which would be reviewed every year to see if the amount is appropriate. However, the City could not be forced into paying more and there is no automatic cost increase provision. • What would happen if the Club approached the City for more money and the City refused? Graves replied, the contract continues for three years. PARKS & RECREATION COMMISSION MEETING MAY 1, 2003 PAGE b • Is the Club only agreeing to maintain the fee schedule up to November 15, 2003 and at that point are they allowed to increase the fees~ Graves confirmed that was correct and added it is the philosophy of Administration that an entity cannot be given responsibility for the Center without giving them some authority in the decision making. Castimore informed Brenckle her time was up and Brenckle asked for and was afforded additional time. • She had not seen the proposal from the Club as ,to what they are going to do with the Teen Center program and questioned whether they had familiarized themselves with the adult program. She requested documentation on what their plans are and Graves responded, the Club are aware they have a program to which they have to react and adapt. Graves continued, the premise of the agreement is they have to have flexibility and the City cannot micro-manage them as it will not work. • Stated she felt there was no longer a forum for the residents of the City of Kenai and stated this was being run by a private entity. Brenckle added, it's a matter of great concern to her because if the residents don't like what the Club is doing, there is nothing they can do because the City is tying their hands for a period of three years. Micciche, in an effort to clarify the statement made about a review on November 15, 2003 to increase the fees stated, the review will be on the fees, not a revieW to increase the fees. Micciche stated there is no plan to increase fees. Brenckle responded, she has heard Micciche state many times he is unwilling to commit the Club to the continuation of the programs and the fees. A general discussion ensued regarding guarantees of maintaining the Center services. Snow added, there are no guarantees except one, without the agreement there would be reductions and fee increases effective July 1 gt. Bob Molloy, Kenai, Alaska -- Submitted a letter from Kristine Schmidt who was unable to be at the meeting due to travel obligations. Molloy, a user and sponsor of basketball games, made the following comments: • Agrees the Club does an excellent job with the kids. • Is cynical enough to feel this is a done deal no matter What he says, however, he's spoken three times against the subject and will continue to do so until it's over. • Feels the proposal has come on too fast. • Feels there isn't enough information in order for Council to make a sound decision. ~ Would like to see a recommendation made to Council to table the issue until the next fiscal year in order to consider all other options. • The City should look at the discriminatory fee structure; why do some entities pay and others do not. • The City should consider raising user fees. • Feels this is presented as though there are only tWO options and feels there are others to consider. Molloy added, he thought perhaps some of the ~87,000 PARKS & RECREATION COMMISSIDN MEETING MAY 1, 2003 PAGE 7 beautif'ication budget could be used for the Center. Molloy made reference to the fact that women hold the three positions being cut and a man holds the one remaining position. Molloy doesn't think it's about the numbers but something else. • Feels the City should consider the option of going out to bid on the Center if they want it to go to private enterprise. • Feels the Teen Center is not listed as a priority and it should be. • Feels it's prudent for the City to Iook at other alternatives before locking itself into a three-year deal. • Feels the agenda is for young adults and kids but adults would have to go to other gyms in the area. Jan Echternach, Kenai, Alaska made the following comments: • Is a seven-year employee of the City and is taking this personally. • Concerned employees are not given enough time to know what their fate is going to be as there are many who will be sunk without this income, including ~ herself as her husband is being laid off from Agrium. • Feels the time she has spent and the issues she had to deal with in her j ob at the Center should account for something for what is going on. ~ Feels the City could do more for their employees by considering j ob sharing; for instance, taking someone from the Center to work with the City Clerk. At the same time, Fire Department personnel offered to work in the Center. • Would like some assurances from the Club with regard to salary, benefits, etc. Is concerned she would be paid minimum wage for a job she's done for years. • Is concerned for having to be interviewed for jobs the staff has held for years by someone who doesn't have an idea of what they do. + Announced there is staff that will not stay to train if they are not picked up. • Feels there are other alternatives such as keeping the facility for another year and begin charging. Mark Necessary, Kenai Alaska made the following comments: • Is concerned things are the same as they were in March, except for more meetings being scheduled. • Feels the Club is getting a heck of a deal, noting ~ 125,000 is the minimum not maximum fee: • Wanted to know how much revenue the City would recognize from the facility once the Club takes it over. Castimore thanked Necessary and noted more than 25 years ago Necessary and Dick Morgan drew up plans for the Center over a cup of coffee at the Katma.i. Castimore added, all of the children in Kenai have had the opportunity to enj oy it and again thanked Necessary. Cliff Massey, Keaai, Alaska made the following comments: • He has been a resident of Kenai for 35 years; was a member of the PARKS & RECREATION COMMISSION MEETING MAY 1, 2003 PAGE 8 Cammission and has worked with the Club. • The only true statement he feels was made at this meeting was it was a done deal. • His personal opinion is Administration and some council members have been working on this much longer than three months. • Doesn't feel there have been any stra.ight answers from anybody. ~ Feels the City should take some time before making a decision of this si~e. If the Center goes to private enterprise, the citizens have nothing to say about it. Dan Coaetta, Keaai, Alaska made the following comments: ~ • Feels the Center is a great, efficiently- run facility and has used it to play ~Vally Ball for over 12 years. Is afraid the change would take that opportunity away from him. ~ Feels more effort should be made in keeping the facility with the City and it should be used as a model on how a Center can be efficiently run. • Feels the City is moving too fast and they should consider all options. • Options by priority are: 1. Wait one year to see what happens after K-Mart's closure to see where the City stands. Feels the City could afford to wait another year. If Home Depot moves in, it would solve all these problems. 2. If things don't get better, then do what Nikiski has done by putting it to a vote of the people to choose whether to tax themselves a special tax dedicated to recreation purposes. 3. Cut down the days and hours of operation, showers, laundry, etc. ,, 4. After all other options are exhausted, pursue and partnership with the Club. • Feels the proper recommendation would be to table the issue. Anita Necessary, Kenai, Alaska made the following comments: • Has been involved in getting both the Center and the Club running so she and her husband have a soft spot for both entities. + The Center was here before the Club, the ice rink, Challenger Learning Center, the fire school, and K-Mart. Feels the Center should be given more consideration as it has thrived for so many years and has been enjoyed by many. ~ ~McGee or McKee~ DID NOT STATE HIS NAME - 70? Maple, Kenai, Alaska • Newly retired and a frequent user of the Center. The Center is also used by his children. • Many citi~ens are upset with the half truths about the partnership. ~ Wants to know what the savings to the City will be by having the Club take over the Center. ~ Is concerned the facility was going to close but the draft agreement has answered some of his questions. ~ Has a petition with some signatures but it has generated more questions and concerns. PARKS & RECREATION COMMISSION MEETING MAY 1, 2003 PAGE 9 Jeff M~lls, Kenai, Alaska made the following cornments: ~ • Would like to see what the bottom line fi re is for cost savin s to the ~ g City as well as the actual costs of running the Center. • How many user hours were estimated in 2002 in the Center and the net cost per user. VVants to know what the net cost is by keeping the kids off the streets. What is the real cost benefit? ~ Feels the problem exists because the Club activities and programs are growing and there is a demand for facilities and additional programs. Feels the Commission needs to be proactive by looking at ways to upgrade the existing facilities. • Wanted to point out neither the Council nor Administration has directed the Commission to transition toward a user fee based arrangement. • Feels the City should look at other alternatives. Public comment was closed. Baxter reiterated he felt the issue had gone too fast and feels there isn't enough knowledge at this point. Baxter stated he is in favor of not approving the agreement. Baxter added, the program should continue with the necessary cuts as this would provide enough time to put a rational program together. Baxter continued, he knows it's frustrating for the Club to not have any answers because things are going too fast but it's also frustrating to ask questions and not get the answers. Discussion ensued regarding tabling the issue until the Commission had more time for review. Graves explained motions to table are non-debatable, it requires a motion, a second and a vote. Baxter expressed concern that if the issue is tabled, the Commission will miss their chance of having any input on it. Micciche stated he had offered his e-mail address at all of the meetings and everyone is encouraged to contact them for answers to their questions. Although not all answers could be readily answered because research is required, they will provide good, honest answers as soon as they possibly can. Gifford stated she is a person who wants things to happen now and she is in favor of the agreement but agrees more time is required to prepare for it. Gifford added, she would like to see the issue tabled until others on the Commission feel better about it. MOTION: Commissioner Gifford MOVED the issue be tabled until the meeting on May 6~ and when another meeting can be set to discuss the issue further. Commissioner Sandahl SECONDED the motion. Hultberg asked if a special meeting could be scheduled. Graves responded Council could be asked at their regular meeting on May 7~. Graves added, there is pressure PARKS 8~ RECREATION COMMISSION MEETING MAY 1, 2403 PAGE 10 from Finance for some direction with regard to this matter at the budget work session on May 6~ so he would have some idea of how to introduce the budget. It was reiterated the City could not go beyond June 30~ without a budget. Castimore asked again if another meeting could be called if no decision is made on the May 6~ meeting. Porter replied, an additional meeting could be requested. VOTE: Hultber Yes Sandahl Yes Baxter No Gifford Yes Castimore Yes Wisniewski Absent Steiner Absent MOTION PASSED. Castimore thanked the public for their input. Graves encouraged anyone to call him if they had any questions regarding the agreement. ITEM 6: NEW BUSINESS 6-a. Discussion -- Proposed Meeting Schedules for City Commissions, Committees, Board and Council on Aging. Commission discussed the proposed meeting schedule change as presented in the packet. Baxter stated it might be best for .him to step aside as he is already forced to miss two meetings and this change would make it difficult to continue. It was noted the reason for this change was due to budgetary issues. Frates noted, provisions are made for special meetings if required. The Commission agreed to the change but requested the months for meetings to be changed to January, March, May, July, September and November. MOTION: Commissioner Hultberg MOVED the proposed meeting schedule change for the Commission be revised to January, March, May, July, September and November. Commissioner Gifford SECONDED the motion. There were no objections. SO ORDERED. Baxter indicated he would continue to serve to see how the new schedule works for him. Frates stated he would check with the City Clerk and come back with other options at the next meeting. ITEM ?: REPORTS 7-a. Cornaiission Chair -- No report PARKS & RECREATION COMMISSION MEETING MAY 1, 2003 PAGE 11 ?-b. Director -- Frates reported the following: ~~ • The city-wide clean up day is Saturday, May 3rd. Frates explained the process and noted there would be prizes and food. • FAA gave approval for the temporary use of the property beside the softball fields for the skateboard park. The ramps will be moved soon and the funds for the asphalt and fencing have been requested. It was noted the fence would be temporary. • A skateboarder was hurt at the skateboard park and it was noted he wasn't using a helmet. Staff has encouraged users to wear the helmets the City provides. • 'The dip net and parking fees were increased at the dock. • The Rotary Club will do more work at Municipal Park. • Joe Harris and the retirement group from Unocal adopted the Bernie Huss Fitness Trail for the summer. ~ Interviews for the summer hire positions have taken place but no formal announcements have been made. ?-c. Citp Council Liaison -- Councilwoman Porter reported the following: ~ Council has approved the no smoking ordinance and smoking will be prohibited in restaurants effective October 6, 2003. • Ozzie Osborne Was selected by Council to replace Councilman Bannock. • She has again adopted the flowerbeds at the Police Station and Commissioner UVisniewski will provide the funds. ~ She felt it necessary to assure the Commission she was not the council member behind the Club proposal to take over the Center. Porter added, she was instrumental in the partnering of the summer youth program and worked on the joint venture of the teen program but did not encourage Administration to contact them regarding the Center. Porter continued, ~he decision is a very difficult one for all concerned. ITEM 8: COMMISSION UESTIONS 8s COMMENTS Commissioner Sandahl requested an update on the cemetery. Frates reported all is going well and clean-up efforts are underway in preparation for Memorial Day. Frates noted there was some vandalism. Sandahl stated this would probably be Frank Getty's last ~ear to volunteer for clean up at the cemetery and thought it might be time to contact local churches or other organizations with regard to adopting a portion of the. cemetery. ITEM 9: PERSONS PRESENT NOT SCHEDULED TO BE HEARD -- None ITEM 10: INFORMATION 10-a. Council Action Agendas of Apri12 and 16, 2003. PARKS & RECREATI~N COMMISSION MEETING MAY 1, 2003 PAGE 12 10-b. Beauti~ication Committee Minutes of Apri18, 2403. ITEM 11: ADJOURNMENT The meeting adjourned at 10:5? p.m. Minutes recorded and transcribed by: Barbara Roper, Contract Secretary PARKS & RECREATION COMMISSION MEETING MAY 1, 2003 PAGE 13 K:ristine A. Schmidt 513 Ash Avenue ~ Kenai, Alaska 99b11 ) .. ~ ~ (907} 283-7373 • (907) 283-2835 facs~ule ~ kschmidtC~alaska.com • molloylawC~ak.net May 1, 2003 City of Kenai - Parks & Recreation Commission 210 Fidaigo Avenue Kenai, Alaska 99611 Re: Kenai Recreation Center Dear Commission Members: I am sorry I cannot attend in person your meeting on 5/1/03. I am disappointed that your agenda was not disseminated to the public until just this Tuesday, because by then it was impossible to change my travel plans this week. However, please consider this letter, which expresses my opposition to the City of Kenai turning the Kenai Re~reation Center over to the Kenai Peninsula Boys ~ Girls Club. I am a regular user of this f acility, and have been f or over 20 years. Although I have heard many rumors about why this is happening in the last f ew weeks, I do not believe that the City Administration and City Council are giving , us residents, tax a ers and voters the real sto -- what the have said so far makes no P Y r3' Y sense, from either a financial or a public policy perspective. From what I have seen, this is a sweetheart deal, that is bad for every user group except the Boys & Girls Club. I urge you to vote to reject the proposed Agreement between the City of Kenai and the Boys & Girls Club. I ask that you advise the City Council to table this idea for FY 2004, and make even cuts to all City departments, rather than creating a "crisis" -- gutting the Recreation Department budget, and laying of f employees -- to make this sweetheart deal happen. The City just released the proposed Agreement, and, therefore, no one has had much of a chance to review it adequately. However, what I have seen of it is completely one-sided, in f avor of the Boys 8~ Girls Club. Vl~hen I was a municipal attorney (10 years with the Kenai Peninsula Borough and School District), I would never have advised my client, the Borough or School District, to accept a bad deal like this. Why in the world should the City subsidize the Boys & Girls Club, to the tune of $200,000 ($125,000 payment plus $75,000 Rec Center revenue (2002 numbers)~ plus pay their maintenance and utilities -- even their phone bills! This money should be used to keep the current employees working. The Boys & Girls Club should be paying the City to use the Rec Center -- the~ tie it up all the time. For example, in April 2003, the B&GC used the f acility every night 5-8 p.m., plus 9-3 every Saturday. They either paid some ridicuously low rate, ~ . . .. like $20 an hour, or nothing at all, f or th~s time. Attached to my letter is a list of reasons why this is a bad idea, and questions that need to be answered, before you give this idea serious consideration. If 'ven ~ adequate time, I can come up with many more. That's another thing -- what's the rush? Why has the City Administration tried so hard to keep complete inf ormation from the public, and from you, the Commission, while speeding ahead with this plan like a runaway train? For example, I was at a meeting several weeks ago, when the Administration promised to provide you, the Commission, with a list of the cuts they planned to make at the Rec Center if the Boys & Girls Club proposal was not adopted. However, I asked for a copy of that list of cuts just last week, and was told that it wasn't available -- why not? As f ar as I know, the f irst bit of inf ormation about these cuts is in the propaganda sheet put up toda~ on the City web site. These reasons need to be debated, and these questions need to be answered, to the satisfaction of City residents, before the Rec Center is turned over to a private club, with a huge subsidy by taxpayers, and no competitive bid. Thank you for your consideration. . r i ~~ G' ~~' ~'~~ KRISTINE A. S HMIDT Enclosure(s) as stated -2- REAS~NS TO VQTE "N~" ON THE BOYS & GIRLS CLUB AGREEMENT FOR FY 2004 11. T00 SOON, NQT EN~UGH INFOR~[VIATION. The B&GC ro osal is oin too p p g g f ast, with not enough time and inf ormation to make a good decision this f iscal ~ear. The City of Kenai Administration needs to provide complete information about the Rec Center so that residents and users can analyze whether the B&GC proposal is a good deal for Kenai residents, such as: a. What exactly is going to be cut if the B&GC proposal is not accepted? This information was promised to the Rec Commission at the City Council meeting on 4/14/03, and people have been asking for it, but it still has not been provided. b. Revenue and expense inf ormation FOR THE REC CENTER FACILITY, by line item. This inf ormation is not available in the City budget, and the City Administration has not provided it, even though requested. 2. NQ SUBSIDIES. The national trend f or privatizing public f acilities, or outsourcing the operations, is to give it to a private operator and let them run it, and pay a fair lease price, NOT SUBSIDIES. a. The B&GC proposal is a huge subsidy -- the City would pay BB~GC's maintenance, repair and utility bills (even their phone bill!), insurance, ; $125,000, plus let them keep ALL THE REVENUE (approx. $75,000 in 2002, ~'' ~ according to unverified reports) instead of turning this over to the City. Why isn't this subsidy going to keep Rec Center staff, and the f acility open? It is not a good idea to subsidize a private club with our tax dollars! b. GIVE THE FACILITY a chance to pay f or itself . Let the employees come up with a plan to increase revenue to replace the "cuts" that have been manufactured by the City Administration. 3. CUT MIDDLE LEVEL MANAGEMENT. The national trend in the business world is to cut middle level managers bef ore direct service providers. And the government sector has also adopted this policy: the Ketchikan Gateway Borough cut their Parks & Rec Director and Public Works Director, and are running those programs with the supervisors who run the facilities reporting directly to the Borough Manager. Why is the City not looking into this alternative? There are several middle level management positions in the City budget that have not been reduced or cut yet. 4. DISCRIMINATION/PRIORITIES. Why are the only employees being laid off women? Why sacrifice the Rec Center, a 12 month building with full time employees, but keep part time, summer hires? Why is the Rec Director keeping his j ob ear round f ull time, when almost all of his winter work wi11 be done b a Y Y private contractor? Why can't the beautification budget ($87,000) a non-essential I . . ~ ~ service, be cut for ~ust one year. Page 1- TEN REASONS TO VOTE NO ~N B&GC 5. COMPETITNE BID. Why isn't this contract being put out f or public bid? There are many others in the community who could operate the f acility with more experience and qualifications than the Kenai Peninsula Boys & Girls Club. The current employees who will be laid of f, Healthy Changes, Bodymaster -- why not let them bid on it without a subsidy? B&GC has no speciallicenses or certificates to run a public f acility f or adults, and has NO experience of running a f aality or adult programs. Why has the City Administration not let employees or local businesses bid on the contract? The only answer we have heard so f ar is "because we don't have to" -- this is insulting and not in the interest of City residents. 6. NO INFO/ACCOUNTABILITY. We don't know what the B&GC's real programs are -- the draf t Agreement doesn't require them to provide one until 11 /03. There is no public ac~ountability -- the B&GC doesn't have to open their Board meetings to the public, doesn't have to open their books to the public, doesn't have to have hearings on their "Operations Plan." 7. TEEN CENTER. The Teen Center isn't even listed as a priority in the contract. The Teen Center was built with public money as a place f or teens to go -- not to be locked into teen "programs." B&GC doesn't agree to keep this place open in the contract -- this is a betrayal of Kenai taxpayers. We have talked to many teens, they don't want "programs," they want a place to hang out. 8. ~NrHY ISN'T B&GC PAYING THE CITY? They use the Rec Center a lot now. For example, during April 2003, they monopolized the Rec Center Mon-Fri 5-S pm and 9-3 on Saturdays. They didn't pay for all of that time, and they paid only the lowest f ees -- $20 an hour to use the gym, even though adults who use the f acilit~ have to pay $1.50 each. Instead of giving them the Rec Center and subsidizing their programs, why not charge them to use the facility at a fair rate? 9. CUTS IN OTHER DEPARTMENTS. Why haven't other departments been cut a little bit, each, instead of gutting the Rec Center budget and laying of f 4 employees? 10. WHY? The City Administration's "Public Notice," posted just TODAY on the City web site, claims that: Due to a serious reduction in operating funds, the proposed budget for the City of Kenai Recreation Department requires a m'ulimum cut of $110,000.00 beginning on July 1st , 2003. This is dead wrong -- the City Administration CHOSE this method of cutting the budget. The City could have chosen from many alternatives, but none were put on the table except this one -- Why? Why lock up the Rec Center forever, when the City does not know what the financial situation will be next year (the draft B&GC Agreement is f or three years, with 5 year renewals at B&CG's option, with no end)? Why not make small cuts, wait a year and do some long range pianning f or the f acility and programs? The BB~GC proposal doesn't make financial sense, it is not a good way to manage resources, it is not good public policy, what is the real agenda, and why don't we know about it? What is the hidden agenda? Page 2- TEN REASONS TO VOTE NO ON B&GC