Title
RESOLUTION NO. 2014-184 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDED AND RESTATED OPERATING AGREEMENT BETWEEN THE CITY AND LIVING COAST DISCOVERY CENTER
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On June 11, 2013, the Chula Vista City Council and the Living Coast Discovery Center entered into a first amendment to the Operating Agreement for a period of one (1) year, ending on June 30, 2014. The City Manager agreed to extend the Operating Agreement until September 30, 2014. This resolution approves an Amended and Restated Operating Agreement, with an opportunity for term extension to June 30, 2017 upon performance measures being met. The continued financial support under the Agreement was included in the City's budget for FY 2014-15.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity, approval of an amendment to an operating agreement, is not a "Project" as defined under Section 15378 (b)(5) of the State CEQA Guidelines because it is an administrative activity that does not involve a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
The amended Agreement includes:
· An expiration date of December 31, 2015.
· A term extension opportunity to June 30, 2017 conditioned upon performance measurements being met including: (a) a separate operational reserve fund established and funded for LCDC operations with a minimum unencumbered balance of $100,000; (b) established and documented 27 new partnerships, collaborations, and/or programs that increase, in the aggregate, LCDC net revenues; (c) maintained or augmented LCDC Board membership; (d) over a 12 month period, increased LCDC general attendance by two percent (2%) or greater as compared to the previous 12 month period; and (e) complied with all material terms and conditions of this Agreement. (Section 3.2)
· City shall transfer all right, title and interest in and to the following vehicles currently used for LCDC operations: (a) 1995 Gillig, Lic. No. E013416, with approximately 157,000 miles; and (b) 2005 El Dorado E-Z Rider II, Lic. No. 1212768, with approximately 45,000 miles. These vehicles will be transferred to Operator at no cost in their "as is" condition with no representations or warranties of any kind. (Section 2.2)
· No Material Modifications Without City Approval. Operator shall not make material modifications to the LCDC Improvements without City's prior written approval, which such approval shall not be materially withheld or delayed. For purposes of this Section "material modifications" shall mean the addition, removal or alteration of Improvements valued at in excess of $10,000. (Section 5.5)
· Accounting Requirements and Financial Reports. The Living Coast Discovery Center will continue to submit quarterly financial reports to the City. In addition, the City agreed to contribute $10,000 towards the cost of an audit for the Living Coast Discovery Center; this audit shall be completed and a copy thereof provided to the City by no later than October 1, 2014. (Section 9.2)
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1), is not applicable to this decision. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The City's partnership with the Living Coast Discovery Center links to engaging the community to reinvest in the city (Economic Vitality), fosters the health of our physical environment through sustainable land uses (Healthy Community), provides environmental education on coastal resource conservation, nature and wildlife (Strong and Secure Neighbors) and promotes diverse opportunities through connected through educational and recreational programming (Connected Community).
CURRENT YEAR FISCAL IMPACT
There is no additional fiscal impact as the Amended and Restated Operating Agreement continues to provide financial support which was included in the City's approved budget for FY 2014-15.
Living Coast Discovery Center expenditure budget was approved at a level of $79,228, to offset certain utility, telecommunications and fuel shuttle bus expenditures associated with operations at the center. In addition to the specified utilities, the City has an ongoing annual commitment of $164,000 toward debt service, and the proposed agreement specifies continuing IT support and continuing routine maintenance of the facility, at a level commensurate with services at other City-owned facilities, subject to the financial constraints of the City. The combined cost of maintenance and IT support is estimated to be $68,000-$80,000 annually. Additionally, the agreement specifies that the City is obligated to repair or replace any failed infrastructure or life support equipment necessary for the full and lawful operation of the Living Coast Discovery Center and the preservation and exhibits of the center's wildlife up to a maximum of $40,000. Repairs over and above that amount would be at the sole discretion of the City. The City's total obligation to the Living Coast Discovery Center is $363,228.
ONGOING FISCAL IMPACT
This resolution approves an Amended and Restated Operating Agreement, with an opportunity for term extension of sixteen (16) months with performance measures met. Future financial support for the Living Coast Discovery Center will continue to be included in the City Manager's budget review each year to the City Council.
ATTACHMENTS
"A" - Amended and Restated Operating Agreement between the City and the Living Coast Discovery Center