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Home My WebLink About2009/10/20 Item 7 CITY COUNCIL AGENDA STATEMENT ~ \ 'f:.. CITY OF . · ~~ (HULA VISTA OCTOBER 20, 2009, Item /.' ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $163,400 IN UNANTICIPATED REVENUE GENERATED THROUGH OPERATIONS AT THE CHULA VISTA NATURE CENTER AND AMEND THE BUDGET ACCORDINGLY SUBMITTED BY: REVIEWED BY: DIRECTOR OF RE~TION AND NATURE CENTER ~r'" ~~ CITY MANAGE ,-:- ASSIST ANT CITY ANAGER S) 4/STHS VOTE: YES I X I NO D SUM1VIARY The approved operating budget for the Chula Vista Nature Center (CVNC) for FY09/10 includes no revenue, and limited funding on the expenditure side. Through an agreement reached with the Friends of the Chula Vista Nature Center (Friends) subsequent to the budget process, the facility has and is continuing to operate at full capacity, generating un- budgeted revenue. This appropriation of $163,400 of the unanticipated revenue will partially offset projected over-expenditures attributed to the cost of full operations. ENVIRONMENTAL REVIEW - The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity, acceptance of a report and approval of an appropriation, is not a "Project" as defined under Section 15378 (b)(4) of the State CEQA Guidelines because it does not involve a physical change to the environment; therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION City Council approve the resolution. BOARDS/COMMISSION RECOMMENDATION Not Applicable 7-1 OCTOBER 6, 2009, Item~ Page 2 of3 DISCUSSION On April 28, 2009, City Council approved resolution # 2009-098, which authorized staff to pursue a public-private partnership with the Friends of the Chula Vista Nahlre Center for operation and management of the CVNC. The resolution also included two conceptual funding scenarios for the CVNC for FY 09/10, one that provided funding to essentially maintain full operations with some offsetting revenue, and the other that provided only minimal funding for bare-bones operations, with no offsetting revenue. Both funding scenarios stipulated some level of financial support from the Friends. The FY09/10 budget was subsequently approved at the lower (minimal) funding level with no revenue anticipated, which required a significant fi.mding commitment from the Friends in order to maintain operations at the facility. On June 18,2009, the City and the Friends entered into an interim agreement (Attachment "A") that identified sources of funding that would enable the City to continue to operate the CVNC at full capacity for the first half of the fiscal year. The agreement also specified the order in which various funding sources would be utilized, with unanticipated revenue at the top of the list. This appropriation represents compliance with those stipulations, since the unanticipated revenue will offset some expenditures that have already occurred, or will occur in the near future. It is likely that an additional appropriation will be requested later in the year, to further offset operational costs that the City will incur. The appropriation will include additional revenue generated, and will likely tap funds that are currently on deposit with the City from several donors, including the Friends. No appropriation of general fund money is anticipated. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council Members and has found no such holdings within 500' of the properties which are the subject of this action. FISCAL IMPACT The CVNC expenditure budget for the current fiscal year is $218,000. No revenue is budgeted. As of October 7, 2009, a total of$271,560 has been expended for operations of the facility, including personnel costs. The expenditure total includes funds that have been "encumbered" in purchase order agreements with various vendors. As of the same date, a total of$163,400 has been generated in revenue at the facility. This revenue was unanticipated in the budget, and will be used to help offset expenditures created by full operations at the CVNC. The appropriation of S 163,400 in unanticipated revenues will offset some of the expenditures, but an additional appropriation will be required late in the year. The subsequent appropriation will include additional revenue generated, and will likely tap funds that are currently on deposit with the City from several donors. No appropriation of general fund reserves are anticipated. Al13-Nature center Appropriation.Oct20.amdOctl3 7-2 OCTOBER 6, 2009, Item_7_ Page 3 .of 3 Funds shall be appropriated as follows: EXPENDITURE REVENUE Personnel Services 540,200 Use of Money & Property $30,700 Supplies & Services $57,700 Revenue Other Agencies $15,000 Other Expenses $41,100 Charges for Services $65,700 Capital $24,400 Other Revenue $52,000 Total $163,400 Total $163,400 ATTACHMENTS "A" - Letter Agreement between the City and Friends At 1 34Naturc center Appropriation.Oct20.amdOct13 7-3 Attachment A .' if)'. n #1,'/ 0e-t..uiM?' n0UiX~, '~_ au~'7' June 18; 2009 JiihSandoval, City Manager City bfChula Vista '276 FburthAvenue, Chula Vista,:c;A 91910 I"" ','., ' RE: Letter Agreement Between the CitY of Chula Vista ("City") and the Friends of the C:;:hul~; Vista Nature Center (''Friend'') Regarding Funding and Operations o.(the Chula Vista Nature Center ("Natnre Center") frO:mJl)ly 1 tiiroughDeccmber ;31,2009 ("Transitionferiod"), and Related Matters. <,..,. - , '. ,., ", .- , , Pear Mr,. Sandoval: . As YQuknow,: the City and the Friends are. cilITent!yeng~gedin good faith negotiatio~s '(of(he te.rms oftransitioning Nature Centeroperations from the City to. the Friends by on o~befbre JanVaryl, 2010, , . "," . . . . .., ','" .' . .. . P_endingthe oi1tcomeof.thesenegotiations the City has.asked that the Fricnds deposit yy,i,th th(C;:ity bY on .or before Julyi, 2009 the anlOunt of$75,000to be used, as . , - ,n~cessaryj to fluid Nature Center Opera~ons during the sixcmonth Transition Period, . 'Citystaffilnd the Friends task force have discussed this matter and have reached . agt,emellt onihe follo\Ving terms and condiiiohs for the Frie~ds contribution: . . X . 'Subject to the terms and conditions set forth 'below, prior to July I, 2009 the Friends will deliver $75,000 to the_City in the forin of a'cashier's check or other irIl:;;,ediat~lyayailabI~ funds,. The City will hoidthisamouiJtin a deposit account est,ublished andaccessibleJor the sole purpose offunqing operations and development of - the, Nature Cent~i ("Operatmg and De.velopment Reserve (Deposit Account)"), . ... - .." , , '. . , :; 2, -, . 'City and Fri~nds wiil exerCise'thelr combined best efforts to obtain, prior . ; to}~iy 1, 2009 ,the jiayinentandrelease offundspledgedby the Sempra Energy. . - FouiJdation($125,000), imdby im:anonynious qonorthrough the International.' . cbn1;lllli1iiy FOli:ndationmdRichajcl Kiy ($r:25,000Yfor the b~hefit of the NiJJurc Center, ." This combined amount($250,OOO) shall also ,be held by the City in the Nature CeAter. . ..operating and Development Reserve (DepositAcCo,ll)t)'.' ,'" .: .','.' " ".", .., - ,. '"'' 3, Over thcTransition Period City will operate the Nature Center in su1;>stantial conformance with (a) the approved Transition Period budget attached he~eto ;as Exhibit A andincQrporatedherein by this reference; and (b) abusiness plan developed . with and approved by the Friends,. . .. - . 4, " - . . F~ding for Nature Center operations dunngthe Transition Period shall be CHULA VISTA . NATURE CENTER ~ ~ ~ , i , i i , ! r. i I F i !. i J ! i I I L ! i I i I , J i. i i i , , , I . Fritmds ofthe Chula Vista Nature Center Ken Weimer (Chair) . Supervisor Greg Cox. Zaneta Encarnacion ..nr. Bri,an J~~:if::pb .,Slc~tian.ic K~~stoll. ~ .. , . . ~ ~ -f I . Patricia Maruca ~ Buck Martin'(Presidcnt). Nat:lSha Martmez (VIce Ch.ur) - Manunnc Men-ers (Secn:tar]) Chn:>tlm: ,v a one, ' . T ) L . V' 0 . . Dr lurn.' Wcrgeland If Steve ~Hesel1' Frank Ros~m<Ul' Marlo Salzmann' Donald Smith ( n:usurer . .QUlS l""nnpmllO . '; , . ~ -, d ,,- P . t D .'~ Chull Vista elt 91910-1201 . (619) 409-5900 . Fax (619) 409~591O . www.ChulaVistaNatureCenter',org ~~~iiii~i~~;i~~~~~~4~&:~~)i~~~~~~iR~~~~<~i\f.~4{~'~~~JI[~~[~~~~~~!~1:~~M.~i:~~m1f~~~~~~~& provided by the City from the following sources and in the following priority: (a) First, theOty will expend existing general fund monies and in kind services budgeted for Nature Center operations in fiscal year 2009/20 lOin the aggregate amount of $218,000; (b) Second, the City will expend any and all Nature Center revenues derived from the sources identified in the Transition Period Business Plan; (c) Third, the City will expend monies in the Nature Center Operating and Development Reserve (Deposit Account) ($325,000). City and Friends will meet and confer on a monthly basis in order to monitor and manage the sources and amounts of Nature Center revenues and expenditures. In the event that at any time during the Transition Period it appears that all three of the above- described sources of funds will be exhausted prior to the expiration of the Transition Period, the parties shall meet and confer in order to determine how best to proceed. 5. The parties will continue to negotiate in good faith terms and conditions for a Memorandum of Understanding ("MOU") regarding Nature Center operations per the agreed upon negotiation parameters set forth in the Friends Letter ofIntent dated June 1,2009. In addition, the MOU shall provide that (a) any amounts remaining in the Nature Center Operating Reserve, (b) cash on hand arising from Nature Center operations or donations, and (c) rights to pledged or donated funds (to the extent assignable), shall be transferred to the Friends upon transfer of Nature Center operations from the City to the Friends under the terms of the MOU. 6. In the event that the parties are unable to reach agreement on terms for the MOU by on or before the July I, 2009 target date, either party may elect to extend the negotiations for a period of up to ninety (90) days upon written notice to the other party. In the event that the parties are unable to reach agreement on terms for the MOU by on or before October I, 2009 the parties will meet and confer in order to determine how best to proceed. The Friends Board approved these terms unanimously at their Board meeting on June 15th. On behalf of the City, please acknowledge your acceptance and agreement with the terms of this Letter Agreement by signing where indicated below. Sine rely, ~A8.' " Ken Weimer President, Friends of Chula Vista Nature Center ACKNOWLEDGED AND AG 2 7-5 EXHIBIT A PLAN 3C (711109 10 12/31/09): 6 months at current compensation Add!tlon of $41,6<lO In part lime hourly AdditIon of Lif9 Support Worker/Aquarls! and Admin. AsslstJBookkeeper/Account Clerk on January 1 AddItIon at Oevllopmenl Officer, dev910pmanlllnd marketing GXpllnses July 15 Addlllon of ~ecutlve Director sterling Sep!l a\ 50%.. Jan 1 at 100-16 Projected Admissions Increase: 30% $139,502 Julv 1, 2009 to DOCember 31, 2009 Guest Exoerlen::::e!Edccation SUllervlsor rPmnram Mana,-.erl $47,500 Animal Care/O""rations Suoervisor [prooro.m Mnnaqer) $47.500 A"uarlum SUr'lervisorfRalail Soecialist {prcaram Manacer} $47,500 VoJunleer/::duca:ionSnec'alisl Senior Ollice S.~ec;ali3!l 535.000 Malr1lcnancClWorkar Maill1enllnceSoeciallsl) $43,000 Anuarist(AnlJari;t'\- 529,500 Ground~ke;-;;-or/Cus!odial Workor (Maintana:1ca Worker 533,000 Lila Su.....'ort Workllr/Aauarist (New). ~t"rtlno Jan 1 SO Devcionment OHicer New)-startlnllJul 15 $44,715 Admin AssistantIBookKeeper. startlno Jan 1 SO Executive Director So t1 at SO%, Jill'. 1 at 100% 523,S95 Par1T1rnaHourl' Wages $5.423 CleTh;:-al Part Time Hourlv 510400 BIrd DivIsion Part TImo Hour!v $10.400 Anuarlum DIvIsion Pari Time Hourlv $5200 Education Part Tlmo Hourlv 510,400 Gift Shon Part Time Haurlv $5,200 SUnrlliesand Services $4e,700 Aeimb.loOlhorA"encJesf3u.sl $30,500 Ul~ilies 530.226 Aaimb. to Other Aoencies Grants $1,750 Gl1tSha"Purchases $19.240 Del/olonmenl E;;;-;nll6s-starlinnJUlv15 S18,OOO lJIarketin"Consu!lin -starlinaOct 1 510000 Markotin" Exnenl5O' etartinq JulV 1 525,000 Education Pronramminq Elln/l<lSeS $5,000 Publk;:-Works Sup"ortServrces 549.200 TOTALEX~'ENDITURES .. - _-L~'Y"" , ,:i $634;00'9, .,.,..,':\,t::,::""'i': ....-. -- "''''-. -- ......". ..... ...,..-"...-.... ..-...- -- GA'OSS.MONTHl Y:COSTS:" ";.. ....;.,. :,.'i>..-," ,)],"-';'$1051668"-2'/-,,- -",.," 'C",.,."";"": ...... !j!);'~fg~i~" t~~ij}~~~~,iW~~rR l;VEN 'U~ES() QfI CESgi!!~; :;i:;;U!r.~i1@m ;!S;~, r::!1AT\JB~~~'EUtEi'tt ~:onfE#:S()tj'~'G.E'S:~ :~;;~~~~-\,~Qi~t~~~~S' Rentals $2.575 Class Fees/PronramstBlrthdaV!I $2,575 Admlsslan Fees $181 352 Donations $10 500 Mernbershi~~ $17500 Giants (Port $30 000 Gitl5hoo $45000 Muoller Classroom Renlal $20,000 USFWS Gran!, $16,250 Special E\IOnt~ IBa", Milltary, Ralugo) 522,500 Chula Elementary School District Proqr!lm S13,000 DQ'Joloprnont {Major lndll/lduals, FoundCltlons, carporatlonsl $100,000 CITY CONTRIBUTION 6 MonthsOoeratlonsl $138 000 CITY CONTRIBUTION IUmilias $80,000 Public Works Stl"port $eI"Jlces $49,200 Oporaling and D<\lvolopmerrt Resorvo (Dllpoll\t Accounll $325.000 TOTAL $461,252 $325,000 $267,200 TOTAL ALL REVENUE" $1,053,452 July 1 2009 to Dcc:amber 31 2009 NET-,COST;TO OP.ERATOW NET'MONTHL Y. COSTS::: '.,0,..:- ".$419;44J:',i!hii;'''-' '.~ .;--;S69;907::::;;i}j--!.., ;:,::+!:',. ....,:1.,... C,:";:,';", 'Tolal revenul) does nOllm:rude the rUMS In th9 Operat:ng and Oevelopmenl ReSOlVe (Deposll Accollnt) whK:h has an ava8abte balanc" of $325,000.00. 7-6 c5&Wi~_p~&W~~~':?' .~72a~etz! July 14, 2009 Jim Sandoval, City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 RE: Notice of 90-Day Extension for Negotiations of MOU between the City of Chula Vista ("City") and the Friends of the Chub Vista Nature Center "Friends") Dear Mr. Sandoval: City and Friends continue to engage in good faith negotiations on terms for the transition of Nature Center operations from the City to the Friends by on or before January 1,2010. However, to date, a final agreement has not been reached. Pursuant to Section 6 of our Letter Agreement dated June 18,2009, the purpose of this letter is to extend our negotiations period for ninety (90) days until October 1,2009. During this period we will continue to work with your staff to finalize terms for the transition, to procure new funding sources, to promote the Nature Center, and to build the capacity of the Friends to operate the facility for years to come. Since ly, "j';~.&"/V.x: ~-?~~ Ken Weimer President, Friends of Chula Vista Nature Center ce. Honorable Cheryl Cox, Mayor Buck Martin, Director of Parks and Recreation CHULA VISTA NATURE CENTER ~~ Friends or the Chu!a Vista Nature Center Ken Weima (ChClir) . Supervisor Greg Cox' Z<meta L!H.:amllcion . Susan Fuller' Dr. Brian Josepb . Steph,mie Kingston' Christine !\'Ialone' Patricia Maruca' Buck tvtarrin (President) . Natasha Martina (Vice Chair) . Marinnnc MClvcrs (Secretary) . Stew Micsc!1 . Frank Roseman' Mario Salzmann' Donald Smith (Treasurer) . Louis Vignapiano . Dr. Larry Wcrgcland, Jr. CI 'V. .1" Natu,'oCenfpr.orC .. "_L l _")' . (610\400-5900 . Fax(G19l40959W . '.\/\'I/W. 1Uld is ~I..,_ ..::-_._~,~..,,:.:~_,!;!;.e ~~~<l1~itlti~;;;'~~;~~ii~~~;;:!~i1r~;1~fi~~~~i~~~~i;fifIift*~~]i~[H1c~Nr,1J!E!3;}?B~:,::~~~':rfi;~Bf;[;J!';D2iiti:Zi%~0);;~~;1t1FJi1;j!i;;j~';Zt:3(2f1Jii!:ii1 , RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $163,400 IN UNANTICIPATED REVENUE GENERATED THROUGH OPERATIONS AT THE CHULA VISTA NATURE CENTER AND AMEND THE BUDGET ACCORDINGLY WHEREAS, on April 28, 2009, in light of actual and projected budget shortfalls, with the intent of preserving full-time operations at the Chula Vista Nature Center ("CVNC"), City Council approved Resolution 2009-098, which authorized staff to pursue a public-private partnership with Friends for operation and management of the CVNC; and WHEREAS, the approved operating budget for the CVNC for Fiscal Year 2009/2010 includes no revenue, and limited funding on the expenditure side; and WHEREAS, both funding scenanos stipulated some level of financial support from Friends; and WHEREAS, the Fiscal Year 2009/2010 budget was subsequently approved at the lower (minimal) funding level with no revenue anticipated, which required a signiIicant ti.mding commitment from Friends in order to maintain operations at the facility; and WHEREAS, on June 18,2009, the City and Friends entered into an Interim Agreement that identified sources of funding and the order in which the funding would be used to enable the City to continue to operate the CVNC at full capacity for the first half of the fiscal year; and WHEREAS, pursuant to the Interim Agreement, unanticipated revenue was to be used prior to other funds; and WHEREAS, since entering into the Interim Agreement, the CVNC has continued and is continuing to operate at full capacity, generating such unanticipated, unbudgeted revenue; and WHEREAS, this appropriation of $ I 63,400 is necessary to comply with the conditions of the Interim Agreement, as it will partially offset over-expenditures, which are attributable to the cost of full operations, that have already been made or are projected in the near future; and WHEREAS, it is likely that an additional appropriation will be requested later in the year, to further offset operational costs that the City will incur; and WHEREAS, the additional appropriation will likely tap funds that are currently on deposit with the City from several donors, including Friends. 7-8 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby 1) appropriate $163,400 in unanticipated revenue generated through operations at the Chula Vista Nature Center as follows: $40,200 to Personnel Services, $57,700 to Supplies and Services, $41, I 00 to Other Expenses, $24,400 to Capital, $30,700 to Use of Money & Property, $15,000 to Revenue from Other Agencies, $65,700 to Charges for Services, and $52,000 to Other Revenue; and 2) amend the budget accordingly. Presented by Approved as to form by ~~ Buck Martin Director of Recreation and Nature Center Bart C. Miesfeld City Attorney 7-9