HomeMy WebLinkAbout2009/12/15 Item 17
CITY COUNCIL
AGENDA STATEMENT
~\'f:.C1TY OF
.~ (HUlA VISTA
ITEM TITLE:
SUBMITTED BY:
REV1EWED BY:
DECEMBER 15, 2009, Item 17
REPORT: PROGRESS ON TRANSITION OF OPERATIONS
AT THE NATURE CENTER TO THE FRIENDS OF THE
CHULA VISTA NATURE CENTER AND EXTENSION OF
THE TRANSITIONAL PERIOD FOR SIXTY (60) DAYS
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING $198,500 IN
UNANTICIPATED REVENUE AND DONATED FUNDS
FOR CONTINUED OPERATIONS AT THE CHULA VIST
NATURE CENTER
DIRECTOR OF RE~RE TION AND NATURE CENT
CITY MANAGER
ASSISTANT CITYl MANAGER
4/STHS VOTE: YES I X I.NO 0
SUMMARY
The transition of management and operations of the Chu1a Vista Nature Center ("Center")
from the City to the Friends of the Chula Vista Nature Center ("Friends") is proceeding,
with significant progress made to-date. An Operating Agreement between thc City and the
Friends has been drafted, and is currently being reviewed and refined, with a target
implementation date of February I, 2010. In the previously executed interim agreement
("Interim Agreement") between the City and the Friends, the target date for the transfer was
December 31,2009. In accordance with the Interim Agreement, the parties have agreed to a
60-day extension of the transitional period, to allow both parties to resolve a few remaining
issues and finalize the details of the Operating Agreement.
The City is and will continue operating the Nature Center during the transltJon, in
collaboration with the Friends, through an agreement reached with the Friends in June of
this year. These operations continue to generate revenue, and the resolution appropriates
additional revenues recognized during the past 60 days, as well as a portion of funds donated
from several organizations to support the Center. The appropriation of $198,500 will allow
the City to continue to operate the Center with no additional impact on the general fund for
another 60 days, and will further provide adequate funding for agreed-upon City-provided
services for the remainder of the fiscal year once the Friends have taken over management
and operations of the Nature Center.
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DECEMBER 15, 2009, Item1.?
Page 2 of3
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 15060(c)(3) of the State CEQA Guidelines the activity is not subject
to CEQA. Thus, no environmental review is necessary.
RECOMMENDATION
City Council accept the report, and approve the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable
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 Nature Center
(Friends) for operation and management of the Chula Vista Nature Center (Center). The
resolution included two conceptual funding scenarios for the Center 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. The FY09/10 budget was subsequently approved at the lower (minimal) funding
level with no revenue anticipated.
On June 18,2009, the City and the Friends entered into an interim agreement (Attachment
"A") regarding funding and operations of the Nature Center for the initial transition period
July - December 2009. The agreement stipulated that the City and the Friends would
pursue the establishment of a Memorandum of Understanding (MOU) for the continued
operation and management of the Nature Center. Significant progress toward that end has
been accomplished, and the conceptual MOU has been replaced with a draft Operating
Agreement. The June 18 agreement identified the course of action to be followed if the
MOU (Operating Agreement) was not finalized by October 1,2009. That action, a meet and
confer between the two parties, has actually been ongoing and amicable, with a mutual
understanding that additional time is necessary to develop a comprehensive Operating
Agreement. The change in operational oversight is rather complex, and the Operating
Agreement will define the duties and responsibilities of both parties, understanding that the
City will retain ownership of the facility and the maintenance of the physical plant, while the
Friends will be responsible for the management, programming and day-to-day operations of
the facility, including the care and feeding of animals and plant life. The City and the
Friends have agreed to extend the transition period for sixty (60) days to facilitate the
finalization ofa formal Operating Agreement. The City and Friends have agreed to continue
operating the Nature Center facilities on a cooperative basis, understanding that the
"transition" may occur in stages rather than as a single action. The parties have also agreed
that funding for operations during this extended transitional period will follow the plan
outlined in the June 18 agreement, which will have no additional impact on the general fund.
The appropriation of $198,500 includes both additional revenue generated since an
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DECEMBER 15, 2009, Item-.L7
Page30f3
appropnatJon on October 6, 2009, as well as funds donated to support Nature Center
operations from several organizations, including the Friends of the Chula Vista Nature
Center. These donations are currently being held "on deposit" in City accounts.
A subsequent report will be presented to City Council early next year when the Operating
Agreement has been finalized. In the interim, there is clearly a mutual interest between the
Friends and the City in maintaining and potentially expanding programming and activities at
the Nature Center, and continuing to offer a quality experience to the using public. It is the
intent of both parties to make the transition as seamless as possible.
Although not related specifically to the development of the Operating Agreement, the issue
of a future gap between anticipated annual revenue and expenditures for Nature Center
operations continues to be a concern for the Friends. The successful transitions of other
zoological institutions from public to private operations share certain characteristics,
including ongoing public support of operational budgets at a level of 30-35%. The
estimated annual cost of Nature Center operations in FY10 (under the management of the
Friends) is estimated to be $1.62 million, with projected revenues of $1.23 million, which
includes City support of $342,400, or approximately 21 % of the annual cost. Significant
additional support of nearly $400,000 annually is still required for long-term sustainability.
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.
CURRENT YEAR FISCAL IMPACT
The Nature Center expenditure budget for the current fiscal year was approved by
Council at a level of $218,000, with no revenue anticipated. City Council amended the
budget by resolution on October 20, 2009, appropriating $163,400 from unanticipated
revenue realized from the continued operations of the Nature Center. The City is
anticipating additional operational costs for an extended transitional period. In order to
avoid any additional impact on the general fund, additional money needs to be
appropriated to support those operations. The source of the appropriated funds totaling
$198,500 will be revenues generated at the Nature Center during the past 60 days of
operations ($62,500), and funds donated by individuals and organizations to support the
Nature Center ($136,000). Funds shall be appropriated as follows: $137,560 to Personnel
Services, $29,900 to Supplies & Services, $7,970 to Other Expenses, $8,950 to Capital,
and $14,120 to Utilities.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact associated with this report and appropriation.
A TT ACHMENTS
"A" - Letter Agreement between the City and Friends
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July 14,2009
Jim Sandoval, City Manager
City of Chula Vista
27 6 Fourth A venue
Chula Vista, CA 91910
RE: Notice of 90-Day Extension for Negotiations of MOlT between the City of
Chula Vista ("City") and the Friends of the ChuIa Vista Nature Center
"Friends")
Dear ML Sandoval:
City and Friends continue to engage in good faith negotiations on terms for the transition
ofN'afure Center operations from the City ro the Friends by on or before January 1,2010.
However, to date, a final agreement has not been reached,
Pursuant to Section 6 of our Letter Agreement dated June 18,2009, the purpose of this
letter is to extend our negotiations period for ninety (90) days until October 1,2009,
During this period we will continue to work with your staff to finalize terms for the
transition, to procure new funding sources, to promote the Nature Center, and to build the
capacity of the Friends to operate the facility for years to come,
Since ly,
~56~
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7....."'7.:.;2;; . _ _---.J:....~
Ken Weimer
President,
Friends of Chula Vista Nature Center
cc, Honorable Cheryl Cox, Mayor
Buck Martin, Director of Parks and Recreation
CHULA VISTA
NATURE
CENTER
~
Friends of the Chula Vista Nature Center
Ken \Vcimer (ChHir) . Supervl$or Greg Cox' Zaneta Encilmilcion . Susan Fuller' Dr Brian Joseph' Stephanie Kingston'
Christine MLllone . Patricia :'\'!::truca . Buck l'vlartin (President) . Nntaslw J'vlartin~z (Vic~ Chair) . Marianne Mcivcrs lSccn:tary) .
Stcve tv1icscn' Frank Roseman' j\'fario Salzmann' Donald Smith (Treasurer)' Louis VignapiwlO' Dr. Larry Wergdalld, Jr
" "~ ".' ~-L _ J '/ . (6~"J'4IJ(! 5900 . Fax(619)~09-591U . wh,w,ChulaVJ,ta~~tt,l:",e..C::!,;;;:;<~:~
~s&~1r!~~p;i:1i:iiiim~tr?;~~;~0~;~~~}~;~~~;~i~~1~!:!.~:(;~:lfi~;;'igfi::ntG{'~fWf,\1i'[!~:~1'i';':![&~(i1tJB~}:jtY~i~11jfn~B~t?;~;,i;f1I:1ill:'3E~;S1gJi;;~~{iJ;'L~lil
Al"-rP<i..l1NWI h
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June 18, 2009
Jim Sandoval, City Manager
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
RE: Letter Agreement Between the City of Chul:. Vista ("City") and the Friends
of the Chula Vista Nature Center ("Friend") Regarding Funding and
Operations of the Chula Vista Nature Center ("Nature Center") from July 1
through December 31,2009 ("Transition Period"), and Related Matters
Dear Mr. Sandoval:
As you know, the City and the Friends are currently engaged in good faith negotiations
for the terms oftransitioning Nature Center operations from the City to the Friends by on
or before January 1,2010.
Pending the outcome of these negotiations the City has asked that the Friends deposit
with the City by on or before July 1,2009 the amount of $75,000 to be used, as
necessary, to fund Nature Center Operations during the six-month Transition Period,
City staff and the Friends task force have discussed this matter and have reached
agreement on the following terms and conditions for the Friends contribution:
1. Subject to the terms and conditions set forth below, prior to July 1,2009
the Friends will deliver $75,000 to the City in the form of a cashier's check or other
immediately available funds. The City will hold this amount in a deposit account
established and accessible for the sole purpose of funding operations and development of
the Nature Center ("Operating and Development Reserve (Deposit Account)").
2, , City and Friends will exercise their combined best efforts to obtain, prior
to July 1, 2009, the payment and release of funds pledged by the Sempra Energy
Foundation ($125,000), and by an anonymous donor through the International
Community Foundation and Richard Kiy ($125,000) for the benefit of the Nature Center.
This combined amount ($250,000) shall also be held by the City in the Nature Center
Operating and Development Reserve (Deposit Account).
3, Over the Transition Period City will operate the Nature Center in
substantial conformance with (a) the approved Transition Period budget attached hereto
as Exhibit A and incorporated herein by this reference; and (b) a business plan developed
with and approved by the Friends,
4, Funding for Nature Center operations during the Transition Period shall be
CHULA VISTA
NATURE
CENTER
:;:~--~
Friends of the Chula Vista Nature Cente,'
Ken Weimer (Chair) . Sup~rvisor Greg Cox' Zaneta Encarnacion ",Dr. Hri,<.m J?se,ph . St.e~hanjo;': Ki.~~:ton . > ..
Christin ~ Malone' Patricia tvlaruca. Buck ~tartin (President). Nut::L<;hu N111rtJlh~Z (VIce Chrllf) ~ l'v1:.manne tvknL:fS (Secn.:tary)
St~ve ~;icsen' Frank Roseman . ~,:rario Salzmann' Donald Smith (Trcasun:r) . Louis Vignaptal10 . Dr Lllfry Wageland. Jr
Point Drive CfHflu Vish1, CA 91910-1.101 . (6191"1])-9-5-)OU . Fax (619) 409-5910 . www.ChnbVistaNatureCenter.org
, " J
1000
provided by the City from the following sources and in the following priority: (a) First,
the City will expend existing general fund monies and in kind services budgeted for
Nature Center operations in fiscal year 2009/2010 in 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)
($32S,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.
S. The parties will continue to negotiate in good faith terms and conditions
for a Memorandum of Dnderstanding ("MOD") regarding Nature Center operations per
the agreed upon negotiation parameters set forth in the Friends Letter of Intent dated June
1,2009. In addition, the MOD 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 MOD.
6. In the event that the parties are unable to reach agreement on terms for the
MOD by on or before the July 1,2009 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 MOD by on or
before October 1,2009 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
ISth On behalf of the City, please acknowledge your acceptance and agreement with the
terms of this Letter Agreement by signing where indicated below. '
rely,
~<<XA
.....,
Ken Weimer
President,
Friends ofChula Vista Nature Center
ACKNOWLEDGED AND AG
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2
EXHIBIT A
PLAN 3C (7/1J09Io 12/31/09): 6 months at current compensation
AddllionotS41,600 in part lime hourly
Addition of Life Support Worker/Aquarisl and Admin. Assist.lBookkeeper/Account Clerk on January 1
Addition of Development Officer, development and marketing expenses July 15
Addition of Executive Director starting Sept 1 at 50%. Jan 1 at 100%
Projected Admissions Increase: 30% $139,502
" . ;', '~rl!(~:{.',;~y_:;;,~~,{,:t?;EXP,ENDITUR ES:,.:::. .."C-, .\';i':{:;:':r:~;~:-,~ .::"':' ,::~~:>.::,i~j /f:'!:::j(\Wf:~::;:;>?';AM 0 u NT::~'::;~-~'::~~: ::t;'~~_:l'~:;:fi~;~';:::,~ ,-,:;':
Guest Exoerience/Education Su"ervisof {Program Manaqer} $47,500
Animal Care/Ooerations Supervisor 'Pro"ram Mananar\ $47,500
Anuarium Suoervisor/Retail Specialist (Proaram Mananer\ $47,500
Volunteer/Education Soeciatist (Senior allice Snecialist\ $35,000
Maintenance Worker 'Maintenance S"eciallsl $43,000
Aauarist !A"uarisP $29,500
Groundskee"er/Custodial Worker~aintenance Worker) $33,000
Life Su""on Worker/A"uaris;INe~ staninn Jan 1 SO
Develonment Ollicer INe\v1 . startinn Julv 15 $44,nS
Admin AssistantJBookkeener. stan inn Jan 1 SO
Executive Director Seot lat 50%, Jan 1 at 100% 523,595
Part Time Haurlv Wanes $5,423
Clerical Part Time Hourlv $10,400
Bird Division Part Time Houri" $10,400
Aouarium DIvision Part Time Hourl" $5,200
Education Part Time Houri" $10,400
Gift Shoo Part Time Hourlv $5,200
Sunolies and Services $46,700
Relmb. to Other Aoencies 'Bus' 530,500
Utilities 530,226
Reimb, to Other AnenCles Grants $1,750
Gift ShOD Purchases $19,240
Oevelo....ment Ex"cnses. stan inn Jul1l15 $16,000
Marketinn Consult inn - startinn Oct 1 $10,000
Marketinn Exnense - starting Julv 1 $25,000
Education Pronramminn Exnenses $5,000
Public Works Sunl10ltServlCes $49,200
TOTAL EXPENDITURES '$634,009
GROSS,MONTHLYCOSTS $105;668
July 1 2009 to December 31 2009
-.;t::t~Y::';,':.,;; "J:,iU!:):,~\REVEN U E :SOU RCES';. .,.: ~'.jL'.:/,': .. ., :\NATURECENTER'( '.;OTHERS'OURCES';, <~~;E~;'clliY~:,~ :L')J:
-
Rentals $2,575
Class Fees/Pronrams/Bilthda"s $2,575
Admission Fees $181,352
Donations $10,500
Membershios $17,500
Grant;lPort1 $30,000
GiftShon $45,000
Mueller Classroom Rental $20,000
USFWS Grants $16,250
Special Events (Bay, Military, Refuge) 522,500
Chula Elementary School District Program $13,000
Development (Major Individuals, Foundations, Corporations) $100,000
CITY CONTRiBUTION '6 MonthS Oneration;! $138.000
CITY CONTRIBUTION IUtililie--;\ $80,000
Public Works Sunnof1Services $49,200
Operating and Development Reserve (Deposit Accounl) $325,000
TOTAL $461,252 $325,000 $267.200
TOTAL ALL REVENUE' $1,053,452
July 1 2009 to December 31 2009
NET COST TO OPERATOR.
NET MONTHLY COSTS'
~S419,443
-$69;907
'Tolalrnvenue does not inclUde the funds in 1M Operating and Development Reserve (Deposit Account) whiCh has an available balance of $325,000.00.
17-7
RESOLUTION NO. 2009-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING $198,500 IN
UNANTICIPATED REVENUE AND DONATED FUNDS FOR
CONTINUED OPERATIONS AT THE CHULA VISTA
NATURE CENTER
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 ("CYNC"), City
Council approved Resolution 2009-098, which authorized staff to pursue a public-private
partnership with Friends for operation and management ofthe CYNC; and
WHEREAS, the City and Friends executed interim agreement ("Interim Agreement") ro
negotiate terms and conditions of the public-private partnership; and
WHEREAS, the original target date for the transfer of operations to the Friends was
December 31, 2009; and
WHEREAS, in accordance with the Interim Agreement, the parties have agreed to a 60-
day extension of the transitional period to allow both parties to resolve a few remaining issues
and finalize the details of the Operating Agreement; and
WHEREAS, the City Council approved an expenditure budget for the Nature Center for
the current tiscal year at a level of $218,000, with no revenue anticipated; and
WHEREAS, City Council amended the budget by resolution on October 20,2009,
appropriating $163,400 from unanticipated revenue realized from the continued operations of the
Nature Center; and
WHEREAS, the City is anticipating additional operational costs associated with the
extended transitional period; and
WHEREAS, in order to avoid any impact on the general fund, additional money needs to
be appropriated to support those operations; and
WHEREAS, the source of the appropriated funds will be revenues generated during the
last 60 days of operations ($62,500), and from funds donated by individuals and organizations to
support the Nature Center ($136,000); and
WHEREAS, if necessary, an additional appropriation will be requested later in the fiscal
__ _ year, utilizing additional revenue that will be generated as operations continue; and
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NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby appropriate $198,500 in unanticipated revenue and donated funds for
continued operations at the Chula Vista Nature Center as follows: $137,560 to Personnel
Services, $29,900 to Supplies and Services, $7,970 to Other Expenses, $8,950 to Capital, and
$14,120 to Utilities.
Presented by
Buck Martin
Director of Recreation and Nature Center
17-9