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HomeMy WebLinkAbout05-285 • Resolution No. 05-285 RESOLUTION AUTHORIZING EXECUTION OF A CENTRE OF ELGIN FITNESS MEMBERSHIP SERVICES AGREEMENT WITH EDGEWATER BY DEL WEBB COMMUNITY ASSOCIATION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Dolonna Mecum,City Clerk,be and are hereby authorized and directed to execute a Centre of Elgin Fitness Membership Services Agreement on behalf of the City of Elgin with Edgewater by Del Webb,Community Association,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock,Mayor Presented: September 28, 2005 Adopted: September 28, 2005 Vote: Yeas: 6 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk Resolution No. 05-284 RESOLUTION ACCEPTING THE PROPOSAL OF LUNDSTROM INSURANCE FOR LIMITED SELF-INSURANCE PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin, City Manager,be and is hereby authorized and directed to accept the proposal on behalf of the City of Elgin of Lundstrom Insurance for the city's limited self-insurance program for the period October 1, 2005 through October 1, 2006 as follows: a. To award Safety National a$500,000 SIR worker's compensation proposal for a total excess premium cost of$71,665. b. To accept St. Paul's renewal for a premium cost of$857,743.00 and a claims administration fee of$61,000. c. To accept American International Specialty Lines' renewal pollution liability policy for a premium cost of$46,101. s/Ed Schock Ed Schock,Mayor Presented: September 28, 2005 Adopted: September 28, 2005 Vote: Yeas: 6 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk • Del Webb Edgewater Partnership Agreement September 23, 2005 Page 3 CENTRE OF ELGIN FITNESS MEMBERSHIP SERVICES AGREEMENT THIS AGREEMENT is hereby made and entered into this 28th day of September 2005 by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City"), doing business as The Centre of Elgin, and Edgewater by Del Webb, Community Association, an Illinois not-for-profit corporation (hereinafter referred to as "Association"). WHEREAS, Association is responsible for managing the Edgewater by Del Webb active adult residential development within the City; and WHEREAS, over two hundred (200) homes have already been sold in the Edgewater by Del Webb active adult residential development and it is anticipated that approximately four hundred (400) total homes will have been occupied with approximately 700 residents projected to be living in the Edgewater by Del Webb active adult residential development by the end of 2006; and WHEREAS, the construction of a recreation facility on the premises of Edgewater by Del Webb for use by Edgewater residents is expected to be completed on or about January 1,2007; and WHEREAS, the City markets fitness memberships for The Centre of Elgin to the general public and to corporate entities; and WHEREAS, Association desires to provide Edgewater by Del Webb residents with fitness memberships to The Centre of Elgin during the time period in which the Edgewater by Del Webb on-site recreation facility is being constructed; and WHEREAS, City is a home rule municipality as defined in Article VII Section 6a of the 1970 Constitution of the State of Illinois; and WHEREAS, a home rule unit may exercise any power and perform any function pertaining to its government and affairs; and WHEREAS, procuring fitness memberships for The Centre of Elgin pertains to the government and affairs of City, is beneficial to the general public welfare and is in the best interests of the citizens of City; and Del Webb Edgewater Partnership Agreement September 23, 2005 Page 4 WHEREAS, the City and Association have determined that it is in their best interests to enter into an agreement in which Association will purchase fitness memberships at The Centre of Elgin for residents of the Edgewater by Del Webb active adult residential development in accordance with the terms of this agreement; NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged by all parties hereto, the parties hereto hereby agree as follows: 1. The foregoing recitals are hereby incorporated into this agreement in their entirety. 2. Upon the execution of this agreement, Association shall pay to the City Thirty- Five Thousand Dollars ($35,000.00). 3. The Association shall coordinate efforts with City staff to market City sponsored recreation programs and services to its residents. 4. The "Gold Senior Memberships" purchased by Association pursuant to this agreement shall expire on December 31, 2006. 5. The "Gold Senior Memberships" purchased by Association pursuant to this agreement shall include the following services and benefits at The Centre of Elgin: Unlimited use of the fitness center, Centrecise, Adventure Island, indoor track, fieldhouse, racquetball, climbing wall, locker rooms, steam room and sauna. Each Gold Senior Membership shall also receive six (6) single-use guest passes for use of The Centre, as is standard with a Gold Centre Membership. Each single-use guest pass shall expire on December 31, 2006. Single-use guest passes may only be used by a guest who is accompanied by a Gold Senior member. Group fitness classes are not included with the Gold Senior Membership. 6. The City shall provide Association with a "Guest Pass" to The Centre of Elgin for each resident of Edgewater by Del Webb. 7. The Cityshall issue to Association Guest Passes for The Centre of Elgin in lots of g Del Webb Edgewater Partnership Agreement September 23, 2005 Page 5 fifty (50) passes upon Association demonstrating to the City reasonable proof of residency and demand for such guest passes by persons residing within Edgewater by Del Webb. 8. A Guest Pass for The Center of Elgin shall entitle the holder to three (3) visits to The Centre of Elgin. A Guest Pass shall entitle the holder to the following services and benefits upon those three visits at The Centre of Elgin: Use of the fitness center, Centrecise, Adventure Island, indoor track, fieldhouse, racquetball, climbing wall, locker rooms, steam room and sauna. Group fitness classes are not included with the Guest Pass. 9. The City shall issue a Guest Pass to Edgewater by Del Webb residents for the time period beginning with the execution of this agreement and ending on December 31, 2006. 10. Through the term of this agreement (December 31, 2006), Del Webb residents shall receive Gold Memberships at the senior rate of $30.50 per month (which includes the initiation fee). As residents take out memberships their member fees will be deducted from the $35,000 payment, until the funds have been fully allocated to activated memberships. At that time Del Webb will have the option of providing more funding for additional memberships or discontinuing the program. 11. This agreement and each and every portion thereof shall be binding upon the successors and the assigns of the parties hereto; provided, however, that no assignment shall be made without the prior written consent of the City. 12. Nothing herein contained is intended or shall be construed to, in any respect, create or establish the relationship of co-partners between the City and Association, or as constituting Association as a general representative or general agent of the City for any purpose whatsoever. Further this agreement is not intended nor shall be deemed or construed to create an employment, joint venture, partnership, or other agency relationship between the parties hereto. 13. No official, director, officer, agent or employee of the City shall be charged personally or held contractually liable under any term or provision of this agreement or because of their execution, approval or attempted execution of this agreement. Del Webb Edgewater Partnership Agreement September 23, 2005 Page 6 14. The terms and provisions of this agreement shall be severable. In the event any of the terms or provisions of this agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect. 15. This agreement shall be subject to and governed by the laws of the State of Illinois. Venue for the resolution of any disputes and the enforcement of any rights arising out of or in connection with this Agreement shall be in the Circuit Court for the Sixteenth Judicial Circuit, Kane County, Illinois. 16. This agreement is the sole agreement between the City and Association. There are no other agreements, either implied or verbal, between the City and Association. This agreement shall not be modified or amended without the written agreement of the parties hereto. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date and year first written above. CITY OF ELGIN EDGEWATER BY DEL WEBB, COMMUNITY ASSOCIATION By 1 i y anager Attest: Vexil r. J Printed Name City Clerk Cs �";" •1,� Agenda Item No. 1 City of Elgin it. September 23, 2005 G N TO: Mayor and Members of the City Council RLCRUTlO NAL LGISU RE ANI:>IAULI'U NAL 4.V...14I UNI'1'16, F(:JH ALL CI'1'IJ_FNS FROM: Olufemi Folarin, City Manager Randy Reopelle, Parks and Recr ation Director SUBJECT: Del Webb Edgewater Centre of Elgin Fitness Membership Services Agreement PURPOSE The purpose of this memorandum is to provide the Mayor and City Council members with information concerning an agreement with Del Webb related to fitness memberships at The Centre of Elgin. RECOMMENDATION It is recommended that the Mayor and City Council approve the proposed agreement with Del Webb for the provision of services to their residents at Edgewater. BACKGROUND Staff has been in conversation with the representatives of Edgewater by Del Webb, an active adult housing development, regarding Centre memberships for their new residents. To date over 200 homes have been sold and it is anticipated that, by the end of 2006, 400 homes will be sold with approximately 700 residents. By January 1, 2007, Edgewater will host their own recreation facility for use by their residents. Until that time, Del Webb is interested in setting up a partnership to provide their residents with memberships at The Centre. Del Webb will provide the City with $35,000 in exchange for 140 Gold Senior Corporate Memberships that will expire on December 31, 2006. In addition, the City will provide Del Webb with guest passes for each of the Edgewater residents, good for three visits to The Centre, that will also expire on December 31, 2006. These guest passes will be provided to Del Webb in sets of 50 based upon demand as demonstrated by Del Webb and confirmed by the City upon reviewing their distribution report. The 140 memberships are based on 122 Gold Senior Memberships at a rate of$336 less a 15% corporate discount. During negotiations with Del Webb, the City offered an additional 18 memberships bringing the average rate per membership to $250. At such time that the Del Webb Edgewater Partnership Agreement September 23, 2005 Page 2 Edgewater residents have taken advantage of the existing 140 memberships, Del Webb will have the opportunity to purchase additional memberships at the same reduced rate of $250 per membership, providing that the memberships be purchased in blocks of 10. Del Webb will work with the City to promote other programs and classes held through the Parks & Recreation Department through their monthly newsletter and by assisting in the sales of group fitness class cards at their sales office. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None opi-4INANCIAL IMPACT The agreement with Del Webb will generate $35,000 in membership revenue in exchange for 140 memberships and guest passes for each Edgewater resident. All revenue generated by the agreement will be credited to the Recreation Fund, Centre/Memberships, account number 296-0000-542.01-00. All memberships are valid through 12/31/06. Any additional revenue that may be generated for other recreation activities as a result of these memberships cannot be determined at this time. EGAL IMPACT VII None. ALTERNATIVES 1. Approve the agreement with Del Webb. 2. Do not approve the agreement with Del Webb. Respectfully submitted for Council consideration. RR/tm Attachment