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Home My WebLink About06-180 Resolution No. 06-180 RESOLUTION AUTHORIZING EXECUTION OF AN AMENDMENT TO PURCHASE OF SERVICE AGREEMENT WITH THE ELGIN RECREATION CENTER FOR YOUTH GANG INTERVENTION PROGRAMS 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 an Amendment to Purchase of Service Agreement on behalf of the City of Elgin with the Elgin Recreation Center for youth gang intervention programs,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: July 26, 2006 Adopted: July 26, 2006 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk A Amendment to Purchase of Service Agreement with the Elgin Recreation Center July 7, 2006 Page 3 AMENDMENT TO PURCHASE OF SERVICE AGREEMENT This Amendment to Purchase of Service Agreement made and entered into this Q674( day of Liu L , 2006, by and between and the City of Elgin, Illinois, a municipal corporation, (hereinafter referred to as the "City"), and Elgin Recreation Center, a not-for-profit corporation organized and existing under the laws of the State of Illinois (hereinafter referred to as the "Service Provider"). WITNESSETH WHEREAS, the City and the Service Provider previously entered into a Purchase of Service Agreement dated February 22, 2006, whereby the Service Provider was to provide certain gang intervention programming as described in such agreement(such Purchase of Service Agreement is hereinafter referred to as the "Subject Purchase of Service Agreement"); and WHEREAS, the Service Provider conducts its activities and operations at the property located at 1080 East Chicago Street, Elgin, Illinois (hereinafter referred to as the "Subject . Property"); and WHEREAS, since the entry into the Subject Purchase of Service Agreement the Subject Property has been sold to Manifold Mercies Ministries, Inc. of Elgin, an Illinois not-for-profit corporation; and WHEREAS, the monthly rent paid by the Service Provider for the Subject Property has increased from$8,817 to $10,417; and WHEREAS, the City and the Service Provider wish to amend the payment provisions in the Subject Purchase of Service Agreement as hereinafter provided: NOW, THEREFORE for and in consideration of the mutual undertakings as set forth herein, and in consideration of the mutual undertakings as set forth in the Subject Purchase of Service Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. That Section 4 of the Subject Purchase of Service Agreement is hereby amended to read as follows: "4. The City shall make payments to the Service Provider for the Subject Services under this agreement in the total amount of $152,000. Such payment shall be made in two parts. The first part of such payment shall be made in the form of rental payments Amendment to Purchase of Service Agreement with the Elgin Recreation Center July 7, 2006 Page 4 totaling $117,006 directly by the City to the facility owner in accordance with the lease agreements for the Subject Property (such rental payments shall be in the monthly amount of $8,817 for the months of January through May, 2006 and $10,417 for the months of June through December, 2006. The second part of such payment shall be in the total amount of$34,995 and shall be paid by the City to the Service Provider in two installments with the first such installment of $23,095.50 being paid in February 2006 and the second installment in the amount of $11,898.50 being paid in August 2006. However, the second installment payment shall not be made prior to fifteen (15) days after the Service Provider's submission of the budget document and audited financial statement documents referred to in paragraph 6 of this agreement." 2. That Exhibit A to the Subject Purchase of Service Agreement be and is hereby amended by deleting the first paragraph thereof entitled "Payment". 3. That except as modified herein the Subject Purchase of Service Agreement shall remain in full force and effect. 4. That in the event of any conflict between the terms of this Amendment Agreement and the terms of the Subject Purchase of Service Agreement the terms of this Amendment Agreement shall control. IN WITNESS WHEREOF, the undersigned have entered into and executed this agreement on the date and year first written above. CITY OF ELGIN ELGIN RECREATION CENTER a municipal corporation an Illinois not-for-profit corporation By ♦�..>r - By / _ City C1a er • A ng Chair / Attest: ifirtfrIACht•40 -ct�.r.— City Clerk F:\Legal Dept\Agreement\PSA-Elgin Recreation Center-Amended.doc OF EEC' City of Elgin Agenda Item No. E , ,1 , Sr G3 4 July 7, 2006a ;t TO: Mayor and Members of the City Council FROM: Olufemi Folarin, City Manager /e;rram:nal,leisure arrd Randy Reopelle,elle, Parks and Rec#eation Director (Ainfml C.ryporn{rities;or.411CitiZen, SUBJECT: Amendment to Purchase of Service Agreement with the Elgin Recreation Center PURPOSE To provide the Mayor and City Council members with information related to amending the purchase of service agreement with the Elgin Recreation Center. RECOMMENDATION It is recommended that the Mayor and City Council amend the purchase of service with Elgin Recreation Center to reflect the change in their monthly rent from $8,817 to $10,417. BACKGROUND In February of 2006 the City entered into a purchase of service agreement with the Elgin Recreation Center (ERC), for a total of $152,000. Of this amount, $105,809 was designated toward the rent payment and $46,191 was to be used by ERC to provide recreational programs. The ERC's leased building, which is located at 1080 E. Chicago Street, has been for sale for some time. This has raised concerns about their potential future use of the building. Fortunately, a local church, Manifold Mercies Ministries, has purchased the building and is willing to continue to lease it to ERC. In addition, they are also willing to lease much needed additional space to ERC so they can expand their programming and services. The space that the ERC will be renting will be increased from approximately 20,000 to approximately 25,000 square feet. The Church has agreed to keep the cost per square foot the same, but has asked for an increase of rent due to the additional square footage that the ERC will be utilizing. Based on this additional space of approximately 5,000 square feet, the monthly rent will be increased from $8,817 to $10,417. Under the amended purchase of service agreement, the total payment of $152,000 to the ERC will remain the same as in the original agreement. However, the amount designated for the rental payment will be increased to $125,004 and the amount designated for ERC programming will be reduced to $26,996. • Amendment to Purchase of Service Agreement with the Elgin Recreation Center July 7, 2006 Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. FINANCIAL IMPACT None VP912kGAL IMPACT lone ALTERNATIVES 1. Approve the amendment to the Elgin Recreation Center's purchase of service agreement. 2. Do not approve the amendment to the Elgin Recreation Center's purchase of service agreement Respectfully submitted for Council consideration. rr attachment