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HomeMy WebLinkAbout91-1023 Elgin Day Care Center 9i - \oa3 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH ELGIN DAY CARE CENTER BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that George VanDeVoorde, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a Purchase of Service Agreement on behalf of the City of Elgin with the Elgin Day Care Center for rehabilitating building space and construction of an outdoor play area at the Elgin Community College Fountain Square Campus, a copy of which is attached hereto and made a part hereof by reference . s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: October 23, 1991 Adopted: October 23, 1991 Omnibus Vote: Yeas 7 Nays 0 Recorded: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk PURCHASE OF SERVICE AGREEMENT CITY OF ELGIN, ILLINOIS/ELGIN DAY CARE CENTER This agreement is made this ;? 0( day of an, , 19_, by and between Elgin Day Care Center, a not for profit corporation, and the City of Elgin, Illinois, a municipal corporation hereinafter referred to as "City" . WHEREAS, the City desires to assist in the implementation of a program providing day care services at the Elgin Community College Fountain Square Campus . WHEREAS, the Elgin Day Care Center is an organization which provides day care services for children at the Elgin Community College Fountain Square Campus . It is hereby agreed: 1 . The Elgin Day Care Center will provide day care services for low income families, as defined by Title XX Federal Funding Program. The provision of day care services by the Elgin Day Care Center shall take place at the Elgin Community College Fountain Square Campus . 2 . The Elgin Day Care Center shall maintain the necessary licensing for a facility to accommodate at least fifty six (56 ) children. The Elgin Day Care Center shall maintain this facility at the Elgin Community College Fountain Square Campus for a period of at least five (5) years . 3 . Upon the sale of its property located at 370 East Chicago Street, Elgin, Illinois, the Elgin Day Care Center shall place a deed restriction upon the subject property which limits the use of the property to no more than a two (2) unit dwelling. This deed restriction shall contain a right of entry to be exercised by the City of Elgin, in the event that the property is used as a premises containing more than two units . The Elgin Day Care Center agrees to provide the City with a recorded copy of said deed restriction. 4 . The Elgin Day Care Center has rehabilitated an area at the Elgin Community College in a manner which is suitable to contain a fully licensed day care facility. 5 . The Elgin Day Care Center has constructed an outdoor children' s play area to facilitate its utilization as a day care center. 6 . The Elgin Day Care Center shall submit a report which documents all work completed regarding this rehabilitation and all costs accrued in the completion of this project. 7 . The City shall provide funds to the Elgin Day Care Center in an amount not to exceed $56 ,000 for the express purpose of reimbursing the Elgin Day Care Center for funds expended for the rehabilitation of the building space and construction of an outdoor children' s play area located at the above described location of the Elgin Day Care Center at the Elgin Community College Fountain Square Campus, upon presentment by the Elgin Day Care Center of the written report -2- of the Elgin Day Care Center, satisfactory to the City, containing a summary of all rehabilitation and construction expenditures . 8 . In the event the Elgin Day Care Center does not continue to provide the day care services at the location indicated in paragraph 2 of this agreement, the Elgin Day Care Center shall remit to the City the following amounts : a. In the event operation of this activity ceases within twelve ( 12 ) months of the date of this agreement, Elgin Day Care Center will remit an amount equal to 100% of the total payments made by the City to the Elgin Cay Care Center for this project; b. In the event operation of this activity ceases after more than twelve ( 12 ) but less than twenty-four (24 ) months of the date of this agreement, Elgin Day Care Center will remit an amount equal to 80% of the total payments made by the City to the Elgin Cay Care Center for this project; c. In the event operation of this activity ceases after more than twenty-four (24 ) but less than thirty-six ( 36 ) months of the date of this agreement, Elgin Day Care Center will remit an amount equal to 60% of the total payments made by the City to the Elgin Day Care Center; d. In the event operation of this activity ceases after more than thirty-six (36 ) but less than forty-eight (48 ) months of the date of this agreement, Elgin Day Care Center will remit an amount equal to 40% of the total payments made by the City to the Elgin Day Care Center for this project; e. In the event operation of this activity ceases after more than forty-eight (48) but less than sixty (60) months of the date of this agreement, Elgin Day Care Center will remit an amount equal to 20% of the payment made by the City. This provision shall in no way limit the City of Elgin in asserting its claims against the Elgin Day Care Center for breach of any other terms contained in this agreement. In witness whereof, the parties hereto have caused this agreement to be executed on the above written date. ELGIN DAY CARE CENTER By Chairman, Elgin Day Care Board CITY OF ELGIN, a municipal corporation By (/�c.✓����7p Mayor George VanDeVoorde • Attest: Q-467/1/1/ __ Ap,X1,4/4 City Clerk Elm �'l OiF�C 1-4 Agenda Item No . oqp ,0. ,A,4 \ � hie o �g7LD FEBM1 October 3 , 1991 MEMORANDUM TO: Mayor and Members of the City Council FROM: Larry L. Rice, City Manager SUBJECT: Purchase of Service Agreement - Elgin Day Care Center Purpose: To consider a Purchase of Service Agreement with the Elgin Day Care Center organization. Background: As part of the Community Development Block Grant hearing process the allocation of General Fund dollars to certain organizations was considered and approved by the City Council. The Elgin Day Care Center was allocated $ 56 ,000. for the costs of rehabilitating building space and construction of an outdoor play area at the Elgin Community College Fountain Square Campus. Most of the proposed rehabilitation work has been completed. One of the staff recommendations for this project was for a provision for a declining percentage return of funds if Elgin Day Care would leave the site prior to 10 years of occupancy. This recommendation was developed prior to any lease agreement between Elgin Day Care and Elgin Community College. Since that time a five year lease agreement has been executed between the parties. The five year lease agreement would appear to provide the desired assurance of occupancy by Elgin Day Care and therefore staff has not included a return of funds provision in the attached Purchase of Service Agreement. A condition included in the Purchase of Service Agreement and requested by the City Council is a provision for a deed restriction on the former Elgin Day Center on East Chicago Street limiting the number of dwelling units to a maximum of two units. Staff has discussed this provision with the Elgin Day Care Center organization and it appears that this is an acceptable condition. Financial Impact: The $56 ,000 allocation was made from a total of available General Fund dollars of $560,000 . Therefore sufficient funds exist in the budget for this activity. Recommendation: It is recommended that the City Council approve the attached Purchase of Service Agreement. A copy has been forwarded to the Elgin Day Care Center organization. If approved a resolution will be prepared for action at the next City Council meeting. a,fiA / -'�-C 2 L L. Rite, City Manager