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97-116 Resolution No. 97-116 R RESOLUTION AUTHORIZING EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT WITH THE BOARD OF EDUCATION OF SCHOOL DISTRICT U-46 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Robert O. Malm, Interim City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an Intergovernmental Agreement on behalf of the City of Elgin with the Board of Education of School District U-46 for the utilization of land and facilities, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: April 23, 1997 Adopted : April 23, 1997 Vote: Yeas 5 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk SCHOOL DISTRICT U-46 Elgin, Illinois RESOLUTION AUTHORIZING ENTERING INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF ELGIN RE: ENLARGED GYMNASIUMS WHEREAS, the City of Elgin and School District U-46 have mutually determined that it would be in the best interests of the citizens of the community to be able to utilize gymnasiums at Gifford Elementary and Channing Elementary Schools for recreational purposes during non-school hours when said buildings are not being used for School District purposes; and WHEREAS, the new gymnasiums to be constructed for said schools which, if enlarged would better meet the needs of the community during non-school hours. NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the Board of Education as follows: 1. That an intergovernmental agreement with the City of Elgin be drafted which contains the mutual covenants and agreements related to the construction of enlarged gymnasiums at Gifford Elementary and Channing Elementary Schools and for the use of said spaces during non-school hours. 2 . That the President and Secretary of the Board of Education be authorized to sign said agreement. Adopted this .V12":" day of , 1997 , on a vote as follows: Aye: 7 Nay: 0 Absent: 0 Signed: AL4t- L,,e 4,i5,4-4 President, Board fa Education ATTEST: 4447 Sec etary, Board of Eolocation 9731 i INTERGOVERNMENTAL AGREEMENT FOR THE UTILIZATION OF LAND AND FACILITIES BY AND BETWEEN THE BOARD OF EDUCATION OF SCHOOL DISTRICT U-46 KANE, COOK AND DUPAGE COUNTIES AND THE CITY OF ELGIN, KANE AND COOK COUNTIES This Agreement made and entered into this Z647-day of /01A'L, 1997 , by and between the Board of Education of School District U-46, Kane, Cook and DuPage Counties, Illinois (hereinafter referred to as the "School District" and the City of Elgin, Kane and Cook Counties, Illinois (hereinafter referred to as the "City" ) . WHEREAS, the Illinois Constitution of 1970 and the Intergovernmental Cooperation Act of the State of Illinois encourage the cooperation between units of local government for matters of mutual concern; and WHEREAS, the City and the School District mutually agree that Channing Elementary and Gifford Elementary Schools should have expanded gymnasiums to be utilized cooperatively by both parties; and WHEREAS, the School District desires to begin construction on Gifford Elementary School in June, 1997 to be completed by November, 1997 ; and WHEREAS, the School District also desires to begin construction on Channing Elementary School in March, 1999 to be completed by the 1999-2000 school year; and WHEREAS, the City and the School District have mutually determined that it would be in the best interests of the citizens of the community to be able to utilize certain portions of the elementary schools when said buildings are not being used for School District purposes, but could be used for community recreation activities sponsored by the City; and WHEREAS, the City has determined that in order to provide the citizens of the community with the necessary recreational activities at elementary schools, certain additions and enlargements will be required, which additions and enlargements would not otherwise be necessary for the School District in order for the School District to provide for the educational needs of the residents of said School District; and WHEREAS, the School District has determined that the City' s use of the elementary schools for community recreational activities during non-school hours would not f interfere with the School District' s delivery of educational services to its students and residents; and WHEREAS, the School District agrees to expand each of the Gifford Elementary School and the Channing Elementary School gymnasium from 3,000 square feet to 4,500 square feet, provide a separate entrance to each gymnasium, separate restroom facilities for each gymnasium and include a storage space not less than 12 feet by 12 feet for City usage adjacent to each gymnasium. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements as hereinafter set forth, the City and the School District agree as follows : Section 1 Construction Costs and Design A. The City shall reimburse the School District for costs associated with the expanded gymnasium facilities over a 10 year period, with the first payment due the tenth day of January following occupancy of the renovated facility, with 9 equal installments payable on January 10 of each following year, at no interest. The cost for the expanded gymnasium facility at Gifford School shall be made on the basis of an architectural calculation based on actual bids for the project. The cost for the Channing School facility shall be included as a bid alternate. In either case, the City shall not be obligated for more than $300, 000 per site. B. Should this agreement cease, for any reason, within the first twenty-five (25) years after occupancy of the facility, the District shall reimburse the City the undepreciated value of the gymnasium expansion based upon a twenty-five (25) year straight line depreciation method dated from the first day of occupancy of the facility. C. The City and the School District agree to cooperate in the design of the gymnasium facility and all alterations and change orders so that the planned recreational and educational uses of both parties are met. Section 2 Facility and Site Use A. The City and the School District agree that the elementary schools and surrounding sites and shall be jointly used as outlined below. For purposes of this Agreement, the School District "facility" shall refer to the elementary schools, including the gymnasiums and adjacent restrooms and 2 the adjoining outside School District property, including parking lots . The City shall be entitled to reasonable modes of ingress and egress to and from the facility during non-school hours when using the gymnasium. B. For purposes of this Agreement, "non-school hours" shall be defined as follows : 1 . Weekdays . From 5 : 00 p.m. to 10 : 30 p.m. , Monday through Friday, throughout the school term. 2 . Weekends . All day Saturday and after 12 : 00 p.m. on Sunday, throughout the school term. 3 . Holidays . That extended period of time when school is not in session throughout the school term, including, but not necessarily limited to Thanksgiving, Winter and Spring vacations . 4 . Summer. That period of time during the months of June, July and August, outside of the school term, except for scheduled maintenance and cleaning. Scheduled maintenance and cleaning periods shall be designated by the School District in writing. Notice of such designation will be delivered to the City at least thirty (30) days prior to the end of each school term. C. During "non-school hours" when the school district has an on duty custodian, the City will receive building use at no cost. D. It is understood and agreed that the needs of the School District may require usage of the School District facility during non-school hours on certain days throughout the calendar year for special events, such as parent-teacher conferences, holiday programs and PTA fund-raising events. Prior to the start of each school term, not later than June 30th of each year, the City and the School District shall designate in writing one weekday evening per week and one full weekend per school quarter, during the school term, for school programs or activities . The Thanksgiving and Spring holiday break and five consecutive days during the Winter holiday shall be preempted by the School District for scheduled maintenance and cleaning. In addition, it is understood and agreed by the City that there may be occasions when the School District may require usage of the facility during non-school hours assigned to the City in order to accommodate special uses as the need arises . Therefore, upon the minimum of 14 days ' written notice, the School District may request a modification of the usage schedule set forth above. Consent shall not be unreasonably withheld. In instances where all the U-46 facilities are 3 closed for emergency reasons (i .e. snow/extreme cold) , the gymnasium shall not be used by the City on that day. In addition, it is understood and agreed by the School District that there may be occasions when the City may require usage of the facility during non-school hours assigned to the School District in order to accommodate special uses as the need arises . Therefore, upon a minimum of 14 days ' notice, the City may request a modification of the usage schedule set forth above. Consent shall not be unreasonably withheld. E. The City and the School District recognize and understand that this is a unique agreement providing the optimum use of public facilities being constructed for the residents of both the City and the School District. It is recognized that there may be a need, from time to time, for periodic review and modification of this Agreement, after formal adoption and execution of this Agreement. Such reviews shall take place as needed, at the request of either the School District or the City. Only by mutual written consent of the parties acting through authority granted by their respective board and council, may this Agreement be amended. F. The School District is currently in the initial stages of a planning process known as Partnership in Excellence for Learning. A committee is looking at innovative, creative ways to provide educational services . The culmination of this process could result in a modified school year, flexible scheduling and the like. it is understood, therefore, that any modification to use Gifford and Channing Schools for educational purpose could require a modification to the periods of time these facilities could be used for recreational purposes . G. It is understood and agreed that certain areas of the facility shall be designated for storage and/or office space for City use. Those areas designated for City storage and/or office space shall be solely occupied by the City throughout the calendar year, including during school hours . H. In executing this Intergovernmental Agreement and accepting its benefits, the City agrees that it shall use the School District facility solely for those activities which it properly and lawfully is authorized to sponsor. The City agrees to require users to abide by the School District' s no smoking and no alcohol policy. Section 3 Operational Costs A. Utilities and Custodial/Night Cleaning Costs The City understands and agrees that, through its utilization of the facility, it may render the School District liable for additional custodial and/or night cleaning costs . The City agrees that it shall be bound by the provisions of the 4 agreement between the School District and the Elgin Support Staff Organization ( "ESSO" ) , as it pertains to the use of Channing Elementary and Gifford Elementary Schools and for purposes of computing additional costs resulting from City use. 1. The School District agrees to provide at its sole cost reasonably required heating, cooling and electrical services during those times that the City uses the facility. 2 . The School District agrees to provide at no additional cost to the City, reasonably required custodial and/or night cleaning services with a quality of maintenance equal to ongoing school custodial and/or night cleaning services during the timeframe that the City uses the facility. 3 . The City shall pay any additional cost including regular and overtime compensation for custodial and/or night cleaning during weekends, holidays and summer usages when a custodian and/or night cleaner is required solely due to a City sponsored activity and is not assigned to regular duty, within thirty ( 30) days after receipt of an invoice for the same by the School District. B. Repairs The School District shall at its sole cost be responsible for the repair and replacement of fixtures, furnishings and improvements to the facility. If damage to the fixtures, furnishings and improvements are the direct result of a City activity, the City agrees to reimburse the School District for its direct cost of the necessary repairs or replacements . C. Supervision of Activities The City agrees to provide and assume, at its sole cost, personnel sufficient and necessary to properly schedule and supervise City activities at the School District facility. D. Equipment It is understood that certain items of equipment provided by the City and/or the School District upon request may be utilized jointly for City and School District activities . Both parties agree that the party using the equipment will be solely responsible for any damage to equipment as a direct result of that usage regardless of ownership. E. Liability/Insurance Prior to the commencement of the use of the subject facilities the School District agrees to provide the City with a certificate of insurance pursuant to its self insurance program naming the City as a primary, non-contributory additional insured with limits of not less 5 than $500,000 per occurrence and excess coverage of not less than $5,000,000 for claims relating to the condition of the subject facilities or the occupancy or use thereof by the City or its invitees covering general liability, including personal injury and property damage. Such certificate of insurance shall provide that the insurance shall not be terminated for any reason without thirty ( 30) days advance written notice to the City. Such insurance, however, shall not be required to cover, nor shall the School District be liable for, any loss, damage or injury of any kind to any person or property occasioned by the negligent acts or omissions of the City, its agents, or employees . The School District agrees and does hereby indemnify and hold harmless the City from and against any and all claims, actions, causes of action, damages, liability and expenses, including attorney fees, in connection with loss of life, personal injury, and/or property damage arising out of any occurrence in, or upon the facilities, or the occupancy or use of such facilities or any part thereof, or arising from or out of the School District's failure to comply with any provision of this agreement, or otherwise occasioned fully or in part by the actions, negligence, inaction or omission of the School District, its officials, employees, agents, representatives, contractors, invitees or licensees . Such indemnification, however, shall not include nor shall the School District be liable for, any loss, damage or injury of any kind to any person or property occasioned by negligent acts of the City, its agents, employees, or invitees . In the case the City shall, without fault on its part, remain a party to any litigation within the purview of such indemnification and hold harmless provision, then the School District shall protect and hold the City harmless and shall pay all costs, expenses and reasonable attorneys fees incurred or paid by the City in connection with such litigation. The City may at its option, require the School District to assume the City' s defense in any action within the purview of this indemnification and hold harmless provision through counsel satisfactory to the City. Prior to the commencement of the use of the subject facilities the City agrees to provide the School District with a certificate of insurance pursuant to its self insurance program naming the School District as a primary, non-contributory additional insured with limits of not less than $500, 000 per occurrence and excess coverage of not less than $5,000, 000 for claims arising out of negligent acts or omissions of the City, its officers, agents, employees or invitees and which also involve the City occupancy and use of the subject facilities by the City or its invitees covering general liability, including personal injury and property damage. Such certificate of insurance shall provide that the insurance shall not be terminated for any reason without thirty (30) days advance written notice to the School 6 District. Such insurance, however, shall not be required to cover, nor shall the City be liable for, any loss, damage or injury of any kind to any person or property occasioned by the design, construction or maintenance of the subject facilities or by the negligent acts or omissions of the School District, its agents, employees or invitees . The City agrees and does hereby indemnify and hold the School District harmless from and against any and all claims, actions, causes of action, damages, liability and expenses, including attorney's fees, in connection with loss of life, personal injury, and/or property damage arising out of negligent acts or omissions of the City, its officers, agents, employees or invitees and which also involve the City's occupancy or use of such facilities or any part thereof, or arising from or out of the City' s failure to comply with any provision of this agreement. Such indemnification, however, shall not include nor shall the City be liable for, any loss, damage or injury of any kind to any person or property occasioned by the design, construction or maintenance of the subject facilities or by negligent acts of the School District, its agents, employees, or invitees. In the - case that the School District shall, without fault on its part, remain a party to any litigation within the purview of such indemnification and hold harmless provision, then the City shall protect and hold the School District harmless and shall pay all costs, expenses and reasonable attorney' s fees incurred or paid by the School District in connection with such litigation. The School District may at its option, require the City to assume the School District ' s defense in any action with the purview of this indemnification and hold harmless provision through counsel satisfactory to the School District. Section 4 Miscellaneous Provisions A. Right of First Refusal In the event that the School District determines to sell the facility, or any portion thereof, the City shall have the right of first refusal upon the same terms and conditions as has been agreed to in writing with a prospective purchaser. Should the City exercise said right of first refusal, the City shall receive full credit for the undepreciated value of its contribution toward the construction of the gym. Depreciation of the improvements shall be determined through the use of a twenty-five (25) year straight line depreciation method dated from the first day of occupancy of the facility. Such right of first refusal shall expire thirty ( 30) days after the School District gives written notice of its receipt of any acceptable offer to purchase from a third party to the City, along with a copy of such offer to purchase, unless exercised within such thirty (30) day period. 7 A • In the event the City does not exercise its right of first refusal, and the property is sold to a third party, the school district agrees to pay the City the undepreciated value of its contribution towards the construction of the gym. Depreciation of the improvements shall be determined through the use of a twenty-five (25) year straight line depreciation method dated from the first day of occupancy of the facility. B. Agreement for Exchange of Services In exchange for the schooldistrict providing custodial support and utilities, (reference Section 3 A. 1-2 ) , the City agrees to provide the following services/fee waivers : maintenance of playground equipment at Channing, Huff, Gifford and Lowrie Schools; waive Hemmens rental fees up to $3, 000 per school year and an annual one-time event fee waiver for use of the Wing Park bandshell; and field maintenance at Kimball and Abbott Middle Schools . C. Safe Summer Open Gym Program A City-sponsored safe summer open gym program operates in some U-46 facilities . In exchange for $13,000 reduction in the custodial costs related to the safe summer open gym program, the City agrees to the following services/fee waivers : waive rental fees for use of soccer complex for Larkin and Elgin High School boys and girls home games; grant Larkin High School usage of Spartan Meadows Golf Course for home matches and team practices at a cost equivalent to one resident season pass; use of Wing and Lords Park for cross country meets for Elgin and Larkin High Schools . D. Notice Any and all notices requires to be sent to the City shall be served in writing by certified mail or by personal delivery during regular business hours to the City Clerk, 150 Dexter Court, Elgin IL 60120 . Any and all notices required to be sent to the School District shall be served in writing by certified mail or by personal delivery during regular business hours to the Secretary of the Board of Education, School District U-46 at 355 East Chicago Street, Elgin, II 60120 . E. Savings Clause It is mutually understood and agreed that all agreements and covenants herein are severable and that in the event any of them shall be held to be invalid by any court of competent jurisdiction, this Agreement shall be interpreted as if such invalid agreement or covenant were not contained herein. F. Default In the event that either the City or the School District default in faithfully performing its obligations hereunder, the non-defaulting party shall give notice to the other party of such default in writing. In the event that such default continues thereafter for a period of sixty ( 60) days, then the non-defaulting party may withhold cooperation 8 of participation in this Agreement until all said defaults are cured and/or take such further legal or equitable action as shall otherwise be available. G. Term This Agreement shall be in effect for a period of twenty-five (25) years commencing November 1, 1997 through October 31, 2022 unless otherwise earlier terminated as provided herein. In the event the gymnasium at Gifford School is not complete, the parties will meet to insure the City has twenty-five (25 ) years of building use. The parties may elect to renew this Agreement in its current or modified form or such terms thereafter as they shall find agreeable. IN WITNESS WHEREOF, the parties have hereto set their hands and seals the day and year first above written. BOARD OF EDUCATION OF SCHOOL DISTRICT U-46 Kane, Cook and DuPage Counties, Illinois By . z2,74.4) President ATTEST: Secretary CITY OF - _ N K. e a d •.k/ ount"es, Illinois By: /.�� Cit `• Manage ATT T: City Clerk 9 \1.y OF Eq.:, t City of Elgin vit Agenda Item No. .4 a Tf UIE*� • April 3, 1997 TO: Mayor and Members of the City Council FROM: Robert O. Malm, Interim City Manager SUBJECT: U-46 Gym Expansions Cooperative Program PURPOSE The purpose of this memorandum is to provide information to the Mayor and members of the City Council to consider entering into an agreement with School District U-46 to expand gymnasiums at Gifford and Channing Schools and for facility usage by the community and the Parks and Recreation Department. BACKGROUND In early January, 1997, Gordon Shulz, Assistant Superintendent of Finance for School District U- 46, contacted the City regarding potential interest in providing funding for the expansion of four school gyms for additional community facility usage. At the January 22, 1997 meeting, City Council approved the concept of entering into an agreement with U-46 to expand gymnasiums at Gifford and Channing Schools. Staff was requested to develop an intergovernmental agreement with U-46. City staff has met with U-46 administration to develop the attached proposed agreement. The agreement includes the following terms: • Agreement has a 25 year term and is renewable. • The cost of the expanded facilities is limited to a maximum of$300,000 per gymnasium which will be paid for by the City interest free in ten equal annual installments. • Gifford School's expanded gym will open in November, 1997. The City's first payment would not be due until January, 1998. • Channing School's expanded gym will open during the 1999-2000 school year. The City's first payment would not be due until January, 2000. • U-46 will provide custodial services, maintenance services, and pay for utilities for the facilities. In exchange, the City will continue to provide the following services/fee waivers: playground maintenance for Channing,Huff, Gifford, and Lowrie Schools;waive Hemmens rental fees up to $3,000; an annual one-time event fee waiver for use of the Wing Park bandshell for graduation ceremonies; and field maintenance at Kimball and Abbott Middle Schools. • In addition,the school district will provide a $13,000 reduction in annual costs associated with the Safe Summer open gym program in exchange for the following services/fee waivers: waive rental fees for use of the soccer complex for Larkin and Elgin High School r"'"''` boys and girls teams; continue to grant use of Spartan Meadows for Larkin home golf matches and practices; continue to grant use of Wing and Lords Parks for Larkin and Elgin High Schools cross country meets. U-46 Expanded Gymnasium Agreement • April 3, 1997 elik Page 2 Facility Rental Savings Currently,the Parks and Recreation budget includes$68,000 for rental of U-46 facilities to . accommodate recreation programs such as men's and youth basketball,volleyball, karate, gymnastics, and open gyms. Under the terms of the purposed expanded gym agreement, the City would be able to use of Gifford and Channing School gyms at no cost during weekday evenings during the school year. As a result, the City will realize savings of approximately$14,000 in facility rental charges. In addition, the City has received fee reductions of$13,000 for the Safe Summer open gym program, which is housed in 10 different U-46 facilities. In total, the agreement allows the City to realize $27,000 in facility rental costs to help offset the City's cost , for the expanded gymnasiums. Facility rental savings could also result in additional reduced or no-cost programming. FINANCIAL IMPACT The cost to expand the gyms is limited to $300,000 each. Based on the two schools proposed, Gifford and Channing, the total maximum cost of the program would be$600,000. The school district is willing to accept payments spread over ten years on an interest-free loan basis, a maximum annual expenditure by the City of$60,000. The first payment for the expanded Gifford School facility would not begin until the 1998 fiscal year. The City's obligation for the Gifford ,e"" gym will be calculated using an architectural calculation based on the accepted bid for the project. The first payment for the expanded Channing School facility would not begin until the 2000 fiscal year. The City's obligation for the Channing gym will be determined through bidding the gym expansion as an alternate. The gym payments would need to be included in either the Parks and Recreation portion of the General Fund or through other funding sources such as Riverboat or Riverboat Lease Funds. The cooperative facility use agreement will allow the City to reduce its annual facility rental expenditures. Additional recreational fee revenue may also be generated through increased . programming. COMMUNITY GROUPS/INTERESTEDJERSONS CONTACTED At their March 17 meeting, the U-46 School Board discussed the intergovernmental agreement with the City for the expansion of Channing and Gifford school gymnasiums and expressed preliminary support for the agreement. The attached agreement will be on the April 7, 1997 School Board Agenda for consideration. LEGAL IMPACT • Although it has been the practice of the City to waive certain fees for U-46 usage of City facilities, an ordinance amendment will be necessary to implement the fee waivers included in the proposed agreement. ApU-4616 3, 1Exp9an97ded Gymnasium Agreement Page 3 ALTERNATIVES The City Council could approve the agreement as drafted, edit the agreement or decline to enter into the expanded gymnasium agreement with School District U-46. RECOMMENDATION It is recommended that the City Council approve the agreement for expanded gymnasiums at Gifford and Channing schools. Respectfully submitted, IA st3 J-U) Monica Bates Director of Parks and Recreation Eric S. Stuckey • •et Director/Public Information Officer 2" ((J„, -44 Ro. rtO. Malm Inte City Manager Attachments Committee of the Whole Meeting January 22 , 1997 Page 3 unprogrammed 1996 riverboat funds . Yeas : Councilmembers Gavin, Gilliam, Schock, Walters, Yearman and Mayor Kelly. Nays : None. Councilwoman Yearman also asked that the Legal Department investigate whether it is possible to recover the cost of sidewalk installation for this project and similar projects such as Summit Street and Randall Road when the developers in the beginning should have been required to install sidewalks . Disposition of City-owned property at Lillian and Weston - Funding of Habitat for Humanity Project Councilman Walters made a motion, seconded by Councilman Gilliam, to reimburse the CDBG Fund for the Lillian and Weston acquisition, keep the property as open space, and provide Habitat for Humanity with $25,000 in financial assistance for the rehabilitation of property at 620 Brook Street. Yeas : Councilmembers Gavin, Gilliam, Schock, Walters and Yearman. Nays : Mayor Kelly. Historic Architectural Rehabilitation Grant Program 1995 - Status Report and Request for Program Revision Councilman Gavin made a motion, seconded by Councilman Walters, to amend the grant Program to allow 18 months for rehabilitations to be completed by amending Section 20 . 15 of the Elgin Municipal Code entitled Historic/Architectural Rehabilitation Grant Program. Yeas : Councilmembers Gavin, Gilliam, Schock, Walters, Yearman and Mayor Kelly. Nays : None. Oversizing of Gymnasiums for Community Recreation Programs Councilman Walters made a motion, seconded by Councilman Gilliam, to authorize preparation of an Intergovernmental Agreement regarding the City providing funding support to expand the gymnasiums at Channing and Gifford Schools and to continue to negotiate with School District U-46 regarding the details . Discussion was held regarding whether it was necessary to make a decision at this time regarding both of the proposed schools or whether a decision regarding Channing School could be delayed. Councilman Gavin made a motion, seconded by Councilwoman Yearman, to amend the aforesaid motion to remove Channing and discuss it later when additional information and figures are available. Yeas : Councilmembers Gavin and Yearman. Nays : Councilmembers Schock, Walters, Yearman, and Mayor Kelly. Councilman Gilliam abstained. Motion to amend failed. The vote on the original motion was as follows : Yeas : Councilmembers Gavin, Schock, Walters, Yearman, and Mayor Kelly. Nays : None. Councilman Gilliam abstained. • <t'l OF E ` 40 41. Agenda Item No.# City of Elgin o �TEDttg't` r January 17, 1997 TO: Mayor and Members of the City Council FROM: Robert O. Malm, Interim City Manager SUBJECT: U-46 Gym Expansions Cooperative Program PURPOSE The purpose of this memorandum is to provide information to the Mayor and members of the City Council to consider funding support to expand two Elgin school gyms and enter into a cooperative agreement for facility usage by the community and the Parks and Recreation Department. BACKGROUND In early January, 1997, Gordon Schulz, Assistant Superintendent of Finance for U-46, contacted the City regarding potential interest in providing funding for the expansion of four school gyms in exchange for additional community facility usage (see attached letter) . A priority ranking has been established by Parks and Recreation staff for the school gyms proposed by U-46 for expansions as follows : 1. Gifford School - 240 Clifton 2 . Channing School - 63 S. Channing 3 . Coleman School - 1220 Dundee 4 . Illinois Park School - 1350 Wing Street The above priority ranking is based on: 1) the existing cooperative relationship with the individual school; 2) the location of the school in terms of neighborhood access; and 3) the potential for program expansion at the school. Should the City Council be interested in such a cooperative arrangement, staff recommends the funding of gym expansions at Gifford and Channing Schools. A cooperative effort at these two schools will allow the Parks and Recreation Department the ability to expand services for areas currently greatly underserved by recreation facilities and reduce the City facility rental costs throughout the year. Preliminary discussions with U-46 administrators based on similar agreements with other communities indicate that an agreement would likely include the following elements : U-46 Gym Expansions January 17 , 1997 Page 2 Pa Llent by the City of the additional cost associated with the expanded gym (approximately $300, 000 per gym) . This amount would be interest free and be paid in ten equal annual installments beginning in 1998 . The facilities would be available for City use: four out of five weekday evenings per week during the school year; three weekends per month (all Sundays would be available) ; and throughout the entire summer. The School District would be responsible for all utility and regular maintenance and cleaning costs . In addition to these conditions, U-46 administration has indicated a willingness to explore reduction/elimination of some usage fees at other elementary and middle school locations . The City could realize some operational cost savings as a result of this agreement. For example, the City spent $46 ,000 for U-46 facility rental in 1996 . Of this amount, $25, 000 was expended for the use of 10 open gym sites during the 1996 Safe Summer program. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED U-46 School District. FINANCIAL IMPACT .0+4) The cost to expand the gyms is estimated to be $300,000 each. The exact cost of the larger gyms would be determined through the bid process by including the upgraded facilities as a bid alternate. Based on the two schools proposed, Gifford and Channing, the total cost of the program is figured to be approximately $600,000 . The school district is willing to accept payments spread over ten years on an interest-free loan basis, an annual expenditure by the City of $60, 000 . These payments would not begin until the 1998 fiscal year and would need to be included in either the Parks and Recreation portion of the General Fund or through other funding sources such as Riverboat or Riverboat Lease Funds . The cooperative facility use agreement will allow the City to reduce its annual facility rental expenditures . Additional recreational fee revenue may also be generated through increased programming. LEGAL IMPACT None. ALTERNATIVES4114) Do not participate in the cooperative facility expansion with U-46 . U-46 Gym Expansions January 17 , 1997 Page 3 RECOMMENDATION City Council direction is requested. If the City Council should want to pursue this cooperative arrangement, an agreement would be negotiated with U-46 and presented for City Council approval at the February 12, 1997 meeting. Respectfully submitted, Monica Bates D' tor of Parks & Recreation t/0)14- GJ ---.. Robert O. Malm Interim City Manager MB Attachment • hOI Administrative Office ` � J CCO355 East Chicago Street District _ Elgin, Illinois 60120-6543 (847) 888-5000 U .46- . _: FAX (847) 888-0272 All A Tradition of Teaching Excellence • i h o w1 January 7 , 1997.: Mr. Robert Maim Assistant City Manager City of Elgin 150 Dexter Court Elgin, IL 60120 Dear Mr. Maim: From individuals within the City of Elgin and School District U-46, there have been requests to have some elementary school gymnasiums large enough for regulation size basketball courts. This would allow for after hours community use by high school age students and adults in organized programs. Having several larger size gyms would be consistent with the City' s policy -for out-reaching to r neighborhoods and the District U-46 Strategic Plan recommendation to have elementary schools become neighborhood centers. Regulation size gyms have been recommended for the replacement Illinois Park School, Gifford School, Coleman School and Channing School. This would allow two such facilities on the west side of Elgin and two on the east side. Included in a plan for an enlarged gym would be_additional washrooms and office/storage space. It is estimated that such expanded facility would cost an additional $300, 000 per building. This is a request to have the City of Elgin provide the additional funds needed. The School District is willing to accept payments spread over ten years on an interest-free loan ti/ basis . We presently have installment payment agreements for enlarged gyms with another park district and one community. The projects at Illinois Park, , Gifford and Coleman are nearing the end of their design phases . In order to meet the occupancy - deadlines for those buildings, a decision on whether or not the City would participate in financing an enlarged gym is needed as soon as possible, but no later than January 31, 1997 . Another Elgin school -* in its final design phase is Lords Park Elementary School but the enlarged gym has not been -suggested for that building. A decision on such a project at Channing would not be needed until early 1998. School District U•46 Serves: Bartlett, Elgin, Hanover Park, South Elgin, Streamwood, Wayne and portions of Carol Stream, Hoffman Estates, St. Charles, Schaumburg and West Chicago • If the City is unable to commit to the aforementioned projects at . . this time, enlarged gyms could still be placed on other elementary schools since planning of additions will not begin until early-1998 for the—remaining four west side and three east side Elgin elementary schools. - Obviously an after hours program for older age students and *adults could operate in a regular elementary size gym. This request-- is - • presented for consideration only because an opportunity to have larger size elementary school gyms currently exists. Such an opportunity will not be available again for many, many years. Please call (847 ) 888-5011 with any questions you have or any additional information you may need. • Yours truly, - %:tt1171.,44/4"1/ Gordon E. Schulz, Assistant Superintendent, Finance GES/dk • • -- SCHOOL DISTRICT U-46 Elgin, Illinois RESOLUTION ' AUTHORIZING ENTERING INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF ELGIN RE: ENLARGED GYMNASIUMS WHEREAS, the City of Elgin and School District U-46 have mutually determined that it would be in the best interests of the citizens of the community to be able to utilize gymnasiums at Gifford Elementary and Channing Elementary Schools for recreational purposes during non-school hours when said buildings are not being used for School District purposes; and WHEREAS, the new gymnasiums to be constructed for said schools which, if enlarged would better meet the needs of the community during non-school hours. NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the Board of Education as follows: 1. That an intergovernmental agreement with the City of Elgin be drafted which contains the mutual covenants and agreements related to the construction of enlarged gymnasiums at Gifford Elementary and Channing Elementary Schools and for the use of said spaces during non-school hours. 2 . That the President and Secretary of the Board of Education be authorized to sign said agreement. Adopted this . / day of _ , 1997 , on a vote as follows: Aye: 7 Nay: 0 Absent: 0 Signed: .AZAeot- L...? 4,i5/..-4 President, Board CT Education ALThST: 44411hj Sec etary, Board of E•/cation 9731