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TO: Mayor Thomas J. Weisner
FROM: Stephane A. Phifer, Planning and Zoning Director
DATE: August 7, 2014
SUBJECT:
A Resolution Authorizing Execution of the Third Amendment to the Intergovernmental Agreement between the City of Aurora and the Aurora Civic Center Authority Regarding the Management of RiverEdge Park and John C. Dunham Pavilion.
PURPOSE:
Attached is a resolution authorizing the execution of an amendment to the intergovernmental agreement with the Aurora Civic Center Authority (ACCA) to provide a provision allowing the Aurora Civic Center Authority to request the reimbursement of certain expenditures.
BACKGROUND:
On, March 12, 2013, with resolution R13-069 the City of Aurora approved the first amendment to the Intergovernmental Agreement with the Aurora Civic Center Authority regarding RiverEdge Park originally approved on August 28, 2012, with resolution R12-222. The first amendment added Section 27 with provisions regarding Facilities, Equipment and Furnishings. On August 13, 2013, with resolution R13-234, the City approved the second amendment extending the term of the agreement for an additional three (3) years with the extended term ending on February 1, 2017.
DISCUSSION:
The RiverEdge Music Garden has begun its second season with a number of diverse and successful events kicking off the summer. The 2014 Season looks to be another star studded one building on the first season where the park hosted dozens of events and brought over 100,000 people to Downtown Aurora. The inaugural season included the City's Fourth of July fireworks celebration; festival events such as Blue's on the Fox with Blues Legend Buddy Guy; individual concert events such as Tony Award winner Idina Menzel; cultural events such as Fiestas Patrias; and many recreational runs and races.
In preparing to open this new music venue the City and ACCA strived hard to provide a clean safe and enjoyable environment, good staffing and customer service, and highly rated programing. For those that attended in our inaugural year the feedback was very positive on the experience had by all. Projecting what it would financially take to achieve these goals was a challenge as there were many unknown factors however, the City and ACCA through coordinated efforts and best practices in budgetary projections worked with a consultant to develop a financial forecast for the new facility.
As with all initiatives, in order to stay successful the partners must be flexible and reactive especially in the initial years to adapt to the market needs and lessons learned. After year-end review, as the attached Financial Plan and Actuals show, the budget numbers reflected a $500,000 difference in expenses above revenues. In the spirit of our partnership it is proposed that an amendment be included to provide a provision to allow in such a situation, for the City to contribute up to $250,000 in funding to ACCA as a reimbursable.
The City Council recently authorized the reimbursement of funds to Aurora Civic Center Authority for RiverEdge Park for 2014 Facility Enhancements. While the Agreement with ACCA contemplates the need for such facility enhancements it does not set forth an anticipated annual expenditure. A facility of this caliber, $13.28M in construction costs, needs additional annual capital expenditures to stay relevant based on best practices and comments received during the season. An annual investment of .5%-1%, especially in initial years, will allow ACCA to implement needed and requested facility enhancements. The proposed amendment would provide for the reimbursement to ACCA of up to fifty-thousand dollars ($50,000) of facility enhancements annually for the remaining three years of the agreement. Any facility enhancements of a larger amount would need to be reviewed and approved by City Council. The 2014 facility expenditures were of an amount that would require such approval, as it included the purchase of the much desired and popular video wall, a purchase which will be augmented with sponsorship dollars by Old Second National Bank.
IMPACT STATEMENT:
The Planning and Zoning Division would anticipate that this amendment to the intergovernmental agreement will have a positive impact on the City's health, welfare, overall tax base and viability.
RECOMMENDATIONS:
Staff recommends approval of the Resolution Authorizing Execution of the Third Amendment to the Intergovernmental Agreement between the City of Aurora and the Aurora Civic Center Authority Regarding the Management of RiverEdge Park and John C. Dunham Pavilion.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing Execution of the Third Amendment to the Intergovernmental Agreement between the City of Aurora and the Aurora Civic Center Authority Regarding the Management of RiverEdge Park and John C. Dunham Pavilion
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, on August 28, 2012 by Resolution R12-222, the Aurora Civic Center Authority and the City of Aurora entered into an Intergovernmental Agreement Regarding the Management of RiverEdge Park and the John C. Dunham Pavilion; and
WHEREAS, on March 12, 2013 by Resolution R13-069, the Aurora Civic Center Authority and the City of Aurora approved the first amendment to said Intergovernmental Agreement for RiverEdge Park; and
WHEREAS, on August 13, 2013 by Resolution R13-234, the Aurora Civic Center Authority and the City of Aurora approved the second amendment to said Intergovernmental Agreement for RiverEdge Park; and
WHEREAS, the parties are in agreement that said Intergovernmental Agreement be amended for a third time as set forth in Exhibit "A", to provide that the Aurora Civic Center Authority may request reimbursement for certain expenditures.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the City Council of the City of Aurora, Illinois, does hereby find as fact all of the preamble recitals of this Resolution, and do hereby authorize the execution of the Third Amendment to the Intergovernmental Agreement, attached hereto and incorporated herein as Exhibit "A".
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
Legistar Number: 14-00296
ATTACHMENTS:
Exhibit "A" Third Amendment
EXHIBIT "A"
EXHIBIT "A"
THIRD AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF AURORA AND THE AURORA CIVIC CENTER AUTHORITY REGARDING THE MANAGEMENT OF RIVEREDGE PARK AND JOHN C. DUNHAM PAVILION
The parties hereto have previously entered into the above referenced Intergovernmental Agreement ("Agreement"), which was approved by the City of Aurora by R12-222 on August 28, 2012 and which was first amended by R13-069 on March 12, 2013, and which was amended a second time by R13-234 on August 13, 2013
WHEREAS, the parties hereto wish to amend said Agreement as hereinafter set forth; and
NOW THEREFORE, for good, valuable and legal consideration the receipt and sufficiency of which is hereby acknowledged the parties hereto agree to amend the Parties' Agreement dated August 28, 2012 and adopted by City of Aurora Resolution Number R12-222; and first amended and adopted on March 12, 2013 by Resolution Number R13-069; and amended a second time and adopted on August 13, 2013 by Resolution Number R12-234 is hereby amended the agreement as follows:
Section 4a:
The City shall provide or pay for only those items or services specifically indicated in this Agreement. No additional costs for items or services will be borne by the City without its prior consent, specifically written herein or attached hereto as an Exhibit. The City hereby agrees to make payment on an annual basis during the term of this agreement to ACCA to cover the cost of SERVICES as set forth on Exhibit B ("CITY FINANCIAL CONTRIBUTION"). Said payment shall be due and payable to ACCA on January 31st of each year. Said payment shall not exceed an amount of two hundred and fifty thousand dollars ($250,000) with payments being adjusted annually as follows:
Said not to exceed value shall be adjusted thereafter annually by the Consumer Price Index (CPI) or three percent (3%), whichever is lower, for the term of this agreement.
Said payment may be reduced by an amount equal to the prior years' PROCEEDS as defined below; or the CITY may request that said PROCEEDS be made payable to the CITY at the end of each calendar year.
In event the actual annual expenditures exceeds the actual annual revenue, as reported pursuant to Section 6.c. herein, ACCA may invoice the CITY for up to an additional two hundred and fifty thousand dollars ($250,000) for the reimbursement of all or a portion of said amount.
Section 28:
28. CITY CONTRIBUTION FOR FACILITY ENHANCEMENTS. The City agrees to reimburse ACCA for the facility enhancements to the MUSIC GARDEN referenced in Section 27 herein in an amount up to fifty thousand dollars ($50,000) annually.
With the exception of the addition to Section 4 and Section 28, as noted above, the remaining provisions of the Intergovernmental Agreement previously approved and adopted by City of Aurora shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have set their hands and seals the day and year written below and the signatories hereto represent that they are duly authorized to execute the Agreement Amendment on behalf of their respective bodies.
(SIGNATURE PAGES TO FOLLOW)