cover
TO: Mayor Thomas J. Weisner
FROM: Stephane A. Phifer, Planning and Zoning Director
DATE: June 15, 2015
SUBJECT:
A Resolution Authorizing Execution of the Fourth 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 clarification and revise the budgeting procedures for the maintenance allocation for RiverEdge Park.
BACKGROUND:
The City of Aurora has an Intergovernmental Agreement (IGA) with the Aurora Civic Center Authority (ACCA), approved on August 28, 2012, with resolution R12-222, regarding the facility operations at the City’s RiverEdge Park Music Garden and John C. Dunham Pavilion.
On, March 12, 2013, with resolution R13-069 the City of Aurora approved the first amendment to the Intergovernmental Agreement which 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. On September 9, 2014, with resolution R14-232, the City approved the third amendment to provide for reimbursement for capital expenditures and the ability to request an end of season financial reconciliation.
A facility such as RiverEdge Park was a new endeavor for both the City and ACCA. The Agreement has been a living document with both parties being flexible and reactive to adapt to the market needs and lessons learned in order for the park to meet the expectations of the community. The current Agreement includes the 2016 Season. We will incorporate these experiences into the re-negotiated Agreement to begin with the 2017 season.
RiverEdge Park Music Garden and John C. Dunham Pavilion is just beginning its third season, and under the talented guidance of ACCA the park brings over 100,000 people annually to Downtown Aurora.
Based on the Aurora Civic Center Authority’s track record with providing first rate programing at the Paramount Theatre, they were selected as the ideal third party organization to provide programing services at RiverEdge Park. The IGA, and the subsequent amendments, currently authorize the following annual programing budgets:
Programing Services: $250,000 (with an annual CPI increase)
End Of Season Financial Reconciliation: up to $250,000
In negotiating the Agreement, ACCA also agreed to facilitate the necessary maintenance services for the City’s facility and be fully reimbursed for the cost of those expenses. However, it has been determined that the current language in the agreement limits the overall reimbursement eligibility without providing a procedure addressing the annual needs or year to year increases in the cost of providing consistent services. Currently the IGA, and subsequent amendments, authorize the following annual maintenance budgets:
Capital Expenditure Reimbursement: $50,000
Maintenance Reimbursement: $347,000
DISCUSSION:
It was the intent that ACCA would be reimbursed for the reasonable expenditures associated with maintaining the City’s facility to a level that meets the expectations of both the City and its residents. And, in the spirit of our partnership it is proposed that an amendment be approved to provide clarification on this point and to incorporate the maintenance allocation for RiverEdge Park into the City’s annual budgeting process. This proposed Fourth Amendment to the Agreement is attached as Exhibit A.
The proposed amendment is intended to be retroactive for the expenses incurred for the 2014 Season through the normal City Budgeting process by means of a subsequent budget amendment. Based on the mutual understanding that the agreement allowed for the flexibility for reasonable maintenance expenditures, ACCA contracted for and paid expenses in good faith that they would be reimbursed. There are however, outstanding reimbursement requests for 2014 that have not been paid, as it was discovered that the budgetary authority did not meet the budgetary need.
Attached are a number of reports outlining the maintenance budgets and expenditures to date. These reports include: a 2014 Maintenance Budget which contains a detailed line item budget for 2014 and the 2013 budget and actuals; 2014 Facilities Enhancement Expenditures; 2014 Outstanding Expenses; and 2015 Maintenance Budget which contains a detailed line item budget for 2015 and the 2014 budget and actuals.
The approved Agreement included an anticipated cost based on general areas to be covered. The attached 2014 budget report includes a detailed account of the actual expenditures incurred by ACCA in the maintenance of the facility. A few items of note: there were additional funds allocated to the equipment replacement and attic stock line to address normal wear and tear on these items; the water and sewer allocation was increased as it was originally anticipated that the City would cover these costs directly; the allocation for security monitoring was adjusted, the private contractor provides 24/7 on site security, has done an excellent job, and there have been no major incidents at the park; the rental of sound equipment, which was first anticipated to only be needed on a limited bases, has been necessary on a regular basis in order to meet expectations.
From the facilities enhancement report, you will see that in 2014 ACCA was able among other things to install TVs in the Skydeck, some landscaping behind the stage for the performers, an additional fryer in the main vendor area to reduce wait times, a permanent American Flag on the stage building, and, most notably, install the video wall at the back of the mix tower.
The proposed 2015 budget report is also attached. A few item of note on this report: there were additional funds allocated to the preventative maintenance service items for the facility, we are on year three and these types of expenditures are important to keep up the facility; the water and sewer allocation was again increased; the rental of sound equipment has been expanded to cover the entire season in order to meet expectations. The plan is to install a permanent solution to the basic sound equipment needs prior to the 2016 season, with rental equipment once more only to be needed on a limited basis.
Pursuant to the proposed amendment, the 2016 Budget for maintenance will be determined with the City’s 2016 Annual Budget. Central Services, Planning and Zoning and ACCA will work together to develop a budget to be presented as a budgetary line item for consideration by the Finance Committee and subject to approval by the City Council.
IMPACT STATEMENT:
Staff 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. The Planning and Zoning staff works closely with ACCA, Central Services staff and Special Events staff concerning RiverEdge Park. The responsibility of overseeing the reimbursements to ACCA for maintenance and facility upgrades will be with the Central Services Division. Their staff will also coordinate with ACCA annually for the City’s Budget Process. The responsibility of overseeing the annual budgeting and reimbursements to ACCA for program management and end of season financial reconciliation will be coordinated between the Planning and Zoning Division and the Special Events Division.
RECOMMENDATIONS:
Staff recommends approval of the Resolution Authorizing Execution of the Fourth 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 and the necessary Budget Amendment to reimburse ACCA for the outstanding 2014 and the future 2015 Maintenance Expenses.
ATTACHMENTS:
Exhibit "A" Fourth Amendment
Amendment REDLINE
2014 Maintenance Budget
2014 Facility Enhancement Expenditures
2014 Outstanding Expenses
2015 Maintenance Budget
Previous ACCA Agreements: R12-222; R13-069; R13-234; R14-232
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
Bill Wiet, Chief Development Services Officer
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing Execution of the Fourth 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, on September 9, 2014 by Resolution R14-232, the Aurora Civic Center Authority and the City of Aurora approved the third amendment to said Intergovernmental Agreement for RiverEdge Park; and
WHEREAS, the parties are in agreement that said Intergovernmental Agreement be amended for a fourth time as set forth in Exhibit “A”, to provide clarification and revised the budgeting procedures for the maintenance allocation for RiverEdge Park; and
WHEREAS, the annual maintenance and facility upgrade obligations of this Agreement for 2016 and beyond shall be determined and funded as part of the City’s Budget process; and
WHEREAS, the 2015 maintenance obligations and the outstanding 2014 maintenance obligations shall be funded from the Gaming Fund, 215-1341-450.53-32.
NOW, THEREFORE, BE IT RESOLVED that 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 Fourth Amendment to the Intergovernmental Agreement, attached hereto and incorporated herein as Exhibit "A".