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Home My WebLink About12/01/2015 16 Southeast Yakima Community Center Operating Agreement Amendment with OICBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 16. For Meeting of. December 1, 2015 ITEM TITLE: Resolution approving Amendment to the Southeast Yakima Community Center Operating Agreement with OIC regarding 2015 Service Fee SUBMITTED BY: Mark Kunkler, Senior Assistant City Attorney SUMMARY EXPLANATION: In 2009, the City of Yakima and OIC entered into an Operating Agreement for the Southeast Yakima Community Center. The Operating Agreement calls for a payment of $75,000 annually by the City to OIC for services performed during the term of the Operating Agreement. The Operating Agreement contains a provision that states that the City will have no further obligation to pay any Service Fee after December 31, 2014. In September 2014, the Operating Agreement was renewed for an additional 5 -year term, but the above Imitation on payment of Service Fees was not modified. During the 2015 Budget process, the City Council approved a Budget that allocated payment of $75,000 to OIC as a Service Fee for calendar year 2015. In order to authorize payment to OIC for services rendered, HUD regulations require an underlying agreement that supports such payment. Consequently, the City and OIC have negotiated the attached Amendment authorizing payment of the budgeted Service Fee for services rendered in calendar year 2015. Resolution: X Other (Specify): Contract: X Start Date: January 1, 2015 Item Budgeted: Yes Funding Source/Fiscal Impact: Strategic Priority: Insurance Required? No Ordinance: Contract Term: 2015 Calendar Year End Date: December 31, 2015 Amount: $75,000.00 ONDS Partnership Development Mail to: OIC, 815 Fruitvale Boulevard, Yakima, WA 98902 Phone: APPROVED FOR City Manager SUBMITTAL: RECOMMENDATION: Adopt Resolution, approve Amendment. ATTACHMENTS: Description Upload Date Type D R()S nllnAlirnirn ../rrnanindirrnaninn 2015 ~,e nkx..n IF:( .) 11/10/2015 R()S nlILAlio n nnanindi rnei n� Ciity of l/ aII(lii rna & ~;If.::::1/ aIldi rna Ck. m rrn C'a tr 11/10/2015 U.Yrtrac.,A . rx)ir ahirng Agir'(xni rei n�...2015 ~,e nkx.) If::.nnnn RESOLUTION NO. R -2015- A RESOLUTION authorizing the City Manager to execute and administer an amendment to Southeast Yakima Community Center Operating Agreement between OIC and City of Yakima, for 2015 Service Fee. WHEREAS, the City of Yakima (City) and Opportunities Industrialization Center of Washington (OIC) have previously entered into the Southeast Yakima Community Center Operating Agreement (hereafter "Operating Agreement "), which Operating Agreement was executed August 25, 2009 and approved by City pursuant to Resolution No. 2009 -110 adopted on August 18, 2015; and WHEREAS, the Operating Agreement provided for payment, by City to OIC, of an annual $75,000 Service Fee for years 2010, 2011, and 2012, and specifically provided that no Service Fee would be payable after December 31, 2014; and WHEREAS, the City Council has previously adopted and approved the City's 2015 Budget, which budget included an allocation of $75,000 to be used as payment of a Service Fee for calendar year 2015, but the Operating Agreement has not been amended to authorize payment of such 2015 Service Fee; and WHEREAS, City and OIC have negotiated an Amendment to the Operating Agreement, which Amendment authorizes payment of $75,000 to OIC as the Service fee for calendar year 2015, subject to submission by OIC of quarterly reports substantiating performance of services eligible for reimbursement from such funds, which Amendment is attached hereto as Exhibit "A" and incorporated herein by this reference; WHEREAS, the City Council finds and determines that approval of such Amendment is in the best interests of residents of the City of Yakima and will promote the general health, safety and welfare; therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. The Amendment to the Southeast Yakima Community Center Operating Agreement, which Amendment is attached hereto as Exhibit "A," is hereby approved. Section 2. The City Manager is hereby authorized to execute and administer the attached Operating Agreement as amended; now, therefore ADOPTED BY THE CITY COUNCIL this 1St day of December, 2015. ATTEST: Sonya Claar Tee, City Clerk Micah Cawley, Mayor AMENDMENT TO CITY OF YAKIMA AND SOUTHEAST YAKIMA COMMUNITY CENTER OPERATING AGREEMENT (2015 Service Fee) THIS AMENDMENT is entered into by and between CITY OF YAKIMA, a municipal corporation (hereafter "City "), and OPPORTUNITIES INDUSTRIALIZATION CENTER OF WASHINGTON, a Washington nonprofit corporation (hereafter "OIC "), for the uses and purposes hereafter stated. I. RECITALS A. On August 25, 2009, the parties entered into the "City of Yakima Southeast Yakima Community Center Operating Agreement," approved by City pursuant to Resolution No. 2009 -110 adopted August 18, 2009 (hereafter "Operating Agreement "). B. The Operating Agreement was subsequently renewed on or before September 1, 2014 for a new 5 -year term pursuant to Section 7 of such Operating Agreement. C. Section 6 of the Operating Agreement set forth provisions for City's payment of an annual Service Fee to OIC in the amount of $75,000.00, payable in quarterly installments upon submission by OIC of sufficient quarterly reports. However, Section 6 of the Operating Agreement further provides that City shall not be obligated for payment of the Service Fee after December 31, 2014. Notwithstanding such provision, City's 2015 Budget includes an allocation of $75,000.00 payable as a 2015 Service Fee to OIC. The parties agree and understand that an Amendment to the Operating Agreement is necessary and appropriate to enable City to make payment of such funds to OIC as and for a 2015 Service Fee. D. The parties are negotiating further amendments to the original Operating Agreement. This Service Fee Amendment will enable the parties to resolve payment of the $75,000 allocated by City in its 2015 Budget, while allowing the parties to continue to negotiate such further amendments and to continue discussions to resolve matters relating to payment of any past Service Fees. IN CONSIDERATION of the mutual covenants, promises, duties and benefits herein, the parties agree as follows: 1. 2015 Service Fee. Section 6 of the Operating Agreement is supplemented to add the following provision: For OIC's services rendered during the calendar year January 1, 2015 through December 31, 2015, the City shall pay OIC a service fee of Seventy -five Thousand Dollars ($75,000.00), representing payment in quarterly amounts of $18,750.00 for services rendered by OIC during each of the four calendar quarters during year 2015. Disbursements by the City of Yakima pursuant to this Amendment shall be on a reimbursement basis covering actual expenditures by OIC or obligations of OIC currently due and owing, but not paid. It shall be the sole responsibility of OIC to prepare and present applicable reports required by HUD documenting services rendered and expenses incurred for which reimbursement is sought. Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions: 1. Receipt by the City of Yakima ONDS of a written reimbursement request on forms provided by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries or other acceptable documentation; and 2. Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the principles set forth in Federal Management Circular 74 -4 "eligible costs under the HOME Program" and that also fall within the applicable Project Budget. Further, payment of any portion of the service fee is expressly conditioned upon the provision of satisfactory services to the City, upon the availability of funds and upon the program services qualifying under all applicable HUD /CDBG eligibility payment criteria, guidelines and regulations. 2. Effect of Amendment. This Amendment is limited to payment of the Service Fee for calendar year 2015. Nothing in this Amendment shall be construed to prejudice or bar any party from discussing further amendments to the Operating Agreement and to resolve any issues pertaining to payment of, or accounting for, any previous Service Fee payment(s). Nothing in this Agreement shall be construed to establish any obligation of City to pay any additional Service Fee or fees for any future year or years beyond December 31, 2015, or any year or years prior to January 1, 2015. Except as amended herein the Operating Agreement shall remain unchanged. WHEREFORE, this Amendment is executed this day of 12015. CITY OF YAKIMA OPPORTUNITIES INDUSTRIALIZATION CENTER OF WASHINGTON (OIC) By: By: City Manager ATTEST: By: By: Sonya Claar Tee, City Clerk