HomeMy WebLinkAboutR-2015-165 Southeast Yakima Community Center Operating Agreement Amendment with OICA RESOLUTION
RESOLUTION NO. R-2015-165
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 and 2016 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, 2009, 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, and has adopted and approved the City's 2016 Budget, which budget
includes an allocation of $75,000 to be used as payment of a Service Fee for calendar year 2016,
but the Operating Agreement has not been amended to authorize payment of such 2015 and
2016 Service Fees; 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, and payment of $75,000 to OIC as the Service fee for calendar year 2016 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; and
WHEREAS, the City Council finds and determines that approval of such Amendment, with
ratification of work performed pursuant to the Operating Agreement as and from January 1, 2015,
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, with
ratification work performed thereunder as and from January 1, 2015.
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 8th day of December, 2015.
IsIi1,14-;f1 X
cah Cwley, I4yor
EXTENSION OF
CITY OF YAKIMA AND SOUTHEAST YAKIMA COMMUNITY CENTER
OPERATING AGREEMENT
(2015 and 2016 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 "010"), 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 quarterly progress reports. City's 2015 Budget
includes an allocation of $75,000 for payment of the 2015 Service Fee to 010, and City's
2016 Budget includes an allocation for payment of the 2016 Service Fee to 010. The
parties agree and understand that this extension of the Operating Agreement is
necessary and appropriate to enable City to make payment of such funds to OIC as and
fora 2015 and 2016 Service Fee.
D. The parties are negotiating further clarifications and 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, and the $75,000 allocated
by City in its 2016 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 and 2016 Service Fees. 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. For OIC's services rendered during the calendar year January 1, 2016
through December 31, 2016, 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 2016. 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 and shall be due
and payable within 30 calendar days of receipt of OIC's invoice. It shall be the
responsibility of OIC to prepare and submit quarterly progress reports in a form
consistent with historic practice. 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 Office of Budget and Management OMB Circular
2CFR "administrative requirements, cost principles and audit requirements for
federal awards".
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. Should funds become unavailable, the
City will immediately provide written notice thereof to 010; who may, at their sole
discretion, cease providing further services under this agreement. The City of
Yakima shall reimburse OIC for all serves rendered and expenditures incurred prior
to their receipt of such written notice.
2. Effect of Amendment. This Amendment is limited to payment of the Service Fees
for calendar year 2015 and calendar year 2016. 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, 2016, 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 11Mday of Dec C. X161' , 2015.
CITY OF YAKIMA
By:
I &.(s.zl
Jeff ¢L►Y r, Interim City Manager
ATTEST:
By:
Sonya Clar ee, City CI
CITY CONTRACT NO: X 015 - ko0
RESOLUTION NO: P`.10I " /67 c"/
OPPORTUNITIES INDUSTRIALIZATION
CENTER OF WASHINGTON (OIC)
By: .14.)ftd.'", AC°
By:
WHEREFORE, this Amendment is executed this %I day of Bee (-YR, ;ler , 2015.
CITY OF YAKIMA
By:
r, Interim City Manager
ATTEST:
By:
Sonya Claaj ee, City CI
OPPORTUNITIES INDUSTRIALIZATION
CENTER OF WASHINGTON (OIC)
By: J)/414 C�
By:
� a
CITY CONTRACT NO::.69
'��/�1`S ^ � �
RESOLUTION NO: 9'.1O1S /0Sr
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 14.
For Meeting of: December 8, 2015
ITEM TITLE: Resolution approving Amendment to Southeast Yakima Community
Center Operating Agreement between City of Yakima and OIC,
regarding 2015 and 2016 Service Fees
SUBMITTED BY: Mark Kunkler, Acting 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 provided, in part, for the City's payment to OIC of an annual
$75,000 Service Fee for OIC's 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 limitation 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 the 2016 Budget process, the City Council also approved a
Budget that allocated payment of $75,000 to OIC as a Service Fee for calendar year 2016. 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 years 2015 and 2016.
Resolution: X Ordinance:
Other (Specify):
Contract: X Contract Term: 2015 and 2016 Calendar Year
Start Date: January 1, 2015 End Date: December 31, 2016
Item Budgeted: Yes Amount: $150,000.00
Funding Source/Fiscal Impact: ONDS
Strategic Priority: Partnership Development
Insurance Required? No
Mail to: Opportunities Industrialization Center of Washington, 815 Fruitvale Boulevard,
Yakima, WA 98902
Phone: (509) 248-6751
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
City Manager
Adopt the Resolution and approve the Amendment.
ATTACHMENTS:
Description Upload Date
❑ Resolution -Amendment 2015 Service Fee 12/2/2015
Extension of Operating Agreement -City of Yakima & SE 12/2/2015
Yakima Comm Cntr [2015 & 2016 Service Fee]
Type
Resolution
Contract