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HomeMy WebLinkAboutItem 10j - Joint Use Dana Gym Operation ExpensesJoint Use Dana Gym Maintenance and Operation Expenses August 15, 2023 Page 1 of 2 DATE: August 15, 2023 TO: Honorable Mayor and City Council FROM: Sara Somogyi, Director of Recreation and Community Services By: Ashley Marston, Management Aide SUBJECT: JOINT USE DANA GYM MAINTENANCE AND OPERATION EXPENSES, NOT TO EXCEED $50,400 CEQA: Not a Project Recommendation: Approve SUMMARY The City of Arcadia and Arcadia Unified School District (“AUSD”) have a joint use agreement for Dana Gym at Dana Middle School. Both parties split the annual costs for the maintenance and operation of the facility. It is recommended the City Council approve the City’s portion of expenditures for the maintenance and operations of Dana Gym, not to exceed $50,400. BACKGROUND On February 6, 2008, the City of Arcadia and AUSD entered a Joint Use Agreement (“Agreement”) for the use of Dana Gym for recreational purposes. Dana Gym is an approximately 8,000 square foot gymnasium utilized by the Recreation and Community Services Department for basketball, volleyball, badminton, and other recreation classes and activities. The facility’s usage is split between the parties per a prearranged schedule. The Joint Use Agreement is for 40 years and is set to expire in 2048, unless otherwise terminated early and upon mutual agreement of both parties. DISCUSSION Per the Agreement, the City and AUSD equally share in the annual costs associated with maintaining and operating the facility. Annual shared costs include alarm services, electrical, gas, water, building repair and maintenance; however, each party is responsible for coordination and payment of custodial services after their use of the facility. AUSD undertakes and accomplishes all maintenance and operations either by using AUSD assets or outsourcing labor. The City is billed quarterly for 50% of the costs and pays AUSD directly. For Fiscal Year 2023-24, the City’s share of the costs is expected to total $50,400. With ongoing inflation and labor increases, these expenses are expected to increase annually. Due to the extended nature of the Agreement, it is recommended Joint Use Dana Gym Maintenance and Operation Expenses August 15, 2023 Page 2 of 2 that City Council approve expenditures for maintenance and operations of Dana Gym, not to exceed $50,400 annually. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA under Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines. FISCAL IMPACT FY 2023-24 operating costs for Dana Gym are $50,400 and were approved by City Council as a part of the City’s FY 2023-24 Operating Budget. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project and is, therefore, exempt under, the California Environmental Quality Act (“CEQA”); and approve the joint use Dana Gym maintenance and operations expenses, not to exceed $50,400. Attachment: Joint Use Agreement of Dana Gymnasium