Consideration and Approval of Amendment to Lease Agreement:  Amendment to the Lease Agreement with Boys and Girls Club for the Cogdill Recreation Center.

The current lease agreement was entered into in July of 2012. The intention of the agreement is to enable a non-profit to operate a public program for Flagstaff youth with diminishing City financial support for operations, but continued financial support for providing the facility. Specifically, the City budgeted approximately $200,000 a year to provide recreational services when it operated the facility. The City provided $100,000 start-up assistance to the Boys & Girls Club in FY13, and will provide $40,000 in FY14 exclusively for utility and maintenance expenses. This action asks Council to consider amendments to the lease to be more consistent with a landlord-tenant relationship.

Subsidiary Decisions Points:
A) Section 1.3 of the Lease Amendment allows for the term to be extended by written mutual consent for an additional five-year term.

B) Section 5.2 of the Lease Amendment clarifies repairs and and maintenance responsibilities for the Lessee and the City. Specifically, the Amendment acknowledges that the City will provide a maximum annual allowance of $20,000, on a fiscal year basis, to cover the costs of Maintenance and Repair work on the premises. The Lessee will be responsible for the cost of all Damage.

C) Section 6.1.1 (ii) of the Lease Agreement requires that the Lessee provides insurance for the contents of the building while the City will provide insurance for the replacement of the building.

The financial impact of the City insuring the replacement cost of Cogdill Recreation Center is $1,400 per year.  This would be added to our current insurance premium and paid through the Self Insurance Trust.  This cost was previously paid by the City when it operated the Cogdill Recreation Center.  The City will provide an annual allowance for utility bill expenses ($20,000) and maintenance and repairs ($20,000).

Below are the Council Goals relevant to this agenda item. 

  1. Repair, Replace and Maintain Infrastructure
  2. Fund existing and consider expanded recreational services

Council approved the lease agreement January 3, 2012.

Option 1: Approve amendment to the Lease Agreement.  Said Amendment increase costs to the City of Flagstaff but are consistent with the intent of the agreement to provide a facility for a non-profit to operate a youth program available to all Flagstaff children.  This option also provides greater financial viability for the Boys & Girls Club to provide their program.
Option 2: Do not approve the Amendment to the Lease Agreement. The Boys & Girls Club agreed to the terms of the lease in January of 2012.  The term of the agreement end June 30, 2017.  This arrangement was entered into to reduce City expenditures and said Amendments will reduce those savings.
Option 3: Approve a portion of the Amendment's subsidiary decisions.

The Cogdill Recreation Center has been utilized to provide youth enrichment activities to our local Flagstaff community.  The Cogdill Recreation Center specifically serves several nearby neighborhoods, including 127 units of Housing Urban Development (HUD) managed housing with developed educational, recreational, fine arts and leadership development programs for school age youth with special focus on children dealing with disadvantaged circumstances.

The City conducted a formal competitive Request For Proposals process and received a total of one (1) proposal response from the Boys and Girls Club of Flagstaff (BGCF).  The evaluation Committee, comprised of five members, evaluated and scored BGCF and determined its proposal response to be acceptable that outlined a presented approach that has been deemed to be in the best interest of the City.  The Boys and Girls Club is one of the nation’s oldest and largest youth service organizations with a primary mission of service to young people from disadvantaged circumstances.  

The recommended amendments will increase costs to the City of Flagstaff but are consistent with the intent of the agreement to provide a facility for a non-profit to operate a youth program available to all Flagstaff children. These amendments will also provide greater financial viability for the Boys & Girls Club to provide their program.

The Flagstaff community will benefit from the following:

• To be consistent and satisfy the intent of the agreement to provide a facility for a non-profit to operate a youth program available to all Flagstaff children. These amendments will also provide greater financial viability for the Boys & Girls Club to provide their program.
• The BGCF will provide age appropriate programs and activities for all school age youth who utilize and participate in the programs offered.
• The BGCF will provide recreational programs that specialize in developing, coordinating and providing programs offered in the five (5) core areas:  Sports, Fitness and Recreation, Health and Life Skills, The Arts, Education and Character and Leadership Development.
• The BGCF will also provide after school enrichment and summer camp experiences that are key elements in delivering the programs that are offered.
• The Head Start Program will remain housed at Cogdill and the BGCF will work collaboratively with the program, both in terms of schedule/facility space but also in support of joint programming when possible.
• The BGCF will identify and engage collaborative community partners to develop and/or deliver programs (FUSD, YMCA, Law Enforcement, non-profits, etc.)