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8.4 Agr Maintenance Updated CITY OF SALINA . REQUEST FOR COMMISSION ACTION DATE TIME 12/18/1989 4:00 P.H. AGElqDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR NO. 8 Director of Finance AGENDA: BY: Robert K. Biles 6~'24~ BY: Resolution Number 89-4150, authorizing the Mayor to execute and the City Clerk to attest an agreement between the City of Salina, Kansas and Salina Art Center, Inc. for renovation, maintenance, utilities and janitorial services, and superseding the agreement dated June 15, 1987. During its consideration of the 1990 budget, the City Commission was asked by the Salina Arts Center to expand utility and janitorial Services to a buildin9 the Salina Arts Center acquired at 241 South Santa Fe. The City Commission approved providing services as requested. Due to the expansion of services, it became apparent the June 15, 1987 agreement would require revision or' rewriting. After-reviewing the current agreement, City staff recommends adopting a new agreement over revision of the current agreement. The attached agreement with Salina Arts Center, inc. includes language to include the building at 241 South Santa Fe and sets forth, more concisely,, the nature of janitorial services to be performed by the City. These modifications are the result of staff's discussions with Salina .Art Center personnel and each modification meets with their approval. Recommended action Adopt Resolution Number 89-4150. CONMISS ION ACTION MOTION BY SECOND BY TO: AGREEMENT This agreement made this 18th day of December, 1989 by and between the City of Salina, Kansas, a Kansas municipal corporation, hereinafter referred! to as the CITY and Salina Art Center, ~nc., a Kansas nonprofit corporati(~n, hereinafter referred to as the CENTER. WHEREAS, the CENTER is a private, nonprofit corporation organized under the laws of the State of Kansas for the purposes of establishing and maintaining a community art center and promoting a better understanding and appreciation of the visual arts; and WHEREAS, the CENTER provides a facility that serves as a ma~or community resource for the visual arts and is open to all members of the public; and WHEREAS, the CENTER through its professional staff, offers to the community a comprehensive and ongoing program of art exhibits and art educational programs; and WHEREAS, the Center has acquired ownership in the property descril3ed as Lots 158 and 160 on Santa Fe Avenue in the original Town (now City) of Salirla, Saline County, Kansas, referred hereinafter as 241 and 243 South Santa !Fe Avenue; and WHEREAS, the CITY has completed a major redevelopment of the Saljna downtown area with the objective to help to ensure the economic and cultul-al vitality of the community; SO NOW, THEREFORE The CITY and the CENTER agree as follows: Section 1. CENTER Duties. The CENTER shall be responsible for all of the following items: A. The title to the property and all related responsibilities riot delegated to the CITY under this Agreement shall remain inthe name of the Salina Art Center, Inc., and its successor organizations, if any, throughout the term of this Agreement. B. The CENTER shall remodel the property located at 241 Souith Santa Fe, including installation of: 1. a new heating and air conditioning system. 2. all new plumbing, wiring and fixtures. 3. new flooring and wall coverings. In addition to applicable building and fire code requirements, the remodeling shall be subject to approval by the City Manager regarding matters of safety, structural integrity and maintenance. Except for payment of utility expenses under Section 2(A) belo~y, the duties of the CITY under this Agreement shall not commence in relation to 241 South Santa Fe until the remodeling has been completed and approved by the City Manager. C. The CENTER shall annually deposit, in cash, not less than $1,500 in a capital replacement fund to finance future maintenance, repair, or replacement of the roof or mechanical systems. The fund shall be invested in a proper manner and in accordance with K 12-1675. Expenditures from this fund shall be mutually agreed upen by the City Manager and the CENTER. D. The CENTER shall maintain insurance coverage on all persor~ai property located in the facility and shall maintain general liability coverage for the operation of the CENTER in an amount deemed sufficient by both the CENTER and the CITY. Section 2. CITY Duties. The CITY shall provide the following services: A. The CITY shall pay for water, sanitary sewer, electricity and natural gas services for both properties beginning January 1, 1990. B. The CITY shall provide routine janitorial services including routihe sweeping and cleaning of the building proper and restrooms along with replacing light bulbs and lighting repair, except in the case iof special lighting for exhibits. Routine janitorial service shall not include: 1. Dusting or maintenance of exhibits. 2. Cleaning after art classes, educational classes and other demonstrations. 3. Wall treatments for exhibits. 4. Furnishing paper or cleaning products for art classes, educational classes or other demonstrations, either in the class or for the clean-up. C. The CITY shall maintain the facility, including necessary maintenance, repair, or replacement of hot water heaters, heati ,g and air conditioning systems, and the roof. The maintenan~ce responsibility of the CITY shall not include any work necessary purposes of art exhibits, storage or protection of personal proper~ty owned or in the control of the CENTER, or educational or otl~er CENTER progrems. Expenditures for the maintenance of the facililty shall first be paid from the capital replacement fund referred to in Section I(B) above. D. The CITY shall maintain multi-peril insurance coverage for the building improvements on the property. Section 3. Effective date. This AGREEMENT shall become effective January 1, 1990. Section 4. Term and termination. This AGREEMENT shall remain in effect until December 3~, 20~7, provided that either party may notify the other party by July 1 annuallly of their intent to terminate this AGREEMENT effective January i 1 following. However, within this period, the AGREEMENT may be modified by the mutual consent of the parties. If within this period, the CENTER sells or .otherwise disposes of the property described herein, this AGREEMENT shall, be terminated. In the event of dissolution of l~he CENTER during the term of this AGREEMENT, the exempt organization or organizations to which the net assets of the CENTER shall ibe distributed pursuant to Article IX of the Articles of Incorporation of t~he CENTER shall be determined jointly by the CENTER, City Manager ah a d the Salina Arts and Humanities Commission, with the approval oft~h, e governing body of the CITY. Section 5. Required reports. The CENTER shall submit annually to the City Manager or others designated by the City Manager the following items; A. Before August I of each year the annual proposed budget and program of services for the CENTER for the next fiscal year. B. The CENTER's annual report and audit within 30 days of completion by the independent auditors, In addition, if and when, the CENTER has any plans that significantly relate to the building, the Salina Arts and Humanities Commission and the City Manager shall be informed in a timely way of those plans, i .Section 6. Termination of prior agreement. It is the intent of the parties that this Agreement serve as a substitute for the agreement between the parties dated June 15, 1987, which pribr agreement is hereby terminated as of the effective date of this Agreement. i Section 7. Binding effect. This AGREEMENT shall be binding upon and shall inure to the benefit iof the parties hereto, their successors and assigns. CITY OF SALINA, KANSAS Joseph A. Warner, Mayor [SEAL] ATTEST: Jacqueline Shiever, City Clerk SALINA ART CENTER, INC. Chairman, Board of Directors