Item 25 - Facility Use Agreement Amendment with TKO Youth Foundation

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Amend TKO Youth Foundation Agreement December 6, 2022 Page 2 equipment storage. As part of the agreement, TKO will be charged an hourly fee, per month, for use of the Fitness Room, as determined by the City's Miscellaneous Fee Schedule, beginning September 1, 2022. The corresponding miscellaneous fee for the use of Fitness Room on the agreement execution date was $20.00 per hour. On average, TKO reserves the use of the Fitness Room for five hours per day and approximately 100 hours per month. This equates to a monthly balance estimate of $2,000 per month and $24,000 per year. On June 7, 2022, City Council approved the Fiscal Year 2022-23 Miscellaneous Fee Schedule that adjusted the rate of the Fitness Room based on square footage. The Fitness Room in the Jerome Community Center was categorized as a Large Community Center Room, measuring above 2,000 square -feet. This methodology was applied to all PRCSA facilities in the Fiscal Year 2022-23 Miscellaneous Fee Schedule. The new adjusted rate for the Fitness Room in the Jerome Community Center, based on square footage, is $116.00 per hour, and represents the value for short-term rental opportunity. In the case of TKO's long-term facility use agreement, the current rate of $116.00 per hour represents a significant rental fee increase. If TKO were to continue to use the Fitness Room in the Jerome Community Center under the adjusted rate for five hours per day and 100 hours per month, the new monthly balance would be $11,600 per month and $139,200 per year. The Parks, Recreation and Community Services Agency (PRCSA) is providing the following options for Council's consideration in relation to the agreement between the City and TKO: No change to the existing agreement and TKO will maintain responsibility for the Fiscal Year 2022-23 Miscellaneous Fee of $116.00 per hour for use of the Fitness Room in the Jerome Community Center with anticipated payments from TKO to the City to reflect the period from September 1, 2022 until September 21, 2023. 2. Approve an amendment to the current facility use agreement with TKO to reflect an hourly rate of $20.00 per hour for the use of the Fitness Room in the Jerome Community Center with anticipated payments from TKO to the City to reflect the period from September 1, 2022 until September 21, 2023 (Exhibit A). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds will be deposited in the Parks, Recreation and Community Services, General Fund Revenue Account (01113002-57361 - PRCSA Recreation Facility Rental).