Item 08 - Receive and File Bowers Museum Report

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Receive and File Bowers Museum Report June 4, 2024 Page 2 with the first option to extend through April 30, 2036 and the second option to extend through April 30, 2046. City Responsibilities (summary): In exchange for the Corporation's operations and management of the Museum, the City provides an annual payment to the Corporation to cover the estimated cost of maintaining the premises. This includes Regular Maintenance and Repair and Allocable Internal Administrative Costs. Pursuant to the contract, for the Fiscal Year 2001-2002, the compensation was established at $1,180,800. Subsequent compensation amounts have been determined each fiscal year by the City Manager and approved by the City Council through the budget process, with increases based on the Consumer Price Index. The request for FY 2024-2025 is $1,702,344 (Exhibit 2). The following are the contract -based allocations for the prior four years: • FY 20/21 — $1,456,630 • FY 21/22 — $1,456,630 • FY 22/23 — $1,525,100 • FY 23/24 — $1,656,300 In addition to the annual compensation, the City and the Corporation are to negotiate separate agreements for Capital Repair and Replacement. The Corporation is responsible for carrying out all Capital Repair and Replacement of the Premises and the Associated Facilities subject to funding approved by the City, or unless otherwise agreed by the City and the Corporation. In FY 2022-2023, Museum investment in Capital Repair and Replacement was $1,025,000. Detailed definitions for "Regular Maintenance and Repair," "Allocable Internal Administrative Costs," and "Capital Repair and Replacement" are described in detail in the Amended and Restated Operating Agreement. Corporation Responsibilities (summary): The Corporation is expected to operate and manage the Museum in competently, efficiently, and comparable to other well -managed museums. This includes maintenance, activation, staffing, and management of exhibits and collections. Operation and Maintenance Standards: The Museum operation must meet specific standards including displaying exhibits of artistic, scientific, cultural, or historic interest, maintaining the premises, and managing repairs and replacements. While the City contributes financially to the maintenance, repair, and capital repair, it is the Corporation's contractual obligation to provide the services. Activation (Permitted Activities): The Corporation is allowed to conduct various activities on the premises, including fundraising events, meetings related