HomeMy WebLinkAboutItem 25 - Facility Use Agreement Amendment with TKO Youth FoundationParks, Recreation, and Community Services
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Item # 25
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
December 6, 2022
TOPIC: Facility Use Agreement Amendment with TKO Youth Foundation
AGENDA TITLE:
Facility Use Agreement Amendment with TKO Youth Foundation (TKO) to Reflect a
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 (General Fund)
RECOMMENDED ACTION
It is recommended that the City Council consider approving one of the two following
options:
1. 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. Authorize the City Manager to execute an amendment to the facility use
agreement with TKO Youth Foundation (TKO) to reflect a 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, subject to non -substantive changes approved
by the City Manager and City Attorney.
DISCUSSION
TKO Youth Foundation (TKO) is a non-profit California corporation that was founded in
1994 to serve as a juvenile justice prevention and after -school youth program. TKO has
been training local Santa Ana youth in boxing for two decades and offers educational
support, including scholarships, while requiring program participants to maintain a
minimum grade point average. The Santa Ana community values the TKO programs
that encourage Santa Ana youth to engage in sports and supervise after -school
activities in a safe environment.
On September 21, 2021 the City of Santa Ana and TKO Youth Foundation entered into
a two-year agreement for the limited right to utilize the Fitness Room in the Jerome
Community Center to host tournaments and to provide boxing classes, training, and
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).
Amend TKO Youth Foundation Agreement
December 6, 2022
Page 3
EXHIBIT(S)
1. Amendment
Submitted By: Hawk Scott, Executive Dir. of Parks, Recreation and Community
Services
Approved By: Kristine Ridge, City Manager
FIRST AMENDMENT TO FACILITY USE AGREEMENT WITH TKO VOUTH FOVNI)ATION
FOR USE OF THE FITNESS ROOM AT JEROME COMMUNITY CENTER
THIS FIRST AMl=.TlDMENT to the above -referenced agreement is entered into December G_ 2022, by and
between TKO Youth Foundation ("TKO"), and the City of Santa Ana, a charter city and municipal
corporation organized and existing under the Constitution and lavers of the State of California (-City,-). City
and TKO are also collectively referred to herein as "the Patties. -
RECITALS
A. The Parties entered into Agreement No. A-2021-187 ("Agreement") dated September 21. 2021, to
grant TKO the limited right to use the Fitness Room in the City's JT rome Cornrnunity Center to
provide boxing classes, training, to hold periodic tournaments and for equipment storage.
a. The Agreement is current and i ri-etfeet through September 21, 2023.
C. The Parties now wish to amend the Agreement to modify the consideration of the Agreement.
The Partles therefore agree -
I. Section 3, Consideration, is hereby amended to head as follows. -
City acknowledges the public benefit provided by TKO to the youth of the City of Santa Ana
through its program and the fact that TKO is anon -profit corporation with 501(e)(3) status. Starting
September I, 2022, TK0 will pay to City a fee for use of the Fitness Room, per month. a rate of
Twenty Dollars and Zero Cents ($20_00) per hour. Ail payments shall be trade by the 1 st d v of
each month in the form of a cashier's check or ACH electronic transfer tirade payable to "City of
Santa Ana."
2. Except as mMifed by this First Amendment, all terms and conditions of the Agr"rnent, shall retrain
in full forge and effect_
iN WITNESS WHEREOF, the Parties hereto have executed this first Amendment to the Agreement on
the date and year first written above_
ATTEST
CITY OF SANTA ANA
KRIS` INE RIDGE
Clerk of the Council City Manager
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APPROVED AS TO FORAM
SONIA R_ CARVALHO
City Attorney
Br n Salvatierra
Deputy City Attorney
RECOMMENDED FOR APPROVAL
Hawk Scott
Executive Director
Parks, Recreation and Come, unity Services Agency
TKO YOUTH FOUNDATION
o lwi. Rays
id
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