TITLE
MOTION APPROVING A THREE YEAR OPERATING AGREEMENT FOR MERLO GYMNASIUM
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a motion authorizing the City Manager to execute a three year agreement (Attachment A) with Table Community Foundation in the amount of $85,000 per year for the operation of the Merlo Gymnasium. It is further recommended that the motion authorize the City Manager to take necessary actions to complete the intent of this motion.
BODY
Summary
The City released a Request for Proposals (RFP) PUR 15-009 on March 26, 2015, for the operation of the Merlo Gymnasium and the proposal period ended April 23, 2015. Three proposals were received. One was not accepted due to an incomplete application. Two agencies were interviewed and rated by a three member panel comprised of City staff and a representative from the Stockton Unified School District. The panel unanimously rated Table Community Foundation (TCF) as the most competitive respondent and they were selected as the community partner to operate the Merlo Gym.
DISCUSSION
Background
The Merlo Gymnasium is located in Williams Brotherhood Park at 2021 Anne Street, adjacent to Stockton Unified School District's Merlo Institute School and the Dorothy L. Jones Community Center. The 15,000 square foot gymnasium is governed by a joint use agreement and 40 year land lease with the Stockton Unified School District. The Merlo Institute uses the gym during the school day and for extracurricular school activities. The gym is currently operated by Community Partnership for Families of San Joaquin (CPFSJ), through a Memorandum of Understanding (MOU) which was effective July 1, 2012 and will expire June 30, 2015. Community Partnership for Families of San Joaquin also holds an MOU and Land Lease for the adjacent Dorothy Jones Center where they provide a variety of social services assistance to the local community.
The Gym was constructed in 2009 and opened with limited hours, managed by the City, until an RFP could be released to select an operator. Throughout 2010, three RFP's were released, but no responses were received. In 2011 the City Council identified Merlo Gymnasium operation as a strategic initiative to support public safety in South Stockton. In a pilot program by CPFSJ, services were provided at the Gym as an extension of the agency's work in the neighborhood. The pilot program was successful, and a formal MOU was established with CPFSJ in 2012. The MOU did not include a subsidy and in the spring of 2014, CPFSJ notified the City they would be unable to continue to operate the gym without further financial assistance. CPFSJ agreed to continue operations on a more limited schedule through November 2014 and on November 25, 2014, the City Council awarded one-time strategic initiative funds to provide a subsidy for CPFSJ to make repairs and operate the gym until the expiration of the MOU on June 30, 2015. The City Council then directed staff to release an RFP to select an operator to take over operation of Merlo Gymnasium on July 1, 2015.
An RFP was released March 26, 2015. Recreation staff contacted twelve local non-profit agencies and invited them to respond to the RFP. An RFP was also emailed to agencies via a mailing list. A notice was printed in The Record, and two local newspapers provided additional RFP news coverage.
Three proposals from local agencies were received. One proposal was incomplete and could not be accepted. Proposals by Table Community Foundation (TCF) and Stockton Kids Club were approved by the Purchasing Department to be reviewed by an evaluation panel. The evaluation panel was created to review the proposals and was comprised of two City of Stockton employees and the Principal of Merlo Institute. The review process consisted of three phases. Panelists first evaluated the proposal documents independently against the evaluation criteria, which criteria required information on the respondents' ability to provide services, related experience, existing partnerships, and focus on programs that teach and model positive behaviors. Panelists then reviewed respondent's budgets and subsidy requests. The final phase was an interview with each respondent with ratings given for community vision, management plan, proposed budget and subsidy request and ability to demonstrate or develop relevant partnerships. Once compiled, ratings from all panelists indicated TCF as the more qualified of the two candidates. Upon compilation of the ratings, references for TFC were contacted.
TCF demonstrated through the RFP process and their presence as an after-school provider in the Stockton Unified School District that they are capable of offering needed services to the community surrounding the Merlo Gym. Beginning in July 2015, TCF will offer an initial slate of programs including football, basketball and daily open gym. Baseball, soccer, and golf will be added to the programming schedule following a community engagement process in which results will be used to refine programs based on citizen feedback. The facility will also offer sportsmanship skills, homework assistance, parenting programs and nutrition planning. In addition, TCF will immediately be able to place 12 computers with internet access at the Merlo Gym site. Existing collaborative programs with the United Way, American Legion Karl Ross Post 16, and the Young Marines program would also be used to supplement their offerings to local youth. The agreement includes working closely with Community Services staff, the Merlo Institute and CPSFJ to provide services that complement those already being offered.
Present Situation
The current operator of the Merlo Gym is CPSFJ. Their agreement is set to expire on June 30, 2015. The City is grateful for their management of the facility during difficult times and while they did not submit a proposal to continue operations of Merlo Gymnasium, the City looks forward to continuing to work with them as the operator of the adjacent Dorothy L. Jones Center. Upon approval from the City Council, staff will commence working with The Table Community Foundation and assist them in preparing to assume management as of July 1, 2015. The gym will close for approximately 2-3 weeks at the beginning of July for necessary repairs and resurfacing of the wood floors. This will allow the new operator time to plan for opening day in cooperation with Community Services Department staff. TCF will utilize the conference spaces for art, music, and ESL classes, during a "soft opening" period of time at the beginning of July, once the contract is signed. The entire facility will open without restrictions on July 20, 2015.
Community Services Department staff will take an active role with TCF, providing support and technical assistance to help them develop program offerings. TCF will complete and submit a program plan after the community needs assessment and no later than October 1, 2015. Quarterly reports will include measurable objectives and outcomes such as specific neighborhood issues targeted for improvement, program attendance, user feedback and evaluation.
FINANCIAL SUMMARY
This agreement commences on July 1, 2015 and ends on June 30, 2018. The contract provides either party the ability to terminate the agreement without cause with a 60 day notice. Although the contractor will use revenue generated from renting portions of the facility to offset operating expenses, the contractor expects that revenue is unlikely to be sufficient to cover total expenses of the facility. The City of Stockton will provide TCF up to $85,000 annually, payable in four quarterly installments for the operation of the Merlo Gymnasium. The agreement stipulates that TCF submit an annual plan and budget as well as quarterly reports, which will enable staff to determine if the same level of subsidy is needed in recurring years. Funding for the 2015-16 subsidy has been included in the FY 2015-16 Annual Budget as an on-going General Fund operating cost increase within the Community Services Department Recreation Fund - Community Centers Division account no. 044-3633-590. No further appropriation is required at this time.
The contract allows for two additional one year options. For the two mutual options, if TCF is not financially self-sufficient, it will submit a request for continued subsidy for City Council consideration prior to the expiration of the initial term.
Attachment A - Merlo Gym Operating Agreement