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HomeMy WebLinkAbout7/11/2023 Item 6e, Avakian / Burger - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: July 11, 2023 TO: Mayor and Council FROM: Greg Avakian, Parks & Recreation Director Meghan Burger, Recreation Manager VIA: Derek Johnson, City Manager SUBJECT: ITEM 6E - COMMUNITY PARTNERSHIP AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART Staff received the following questions regarding the Community Partnership Agreement between the City of San Luis Obispo and the San Luis Obispo Museum of Art. The questions are below with staff’s response shown in italics: 1) Page 172 of the packet says: “In addition to the Recreation Manager, a two - year contract position was funded as part of the 25 -27 budget…” Is the reference to 25-27 budget an error? Yes, this was a typographical error; the position is budgeted as part of the 2023- 2025 Financial Plan. 2) Page 173 of the packet says: “On February 18, 2010, the City entered into an updated Lease Agreement with SLOMA (formerly the San Luis Obispo Art Center and prior to that the San Luis Obispo Art Association) to include terms and provisions to extend the lease term until 2065, specify operational hours and procedures, and construct a new facility on the premises on or before 2025.” Is it being proposed here that the City of San Luis Obispo give SLOMA additional funding to construct a new facility? No, this statement was a reference to previous Council actions (2010). The Council Agenda Report from July 20, 2021, makes reference to the Facility Lease Agreement with SLOMA which mentions - within the previous agreement - SLOMA’s intention to construct a new facility on the premises on or before 2025. The lease agreement states that “The Art Center intends to complete construction of a new building at its own expense, in accordance with the design approved by the City.” At the time, SLOMA was in the midst of a $15 million capital campaign to construct the three-story center as planned, designed, and approved. Item 6e - Community Partnership Agreement with San Luis Obispo Museum of Art 3) On page 179 of the packet, the contract with SLOMA explains that we will pay them $100K per year for their assistance in coordinating, finding the art, etc.), and then up to $400K for three art installations. It later says we will pay for 40% of the installation. Does that contribution to the art installation come out of the $400K, or is additional funding required? The 40% is included in the financial allocation of up to $400,000 annually. The funds are allocated to SLOMA as part of the partnership agreement, howeve r not directly transferred until the projects are in process . As noted in 2.2.a (Purchase or Lease of Art) of the partnership agreement, the City will “pay a 40% deposit at the time of contract execution and the remaining due at time of completion.” Similarly, 2.2.b (Installation Costs) of the agreement notes that the City will pay SLOMA “40% towards the costs of installation at the time of contract execution and the remaining due at time of completion.” The reimbursement of qualifying expenses is limited by the agreement which notes that costs shall not exceed $400,000 annually (2.2). 4) The table below (provided on p. 3 of the partnership agreement) specifies that one of the three pieces acquired each year should be in a roundabout. Is that left over from last year’s contract, and if so, should it be left there? Or should the City give itself more flexibility on the location of the piece? The City has a number of roundabout projects as part of the CIP projects list. Staff’s recommendation is that the City continue to install one roundabout public art piece per year, as was the intention in the City’s previous contract with SLOMA. The amount budgeted for each year is up to $250,000, which has been accounted for in a CIP project for this direct purpose. However, if the full amount is not activated, the City could potentially apply the difference toward a different type of piece that is not in a roundabout, and staff would transfer the funding from the roundabout public art CIP project to fund that piece.