R2017-05 Release Annual Professional Service Contrct Payment to CICD

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Item Coversheet Page 2 of 2 Civic Center Authority ("Authority") — original agreement dated December 20, 1976, as amended on March 14, 1977, and as amended November 24, 1980.Agreements defined the Authority acquisition of a site for construction of a Civic Center to include an arena, municipal offices, theater, meeting rooms, mall and parking at a project cost of$11.244 million funded by State of Illinois contribution in the amount of$8.433 million and City of Decatur contribution in the amount of$2.811 million; and the agreements defined the duties and obligations of the Authority and the City in the operation of the Civic Center. Agreement stipulates that the City is entitled to possession of office space in the facility for a period ending June 30, 2079, rent free, and in consideration the City shall be responsible to pay the cost of maintenance of space, including all utilities,janitorial services and non-structural repairs within the municipal office space; City shall maintain an operating reserve of$100,000 and if said operating reserve fund is exhausted, the City shall pay any deficit in operating expense incurred by the Authority in operation of the Civic Center; Authority is not obligated to repay the City for any funds contributed to the Authority, and the Authority is obligated to pass any operating surplus beyond the$100,000 operating fund reserve to the City to aid in the retirement of any debt service cost of the City investment of$2.811 million that constructed the Civic Center. In 1998 and 1999, the City entered into agreement(s) with the Authority to participate in the funding of certain HVAC and facility repair and maintenance costs of $640,000, whereby the agreements stipulated the City would fund the projects and the Authority would repay the City for Authority share of the cost of$377,000 over a period of time defined in the agreements.The Authority was only able to repay the City $73,000 of the $377,000 agreement obligation to the City in the period from 1998 and 1999. In December 2013, the City forgave the remaining outstanding Authority obligation to the City in the amount of$304,000,with consideration of City equity in the Civic Center enterprise,whereby,the City shall be reimbursed upon dissolution of the Authority if and only if the Authority, upon dissolution, has sufficient assets and equity to reimburse the City.At present,the City makes an annual operational subsidy payment to the Civic Center at the beginning of the fiscal year to finance the Authority operation. In 2017, the annual subsidy payment is$409,867,an increase from the 2016 annual subsidy payment of$406,614. Sister City Program—The City has funded the Sister City Program in the amount of$7,500 in recent years.The 2017 funding level is$7,500. CONO Program—The City has funded the program in the amount of$9,000 in recent years.The 2017 funding level is$5,000. Summary—All of aforementioned funding levels have been contemplated in the 2017 Budget approved by the City Council with Council Resolution 2016-140 passed by Council November 21,2016. POTENTIAL OBJECTIONS: None INPUT FROM OTHER SOURCES: None STAFF REFERENCE: Tim Gleason Gregg D.Zientara BUDGET/TIME IMPLICATIONS: All of aforementioned funding levels have been contemplated in the 2017 Budget approved by the City Council with Council Resolution 2016-140 passed by Council November 21,2016. ATTACHMENTS: Description Type Resolution fundin Cg ICD Cbz cr TIN Icnw CICD agreement Cut cr IN-Icmo https:Hdecatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=988 1/13/2017