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2007-06-19 5-B Revised ReportCITY OF ALAMEDA Memorandum REVISED To: Honorable Mayor and Members of the City Council From: Debra Kurita City Manager Date: June 19, 2007 Re: Authorize the City Manager to Negotiate a Grant Agreement Between the City of Alameda and the Alameda Historical Museum BACKGROUND The Alameda Historical Museum was first established in 1948 with the purpose of collecting and conserving tangible artifacts relevant to the cultural and architectural heritage of Alameda. The Museum first received an annual rent subsidy from the City in 1991 when it relocated to the Masonic Building on Alameda Avenue. The Council authorized funding Fiscal Year 1999 -2000 rent in the amount of $38,400, noting that approximately one -third of the collection consisted of City artifacts. During the ensuing years, rent subsidies have been included in the City's adopted budget. For Fiscal Year 2006 -2007, the Museum's annual rent subsidy allocation was $46,160. DISCUSSION Each relationship between the City and a grantee organization should have an agreement that outlines the responsibilities of each party. However, there is no existing written agreement between the City and the Alameda Historical Museum (Museum). In its negotiations with the Museum, City staff has offered to provide the Museum $3,462 per month, or $41,644 for Fiscal Year 2007 -2008. This constitutes a reduction of 10% of the $46,160 rent subsidy for Fiscal Year 2006 -2007. In exchange for the funds, the City has proposed that the Museum develop and implement an annual work plan that contains its goals and strategies for self - sufficiency as well as a funding and technical assistance plan to implement the Museum's business plan. This subsidy is subject to Council approval through the adoption of the budget. The Museum recently sent a letter to the Mayor and City Council, which is attached, asking that the rent subsidy not be reduced. Staff also proposes including a provision requiring that an informal performance report be submitted by May 30, 2008. The report should include a narrative of program operations, a report of business plan milestones completed, a report of contributions, donations, and bequests, and a summation of volunteers engaged in educational endeavors for the Museum. Any agreement should also stipulate the types and amounts of insurance coverage the Museum is required to carry and name the City as an additional insured. Special Joint CC /ARRAlCIC Report Re: Agenda Item #3 -B II. 06-19-07 Honorable Mayor and Members of the City Council BUDGET CONSIDERATION /FINANCIAL IMPACT June 19, 2007 Page 2 of 2 The Fiscal Year 2007 -2008 Budget as presented for adoption includes sufficient funds in the Non - Departmental Cultural Arts line item to fund a grant agreement in the amount of $41,544. RECOMMENDATION Authorize the City Manager to negotiate the grant agreement between the City of Alameda and the Alameda Historical Museum for an amount not to exceed $41,544. Attachment