DATE: May 26, 2020
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Amendment III to Agreement No. 10-432 with Tenaya Estates Inc. for Park Maintenance Services for County Service Area No. 2 - Tenaya Park
RECOMMENDED ACTION(S):
TITLE
Approve and authorize Chairman to execute Amendment III to Agreement No. 10-432 with Tenaya Estates, Inc., extending the term by 48 months from July 1, 2020 through June 30, 2024, and increasing the total maximum compensation by $248,000 to a total of $698,732.
REPORT
The recommended action proposes a third amendment to Agreement No. 10-432 with Tenaya Estates, Inc. (TEI) to extend the term of the agreement through FY 2023-24. The annual maximum compensation for each fiscal year shall be $57,500 for FY 2020-21, $60,500 for FY 2021-22, $63,500 for FY 2022-23, and $66,500 for FY 2023-24 to complete necessary maintenance and allow for necessary infrastructure replacement. This item pertains to a location in District 2.
ALTERNATIVE ACTION(S):
The Board may reject the recommendation to amend Agreement No. 10-432 and increase the term and the annual reimbursements for FY 2020-21 through FY 2023-24. If Agreement No. 10-432 is not amended, TEI would delay needed repairs.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action. Services are funded by fund balance, interest income, property tax revenue, and annual assessments paid by the benefitting property owners within County Service Area No. 2 (CSA 2). Sufficient appropriations and estimated revenues are included within the FY 2019-20 CSA 2, Org 9142 Adopted Budget, and will be included in future budget requests.
DISCUSSION:
CSA 2 was formed on December 26, 1962, to provide services for the subdivision known as Tenaya Estates located West of Palm Avenue, and East of Fruit Avenue, in Fresno, CA. The services consist of maintaining a two-and-a-half-acre community park, known as Tenaya Park, which is located in the center of the Tenaya Estates Subdivision consisting of 142 residential parcels, detailed on Exhibit A.
TEI is a public benefit corporation that was formed by CSA 2 property owners for the purpose of maintaining Tenaya Park. The park maintenance and operation services are provided by TEI under Agreement No. 10-432 with the County that was executed on August 10, 2010 and amended on September 30, 2014 and on April 26, 2015. The current amendment to Agreement 10-432 allows a maximum reimbursement of $56,500 for FY 2019-20 and terminates on June 30, 2020.
If approved, Amendment III to Agreement No. 10-432 shall extend the term of the agreement through June 30, 2024 and increase maximum compensation by $248,000 to a total of $698,732. The annual maximum compensation for each new fiscal year shall be $57,500 for FY 2020-21, $60,500 for FY 2021-22, $63,500 for FY 2022-23, and $66,500 for FY 2023-24, to allow for TEI to complete necessary park maintenance and to allow for necessary infrastructure replacement, contingent upon sufficient funding (as shown on Exhibit B).
Department staff will monitor revenues, expenditures and fund balance to determine if there are sufficient funds in the budget to pay for all anticipated costs and maintain sufficient reserves. Department staff will coordinate annually with TEI to assess the needs of the District and maintain an appropriate reserve level.
REFERENCE MATERIAL:
BAI # 43, April 26, 2016
BAI # 38, September 30, 2014
BAI # 11, June 17, 2014
BAI # 76, August 10, 2010
ATTACHMENTS INCLUDED AND/OR ON FILE:
Exhibit A
Exhibit B
On file with Clerk - Amendment III to Agreement w/ Tenaya Estates, Inc.
CAO ANALYST:
Debbie Paolinelli