Title
Enter into Memorandum of Understanding and Revocable License Agreement with U.S. Department of Labor for Use of Parking Lot at Phoenix Job Corps Center and Request to Indemnify U.S. Department of Labor (Ordinance S-47406)
Description
Request to authorize the City Manager, or his designee, to enter into a Memorandum of Understanding and Revocable License Agreement, and any other agreements as necessary, with the Employment and Training Administration of the U.S. Department of Labor, or its City-approved designee, for the use of a parking lot of the Phoenix Job Corps Center, located at 518 S. 3rd St. in the Phoenix Warehouse District. Further request authority, pursuant to Phoenix City Code section 42-20(B), to indemnify the U.S. Department of Labor from claims arising out of the use of the parking lot under the Memorandum of Understanding. Additionally, request authority for the City Treasurer to accept, and for the City Controller to disburse, funds if necessary for this item.
Report
Summary
Job Corps is a no-cost education and career technical training program administered by the U.S. Department of Labor (DOL) that helps young people ages 16 to 24 improve the quality of their lives through career technical and academic training. The Phoenix Job Corps (PJC) has been in the Phoenix Warehouse District for decades and provides valuable job training programs to the youth of Phoenix. The City has long been connected to PJC through job training programs, employment placement and through the business community. Additionally, City staff and the PJC work closely together on many other endeavors.
As part of their existing operations, PJC has two surface parking lots that are utilized for their students and staff during weekday operation hours. The PJC has limited use for these parking lots evenings and weekends, when the parking lots usually stand vacant. As new development and redevelopment of the Warehouse District has continued to gain attention, parking for area businesses and special events is extremely challenging. Warehouse District tenants often have speaking events, programs, special events and other evening events that draw significant attendees into the area, causing challenges with the limited public parking that is available in the immediate area for public use.
City staff has been working closely with the DOL to structure an opportunity to utilize one of the PJC's existing parking lots (Lot) for parking when not in use by PJC. In order to use this Lot, the DOL has provided the City with an Memorandum of Understanding (MOU) and Revocable License Agreement (License), for use of the Lot. In order to evaluate any necessary agreements (Agreements), staff has negotiated a six-month License so the DOL and City can determine the value and effectiveness of the Agreements. After the six-month period, the term could be extended, if mutually agreeable.
Subject to City Council approval, the following business terms have been negotiated with the DOL and would be implemented through the Agreements:
- City will not be charged a fee for use of the Lot;
- Lot use would be available daily from 6 p.m. to 11 p.m.;
- City will provide PJC with written notice of its request to use the Lot in 30-day increments, and will provide specific times and events for utilization of the Lot;
- Lot will be utilized for parking for events and facilities located within a two-mile radius of the Lot;
- City may enter into separate sublicenses with third party entities to utilize the Lot during the Use Periods;
- City will pay for the design and fabrication of temporary signage;
- Sublicensee(s) will be responsible for retrieving the temporary sign(s) from the City, posting the temporary sign(s) on the Lot during Use Periods stating parking is at the user's own risk, and shall remove the signs each day after the Use Periods;
- Sublicensee(s) will be responsible for returning the temporary sign(s) to the City at their own expense, upon conclusion of their use;
- Sublicensee(s) will be responsible for the use and maintenance of the Lot during Use Periods including enforcement when the Use Periods expire;
- City assumes all risk of damages or loss, and all claims of property damage. The City will include the Lot under its self-insured liability program in order to meet the requirement to provide an umbrella liability policy in the amount of not less than $5 million on the Lot during the term of the License;
- City will indemnify the DOL for use of the Lot during the term of the License;
- City shall be required, and shall require its sublicensee(s) to purchase commercial liability insurance with limits of no less than $5 million covering the use of the Lot during the Use Periods, naming the City and the DOL as additional insured; and
- Agreements may contain other terms and conditions deemed necessary by the City.
As the City continues to revitalize and redevelop the Warehouse District, the use of this Lot is an important economic development opportunity, providing for additional parking that will encourage events and patrons to visit the area.
Contract Term
The Revocable License Agreement will be for an initial term of six-months and can be extended if mutually agreeable.
Financial Impact
The U.S. Department of Labor will not charge a fee to the City for use of the Lot. The Community and Economic Development Department will be responsible for the design and fabrication of the temporary sign(s) and has allocated $2,000 for this purpose. There is no impact to the General Fund for this expense. Funding is available in the Downtown Community Reinvestment Fund.
Location
Phoenix Job Corps is located at 518 S. 3rd St. and the parking lot is located on three parcels at the northwest corner of 1st Street and Lincoln Street.
Council District: 8
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan and the Community and Economic Development Department.