Saturday, March 7, 2020

Costs of the Market House project - Who pays for what?


[NOTE: CHI-SJCH referred to below stands for Catholic Health Initiative-Saint Joseph Catholic Health, a Pennsylvania non-profit organization.]


The current Columbia Market House project is estimated to cost $2.1 million. There is a Professional Services Agreement between Columbia Borough and CHI-SJCH for costs of the project, but who pays for what? 


Let's break it down. Of the $2.1 million allocated for the building renovation, half comes from the borough's municipal bond (basically a loan) and half from a RACP grant. RACP stands for "Redevelopment Assistance Capital Program," and is a state grant requiring dollar-for-dollar matching funds. Columbia Borough was awarded the $1.75 million grant funds last August, approximately $750,000 of which will go towards parking projects. The remaining $1 million (approximately) will go towards the Market House. Since the RACP is a matching grant, Columbia Borough (We, the Taxpayers), will need to pony up a total of $1.75 million, which, again, comes from the bond.

Once the renovation is complete and the Market House operation is underway, "CHI-SJCH agrees to provide up to $65,000 annually in funding beyond revenue generated by activities and programs at the Market House for costs associated with the maintenance of the Columbia Market House," according to the agreement. CHI-SJCH will also provide up to $100,000 to equip the Market House. More information on costs (and responsibilities) are detailed in the excerpts of the Professional Services Agreement, shown further down in this article.

The Market House project was put into motion by the previous borough council, which accepted CHI's proposal in November 2018. The previous borough manager, Rebecca Denlinger, was largely responsible for obtaining the RACP grant. Denlinger left Columbia in January of this year to take a position as Elizabethtown's borough manager. The Professional Services Agreement was signed by Denlinger and Philip Goropoulus, president of CHI St. Joseph Children's Health, in March 2019.

Here a few excerpts from the agreement pertaining to project costs:


3. SCOPE OF SERVICES & RESPONSIBILITIES

A. Renovations - CHI-SJCH and the Borough shall mutually agree upon renovations, construction, and updates to the Columbia Market House pursuant to this agreement.

B. Equipping the Market House - CHI-SJCH shall equip the Market House with appropriate furnishings to support market activities including stands for vendors and seating for patrons.

a. The style of furnishings will be mutually agreed upon by the Borough and CHI-SJCH.

b. CHI-SJCH will provide up to $100,000 in funding from the organization's Healthy Columbia Project to support the equipping of the Market House. This includes but is not limited to:

i. Vendor Stands

ii. Tables and Seating for patrons and community members

c. At the time of installation into the Market House, all furnishing purchased for use in and to support the operations of the Market House are assets of the Borough.

d. CHI-SJCH is responsible for the maintenance of all furnishings as a part of the professional services agreement.


C. Building Maintenance and Utilities -

The responsibilities of CHI-SJCH:

  • Provide year-round, regularly scheduled interior custodial services to maintain the interior of the building in a clean and presentable condition for staff, visitors and other users. The Borough authorizes CHI-SJCH to enter into service agreements for such services as needed.
  • Shall be responsible for the maintenance and repair of any equipment provided by CHI-SJCH for the use of staff, partners or the general public in the Market House.
  • Oversee renovation and construction projects related to the revitalization of the Colombia [sic] Market House.
  • Maintain electric, heat utilities.
  • Secure pest control for the Market House (interior and exterior)
The responsibilities of the Borough:
  • Maintain water, sewer and trash for the building.
  • Provide non-custodial building and window cleaning, and snow removal from roadways, parking areas, sidewalks, steps, and ramps and decks that provide public access to the facility.
  • Conduct regularly scheduled preventive maintenance on building systems, such as adjusting. lubricating, inspecting, and testing procedures designed to prevent equipment failure, equipment downtime, and to verify good operating condition of the building and its equipment, including public rest rooms.
  • All such maintenance shall be done and performed in the Borough's sole discretion provided, however, that the Borough shall maintain the building in a workmanlike and operable condition at all reasonable times.
  • The Borough shall maintain proper building and liability insurance coverage at all times in satisfaction of Section K.1, as set forth hereinafter.
The Borough shall also provide building keys to CHI-SJCH for the facility.


E. Staffing Structure and Management Costs - CHI-SJCH shall be responsible for recruiting, selecting, training, scheduling, supervising and compensating full and part-time employees assigned to the ongoing management and operations of the Columbia Market House as necessary for CHI-SJCH to satisfy its responsibilities according to the terms of this Agreement. CHI-SJCH shall also provide administrative support capabilities for those employees and associated services, including budgeting, accounting, payroll, benefits, and personnel management.

All such employees shall be employees of CHI-SJCH and not employees of the Borough. CHI-SJCH shall maintain all applicable workers compensation insurance as set forth hereinafter. CHI-SJCH shall not charge an annual management fee to the Borough as a part of this agreement.

F. Funding Sources - CHI-SJCH agrees to provide up to $65,000 annually in funding beyond revenue generated by activities and programs at the Market House for costs associated with the maintenance of the Columbia Market House. The Borough is responsible tor identifying supplemental funds necessary beyond the maximum funding allocated by CHI-SJCH for Market House operations.

If overruns are anticipated or occur, a financial plan is to be approved by both the Borough and CHI-SJCH. An overrun occurs if the cost of operations and maintenance of the Columbia Market House exceed the combined revenue generated by activities and programs at the Market House and the $65,000 in annual funding. At that time, CHI-SJCH shall invoice the Borough for the remaining balance on a monthly basis until the overruns are eliminated. During period of overruns, financial reports shall be provided on a monthly basis.

L. Insurance and Liability - Insurance and liability coverage related to management and operation of The Columbia Market House shall be provided by each party to this Agreement as follows:

1. Borough: Covenants and agrees that from and after the date of this Agreement, and during the entire term hereof, it shall, at its sole cost and expense, carry and maintain: (i) property insurance with respect to the Columbia Market House building and the Borough's furnishings, fixtures and equipment within the building; and (ii) commercial general liability insurance, with contractual liability coverage, with respect to the use and occupation of the Columbia Market House in the minimal amounts of one million dollars ($1,000,000.00) each "occurrence" limit and two million dollars ($2,000,000.00) general aggregate limit. The Borough may maintain any of its required insurance under blanket policies of insurance covering the Columbia Market House and any other premises of the Borough, or companies affiliated with CHI-SJCH, provided that the coverage afforded will not be reduced or diminished by reasons by the use of such blanket policies of insurance and that such blanket policies meet the other requirements set forth herein. The foregoing minimal limits of insurance coverage to be maintained by the Borough shall in no way limit or diminish the Borough's liability hereunder. All such policies of insurance hall name CHI-SJCH as an additional insured and/or loss payee.

2. CHI-SJCH: Covenants and agrees that from and after the date of this Agreement, and during the entire term hereof, it shall, at its sole cost and expense, carry and maintain: (i) commercial general liability insurance with contractual liability coverage with respect to the use and occupation of the Columbia Market House in the minimal amounts of one million dollars ($1,000,000.00) each  "occurrence" limit and two million dollars ($2,000,000.00) general aggregate limit; (ii) al risk, property insurance, vandalism and mischief, for the full replacement value, of any and all of CHI-SJCH's property, including, but not limited to trade fixtures and equipment; and (iii) workers compensation or similar insurance to the extent required by law. CHI-SJCH may maintain any of its required insurance under blanket policies of insurance covering the Columbia Market House and any other premises of CHI-SJCH, or companies affiliated with CHI-SJCH, provided that the coverage afforded will not be reduced or diminished by reasons by the use of such blanket policies of insurance and that such blanket policies meet the other requirements set forth herein. The foregoing minimal limits of insurance coverage to be maintained by CHI-SJCH shall in no way limit or diminish CHI-SJCH's liability hereunder. All such policies of insurance shall name the Borough as an additional insured and/or loss payee.



[The complete Professional Services Agreement can be downloaded HERE.]

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