DEPARTMENT: Center City Development & Operations
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: City Council District 6
SUBJECT:
Westside Education & Training Center Improvements
SUMMARY:
Two ordinances authorizing the following items related to the Westside Education & Training Center (WETC), an Alamo Colleges Workforce Specialty Center operating at the former Lincoln Elementary School, property of EISD, located at 563 SW 40th Street in Council District 6:
A. A Memorandum of Understanding (MOU) between the Edgewood Independent School District (EISD), Alamo Community College District (ACCD), Westside Development Corporation (WDC), and the City of San Antonio (City) for the purpose of performing capital improvements to the Westside Education & Training Center (WETC).
B. A Funding Agreement with the WDC in the amount of $500,000.00 for the purpose of making these initial improvements to the campus in support of continued workforce development.
BACKGROUND INFORMATION:
The Westside Education & Training Center (WETC) was created in 2006 out of a partnership between the City, ACCD and EISD to provide a means for residents to attain entry-level occupational skills or to increase technical skills. EISD allows for the use of their campus through a no-cost lease agreement and provides a base-level of campus maintenance while ACCD continues to make leasehold improvements and provide programmatic staffing.
Since opening, WETC has enrolled over 12,000 students in workforce training, occupational and academic instruction. The facility in its current condition has reached capacity in the number of programs and students it can serve.
The existing buildings on the campus require mechanical systems upgrades, including the installation of an elevator, to allow for the full use of existing space at the site. The second floor of the existing building is not ADA-accessible, therefore, unusable. These capital improvements are estimated at $887,823.00.
As part of the 2015 budget, the City Council allocated $500,000.00 in Unissued Certificates of Obligation to make capital improvements. An initial step for utilizing the City funds includes the approval of a Memorandum of Understanding (MOU) between the Edgewood Independent School District (EISD), Alamo Community College District (ACCD), the Westside Development Corporation (WDC), and the City of San Antonio (City). In addition, ACCD received a $300,000.00 grant from the State of Texas to be used to pay for part of the capital improvements. The remaining capital costs of $87,823.00 and excess expenses, if any, will be paid by ACCD. WDC will take the lead in developing a strategy to identify funding for future capital improvements.
The MOU addresses several key issues concerning the site and operations, including, but not limited to:
• Long-term lease of the property, owned by the EISD, for a minimum of ten (10) years;
• Long-term commitment by the ACCD to provide educational programming;
• Commitment by the ACCD to contract for the capital improvements to the site, including procurement and project management;
• Commitment by the ACCD, EISD, and the WDC to identify and secure the additional funding needed to complete the capital improvements
• Commitment by all parties to develop and implement a funding strategy for future capital improvements.
The Westside Development Corporation’s Board of Directors approved the MOU at their regular meeting of August 26, 2015 and the Boards of Trustees for the Edgewood Independent School District and the Alamo Community College District approved the MOU respectively on October 13, 2015 and October 27, 2015.
In addition to approval of the MOU, staff seeks the approval of a related Funding Agreement with WDC in the amount of $500,000.00 for the use of the funds allocated in the FY2015 budget. This sum represents the City’s contribution to capital improvements.
ISSUE:
Approval of this MOU and Funding Agreement will enable all parties to proceed with the improvements at the WETC and enable more residents to attain entry-level occupational skills or increase technical skills to connect to jobs or higher education opportunities.
Approval of this MOU and Funding Agreement will enable the WDC a 10-year no-cost lease of WETC and also locate its offices at the property, a cost savings of $22,000.00 annually. This long-term commitment will enable the WDC to build its capacity at WETC through increased collaboration of economic development initiatives, workforce training services, and skills and high education programs.
ALTERNATIVES:
City Council can elect to not approve the Memorandum of Understanding or the Funding Agreement. Without these agreements, the capital improvements will not take place.
FISCAL IMPACT:
A. The Memorandum of Understanding has no fiscal impact.
B. The City’s contribution of $500,000.00 for the proposed Funding Agreement with the Westside Development Corporation will be funded by Certificates of Obligation, previously authorized in the FY 2015 budget.
RECOMMENDATION:
Staff recommends:
A. Approval of Memorandum of Understanding with the Edgewood Independent School District, Alamo Community College District and Westside Development Corporation in connection with the funding and construction of capital improvements to the Westside Education and Training Center, an Alamo Colleges Workforce Specialty Center operating at the former Lincoln Elementary School, located at 563 S.W. 40th Street in Council District 6.
B. Approval of a Funding Agreement in the amount of $500,000.00 with the Westside Development Corporation representing the City’s contribution towards the funding and construction of capital improvements to the Westside Education and Training Center.