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Mr. Nelson Fialho/Mr. David Haglund Page 21 Preliminary Issues Assessment of Potential Colocation of Maintenance Facilities • Establishing a joint oversight committee is an appropriate means of addressing and resolving conflicts during the term of the agreement. • When ongoing costs are shared, information about anticipated cost increases should be openly communicated with the affected party, prior to those increased costs being assessed. • Successfully sharing facilities requires a certain amount of flexibility and willingness to accommodate each another’s needs from time to time. • Reducing long-term capital costs is a likely benefit of sharing maintenance facilities. • Operating costs may be reduced if cooperative purchasing of supplies or joint use of on - site facilities (such as a fueling station) is implemented. • Parties that are affected indirectly by the shared facility arrangement should be kept informed about plans, costs and operational impacts. CASE STUDY 1 Agencies: City of Livermore/Livermore Area Recreation and Parks District (California) Project: Joint Use Maintenance Service Center Background In 1989, the City of Livermore (City) and the Livermore Area Recreation and Parks District (LARPD) both recognized a need for their respective agencies to have an improved maintenance service facility. The City owned 17.77 acres of land on Robertson Park Road, five acres of which was utilized for their existing city maintenance services buildings and grounds. LARPD owned Robertson Park Road, providing the only access to the site. The parties formed the Government of Livermore Financing Authority (GOLFA) that became the mechanism for financing improvements to the site and to Robertson Park Road. Improvements were financed through the issuance of Certificates of Participation with th e City and LARPD owning the improvements as tenants in common. The City held a 62% interest and LARPD a 38% interest, reflecting the proportionate share each agency would require of the site and use of the road. In 1992, the City and LARPD entered into a Joint Use Agreement that outlines the uses for the property, how costs would be shared and responsibilities of each party. The agreement, approved for a term of 99 years, divides the site into “Commonly Shared Are as”, “City’s Premises” and “District’s Premises”. Use of the property was limited to maintenance service, storage and related uses. City responsibilities include maintenance of all improvements except landscaping, making timely payments on the debt by GOLFA, tracking expenses incurred in connection with the property and providing general liability, workers compensation and property ins urance coverage. LARPD is responsible for landscape maintenance at the site and must provide general