REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement Between the Santa Clara Unified School District and the City of Santa Clara Pertaining to the Operation, Maintenance and Improvement for Public Recreational Purposes of Buildings and Open Space Areas at Cabrillo Middle School
Report
COUNCIL PILLARS
Enhance Community Sports, Recreational and Arts Assets
Deliver and Enhance High Quality Efficient Services and Infrastructure
Report
BACKGROUND
On May 13, 1987, the City entered into a Lease Agreement (“Agreement”) with the Santa Clara Unified School District (“District”) to construct, operate and maintain a Youth Activity Center (“YAC”) on a portion of the campus of Cabrillo Intermediate School (now known as Cabrillo Middle School). In the Agreement, the City agreed to pay the District the sum of one dollar per year ($1) for the lease of the site and to assume responsibility for the cost of the YAC improvements (“Improvements”). In exchange, the District agreed to allow the City to utilize the facility at no cost when not in use by the District for an initial period of thirty-five years. The parties, by mutual consent, could extend the Agreement for successive five-year periods with the same terms and conditions outlined in the original agreement provided that the total term, and any extension thereof, did not exceed ninety-nine (99) years (Attachment 1). At the end of the initial term (or any successive extension) use, operation and maintenance of the Improvements would revert to the District.
The initial term of the lease agreement is set to expire on May 13, 2022. In November, 2021, District representatives notified the City of their interest to amend the terms and conditions of the Agreement. The attached Agreement represents the culmination of negotiations that have occurred since November with respect to a new agreement for continued joint use of the YAC, the Teen Center and Skate Park located on the Cabrillo Middle School Campus.
DISCUSSION
The City and the School District have a long tradition of joint investment and use of community recreational facilities and amenities. To enhance transparency and accountability, the City and School District have embarked on an effort to create a master agreement that would set forth a set of shared values and principles that would govern all joint use facilities. This master agreement would be augmented by addendums for each individual site that would address site-specific terms and conditions related to items such as contributions of the parties, hours of operations, scope of services, etc. While the parties have been working on the framework for a joint use master agreement, an inventory of existing agreements revealed that the YAC agreement was set to expire in May, 2022. The YAC has been a valuable joint use facility for the City, District, and community since 1987. In 1997, the City and District entered into an agreement for the Skatepark (Attachment 2) and subsequently, for the operations of the Teen Center.
Currently, City programs generate approximately 75,000 youth visits annually (2,100 unique members) through the free afterschool/after camp and skate park programs, and an additional 1,000 youth in summer camps. Eleven (11) special events are held annually in these joint use facilities. To avoid a disruption in these services, the focus of the work effort between the parties shifted to discussions around the YAC agreement.
In November, 2021, the School District notified City representatives of their interest in amending the terms and conditions of the agreement to allow for greater utilization of space in order to provide expanded after-school sports, music and other extra-curricular activities similar to that provided at other middle school campuses within the District.
Given the City’s long-standing presence in the Cabrillo community and interest in continuing community-based programming in that area, the parties focused their efforts on the development of terms and conditions that would meet the needs of both parties. (Attachment 3). A summary of major terms and conditions proposed for a new agreement are as follows:
• YAC Occupancy - The YAC will revert to District occupancy, operation, custodial and maintenance per the terms of the existing Lease Agreement on May 13, 2022.
• Term - A new agreement will be executed for a period of five (5) years with one, five-year option to extend. It is the intention of the parties that this new agreement will become Addendum #1 once a Joint Use Master Agreement is adopted. As such, the agreement would be subject to the provisions of the Joint Use Master Agreement.
• YAC Use - After May 14, 2022, the District shall have exclusive use of the YAC gym, activity rooms, offices, restrooms, as well as storage and meeting areas during school hours. The City’s use of the YAC gymnasium and/or other spaces will be reserved through the District’s Facility Reservation System program when available during non-school hours, on weekends and during summer as defined by the new agreement. The community may reserve use of YAC gym, offices, meeting spaces, and activity rooms during non-school hours through the City’s Facility Reservation System. Such use will be subject to the District’s custodial fee.
• Teen Center & Skatepark - The City will continue its occupancy, operation, custodial and maintenance of the Teen Center, Skatepark, and adjacent grounds for City and community programs through its activity scheduling and facility reservation program. The City will also have access to the covered patio area and City storage containers. The City will consolidate its staff offices and customer service counter to the Teen Center. The new agreement will serve as the governing document for joint use facilities at Cabrillo Middle School and will supersede prior individual agreements.
• Special Events - The District and City agree to work together to schedule the various special events that are hosted at the YAC throughout the year.
• Major Capital - The District will be completing a Facility Conditions Assessment to determine life-cycle capital improvement projects. The City and District will coordinate repairs and maintenance using the Division of State Architect (DSA) thresholds or $15,000, with major projects going through the District. The City and District agree to establish a reserve fund for future maintenance. The cost-sharing arrangement, funding of the reserve and schedule of improvements will be based on the outcome of the Facility Condition Assessment. This item will be brought forward separately for Council approval. The parties understand the limitations of the City’s capital budget and have agreed to work together on a mutually acceptable contribution plan.
• Communication & Cost Sharing - The City and District will meet quarterly to discuss and resolve issues that may occur related to operations and maintenance. On a semi-annual basis, the parties will meet to reconcile expenses and cost-sharing contributions related to custodial, maintenance and utilities.
• Utilities - Electric and water use will be paid based on separate meters. The District shall be responsible for YAC expenses with the City responsible for Teen Center and Skatepark expenses. Shared gas meters and expenses for the City’s use of the YAC will initially be split on a 40% City/District 60% basis until a true proportional basis is determined. A reconciliation of utilities expenses will occur every six months.
• General Provisions - The indemnity and insurance requirements have been updated and included. Once the Joint Use Master Agreement is adopted, the provisions in the Master Agreement will supersede.
The terms and conditions noted above will allow the City to maintain its presence and programming at Cabrillo Middle School at a minimal cost of $1 per year and a pro-rated share of maintenance and utilities. By consolidating its operations into the Teen Center, the City can meet the District’s need for additional space for both during and after school hours programming. It is important to note that while the City originally invested in the construction of the joint use facilities, the site is District property and without agreement, would revert to the District’s control in May 2022 resulting in a significant loss of recreational facilities to support community programming for the City.
The modernization of the provisions in the new agreement will also provide greater transparency and accountability that will, in turn, support greater operational efficiencies and alignment with current regulatory requirements. Most importantly, these terms and conditions will allow the continuation of meaningful joint use and operation of recreational facilities and amenities to better serve the Santa Clara community.
The School District intends to consider the Agreement at its April Board of Education meeting following the City’s approval. If the proposed agreement is not approved by the City, then the YAC, Teen Center and Skate Park facilities would revert to District occupancy and use effective May 13, 2022. Should the current agreement expire with no City Manager’s Office authority to negotiate a new agreement, City services and community use would be interrupted until a Master Agreement could be negotiated and approved. No action on this agreement would impact as many as 3,000 program participants currently receiving programs and services through these facilities.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The City’s YAC, Teen Center and Skate Park program expenditures and revenues are included in the Parks & Recreation Department’s annual operating budget. The total budget for Fiscal Years 2021/22 is in the amount of approximately $2 million. Revenues from program and facility use fees are budgeted in the amount of $530,000. The cost recovery is approximately 26%. Recreation program expenditures in the amount of approximately $1.81 million support programs, services, supplies, equipment and staffing by a full-time Recreation Supervisor, 4 Recreation Coordinators, an Office Specialist III, and several as-needed recreation leaders. Park expenditures of approximately $155,000 provide a Grounds Maintenance Worker (custodian) and landscape maintenance, such as mowing for the skatepark and building’s frontage along Cabrillo Avenue, as part of a multiple park assignment. The City currently pays utilities for electricity, water and gas for the facilities in the annual average amount of approximately $33,000. The City’s Capital Improvement Program (CIP) budget funds major maintenance projects such as roofs, painting, flooring repair, but varies based on need and funding capacity. The proposed Agreement stipulates a capital reserve fund will be established and a pro-rata share of utilities paid based on actual percentage of City and Community usage. With the exception of the capital funds, it is expected that operating expenditures will remain about the same except for increases due to inflation. As discussed above, the City will now be required to establish a capital reserve fund and the contributions to this fund are not yet known. This item will be brought forward separately for Council approval. The parties understand the limitations of the City’s capital budget and have agreed to work together on a mutually acceptable contribution plan.
COORDINATION
This report has been coordinated with City Attorney’s Office and City Manager’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to negotiate and execute an Agreement Between the Santa Clara Unified School District (SCUSD) and the City of Santa Clara Pertaining to the Operation, Maintenance and Improvement for Public Recreational Purposes of Buildings and Open Space Areas located at Cabrillo Middle School and to make minor amendments as needed.
Staff
Reviewed by: James Teixeira, Director, Parks & Recreation
Approved by: Cynthia Bojorquez, Assistant City Manager
ATTACHMENTS
1. Youth Activity Center Lease Agreement 1987
2. Skatepark Agreement 1997
3. Proposed Agreement