REPORT TO COUNCIL
SUBJECT
Title
Action on the First Addendum to the Addendum to the 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 School Sites Owned by Santa Clara Unified School District - Youth Activity Center, Teen Center and Skate Park
Report
COUNCIL PILLAR
Enhance Community Sports, Recreational and Arts Assets
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On May 13, 1987, the City and the Santa Clara Unified School District (“District”) entered into a Lease Agreement (“Lease Agreement” - Attachment 1), allowing the City to use a portion of the Cabrillo Middle School site for $1 per year. The lease was established for an initial term of 35 years, ending in 2022, with options to extend for multiple five-year terms by mutual agreement under the same terms and conditions, for a maximum total term of 99 years. Under the agreement, the City is authorized to construct, operate, and maintain a community youth activity center of approximately 20,000 square feet (the “Youth Activity Center” or “YAC”), with the improvements becoming the property of the District at the end of the original term or any extensions. The lease term for the YAC expired on May 13, 2022.
On April 25, 2023, the Addendum to the Lease Agreement (“Addendum” - Attachment 2) between the District and the City was ratified. This Addendum addressed the interim terms of use, maintenance, and improvement of various buildings and open space areas at school sites owned by the District for public recreational purposes, until a new Master Agreement could be executed. This addendum (1) covered the YAC, Teen Center, and Skate Park, (2) assigned responsibility for coordinating and scheduling rentals to the District, and (3) stated that the City will reimburse the District for actual custodial costs only for the time when the YAC is used by the City or City’s renters. In FY 2023/24, the City paid $22,237 in custodial charges and $19,974 in FY 2024/25.
DISCUSSION
The City and the School District have a history of sharing and investing in community recreational facilities, and continued this partnership by entering into an Addendum after the Lease Agreement expired on May 13, 2022, as it pertained to the YAC. The Parks and Recreation Department is currently collaborating with the Santa Clara Unified School District to develop a Joint Use Master Agreement that will set forth terms of use and access for buildings and open space areas at school sites. In the interim, a first Addendum to the original Addendum is needed. The First Addendum to the Addendum (Attachment 3) proposes the following modifications or additions:
• Rentals and Scheduling - As of August 1, 2025, the District is responsible for administering all third-party facility rentals and corresponding rental income for use of the YAC facility. The City may coordinate with the District for use of the YAC and will pay the hourly rental rate for the Group 1.5 category, along with all associated custodial costs, as outlined in the SCUSD Use of Facilities Fee Schedule (Attachment 4). The City would no longer have access to the offices located within the YAC.
• Fire Alarm and Monitoring System - The District installed a new fire alarm and monitoring system in the YAC and Teen Center, which is connected to the Cabrillo Middle School fire alarm system. The District will monitor, maintain, and coordinate all required inspections for the fire alarm, sprinkler system, all fire extinguishers, and any other fire department required equipment, and is responsible for all costs associated with such.
The City will provide keys and a security alarm code to the Teen Center for District access to fire panels and equipment at any time. The low-voltage room (IT room) in the Teen Center will not be accessible by District staff.
• Exterior Maintenance - The District will perform maintenance, add waterproofing, and paint the exterior of the YAC during the summer of 2025. This project includes the eastern facade of the YAC that faces San Tomas. The City name and building dedication will be painted over and not replaced during this process. The dedication plaque will be installed in the lobby until the District follows its naming policy procedures.
The First Addendum to the Addendum clarifies the utilization, maintenance, and enhancement parameters of the Addendum while ensuring continued joint use of recreational facilities to better serve the Santa Clara community.
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 First Addendum to the Addendum to the Agreement adds a provision requiring the City to pay for the use of the YAC effective August 1, 2025. According to the current SCUSD Use of Facilities Fee Schedule (Attachment 4), the hourly rate for the Group 1.5 category is $10 per hour. In addition, a fee of $66 per hour for custodial services applies for certain uses (weekend, kitchen, school breaks, and set up of chairs and tables).
Prior to the proposed implementation of this fee, the City utilized the YAC for a total of 693 hours in FY 2024/25. Based on this level of usage, staff anticipates an annual cost of approximately $16,000 in rental fees for the YAC in FY 2025/26. To date, the City has reserved 162 hours for use of the YAC from August through December in FY 2025/26. This amounts to $3,610, inclusive of custodial charges and the booking fee.
The estimated annual cost is comparable to prior years, and there is sufficient funding in the Parks and Recreation Operating Budget to cover the projected facility costs throughout the fiscal year. Staff will return to Council with any proposed budget amendments if increases in the City’s facility usage or associated costs cannot be covered within the existing Parks and Recreation Operating Budget.
COORDINATION
This report has been coordinated with the Finance Department, 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 execute a First Addendum to the Addendum to the 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 on the terms presented and to make minor amendments as needed, in finals forms approved by the City Attorney.
Staff
Reviewed by: Damon Sparacino, Director, Parks & Recreation Department
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Lease Agreement
2. Lease Agreement Addendum
3. First Addendum to the Addendum_DRAFT
4. SCUSD Use of Facilities Fee Schedule