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HomeMy WebLinkAbout20A - AGMT RSCCD REIMBURSEMENTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 4, 20'15 TITLE: AGREEMENT WITH RANCHO SANTIAGO COMMUNITY COLLEGE DISTRICT FOR REIMBURSEMENT OF A LAND CONVERSION EVALUATION CRITERIA STU (S IC PLAN NO. 5, 4A} C'r9f/�t2aS CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended �J As Amended ❑ Ordinance on 'I81 Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUEDTo AUG 18 2015 5M. ►TIM, 50 1. Authorize the City Manager and Clerk of the Council to execute an agreement with Rancho Santiago Community College District for reimbursement of a land conversion evaluation criteria study in the amount of $334,000, for a term to expire when the City is fully reimbursed for the expenses or mutually agreed upon by both parties, subject to non - substantive changes approved by the City Manager and City Attorney. 2. Approve an appropriation adjustment recognizing funds in the amount of $334,000 in the Recreation/Community Services Acquisition & Development revenue account and appropriating the same amount to the Recreation/Community Services Acquisition & Development expenditure accounts. DISCUSSION Centennial Park was obtained from the United States government with certain use restrictions, which require the land to be used for public recreational purposes. The National Park Service (NPS) Is charged with interpreting and enforcing the use restrictions. Through a license agreement in 1979, the City licensed approximately 1.76 acres within the Park to the Rancho Santiago Community College District _(District) to build and operate an educational facility that was approved by the NIPS. The district was later allowed to expand its Daycare area east of the facility to include a total of approximately 2.6 acres. The entire facility is known as Centennial Career Education Center, The 30 year license agreement was set to expire on November 2009, but has been extended twice, to allow time for the District to vacate the site or work with the city on a possible land conversion plan, The current amended license agreement expires in November 2019. 20A-1 Agreement with Rancho Santiago Community College District August 4, 2015 Page 2 The District has expressed interest to convert the license agreement into a long-term lease in order to make improvements to its facilities. This request was initially denied by the NPS because it did not satisfy the public recreational use restrictions. A land conversion approved by NPS would effectively release the License Area from the use restrictions and transfer the use restrictions to a new park site of equal size and value. Only then can the city negotiate any type of land license for this area. The NPS has established a protocol for land conversion approval which is identified as an Evaluation Criteria Study. Under this process, the NPS has approved a City -owned parcel of 1.4 acres (McFadden(Orange site). NPS indicated the 1.4 acre parcel is not of equal value to the 2.6 acres occupied by the district. Two additional sites of 1.51 acres are being proposed by the City to NPS to fulfill the equal land and recreational value requirement for the land conversion. The District has previously reimbursed the City for costs associated with the earlier Evaluation Criteria Study and wishes to reimburse the City for additional costs to be incurred in the Evaluation Criteria Studies for the additional sites. The City will proceed to work with the College District to submit the required park planning documents for the land exchange to the National Park Service. In addition, City staff will discuss with the District an alternative opportunity for the College District to move the Centennial Career Education Center from their current location to the 3.5 acre undeveloped lot owned by the City within the Centennial Park boundary. This lot has a federal deed restriction in that it can only be used for educational purposes. In addition, staff will begin discussing with the College District the concept of them using the Godinez High parking structure when available for adult education student parking and providing a student shuttle from the structure to the campus site. The purpose of this is to relieve parking congestion to help park users wishing to use the north side of the park. The city is requesting to enter into a reimbursement agreement with Rancho Santiago Community College District in an amount not to exceed $334,000 for costs associated to the Evaluation Criteria Study. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood vitality and livability), Strategy A (Support the design and construction of parks to provide increased open space and opportunities for recreation throughout the city, construct the Roosevelt Walker Park and Community Center, and develop concepts and proposals for the Library Park in the Civic Center and Centennial Santa Ana River Eco -Park). 20A-2 Agreement with Rancho Santiago Community College District August 4, 2015 Page 3 FISCAL IMPACT The appropriation adjustment will recognize anticipated Rancho Santiago Community College District Reimbursement revenue in the amount of $334,000 in the Recreation/Community Services Acquisition & Development revenue account (no. 30113002 57304) and appropriating the same amount to the Recreation/Community Services Acquisition & Development expenditure accounts (no. 30113260 62300 )for the following fiscal year: FY 2015-2016 - $334,000. sr' �4cs�K Gerardo Mouet Executive Dir for Parks, Recre ticn and Community Services Agency EXHIBIT: Agreement APPROVED AS TO FUNDS AND ACCOUNTS: �r Francisco Gu errez, Executive Director Finance and Management Services Agency 20A-3 20A-4 REVISED REIMBURSEMENT AGREEMENT FOR COMPLETION OF LAND CONVERSION APPROVAL FOR CENTENNIAL EDUCATION CENTER "Chis Reimbursement Agreement for Completion of Land Conversion Approval for Centennial Education Center ("Agreement") is made and entered into on August 18, 2015, by and between Rancho Santiago Community College District ("District") and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The City owns Centennial Parkin the City of Santa Ana. B. The City obtained the land for Centennial Park from the United States govermnent subject to certain use restrictions imposed in the grant deed by which title to the land was conveyed to the City ("Use Restrictions"). The Use Restrictions require the land to be used for public recreational proposes. 'Che National Park Service ("NPS") is charged with interpreting and enforcing the Use Restrictions. C. By License Agreement in 1979, the City licensed approximately 1.76 acres within the Park to the District ("License Area") to build and operate an educational facility that was approved by the NPS. The District was later allowed to expand the License Area to include a total of approximately 2.6 acres. The entire facility is known as Centennial Education Center. D. The License Agreement original expiration date was November 2009 and has been extended twice, to allow time for the District to vacate the site or work with the City on a possible land conversion plan. The License Agreement presently expires in November 2019. E. The District has expressed its interest to convert the License Agreement into a long-terrm lease in order to permit the District to make improvements to its facilities. This request was initially denied by the NPS because it did not satisfy the Use Restrictions. F. A long -tern lease may only be negotiated if a land conversion is approved by NPS, which would effectively release the License Area from the Use Restrictions and transfer the Use Restrictions to one or more new park sites of equal size and value. The NPS has established requirements for land conversion approval under Section 6(f)(3) of the Land and Water Conservation Fund Act that are more specifically delineated at 36 C.F.R. § 59.3 ("Land Conversion Requirements"). G. One City -owned parcel of 1.4 acres has already been identified and approved by NPS under this process, and it is expected that two additional sites ("Replacement Properties") wilI be proposed by the City to NPS for consideration in order to complete the land conversion. The Replacement Properties are identified as follows: Rpt ittnl Mvrtl,e.Parcel1.09 acres Licv Neighborhood Parcels 42 acres Total 1.51 acres H. The District has previously reimbursed the City for costs associated with the earlier lana conversion and wishes to reimburse the City for additional costs to be incurred to f i fill the Land Conversion Requirements for the Replacement Properties. 20A-5 The parties therefore agree: 1. In consideration for the District's obligations in this Agreement, the City agrees to initiate and pursue the Land Conversion Requirements and take all other actions necessary to obtain the NPS's approval of the Replacement Properties and removal of the Use Restrictions from the License Area in order to allow the City and the District to anter into negotiations for a long-term lease of the License Area. 2. The District agrees to cooperate with the City in fulfilling the Land Conversion Requirements and to reimburse the City in an amount not to exceed Three Hundred Thirty -Four Thousand Dollars ($334,000) for its costs at such times and in such amounts set forth in this Agreement. 3. The scope of the Land Conversion Requirements shall conform with those requirements found at 36 C.F.R. § 59.3, which are incorporated by reference, and any other applicable requirements hereafter established by the NPS. 4. The estimated costs of the Land Conversion Requirements are set forth in Exhibit A and are based on the City's prior experience in the earlier land conversion. Notwithstanding the foregoing, the District shall reimburse the City for the actual costs for the tasks described in Exhibit A and any others required by the Land Conversion Requirements, subject to the provisions of subsection 4,c and Section 5 below, and provided in all cases that such reimbursement shall not exceed the amount specified in Section 2 above. Additionally, the Executive Director of the City's Parks, Recreation and Community Services Agency ("Executive Director") and the District's Vice Chancellor of Business Operations/Fiscal Services ("District Official") are hereby authorized to add any additional categories of expense if so required by the NPS, provided that the total reimbursement obligation of the District shall not exceed $334,000 without written approval by the City Council and the District's governing board, which approval must be granted by both the City and the District before such additional expenses are incurred. a. City shall ensure that the scope of work and deliverable(s) of cacti consultant utilized will comply with the scope of the Land Conversion Requirements. b. City shall formally bid and award contracts in accordance with City's rules and regulations for the procurement of materials, supplies, labor, and equipment. c. Prior to offering any contract for the performance of any task described in Exhibit A or otherwise required in connection with the Land Conversion Requirements ("Contract"), whether such offer is made through private negotiations or in connection with an invitation for public bids, the City shall deliver a copy of such Contract to the District. The District shall have ten (10) business days in which to cornment upon and request modifications to the Contract, including without limitation changes to the proposed contract price or any portion of the proposed scope of work which the District considers unnecessary to accomplishing the goal of obtaining NPS approval to the removal of the Use Restrictions from the License Area. To the extent practical, and if not otherwise prohibited by the City charter, municipal code, or applicable law, the City will modify the Contract to address the District's concerns. 5. Payment by the District shall be made within thirty (30) clays of the District's receipt of (a) the City's payment request based on invoices received by the City from its consultants for the required. tasks and services described on Exhibit A, (b) copies of those invoices, (c) any work product or other "deliverables" given by that party to the City which are referenced in or otherwise pertain to the invoices 20A-6 and (d) copies of any other supporting documentation reasonably requested by the District to evidence that the work invoiced by the consultant has actually been performed. Within said 30 -day period the District shall have the right to dispute any or all of the requested reimbursement amount. If the parties are unable to agree upon an appropriate reduction within that time, the District shall pay the requested amount but may do so under protest, reserving its right to resolve claims over disputed amounts at a later time. 6. This Agreement shall commence on the date first written above and expire on the latter of the dates when (a) the City has been reimbursed in full for the expenses that are the subject of this Agreement or (b) the NPS has rendered its Final decision as to whether the Replacement Properties are acceptable to cause the Use Restrictions to be removed from the License Area This Agreement may be terminated earlier by mutual agreement of the parties, provided that the City is paid in full for all expenses it has incurred at the time of the effective date of termination. 7. The City acknowledges that the District is providing the funding which is the subject of this Agreement with the understanding that if and when the Use Restrictions are removed from the License Area by the NPS, the City and the District will enter into negotiations for a long-term lease agreement for the District's use of the License Area on terms and conditions mutually acceptable to the City and the District. If, within thirty-six months following the removal of the Use Restrictions, the parties do not enter into a mutually acceptable lease, and the City enters into a lease for the License Area with a different party, the City shall require as a term of that lease the payment by the lessee to the District of the sum of all amounts paid by the District to the City under this Agreement. 8. The City and the District shall indemnify, defend, and hold harmless each other, their respective officers, agents, and employees from any expense, liability, or claim for death, injury, loss, damage or expense to person or property that may arise or is claimed to have arisen pursuant to this Agreement to the extent that such expenses, liability, or claim is proximately caused by any act or omission of the other, or its officers, agents, or employees. 9. Any notice to be given in connection with this Agreement shall be in writing and directed to the addresses below or such other addresses as either party may later specify in writing. Notice is deemed effective on the date it is given if hand -delivered that same day and on the day delivered by over- night trail. Notice given by U.S. mail shall be deemed effective three (3) days after it is deposited in the U.S. mail, postage prepaid and addressed as follows: DISTRICT: Rancho Santiago Cormnunity College District Vice Chancellor Business Operations/Fiscal Services 2323 N. Broadway Santa Ana, CA 92706-1640 CITY: City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702 Attn: Clerk of the Council 10. This Agreement constitutes the entire agreement between the City and District regarding the subject matter herein, and supersedes all other agreements, oral or written, between the parties. This Agreement may only be modified in a writing signed by authorized representatives of both parties. 20A-7 11. This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be governed by and construed in accordance with the taws of the State of California. The parties father agree that Orange County, Cali fornia, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with, or by reason of this Agreement. WHEREFORE, the parties have entered into this Agreement on the date first written above. ATTEST MARIA D. FIIIIZ.AR Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City Attorney Jjloolizwhk�— Assistant City Attorney 20A-8 CITY OF SANTA ANA DAVID CAVAZOS City Manager RANCHO SANTIAGO COMNtUNITY COLLEGE DISTRICT PETER HARDASFI Vice Chancellor, Business Operations and Financial Services EXHIBIT A Tasks Ordinarily Associated with Land Conversion Requirements Task Documents from city evidencing desire to substitute land of equivalent fair market and recreational value. Appraisal report of substitute parcels. Replacement property must be of at least equal fair market value and of reasonably equivalent usefulness and location, Justification and assessment of public recreational value In land exchange. Phase 1 Environmental Site Assessment of substitute property, indicating it is environmentally safe and not latently contaminated. National Environmental Policy Act Assessment (NEPA) of proposed release of park/recreation use of former property and assessment of potential Impact of new park development, A copy of the state, city or county recreation map showing present park land In relationship to proposed substitute land. A copy of the legal description for the proposed replacement property and proposed property to be converted. SUBTOTAL Contingency (10%) TOTAL 20A-9 Estimated Cost Actual costs by city $ 30,000 $ 64,000 $ 14,400 $187,050 Actual costs by city $ 8,000 $ 303,450 30,345 $333,795 20A-10