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Home My WebLink About65A - RCCD LICENSE EXTENSIONREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 5, 2019 TITLE: APPROVE A LICENSE EXTENSION AGREEMENT WITH RANCHO COMMUNITY COLLEGE DISTRICT FOR OPERATION OF THE EDUCATION CENTER AT CENTENNIAL PARK (STRATEGIC PLAN NO. 2,4A) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1a' Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Below are options for City Council consideration and approval. 1. Authorize the City Manager and Clerk of the Council to execute a license agreement extension with Rancho Santiago Community College District to operate the Educational Center at Centennial Park for one year to expire on November 5, 2020, subject to non - substantive changes approved by the City Manager and City Attorney. M 2. Authorize the City Manager and Clerk of the Council to execute a license agreement extension with Rancho Santiago Community College District to operate the Educational Center at Centennial Park for two years to expire on November 5, 2021, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On November 5, 1979, the City Council approved a 30 -year License Agreement with Rancho Santiago Community College District (College) to construct and operate an Adult Career Education Center at Centennial Park, under the condition the College abides to Deed Restrictions required by the Federal Government on Centennial Park. The original 30 -year agreement was set to expire on November 5, 2009 and the parties, under the same conditions, agreed upon a 5 -year extension of the license in 2009 and again in 2014. The latest extension will expire on November 5, 2019. Between 2009 and 2011, the College requested a long-term lease agreement in order to make improvements to the campus. However, the National Parks Service (NPS) would not approve a long-term lease because they found that the operation of the Education Center did not comply with the deed restrictions for the land upon which the Center is located in Centennial Park. The deed restrictions provide that the property must be used for a public park and public recreational 65A-1 License Agreement Extension with Rancho Community College District at Centennial Park March 5, 2019 Page 2 area. In order for the City to enter into a long-term lease with the College, a land conversion needs to be approved by the NPS and City Council, transferring the deed conditions for the land upon which the Education Center is located to new park sites of equal recreational value and size. On August 18, 2015, the College and the City entered into a reimbursement agreement to reimburse the City up to $334,000 in costs associated with the land conversion requirements for the replacement properties and take the necessary actions to submit the required documentation to the NPS for a determination. If approved by the NPS and the City Council, the use restrictions could be removed from the license area and applied to the replacement properties in order to allow the City and the College to enter into negotiations for a long-term lease of the license area. An extension is requested in order to ensure the license agreement does not lapse as the City completes this process. The NPS is allowing the City to extend the license agreement between the City and the College for up to two years. On February 19, 2019, the City Council requested that City Staff return with two options for the City Council to decide upon, a one-year extension and a two-year extension with the College, included as Exhibits 1 and 2. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #2 — Youth, Education, Recreation, Objective #4 (Partner with groups and organizations to promote education, senior services, job training and development for all Santa Ana residents), Strategy A (Partner with The California Endowment, Santa Ana College, Chapman University, UCI, CSUF and other institutions of higher education to design career pathway programs that support priority workforce industries (Retail, healthcare, manufacturing, renewable energies) that results in faster reemployment of Santa Ana's residents.). FISCAL IMPACT There is no fiscalq:; iated with this action. Li Rudloff Executive Director Parks, Recreation and Community Services Agency Exhibits: 1. Proposed License Extension Agreement (One -Year) 2. Proposed License Extension Agreement (Two -Years) 65A-2 EXHIBIT 1 THIRD EXTENSION OF LICENSE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND RANCHO SANTIAGO COMMUNITY COLLEGE DISTRICT THIS THIRD EXTENSION OF LICENSE AGREEMENT ("Extension") is entered into this 5th day of March, 2019, by and between the City of Santa Ana, a charter city and municipal corporation, herein referred to as "City", and Rancho Santiago Community College District, herein referred to as "RSCCD". RECITALS: A. On November 5, 1979, the City Council approved a thirty (30) year License Agreement with RSCCD to construct and operate an Adult Career Education Center at Centennial Park, conditioned upon RSCCD abiding to deed restrictions required by the Federal Government on Centennial Park. B. The original License Agreement expired in November 2009, and a five (5) year renewal was agreed upon by the Parties, under the same conditions. Such renewal term expired on November 5, 2014. C. On February 4, 2014, RSCCD and the City entered into an "Extension of License Agreement' (A- 2014-028) Between the City of Santa Ana and Rancho Santiago Community District," which extended the License Agreement through November 5, 2019, subject to all of the same terms and conditions of the original License Agreement. D. On February 7, 2011, RSCCD entered into a "Reimbursement Agreement for Centennial Education Center Improvements" (A-2011-026) with the City for up to $300,000 for the preparation of evaluation and documentation to the National Parks Service ("NPS") for a potential land conversion which would move the deed restrictions from the land upon which the Education Center sits to another property designated by the City. The Reimbursement Agreement also covered the cost to grade the proposed replacement site. Required documentation for the site at McFadden/Orange (1.4 acres) was submitted to NPS however, NPS indicated that the proposed property was not of equal value/size. In order to complete the land conversion process, the Parties need to identify additional property of equal value. NPS agreed to allow the City to extend the License to RSCCD for five (5) years in order to complete the process. This Reimbursement Agreement expired on November 5, 2014. E. On August 18, 2015, RSCCD and the City entered into a "Reimbursement Agreement for Completion of Land Conversion Approval for Centennial Education Center" (A-2015-182) whereby RSCCD would reimburse the City in an amount not to exceed Three Hundred Thirty -Four Thousand Dollars ($334,000) for its costs in fulfilling the land conversion requirements for the replacement properties. F. In order to renew or extend the License Agreement, the option must be exercised by providing written notice not less than 180 days prior to the expiration date of the option period. G. In February 2019, RSCCD has requested an extension of the current License Agreement between the parties to allow RSCCD to schedule classes for Fall 2019 and for the parties to complete submission of necessary documentation for the contemplated land conversion to the NPS. 4746504.1 - N261.21 65A-3 H. On February 19, 2019, the NPS orally informed the City's Executive Director of the Parks, Recreation and Community Services Agency that an extension of the license agreement for up to two (2) years was approved by the NPS. I. The Parties desire to extend the License Agreement for one (1) year under the same terms and conditions of the original Agreement. WHEREFORE, in consideration of the mutual and respective covenants and promises hereinafter contained and made, and subject to all of the terms and conditions of said Agreement as hereby extended, the Parties hereto do hereby agree as follows: 1. The term of the License shall be extended for one (1) year through November 5, 2020, subject to all of the same terms and conditions of the original License Agreement dated November 5, 1979. WHEREFORE, the parties have executed this Extension of License Agreement as of the date and year first written above. ATTEST: NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO CITYATTORNEY J� By: ��CulAR9v 4 . Laura A. Rossini Senior Assistant City Attorney RECOMMENDED FOR APPROVAL: LISA RUDLOFF Executive Director of Parks, Recreation and Community Services Agency 4746504.1 •• N261.21 65A-4 CITY OF SANTA ANA STEVEN MENDOZA Acting City Manager RANCHO SANTIAGO COMMUNITY COLLEGE DISTRICT Bv: PETER HARDASH Vice Chancellor Business/Fiscal Services EXHIBIT 2 THIRD EXTENSION OF LICENSE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND RANCHO SANTIAGO COMMUNITY COLLEGE DISTRICT THIS THIRD EXTENSION OF LICENSE AGREEMENT ("Extension") is entered into this 5th day of March, 2019, by and between the City of Santa Ana, a charter city and municipal corporation, herein referred to as "City", and Rancho Santiago Community College District, herein referred to as "RSCCD". RECITALS: A. On November 5, 1979, the City Council approved a thirty (30) year License Agreement with RSCCD to construct and operate an Adult Career Education Center at Centennial Park, conditioned upon RSCCD abiding to deed restrictions required by the Federal Government on Centennial Park. B. The original License Agreement expired in November 2009, and a five (5) year renewal was agreed upon by the Parties, under the same conditions. Such renewal term expired on November 5, 2014. C. On February 4, 2014, RSCCD and the City entered into an "Extension of License Agreement' (A- 2014-028) Between the City of Santa Ana and Rancho Santiago Community District," which extended the License Agreement through November 5, 2019, subject to all of the same terms and conditions of the original License Agreement. D. On February 7, 2011, RSCCD entered into a "Reimbursement Agreement for Centennial Education Center Improvements" (A-2011-026) with the City for up to $300,000 for the preparation of evaluation and documentation to the National Parks Service ("NPS") for a potential land conversion which would move the deed restrictions from the land upon which the Education Center sits to another property designated by the City. The Reimbursement Agreement also covered the cost to grade the proposed replacement site. Required documentation for the site at McFadden/Orange (1.4 acres) was submitted to NPS however, NPS indicated that the proposed property was not of equal value/size. In order to complete the land conversion process, the Parties need to identify additional property of equal value. NPS agreed to allow the City to extend the License to RSCCD for five (5) years in order to complete the process. This Reimbursement Agreement expired on November 5, 2014. E. On August 18, 2015, RSCCD and the City entered into a "Reimbursement Agreement for Completion of Land Conversion Approval for Centennial Education Center" (A-2015-182) whereby RSCCD would reimburse the City in an amount not to exceed Three Hundred Thirty -Four Thousand Dollars ($334,000) for its costs in fulfilling the land conversion requirements for the replacement properties. F. In order to renew or extend the License Agreement, the option must be exercised by providing written notice not less than 180 days prior to the expiration date of the option period. G. In February 2019, RSCCD has requested an extension of the current License Agreement between the parties to allow RSCCD to schedule classes for Fall 2019 and for the parties to complete submission of necessary documentation for the contemplated land conversion to the NPS. 4746504.1 -- N261.21 65A-5 H. On February 19, 2019, the NPS orally informed the City's Executive Director of the Parks, Recreation and Community Services Agency that an extension of the license agreement for up to two (2) years was approved by the NPS. I. The Parties desire to extend the License Agreement for two (2) years under the same terms and conditions of the original Agreement. WHEREFORE, in consideration of the mutual and respective covenants and promises hereinafter contained and made, and subject to all of the terms and conditions of said Agreement as hereby extended, the Parties hereto do hereby agree as follows: 1. The term of the License shall be extended for two (2) years through November 5, 2021, subject to all of the same terms and conditions of the original License Agreement dated November 5, 1979. WHEREFORE, the parties have executed this Extension of License Agreement as of the date and year first written above. ATTEST: NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO CITY ATTORNEY By:RCatty,, Laura A. Rossini Senior Assistant City Attorney RECOMMENDED FOR APPROVAL: LISA RUDLOFF Executive Director of Parks, Recreation and Community Services Agency 4746504.1 -- N26121 65A-6 CITY OF SANTA ANA STEVEN MENDOZA Acting City Manager RANCHO SANTIAGO COMMUNITY COLLEGE DISTRICT By: PETER HARDASH Vice Chancellor Business/Fiscal Services