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sr-021412-3bCity Council Meeting: February 14, 2012 Agenda Item: ° $ To: Mayor and City Council From: Karen Ginsberg, Director, Community and Cultural Services Subject: Memorandum of Understanding for the Early Childhood Education Center Between the City and the Santa Monica Community College District Recommended Action Staff recommends that the City Council approve the proposed terms of the Memorandum of Understanding (MOU) between the City and the Santa Monica Community College District for the Early Childhood Education Center to be developed within the Civic Auditorium Campus. Executive Summary Starting in early 2009, City staff has worked with Santa Monica Community College (SMC) representatives to develop an Early Childhood Education Center for 100 children on the Civic Auditorium Campus as identified in the Civic Center Specific Plan. City funding to support the project has been budgeted, amendments to the Civic Center Specific Plan addressing siting and square footage needs have been approved, and a framework for legal agreements have been established. In order to advance the planning, design and operational aspects of the ECEC while negotiating the terms of a Development Agreement and Ground Lease, the City and SMC District are proposing to enter into a MOU. Background On J iy_27, 2004, Council adopted a motion directing staff to explore partnership arrangements with SMC including the development of the ECEC. In November, 2004, a $135 million SMC bond measure (Measure S) was approved by the voters. The ECEC was identified in the bond measure with an allocation of $7 million. In June 2005, Council adopted an update to the 1993 Civic Center Specific Plan (CCSP). The CCSP envisions the development of the ECEC for infants, toddlers and pre - school age children that is "carefully designed to complement the form and activities of the (Civic Auditorium) Park, and to maintain and reinforce the civic identity of the (Civic) Auditorium." In the FY2006 -07 budget, Council appropriated $1,163,646 in Redevelopment Agency funding to support design and construction of the ECEC. On IMarch24 2009, the City Council authorized the City Manager to negotiate and execute an agreement with SMC for the development of the ECEC on the Civic Auditorium Campus. City staff began working on parameters for an agreement. On June 9 _2009, the City Council established Redevelopment Agency capital funding priorities and earmarked an additional $4.4 million for the ECEC to fill the funding gap for the Center. Added to the FY2006 -07, the City's commitment to the project totaled $5.563 million. On May 24`201, i., as part of the Council's approval of the Redevelopment Agency's updated available RDA funding and commitments, it was determined that the City funding contribution for the ECEC would come from the General Fund rather than from redevelopment funding and a total of $5.563 million was identified to support the project. On June ?4. 2011, the City Council adopted amendments to the CCSP addressing setbacks, parking and drop -off, and an increase in the size of the building and outdoor space to meet SMC program needs and new State requirements. On June. 21, 2011, the City Council adopted the FY2011 -13 Biennial Budget. In the Capital Improvement Budget section of that Biennial Budget, Council appropriated $1 million in FY2011 -12 and identified $4 million in FY2012 -13 of General Fund monies for the development and construction of the ECEC. I Discussion When City Council authorized the City Manager to negotiate and execute an agreement with SMC for the development of the ECEC, staff indicated that it would return to the Council with an outline of the terms of said agreement. City staff, working with SMC representatives, has determined that a Development Agreement and Ground Lease will be needed for the project, but that an MOU is desirable as an initial step to advance the planning, design and operational aspects of the ECEC and inform the terms of the future Development Agreement and Ground Lease. Key terms of the MOU include: • The ECEC will be a childcare teaching facility that will accommodate up to 100 infant, toddler, and pre - school children, and will include classroom, observation facilities, and office and meeting spaces for parenting workshops and early childhood research and development. • Based on the scope of work and budget, SMC will hire third party consultants, including architects, engineers, a childcare facilities specialist, landscape architects, geotechnical consultants and other experts to initiate planning and design of the ECEC. • SMC will commence and complete the Scope of Work within the Schedule of Performance. • The ECEC will be developed in accordance with the Civic Center Specific Plan. • SMC will submit to the City periodic reports and analyses on construction costs, financial feasibility, and other due diligence matters. • The parties agree to continue to work together on the details of planning, developing and designing the ECEC, and prepare and execute a Development Agreement and Ground Lease, and any related documents for approval by the City Council and SMC Board of Trustees. • The Scope of Work and Schedule of Performance may be revised upon the mutual agreement of both parties. 3 On February 7, 2012, the SMC Board of Trustees considered the above described terms of the MOU and unanimously voted to authorize execution of the agreement. Next Steps Upon execution of the MOU, SMC will oversee a selection process for a design team (architect, landscape architect, engineer, etc.), a childcare facilities specialist, and an operator for the ECEC. Once placed under contract, SMC and its consultants will plan and design the ECEC. Additionally, SMC and City staff are working jointly to establish a project advisory committee which will include key stakeholder representation (Child Care Early Education Task Force (CCEETF), Rand) to provide guidance for the design, program, operational, and funding issues. On a parallel track, staff and SMC representatives, will outline the terms of a Development Agreement and Ground Lease, coordinate entitlements and reviews by the City and State (Department of State Architect, Coastal Commission), and parcelize the project site. By the end of 2012, staff and SMC representatives hope to present a Development Agreement and Ground Lease for approval by the City Council and SMC Board of Trustees with construction anticipated to begin in early 2014 for completion by mid -2015. Financial Impacts & Budget Actions There is no immediate budget/financial impact associated with the recommendation in this report. The City has committed $5.563 million to support this project. Prepared by: Julie Silliman, Sr. Administrative Analyst, Community & Cultural Services Approved: Forwarded to Council: �-L- Karen Ginsberg Director, Community & Rod Gould rvices City Manager 11