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.
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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.
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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
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