Title
Chief Administrative Office and County Counsel recommending the Board approve and authorize the Chair to sign a Use Agreement between El Dorado County and the City of South Lake Tahoe for the South Lake Tahoe Multi-Generational Recreation and Aquatics Center.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
On January 25, 2022, the Board approved Resolution 019-2022 authorizing execution of the Agreement and Ground Lease with the City of South Lake Tahoe (City) for Development, Operation, and Maintenance of the 56-Acre property. The 56-acre agreement allowed for a property swap between the City and the County to allow the City to construct the new Multi-Generational Recreation and Aquatic Center. Construction is currently underway and Section 5.3 (b) of the 56-Acre agreement required the City and County to enter into a separate use agreement regarding the Multi-Generational Center.
Attached is the proposed Use Agreement for Board approval. The initial term of the Use Agreement is for 50 years from the effective date of the Ground Lease (through June 12, 2072), and is automatically extended on an annual basis up to 99 years which matches the term of the Ground Lease the County and City entered into pursuant to the 56-Acre Agreement. The Agreement may be terminated by mutual consent of the Parties. The Agreement also addresses the following:
1) The location within the Multi-Generational Center for the County's senior nutrition programs;
2) The City's obligation for snow removal on the County Emergency Medical Services (EMS) Property and on the County Library Property;
3) The cost allocations to the Parties for the replacement costs of equipment and appliances in the commercial kitchen and dining room of the Multi-Generational Center based on each Party's proportional use;
4) County maintenance of the Heating, Ventilation, and Air Conditioning (HVAC) equipment for the County Library which is located on the City Property;
5) City installation and maintenance of electric charging stations, drainage infrastructure, and pedestrian lighting in the parking lot of the County Library Property;
6) The cost allocation to the Parties for the pavement maintenance and repair costs for the Shared Parking Lot; and
7) An easement over the County Library Property for a joint utility trench for gas, electricity and telephone/broadband to serve the Multi-Generational Center.
The County does have some concerns about the adequacy of the shared parking. Section 5.2 of the agreement does stipulate that the City and County will discuss and negotiate a shared parking agreement to address the Parties' joint use of the Shared Parking Lot spaces, including maintenance needs and cost sharing during the annual review meeting (required under section 6.1). After construction is complete, there will be a total of 117 parking spaces
ALTERNATIVES
The Board could choose not to approve the Agreement and the City would be unable to continue construction of the Multi-Generational Center.
PRIOR BOARD ACTION
Legistar file 22-0148 - January 25, 2022 - Board approved Resolution 019-2022 authorizing execution of the Agreement and Ground Lease with City of South Lake Tahoe for Development, Operation, and Maintenance of the 56-Acre Property.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office Facilities
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
While there is no immediate financial impact upon entering into the agreement, there will be future costs related to the senior nutrition services. The County will be required to provide annual funding for the Shared Space Reserve Fund for the purpose of paying for the cost of repair, replacements, renovations, or upgrades to the shared senior nutrition space. The Shared Space Reserve Fund shall be set at an amount equal to 2% of the total asset value. The City shall track the number of hours the space is used by the County and the number of hours it is used for all other programs and provide the County an annual report with the County's proportional share of cost. The cost is unknown at this time.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain the Chair's signature on the agreement and return one copy to County Counsel.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Laura Schwartz, Assistant Chief Administrative Officer
Janeth San Pedro, Assistant County Counsel