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HomeMy WebLinkAbout2019-08-27 - AGENDA REPORTS - MOU AMEND #1 BETWEEN LACO AND THE CITY OF SC FOR T (2)Agenda Item: 13 DATE: August 27, 2019 SUBJECT: MEMORANDUM OF UNDERSTANDING AMENDMENT NO. 1 BETWEEN THE COUNTY OF LOS ANGELES AND THE CITY OF SANTA CLARITA FOR THE NEW SANTA CLARITA VALLEY SHERIFF'S STATION DEPARTMENT: Administrative Services PRESENTER: Carmen Magana RECOMMENDED ACTION City Council approve and authorize the City Manager or designee to execute a Memorandum of Understanding Amendment No. 1 between the County of Los Angeles and the City of Santa Clarita for the new Santa Clarita Valley Sheriff's Station, subject to City Attorney approval. BACKGROUND The City of Santa Clarita (City) and County of Los Angeles (County) entered into a Memorandum of Understanding (MOU) on May 31, 2016, for the construction of the new Santa Clarita Valley Sheriffs Station. In 2016, the estimated cost for construction of the new Sheriff's Station was $51 million, excluding offsite improvements. The County's original contribution toward the project was $15 million, as outlined in the MOU. On April 18, 2019, construction bids for the project were received, identifying project costs of $61.1 million, excluding offsite improvements, resulting in an additional funding need of approximately $10.1 million. The MOU Amendment No. 1 presented to the City Council for consideration, would provide for additional funding in the amount of $3 million by the County, bringing the County's total project contribution to $18 million. Offsite improvements amount to $6.2 million, bringing the total projected costs to $67.3 million of which $49.3 million will be funded by the City with various funds; including bond proceeds, Facilities funds, Eastside Bridge and Thoroughfare funds, law enforcement facilities impact fee, federal drug forfeiture funds held by the Los Angeles Sheriffs Department, state drug forfeiture funds, and Air Quality Management District funds. Page 1 The original MOU, entered into in 2016, provides that concurrently with completion of the construction of the new Sheriff's Station, the City and County will enter into a rent-free lease to allow the County to use and occupy the new station for as long as the Sheriff's Department provides law enforcement services to the City. In addition, to protect the contribution and investment of the County, the MOU provides that the lease shall include a provision that if at any time during the first 15 years of the lease term, the City terminates the Sheriff Service Agreement, the City will refund to the County the full amount of the $15 million County contribution. As a result of the County's additional $3 million contribution, MOU Amendment No. 1 changes the required refund amount from $15 million to $18 million. The 15-year term remains unchanged. Upon approval by the City Council and the Board of Supervisors, the County will issue to the City the additional $3 million contribution. Upon receipt, the funds will be placed in the SCV Sheriffs Station trust account (102-2010.073) and will be available to be used for construction costs of the new Sheriff's Station. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT The total cost of the new Sheriff's Station is $67.3 million, of which $18 million will be contributed by the County of Los Angeles and the remaining amount is being paid for by the City of Santa Clarita from a variety of sources as detailed in the agenda report. ATTACHMENTS MOU Amendment No.l Page 2 AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING BETWEEN THE COUNTY OF LOS ANGELES AND THE CITY OF SANTA CLARITA FOR THE NEW SANTA CLARITA VALLEY SHERIFF'S STATION THIS AMENDMENT NO. 1 ("Amendment") to the Memorandum of Understanding ("MOU") is entered into this day of 2019, by and between the COUNTY OF LOS ANGELES, a body corporate and politic ("County") and the and the CITY OF SANTA CLARITA, a municipal corporation ("City"). The County and City are collectively referred to herein as "Parties" and individually as a "Party", and subject to the following understandings between the Parties. WITNESSETH: WHEREAS, the County of Los Angeles Sheriff's Department ("Sheriff') operates the existing Sheriff station serving the Santa Clarita Valley, which is located at 23740 Magic Mountain Parkway in the City of Santa Clarita ("Existing Sheriff Station"); WHEREAS, the County and the City have decided to pursue the possible construction of a new replacement Sheriff station located on a 11.8-acre parcel owned by the City located at 26201 Golden Valley Road in Santa Clarita, California ("New Sheriff Station"), upon the conditions set forth in the MOU and have reviewed financing options for such proposed construction; WHEREAS, the County and the City desire a New Sheriff Station facility for Sheriff's personnel and enhanced services for the Santa Clarita Valley; WHEREAS, the County and the City both wish for the City to continue receiving law enforcement services provided by the Sheriff pursuant to the Municipal Law Enforcement Services Agreement effective July 1, 2019 ("Sheriff Service Agreement") between the County and the City; WHEREAS, the City desires to partner with the County in the design of the New Sheriff Station facility and to provide the land, all required funding (minus the funding to be provided by the County on the conditions set forth herein), and all professional services and logistical support required to complete construction of the New Sheriff Station (as defined herein); WHEREAS, in exchange for the County's contribution of funds for the New Sheriff Station, the City is willing to enter into a rent-free lease with the County for as long as the Sheriff's Department provides law enforcement services to the City pursuant to the Sheriff Service Agreement (or any successor agreement); WHEREAS, on May 31, 2016, the County of Los Angeles Board of Supervisors ("Board") authorized the Chair of the Board to enter into and execute the MOU with the City that authorized the transfer of $15 million for the New Sheriff Station and which establishes guidelines for the project implementation; WHEREAS, since 2016, the City has been the lead agency for the development of the New Sheriff Station, providing project management, preparing the necessary environmental documentation, and commencing grading and site preparation activities. WHEREAS, following the recent solicitation and receipt of construction bids, the City updated the total project cost estimate and determined that there exists a projected construction cost shortfall of approximately $16.3 million ("Shortfall"), bringing the total construction cost for the New Sheriff Station to $67.3 million, which consists of $61.1 million for grading/onsite improvements and $6.2 million for offsite improvements. The original project cost of $51 million excluded offsite improvements. WHEREAS, the County has agreed to fund an additional $3 million of the projected Shortfall. WHEREAS, it now becomes necessary to amend said MOU to reflect the additional funding requirements and both parties are desirous of such amendment. NOW, THEREFORE, in consideration of the mutual undertakings, herein, the Parties hereto agree that said MOU be amended as follows: TERMS AND CONDITIONS General. The foregoing recitals are true and correct and are hereby incorporated into and made a part of the MOU. 2. Section 4, Paragraph A of the MOU, "Funding," is amended as follows: All references to "$15 Million" shall be amended to be "$18 Million." 3. Section 4. Paraaraoh E of the MOU. "Fundina." is amended as follows: All references to "$31 Million" shall be amended to be "$44.1 Million." 4. A new Paragraph "G," shall be added to Section 4, "Funding," of the MOU and shall read as follows: Whereas the City of Santa Clarita agrees to use their current, as on file as of the date of use, Asset Forfeiture Funds held with the Los Angeles County Sheriff's Department (LASD) with oversight by the U.S. Department of Justice, in the approximate amount of $1.2M to purchase Station Equipment that will remain the property of LASD. City will also provide funding to LASD in the amount of $1,419,569 less the Asset Forfeiture Funds for the Station equipment. Any equipment purchased in excess of these funds, will be the responsibility of LASD. Equipment will be procured through the Internal Services Department and anticipated not to exceed $2.OM. 5. Section 5, Paragraph D of the MOU, "Termination and Default," is amended as follows: All references to "$51 Million" shall be amended to be "$67.3 Million." 6. Counterparts. This Amendment may be executed in parts or counterparts, each part or counterpart being an exact duplicate of all other parts or counterparts, and all parts or counterparts 2 shall be considered as constituting one complete original and may be attached together when executed by the Party hereto. 7. Severability. If any part of this Amendment is found to be null and void or is otherwise stricken, the rest of this Amendment will remain in force and effect. 8. Integration. The foregoing constitutes the full and complete agreement of the Parties. This Amendment supersedes all prior agreements and understandings, whether in writing or oral, related to the subject matter of this Amendment that are not set forth in writing herein. To the extent that the terms and conditions of the MOU conflict with this Amendment, this Amendment shall govern and control. Except as expressly amended herein, all terms and provisions of the MOU shall remain unchanged and in full force and effect as originally executed. This Amendment may be modified, altered, or revised, as necessary, by mutual consent of the Parties hereto by the issuance of a written amendment, signed and dated by the Parties. 9. Authority. County and City each certifies that it is duly authorized and empowered to execute, enter into, and perform its obligations set forth in this Amendment, and each further certifies that the individual signing this Amendment on its behalf has been duly authorized to execute this Amendment on behalf of the Party and may legally bind the Party to the terms and conditions of this Amendment. 10. Non -Assignability. No Party may assign this Amendment to any third party without the prior, written consent of the other Parties. [SIGNATURE PAGE IMMEDIATELY FOLLOWS] 3 IN WITNESS WHEREOF, the City of Santa Clarita has executed this Amendment as of the day, month, and year first written above, or caused it to be duly executed by its authorized representative, and the County of Los Angeles, by order of its Board of Supervisors, has delegated authority to execute this Amendment on its behalf on the date and year written below. CITY OF SANTA CLARITA, a municipal corporation M KENNETH W. STRIPLIN City Manager ATTEST: in MARY CUSICK City Clerk APPROVED AS TO FORM: 91 JOSEPH M. MONTES City Attorney COUNTY OF LOS ANGELES, a body corporate and politic go DAVID P. HOWARD Assistant Chief Executive Officer ATTEST: go CELIA ZAVALA Executive Officer -Clerk Board of Supervisors APPROVED AS TO FORM: MARY C. WICKHAM County Counsel in Deputy