EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: March 15, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Jaime M. Fontes, City Manager
BY: Patrick Heisinger, Assistant City Manager
Patrick Heisinger, Assistant City Manager
SUBJECT: Council consideration of a MOU with the County regarding the Beech St.
Property
Recommendation
Adopt a Resolution (Attachment 1) directing the City Manager to enter into a Memorandum of Understanding (MOU), subject to minor modifications approved by the Interim City Attorney, between the County of San Mateo (County) and City of East Palo Alto (City) to explore a real property exchange as further described in the staff report.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 4: Improve Public Facilities and Infrastructure Priority No. 6: Create a Healthy and Safe Community
Background
On June 5, 2018, California voters approved Proposition (Prop.) 68, the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act. The Statewide Parks Program (SPP) is a subset of Prop. 68 funds are intended for use by municipalities to revitalize existing facilities or construct additional facilities, thereby increasing recreational opportunities that enhance the health and wellness of Californians. These types of outdoor recreation features include, but are not limited to:
• Athletic fields
• Athletic courts
• Community gardens
• Dog parks
• Open space
• Performance venues
• Picnic areas
• Playgrounds and tot lots
• Trails
• Tracks and jogging loops
In July 2020, the State of California Department of Parks and Recreation, Office of Grants and Local Services (OGALS), announced the availability of up to $395 Million in Prop. 68 grant funds through the Statewide Park Development and Community Revitalization Program. The City prepared to submit an application package to OGALS prior to the December 14, 2020, deadline.
On October 26, 2020, staff presented to the Planning Commission, providing information about Prop. 68 and a proposed approach for a potential City grant application. During that meeting, the Planning Commission and community communicated a clear preference to update the City’s athletic facilities to provide safe places for the community to play. A majority of the community showed their support for improving the Martin Luther King Jr. (MLK) Park and expressed the desire to expand MLK Park by acquiring the County-owned parcel at 1266 Beech Street (Property).
Shortly following that public discussion, the State notified City staff that the proximity of MLK Park to the Ravenswood Preserve would impact the Prop 68. scoring, likely making the City’s application less competitive.
On November 5, 2020, in recognition of the County’s intent to develop affordable housing on the Property, staff presented the option of exchanging the Property for the City-owned parcel located at 2277 University Avenue. During a closed-session discussion, staff received direction from the City Council to approach the County to discuss options for the disposition of the Beech Street property.
On November 17, 2020, staff presented the City Council with an update on the Prop. 68 Program. After explaining the community’s interest in seeking Prop. 68. funding to improve MLK Park, as well as the likelihood that the City’s application would not be competitive due to the State’s scoring system, the City Council directed staff to develop a competitive application for Prop. 68 funding that would support the City’s efforts at an alternative site.
On January 23, 2021, the City Council held their annual Priority Setting Retreat to identify their key goals and objectives for Fiscal Year 2021-2022. Acknowledging the community will, the City Council added a workplan priority to proactively design the MLK Park. On March 16, 2021, the City Council adopted a Resolution establishing their priorities for FY 2021-2022, which included the design of MLK Park.
On May 18, 2021, the City Council adopted the Facilities Master Plan, inclusive of the specific goal to discuss the potential acquisition of the Beech Street property for the purposes of expanding MLK Park.
On July 20, 2021, the City Council adopted a Resolution selecting Verde Design as the lead consultant to complete the master plan for MLK Park, for the contract cost of $271,713.60.
In July 2021, City and County representatives met to discuss several items of joint interest, including the potential acquisition of the Property. City representatives offered to conduct analysis on the 2277 University Avenue parcel, as a means of facilitating further consideration of a possible exchange.
On February 2, 2022, City and County representatives met again to discuss several items, including the Property. During that meeting, both parties agreed that to enter into a Memorandum of Understanding (MOU) regarding future use of the Property and a possible exchange of parcels. The County representatives agreed to draft the MOU and has since been working with City staff and the City’s Interim City Attorney to finalize the draft.
The purpose of this staff report is to provide the City Council with an opportunity to ask questions or provide early feedback regarding the proposed MOU.
The MOU will be placed on the City Council Agenda on March 15, 2022, for consideration.
Analysis
Key Provisions of the MOU
Item Term
Properties 1266 Beech Street (County owned)
2277 University Avenue (City owned)
Duration One year from the date the MOU is fully executed Extension Provision One-six-month extension of the MOU Term at the sole discretion of the City Manager, subject to County approval Due Diligence City and County agree to partner on due-diligence items (e.g. appraisals, environmental review, financial feasibility) The complete MOU is attached to the Resolution as Exhibit A.
Next Steps
County staff has indicated that they will seek approval by the Board of Supervisors of the MOU on April 19, 2022.
At the conclusion of the MOU term, or at a time with both the City and County mutually agree to do so, both parties would consider entering into a formal agreement to effectuate the land swap. However, because the MOU addresses only preliminary aspects of the transaction, there is a chance that during the MOU term either the City or Council decide not to move forward with the exchange.
Fiscal Impact
At this time, there is no fiscal impact to the City associated with this report.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo Co. Library located at 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. Resolution
2. Exhibit A