TO:
VIA:
FROM:
DATE:
Placentia City Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF COMMUNITY SERVICES
OCTOBER 18, 2022
AGENDA REPORT
SUBJECT: APPROVAL OF LEASE AGREEMENT WITH THE COUNTY OF ORANGE FOR
THE USE OF TRI -CITY PARK FOR THE CONSTRUCTION OF A PROPOSED
SENIOR/COMMUNITY CENTER FACILITY
FISCAL
IMPACT: EXPENSE: NONE
SUMMARY:
The Placentia Parks Initiative (Initiative) was approved by the City Council in June 2021. As a part of the Initiative, it was determined that the City's aging Senior Center no longer adequately accommodates community needs and the construction of a new facility should be explored. In this effort, a Blue -Ribbon Committee was established with the special purpose to identify the needs and design components of a proposed Senior/Community Center to be constructed at Tri -City Park.
Additionally, the City Council directed Staff to procure the services of an architectural firm to prepare the design plans for the new proposed facility to the 35% complete level along with developing an initial engineer's estimate outlining the total project cost and to engage the County of Orange (County) to discuss the possibility of the proposed facility being constructed at Tri -City Park. The County is agreeable to the idea of construction of proposed facility at Tri -City Park and has worked collaboratively with City Staff to draft a lease agreement for the use of Tri -City Park.
Staff prepared a Request for Proposals from qualified architectural design teams to prepare the Phase I preliminary 35% architectural and engineering design package along with the initial project engineer's estimate. On September 20, 2022, the City entered into a Professional Services Agreement (PSA) with Group 4 Architecture for 35% complete architectural and engineering design services for the proposed Placentia Senior/Community Center facility. The PSA with Group 4 is contingent upon an approved lease agreement between the City of Placentia and the County to construct the proposed facility at Tri -City Park. Staff has been negotiating with the County to develop the attached lease agreement to construct the proposed facility.
The recommended actions will provide Staff direction and approve the proposed Lease Agreement between the City of Placentia and the County to construct a proposed Senior/Community Center facility at Tri -City Park.
1.f.
Oct 18, 2022
City Council Agenda
October 18, 2022
RECOMMENDATION:
It is recommended that City Council take the following actions:
1 _ Approve the Lease Agreement between the City of Placentia and the County of Orange for the use of Tri -City Park for the construction of a proposed Senior/Community Center facility; and
2. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Plan Goal to Implement Public Infrastructure to Meet Community Needs and construct a Placentia Senior/Community Center, under Objective #5.1.
DISCUSSION:
On July 20, 2021, the City Council conducted a study session to discuss the feasibility of the City constructing a new senior/community center. A working group of Councilmembers and City Staff evaluated the City's current Senior Center facility located at the historic Powell Building in Old Town along with the programming, operations, and facility infrastructure. After evaluating the current location of the Senior Center, it was determined that the building does not adequately accommodate the needs of the City's growing senior population. According to the SCAG 2019 Local Profile of the City of Placentia Report, between the years 2000 to 2018, the 65 plus age group represented the City's largest increase, growing from 9.1% to 13.8%. The 100 -year-old building is 4,732 square feet and does not adequately serve residents and seniors. Parking at the location is extremely limited and offers only six (6) standard parking stalls and one (1) Americans with Disability Act ("ADA") accessible stall. In comparison, the City of Yorba Linda's Community Center/Senior Center is 28,000 square feet with 315 parking spaces.
Currently, the City of Placentia does not have a Community Center building as Targe as the surrounding cities and lacks the space to accommodate large groups, community events and the growing population of seniors. Placentia is also one of the oldest cities in Orange County and is largely built out with limited open space. Data and statistics from SCAG's Local Profile Report, indicates that the City's population has significantly changed during the last 50 years and will continue to grow further depicting a need to provide more programs and an adequate location that will enhance the quality of life for residents and seniors within the community.
The City Council directed staff to procure the services of an architectural firm to prepare the design plans for the new proposed facility to the 35% complete level along with developing an initial engineer's estimate outlining the total project cost. In addition, the City Council adopted Resolution R-2021-54 formally establishing a Blue -Ribbon Committee for the purposes of identifying the needs and design components of the proposed Senior/Community Center facility.
City Council Agenda
October 18, 2022
Concurrently throughout this process, Staff prepared a Request for Proposals from qualified architectural design firms to prepare the Phase I preliminary 35% architectural and engineering design package along with the initial project engineer's estimate. Group 4 (G4) was the highest ranked firm based on their extensive experience in delivering similar senior and community centers as well as their understanding of the City's work scope and the City's vision for this facility.
Additionally, City Staff has been working with the County of Orange to draft a ground lease agreement to construct the Placentia Senior/Community Center on County land at Tri -City Park.
Key elements of the draft lease agreement between the City and the County are:
• Term of the lease shall be seventy-five (75) years with an option for an additional term of 24 years for a total of ninety-nine (99) years
• In consideration of the City providing valuable public services and benefits to the residents, there shall be no rent costs paid to the County
• The City shall be responsible for all costs, including, but not limited to entitlement, planning, design, construction, and all operational costs of the facility • The property is to be used for services and operations of a Senior/Community Center facility for persons to gather for social, educational, and recreational activities, and other related City community events and facility use rentals
• City shall employ and designate a competent Manager who shall be responsible for the day-to-day operations and maintenance of the facility
• At any time during the term of this lease, the City shall have the optional right to purchase Tri -City Park from the County for one dollar ($1.00), for continuing use as a City Park Should the City Council approve the agreement, the lease will be presented at the November 2022 County Board of Supervisors meeting for formal approval. Following the approval of both agencies, the professional design and engineering consultant, Group 4 will meet with the Blue - Ribbon Committee and begin work of the 35% design and engineering plans of the proposed Senior/Community Center facility.
FISCAL IMPACT:
At this time there is no fiscal impact associated with the approval of the Lease Agreement with the County. Additionally, per the terms of the agreement, the City will not be required to pay any rental fees for the use of the property at Tri -City Park during the 99 -year period.
City Council Agenda
October 18, 2022
0A/Dc
Karen Crocker
Director of Community Services
Reviewed and approved:
4-0K- Jennifer Lampman
Director of Finance
Prepared b
Luis Estevez
Deputy City Administrator
Reviewed and approved:
Damien R. Arrula —
City Administrator
Attachment:
Lease Agreement with the County of Orange for use of Tri -City Park for the construction of a proposed Senior/Community Center