Item 6-P
Council Meeting: July 13, 1999 Santa Monica, California
TO: City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute a Modification to the Windward School Lease
Introduction
This report recommends that the City Council authorize the City Manager to negotiate and execute the Third Amendment to the Windward School Lease.
Background
Since 1982 the City of Santa Monica has leased to Windward School a portion of City property located at Sawtelle Boulevard and Palms Boulevard in West Los Angeles. The property is the Charnock well field. Under the terms of the original lease, Windward was authorized to use the property for recreational purposes, principally as outdoor play fields and as basketball courts. Windward was also allowed to build a structure to be used as classroom facilities.
Under a successor lease dated June 1, 1990, Windward was authorized to construct a gymnasium facility. Also under the 1990 lease, the gymnasium, play fields, and outdoor courts were considered
AShared Use Facilities@ which allows the City the right to use the facilities for City recreational programs.In July 1994, the City and Windward executed a First Amendment to the 1990 lease. Under this amendment Windward was authorized to build the following additional improvements: (1) two buildings to be used as classroom, administrative, or other related uses; (2) men
=s and women=s restrooms; (3) student pavilion, dining area, kitchen, classrooms, administrative offices, or other related uses; (4) girls and boys locker room facilities; (5) pedestrian bridge over the L.A. County flood control channel; (6) a paved parking lot; (7) a covered student waiting area; and (8) an electrical power room. Windward agreed to pay an increased lease amount to the City for authorization to construct the additional improvements and the lease term was extended for four years.In August of 1996, the City and Windward executed a second amendment to the lease. Under this amendment, Windward was granted a revision allowing it to site improvements anywhere within existing improvement areas already approved by the City. The primary reasons for the second amendment were to address unforeseen conditions and elimination of a potential conflict with existing City water production facilities. For example, unforeseen rocky soil conditions had prevented Windward from proceeding with construction in a previously approved area, and a previously approved development area was determined by the City to be too close to an existing water well. This amendment provided more flexibility to the City in approving the siting of Windward improvements in order to prevent conflicts with existing or future City facilities. There was no increase in the total size of the allowable building area, and no change in the monthly lease payments. The lease expires June 30, 2024.
Discussion
After a comprehensive assessment of the existing facilities on its campus, and in light of changing educational needs and the desire to provide better academic and physical environments for its students, Windward School has developed a master plan proposing construction of additional educational and administrative facilities at its West Los Angeles campus. The plan modifies existing building areas and recreational facilities on the portion of land leased from the City of Santa Monica (approximately 7.5 acres south of the flood control channel). Implementation of the master plan requires a Third Amendment to the Windward lease.
The proposed Third Amendment to the lease includes:
=s Metropolitan Water District (MWD) 24-inch diameter feeder line and appurtenances (vault and control valves) necessary to avoid conflicts with planned and approved construction; cost to be borne by Windward;A reconfiguration of allowable building zones such that the total area for allowable building is unchanged;
Construction of campus-dedicated electrical and water service to serve the portion of the campus south of the flood control channel (presently this service is provided and billed to the school by the City, which maintains water and electrical service for its property south of the channel); cost to be borne by Windward;
Relocation of the City
Use of a 10-foot wide strip of land to create additional perpendicular parking spaces in what is currently a parking area adjacent to Westminster Avenue (approximately 1000 square feet), the City will gain an equal amount of space for water production and potential treatment facilities. Fences, walls, and surface improvements will be replaced in kind; costs to be borne by Windward.
The total size of the area in which Windward can construct its improvements will not change. Consequently, the monthly lease payment made by Windward will remain as stipulated in the existing lease, including the annual CPI adjustment.
All other terms of the existing lease remain unchanged. In particular, conditions for the Shared Use Facilities remain in force, continuing the City
=s right to use these facilities for recreational programs. Additionally, the City=s ability to use the site for water production and treatment activities is not diminished.Windward has expressed an interest in extending the term of the lease for an additional 25 years beyond its current expiration in 2024. Staff believes, however, that the City
=s interests are best served at this time by maintaining flexibility with respect to future uses of the site. Accordingly, discussions regarding a potential lease extension will be deferred to a later date.Budget/Financial Impact
No budget or financial impact is associated with this amendment.
Recommendation
Staff recommends that the City Council authorize the City Manager to negotiate and execute the Third Amendment to the Windward School Lease as described herein.
Prepared by:
Craig Perkins, Director of Environmental and Public Works Management
Gil Borboa, P.E., Utilities Manager