December 13, 2005

SUBJECT: Third Amendment to Agreement between City of Sunnyvale and Cupertino Union School District, and Cupertino Schools Public Facilities Financing Corporation of May 16, 1989 – to allow for Free School District Use of Picnic Areas in Sunnyvale Parks (05-347)

REPORT IN BRIEF

This report is nearly identical to an August 16, 2005, report approved by Council requesting authorization for the City Manager to enter into an addendum to the agreement with the Sunnyvale Elementary School District for free School District Use of Picnic Areas in Sunnyvale Parks. That report noted staff would be returning to Council with a similar request on behalf of both the Cupertino Union and the Santa Clara School Districts – to provide for free reservations of picnic areas in Sunnyvale parks for their year-end class celebrations.

In serving that purpose, this report reviews an amendment to an existing Open Space Agreement dated May 16, 1989, between the City and the Cupertino Union School District, for the use, maintenance and improvement for public recreational purposes of certain school sites. If approved by both the City Council and the District, this amendment would provide the Cupertino Union School District limited free reservations of picnic areas in Sunnyvale parks for its public schools’ year-end class celebrations. Please see Attachment A, “Third Amendment to Agreement between City of Sunnyvale and Cupertino Union School District, and Cupertino Schools Public Facilities Financing Corporation of May 16, 1989 – to allow for Free School District Use of Picnic Areas in Sunnyvale Parks.”

Staff recommends that Council approve the amendment to the existing Maintenance and Use Agreement and authorize the City Manager to enter into said agreement on behalf of the City.

The Parks and Recreation Commission reviewed this report on November 9, 2005, and unanimously recommended that Council approve the amendment to the existing Maintenance and Use Agreement and authorize the City Manager to enter into said agreement on behalf of the City.

BACKGROUND

For over twenty years, the City of Sunnyvale has provided the public school districts serving Sunnyvale free use of reserved picnic areas for year end school celebrations (one celebration per class) between May 30^th and June 25^th each year.

Since November 2003 when City Council approved the Relationships with Outside Groups Policy, staff has been taking steps to assure that support provided by the City to outside groups, which is not readily available to the general public, is documented in agreements and approved by City Council in accordance with the new policy.

Although the practice of providing free use of City picnic sites to the Cupertino Union School District for year-end celebrations has been in existence for many years, it is not addressed in either the 1989 Open Space Use Agreement between the City and the District or any other formal written agreement with the School District. To ensure compliance with City’s new policy governing relationships with outside groups, this practice must either be discontinued or be authorized by Council via a formal agreement.

EXISTING POLICY

Partnering with members of the community to provide recreational services to the Sunnyvale community is supported by the following City policies:

DISCUSSION

Since May 16, 1989, the City has had an agreement with the Cupertino Union School District providing for use of school athletic fields that are located in Sunnyvale during non-school hours and, in exchange, the City’s Parks and Recreation Department provides for the care and maintenance of those fields. This existing agreement may be terminated upon either party providing the other a 90-day written notice.

The proposed addendum to the existing agreement would continue the long-standing practice of allowing the District’s public school children free use of reserved picnic sites (one reservation per class maximum) from May 15 to June 30 each year, for their end of the school year celebrations for the public schools located in Sunnyvale. By making this an addendum to the existing agreement, the relationship would continue as long as the original agreement is in effect.

An option to consider instead of an addendum to the existing agreement is a new, separate agreement between the City and the Cupertino Union School District. The only benefit of a completely separate agreement is that it could provide a different termination clause compared to the original agreement. The 90-day notice as stated in the original agreement appears to be sufficient, especially in view of the short period of time each year the Cupertino Union School District makes reservations for use of picnic sites. A negative impact of having a separate agreement is that it would add to the number of overall agreements and contracts that would need to be monitored and tracked over time.

A third option is to discontinue the practice of reserving the picnic sites for the Cupertino Union School District free of charge and encourage the District to use the picnic areas without a reservation since most of the picnic areas are not reserved on weekdays during school hours. However, even though the demand for reserved picnic areas is low at that time of year, there is still the risk that another group or organization may be using the site at the same time a school class is planning to use it. The District would still have the option of paying to reserve the picnic sites, just as any other organization without an agreement would need to do in order to be assured of their availability.

A fourth option to consider is providing a discounted rate to the Cupertino Union School District for the reservation of the City’s picnic areas for year-end class celebrations. Consideration could be given to charging half of the normal rate to reserve a picnic site or some other percentage. Given that the School District is in a similar situation as the City – providing a public service in times of fiscal constraint, it is unlikely the District would choose to pay any fee, and instead either risk using the picnic areas without a reservation, or do away with year-end picnic celebrations altogether.

FISCAL IMPACT

Previous and current revenue estimates for the parks picnic areas are noted in the Community Recreation Fund and have not included an expectation of fees paid by the District for end-of-year student picnics. Therefore, free picnic use for this purpose would not impact current planned revenue budgets.

In the past, some 12 to 16 picnic sites have been reserved by the Cupertino Union School District for year-end class celebrations. Without an amended agreement, and if fees were charged at current rates of $1.00 per person based on the capacity of the site, this would total approximately $800.00 to $1,000.00 per year of new revenue. However, faced with these costs and the increasing difficulties of meeting fiscal demands, the District would most likely go without year-end picnic celebrations or risk planning to use a site without a reservation rather than pay the fees.

PUBLIC CONTACT

Public contact was made through posting of the Parks and Recreation Commission agenda and Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the City Clerk’s office, Library, Parks and Recreation Administration office, Corporation Yard, Community Center and Senior Center.

On November 9, 2005, the Parks and Recreation Commission provided a public hearing of this report during its regularly scheduled meeting.

Copies of this report have been provided to William Bragg, Superintendent of Cupertino Union School District.

ALTERNATIVES

1. Approve the Third Amendment to Agreement between City of Sunnyvale and Cupertino Union School District, and Cupertino Schools Public Facilities Financing Corporation of May 16, 1989 – to allow for Free School District Use of Picnic Areas in Sunnyvale Parks and authorize the City Manager to enter into said Agreement.

2. Charge the Cupertino Union School District the standard picnic reservation fee for the District’s year-end celebrations.

3. Encourage the Cupertino Union School District to use the City’s picnic sites without making a reservation thereby ensuring no charge, but risking the lack of available facilities.

4. Other action as determined by Council.

RECOMMENDATION

The Parks and Recreation Commission reviewed this report on November 9, 2005, and unanimously recommended Alternative No. 1, as stated below.

Staff recommends Alternative No. 1, Approve the Third Amendment to Agreement between City of Sunnyvale and Cupertino Union School District, and Cupertino Schools Public Facilities Financing Corporation of May 16, 1989 – to allow for Free School District Use of Picnic Areas in Sunnyvale Parks and authorize the City Manager to enter into said Agreement.

Reviewed by:
David Lewis, Director of Parks and Recreation
Prepared by: Cathy E. Merrill, Assistant to the Director

Approved by:
Amy Chan
City Manager

Attachments

A. Third Amendment to Agreement between City of Sunnyvale and Cupertino Union School District, and Cupertino Schools Public Facilities Financing Corporation of May 16, 1989 – to allow for Free School District Use of Picnic Areas in Sunnyvale Parks