Title
Approve and authorize the Director of Public Works, Facilities, & Parks to execute a new Lease Agreement with Monterey County Water Resources Agency for the South Shore and North Shore recreation areas at San Antonio Reservoir for public recreational use for a term of 40 years starting on or about January 11, 2022.
Report
RECOMMENDATION:
It is recommended that the Monterey County Board of Supervisors approve and authorize the Director of Public Works, Facilities, & Parks to execute a new Lease Agreement with Monterey County Water Resources Agency for the South Shore and North Shore recreation areas at San Antonio Reservoir for public recreational use for a term of 40 years starting on or about January 11, 2022.
SUMMARY/DISCUSSION:
On April 15, 1969, the Monterey County Board of Supervisors and the governing Board of the Monterey County Flood Control and Water Conservation District (District) adopted Resolution No. 69-160 (Attachment A), leasing certain lands at Lake San Antonio to the County of Monterey (County). The lands were comprised of recreation areas at the North and South Shores. Remaining lands around Lake San Antonio stayed under the control of the District and over the years, have been leased out for cattle grazing.
On February 9, 1982, the County Board of Supervisors and the District Board of Supervisors adopted Resolution No. 82-80 (Attachment B), expanding the recreation areas leased to the County to conform with the areas of land being utilized by the public for recreational purposes at Lake San Antonio.
Given the age of the lease, Monterey County Water Resources Agency (MCWRA) and the Department of Public Works, Facilities, & Parks (PWFP) began discussions to draft a new lease for San Antonio Reservoir. MCWRA and PWFP worked together to negotiate the proposed Lease Agreement (Attachment C) over the last six months. The major changes from the prior lease include, but are not limited to: updating the lease language and terms throughout the document; adding a lease term of 40 years to meet the 30-year term requirements of the Proposition 68 grant the County is applying for; allowing the County to pursue future grant opportunities with similar requirements; an annual rent of $0 as the County will bear the cost of operating, maintaining and repairing the lease site; modifying lease boundaries to clearly identify MCWRA parcels being leased and assist in fire hazard prevention; and adding revenue generation for MCWRA through participant fees for special events held on the lease site.
On August 26, 2021, the MCWRA Board of Directors Reservoir and Operations Advisory Committee received a report and supported authorizing the General Manager of MCWRA to continue the negotiations with the County.
On September 3, 2021, the MCWRA Board of Directors Personnel and Administration Committee received a report and supported authorizing the General Manager of MCWRA to continue the negotiations with the County.
On September 14, 2021, the Board of Supervisors approved for PWFP to submit a grant application for the California Department of Parks and Recreation Proposition 68 Rural Recreation and Tourism Program (RRT). Proposition 68 grant opportunities require proof of a minimum thirty- (30-) year deed restriction shortly after application submission. As the previous Lease did not have a defined term, it was necessary to negotiate an updated lease including the minimum 30-year term. The proposed lease includes a term of 40 years which exceeds the 30-year requirement and will allow Parks to pursue future grant opportunities with similar requirements.
On September 20, 2021, the MCWRA Board of Directors received an update on the proposed lease and authorized the General Manager to continue negotiations with the County and recommended that the MCWRA Board of Supervisors approve the proposed lease.
On October 8, and November 3, 2021, the Parks Commission received a report regarding the lease negotiations between MCWRA and PWFP.
The proposed lease was reviewed and approved by MCWRA and PWFP staff and is submitted for Board of Supervisors’ approval.
OTHER AGENCY INVOLVEMENT:
The proposed lease was reviewed and approved by Monterey County Water Resources Agency. The proposed lease was reviewed and approved by the Offices of the County Counsel and Auditor-Controller as to form and fiscal provisions, respectively.
FINANCING:
The current lease allows the County to retain all fees generated at Lake San Antonio, whereas the updated lease requires the County share special event participant fees with MCWRA. Under the new terms, the County will pay MCWRA between $3 and $15 per special event ticket, depending on number of tickets sold.
The Fiscal Year 2021-22 Adopted Budget includes revenues and appropriations for Lake San Antonio North and South Shores in the General Fund, Fund 001, Park Operations Appropriation Unit PFP058. The budget does not include any special event revenue for Lake San Antonio, as no events were identified at the time the budget was prepared. No special events, requiring participant fees, are scheduled for this fiscal year.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The recommendation is consistent with the Board of Supervisors’ Economic Development, Administration, and Infrastructure Strategic Initiatives. Proactive management of County Parks through actively seeking grant funding to enhance the County’s ability to offer expanded public recreational facilities at Lake San Antonio, if successful, will increase the overall marketability of the venue, thereby increasing overall park visitation, which in turn will stimulate economic development in the surrounding area through increased tourism.
X Economic Development
X Administration
Health & Human Services
X Infrastructure
Public Safety
Prepared by: Nathan Merkle Administrative Operations Manager (831) 755-5462
Reviewed by: Bryan Flores, Chief of Parks
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities, & Parks
Attachments:
Attachment A-BOS Resolution No. 69-160
Attachment B-BOS Resolution No. 82-80
Attachment C-Proposed Lease Agreement-San Antonio Reservoir North & South Shores
(Attachments are on file with the Clerk of the Board)