AgdaPkt 2020-08-10 Special Joint SA PFA

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6.B. - Page 2 of 9 ANALYSIS The State of California's Military Department has acknowledged that the City has approved the Purchase Agreement to acquire the National Guard Armory, however, the current License Agreement has expired and a new one needs to be approved. The License Agreement is short-term, and will expire on September 30, 2020. The new License Agreement ensures that the insurance and liability coverage is current as well as meets the City's obligation to continue its lease payments until the escrow period has closed and there is a transfer of title to the City. FISCAL IMPACT The new short-term License Agreement expires on September 30, 2020, and provides adequate time for the escrow period to conclude. The monthly License fee is $9,985 per month or a total of $19,970. The License Agreement also stipulates that if "Close -of -Escrow shall occur at month-end, rental fees shall be pro -rated at an amount of $333 per day through the date of title transfer". ENVIRONMENTAL REVIEW Entering into the License agreement is exempt from the California Environmental Quality Act (CEQA) under CEQA Section 15301 (Class 1— Existing Facilities) because the use of the Armory involves the continuous running and management of the facility, including the City's programs and activities within the Armory." PUBLIC NOTICE Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting. ALTERNATIVES None; the City needs to execute a new license agreement in order to continue use of the Armory building. ATTACHMENTS Attachment A — License to Use California Military Department Property between the City of Redwood City and the California Military Department Page 2 of 3 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 35