Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Amendment to the Memorandum of Understanding with San Mateo County Exposition and Fair Association
RECOMMENDATION:
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Adopt a resolution authorizing the County Executive, or designee(s), to execute a first amendment to the Memorandum of Understanding with the San Mateo County Exposition and Fair Association increasing County funding by $750,000 for a total amount not to exceed $7,300,000, in addition to state and/or federal pass-through funds, for specified Event Center improvement projects.
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BACKGROUND:
A. The County and the Event Center
The County is the owner of the San Mateo County Event Center (Event Center), located in the City of San Mateo, which is used for conferences, conventions, expositions and other uses authorized by law. The Event Center is managed and operated by the San Mateo County Exposition and Fair Association (Association), a non-profit organization, pursuant to an agreement with the County. The current “Agreement Providing for Management and Operation of the San Mateo County Fair and San Mateo County Event Center” was entered into on October 23, 2018 (2018 Agreement), various forms of which have been in place since 1984.
The 2018 Agreement provides that the County owns and controls all Event Center property and will work jointly with the Association on major maintenance and capital improvements of all Event Center buildings and grounds, which are subject to County approval. (2018 Agreement, § 7). The Association is responsible for the administration and supervision of such projects and is required to perform general maintenance of all Event Center buildings and grounds. (Id., §§ 6, 7). The Association “retain[s] all monies received by it from conducting the Fair, the satellite wagering facility and the use and management of the Event Center.” (Id., § 3).
The Event Center serves as a critical facility and supports emergency services and disaster response in the County and has been designated as a Community Resilience Center pursuant to Assembly Bill 211, which provides that Community Resilience Centers shall serve as community emergency response facilities and aid in building long-term resilience, preparedness, and recovery operations for local communities.
B. June 2025 MOU re Specified Event Center Improvement Projects
The County and the Association have collaborated in the past on needed improvements to Event Center facilities. In connection with such projects, the County has provided funds alone or matching funds together with state or federal grants for which the County and/or the Association have successfully applied. Consistent with this approach, in June 2025, this Board approved a Memorandum of Understanding (MOU) with the Association to provide County funding, along with contributions from the Association and pass through funding from state and federal funds, for four specified capital improvement projects for the Event Center. The Association is responsible for administering and supervising the projects and providing proper documentation and reporting.
Under the MOU, the County agreed to contribute $4,250,000 in County matching funds, together with $2,540,000 from the Association and state grant funds of $7,250,000 for the San Mateo County Resiliency Center (SMCRC) Project. The SMCRC Project is intended to build local and regional resilience in San Mateo County by providing vital infrastructure upgrades and critical response and resiliency functions for the most vulnerable populations in the County. The SMCRC Project entails improvements and expansion of the facility to accommodate a 6,700 square foot Community Kitchen, and daily food service, as well as shelter for 600 community residents and 2,000 additional meals during emergencies.
The SMCRC Project also includes full renovation of Redwood Hall to meet Category 4 earthquake standards, will provide a new roof, replacement of the 14,000 square foot concrete floor, the addition of four gender-neutral restrooms, heating, lighting, and door replacement, and construction of a high-capacity commercial production kitchen. These improvements will significantly strengthen our community’s ability to serve as a regional resiliency hub while enhancing the long-term utility of the facility for events, emergency response, and food security.
DISCUSSION:
Due to higher-than-anticipated construction costs, additional funds are needed to complete the SMCRC Project. The increase is primarily due to increased costs of materials and labor and the complexities of construction and higher level of engineering required on the unique soils on the Event Center land. The contract to complete this project has been issued for an amount not to exceed $15,966,007 (previously estimated at $14,040,000).
To cover the increased costs, the Association has agreed to increase its contribution for this project to $3,746,000 (from $2,540,000) and is requesting the County’s partnership in bridging the remaining funding gap with an additional $750,000 for the SMCRC Project. The County’s additional contribution would bring the County’s aggregate total contribution across all projects under the MOU to $7,300,000.
The County Attorney’s Office has reviewed and approved the proposed resolution and amended MOU as to form.
COMMUNITY IMPACT:
The funding provided under the MOU will support the SMCRC Project, which is intended to build local and regional resilience in San Mateo County by providing vital infrastructure upgrades and critical response and resiliency functions for the most vulnerable populations in the County.
FISCAL IMPACT:
There is sufficient appropriation in Non-Departmental Services FY 2025-26 Adopted Budget to cover the additional County contribution of $750,000.