Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: 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 Memorandum of Understanding (MOU) with the San Mateo County Exposition and Fair Association to provide County funding in an amount not to exceed $6,550,000, in addition to state and/or federal pass-through funds, for specified Event Center improvement projects, for a term through March 31, 2026.
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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. 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 as matching funds together with state or federal grants for which the County and/or the Association have successfully applied. Consistent with this approach, the following capital improvement projects for the Event Center are contemplated, with corresponding County funding amounts as specified.
San Mateo County Resiliency Center Project (SMCRC Project) (County matching funds contribution: $4,250,000; Association contribution: $2,540,000; State funds: $7,250,000). On January 10, 2024, the County and the California Department of Food and Agriculture (CDFA) entered into a grant agreement (CDFA Agreement), by which CDFA awarded a grant to the County in the amount of $7,250,000 to fund the SMCRC Project at the Event Center. 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 sf Community Kitchen, and daily food service, as well as shelter for 600 community residents and 2,000 additional meals during emergencies. The contract to perform the project shall not exceed $14,040,000.
The CDFA grant award is subject to the provision of County matching funds in the amount of $4,250,000, to be provided on a reimbursement basis for eligible costs.
Cypress Restroom Project (Proposed County contribution: $1,000,000; Association contribution: $1,450,000). The Cypress Restroom Project entailed adding a separate standing Restroom building at the Event Center to the South End of Cypress Hall with public access from the South Side of Cypress Hall and from outside areas, which includes no less than 20 gender neutral individual private (single user) gender neutral stalls, five (5) shower units with two shower stall units meeting ADA accessible requirements. The finishes are suitable for event use to include corporate meetings, social events, and inclement weather sheltering. The contract to perform this project shall not exceed $2,450,000, and this work has been completed.
RV Park Project (Proposed County contribution: $1,000,000; Association contribution: $4,00,000). The RV Park Project entails the relocation of existing RV Hookup to the UFES site location at 1346 Saratoga Drive Entrance at the Event Center. The RV Park Project shall include not less than 55 RV hookup locations shall include a minimum of 80 -100 amps per site, water and sewer hookup per site, and network cabling per site. Additional facilities shall include Solar Covered Parking canopies for RV’s. The RV Park Project will also include a 20x20 building that will include two single use gender neutral restrooms, a small laundry room to accommodate a commercial coin operated washer and dryer, and a 10x10 manager office for reservation processing. The contract to perform this project shall not exceed $5,000,000.
Cal OES Generator Project (Proposed County contribution: $300,000; Association contribution: $0; State funds: $750,000). On September 9, 2022, the Federal Emergency Management Agency (“FEMA”) approved $900,000 in funds under the Hazard Mitigation Grant Program (“HMGP”) DR 4558-139-0521 to upgrade the Event Center’s electrical facilities and install three new generators and automatic transfer switches at its Expo Hall and Central Mall Substation (the “Cal OES Generator Project”). The Cal OES Generator Project includes providing backup generators: (1) additional 300 KW generator for Expo Hall to cover HVAC, (1) 50kw generator to cover HVAC for Cypress Hall, (1) 500 kw generator to provide generator back up for Sequoia Hall, Event Pavilion, Redwood Hall, and new Resiliency Kitchen. The contract to perform this project shall not exceed $1,050,000.
DISCUSSION:
Staff recommends that the Board enter into a memorandum of understanding (MOU) with the Association to provide County funding in an amount not to exceed $6,550,000, in addition to state and/or federal pass-through funds, for the above-specified improvement projects for the Event Center. County funds would be provided on a reimbursement basis for eligible costs incurred by the Association for the projects, subject to the terms and conditions of the MOU and applicable grant awards.
Under the terms of the proposed MOU, the Association will be responsible for contributing its own funds to each of the projects, along with the County contributions and any state or federal pass-through funds that may have been awarded. The Association will be responsible for administration and supervision of the projects, including the management of any agreements entered into by the Association with contractors, in accordance with their terms and conditions to ensure effective, efficient, and timely completion. The Association will be required to provide supporting documentation for costs with respect to each project and to comply with the CDFA agreement and applicable terms and conditions of other grants funding the projects.
The improvements funded under the proposed MOU will provide necessary upgrades to ensure the Event Center continues to serve as a critical facility for emergency services, disaster response and recovery, as well as a suitable site for local events, conferences and conventions. Investment in these projects enhances the Event Center’s capacity to generate revenue that can be used to maintain and improve the property.
The County Attorney has reviewed and approved the proposed resolution and MOU as to form.
COMMUNITY IMPACT:
The funding provided under the MOU will support the SMCR 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. The additional projects will similarly benefit the community as a whole by improving facilities for local events and gathering.
FISCAL IMPACT:
The funds committed by this proposed action total $6,550,000 and will be drawn from the County General Fund at 100% Net County Cost.