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HomeMy WebLinkAbout2014-07-08; City Council; 21676; Resolution Approving Lease Agreement City and Miracosta College Community Services, Business Development 2075 Las Palmas Drive, Establish North San Diego Technology Career Institute, New Home for Small Business DevelopmenCITY OF CARLSBAD - AGENDA BILL AB# 21,676 ADOPTION OF RESOLUTION APPROVING OF THE LEASE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND MIRACOSTA COLLEGE COMMUNITY SERVICES AND BUSINESS DEVELOPMENT AT 2075 LAS PALMAS DRIVE FOR THE PURPOSES OF ESTABLISHING A NORTH SAN DIEGO TECHNOLOGY CAREER INSTITUTE AND NEW HOME FORTHE SMALL BUSINESS DEVELOPMENT CENTER DEPT.DIRECTOR MTG. 07/08/14 ADOPTION OF RESOLUTION APPROVING OF THE LEASE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND MIRACOSTA COLLEGE COMMUNITY SERVICES AND BUSINESS DEVELOPMENT AT 2075 LAS PALMAS DRIVE FOR THE PURPOSES OF ESTABLISHING A NORTH SAN DIEGO TECHNOLOGY CAREER INSTITUTE AND NEW HOME FORTHE SMALL BUSINESS DEVELOPMENT CENTER CITY ATTY. DEPT. CED ADOPTION OF RESOLUTION APPROVING OF THE LEASE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND MIRACOSTA COLLEGE COMMUNITY SERVICES AND BUSINESS DEVELOPMENT AT 2075 LAS PALMAS DRIVE FOR THE PURPOSES OF ESTABLISHING A NORTH SAN DIEGO TECHNOLOGY CAREER INSTITUTE AND NEW HOME FORTHE SMALL BUSINESS DEVELOPMENT CENTER CITY MGR. f ]^ RECOMMENDED ACTION: Adopt Resolution No. 2014-171 approvinR the six year lease agreement between the City of Carlsbad and MiraCosta College Community Services and Business Development ("MiraCosta") for lease ofthe city-owned building, located at 2075 Las Palmas Drive, to establish a North San Diego Technology Career Institute and relocate the Small Business Development Center. ITEM EXPLANATION: In October 2013, MiraCosta approached city staff with a preference to locate a new Technology Career Institute in Carlsbad based on the strong employment base that could benefit from the program. After considering the available facilities, MiraCosta decided to pursue the city owned facility located at 2075 Las Palmas Drive ("Las Palmas building") which would best suit the program's needs. In December 2013, the City of Carlsbad received an unsolicited proposal from MiraCosta College to locate a Technology Career Institute and the Small Business Development Center in the Las Palmas building. MiraCosta's Technology Career Institute will create an extensive training facility for advanced manufacturing programs that will provide skilled, certified workers in electromechanical engineering, robotics/automation, and fluid power. The Small Business Development Center, currently located on MiraCosta's campus in Oceanside, will provide resources and workshops to small businesses and provide tailored leadership programs to existing businesses throughout north county. Partnering with MiraCosta to achieve their workforce training goals will not only provide industry recognized certificate programs to the businesses in Carlsbad, but also will add to the supply of skilled workforce to the north county region. This effort will strengthen the technology cluster, add to Carlsbad's core technology and skilled workforce base, and serve as a key strategic alliance with one of our regional education partners. The building located at 2075 Las Palmas Drive, was purchased by the city in 1986, and most recently has been vacant for more than four years. The building is 22,627 square feet in size and was renovated in DEPARTMENT CONTACT: Christina Vincent 760-602-2712, christina.vincent@carlsbadca.gov FOR CITY CLERKS USE ONLY. if COUNCIL ACTION: APPROVED if CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • WITHDRAWN • RETURNED TO STAFF • AMENDED • COUNCIL RECEIVED THE REPORT/PRESENTATION OTHER-SEE MINUTES • • Page 2 2001. The floor plan currently has 61 offices, three conference rooms, a lab space, lunch room, open office area, and restrooms with shower facilities. Any tenant improvements to modify the existing floor plan will be at completed at MiraCosta's expense. The space will be leased to MiraCosta's College Community Services and Business Development for twenty-five cents per square foot or $5,656.75 per month for an annual total of $67,881. According to the end of the year 2013 Colliers industrial report, the average lease rate per square foot per month is $0.70. This market rate includes smaller facilities, lab and flex space, and often reflects tenant improvements and fully maintained facilities. The Las Palmas building would be expected to generate a below-market rate rent. MiraCosta has requested a reduced cost per square foot to allow the program to fulfill its mission and pay for tenant improvements. The term of the lease is six years. Prior to being occupied, building repairs need to be made including roof replacement, HVAC repair, resealing the parking lot, and power washing the exterior ofthe building. These expenses are deferred maintenance costs that the city would be expected to pay in order to bring the building into working order. The expected cost ofthe deferred maintenance is approximately $450,000. MiraCosta would pay for all tenant improvements, utilities, salaries and equipment, among other costs associated with operating the institute. MiraCosta submitted a conditional use permit to the city's Planning division to allow the intended uses to occur at the Las Palmas site. The conditional use permit was approved by the Planning Commission at their meeting on June 18, 2014. City Council is strategically focused on creating quality jobs in a new economy and more specifically focused on becoming a hub for higher education and research. The opportunity to bring MiraCosta's Technology Career Institute and Small Business Development Center to Carlsbad aligns with the higher education goal and provides advanced workforce training that is needed by our businesses today. FISCAL IMPACT: City Council has approved funding for the deferred maintenance through appropriations from the Infrastructure Replacement Fund. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. EXHIBITS: 1. City Council Resolution No. 2014-171 2. Lease Agreement between City of Carlsbad and MiraCosta College 3. MiraCosta proposal of North San Diego Technology Career Institute 4. Letter of support - Chamber of Commerce. 9 10 11 12 13 1 RESOLUTION NO. 2014-171 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, 3 CALIFORNIA, AUTHORIZING EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND MIRACOSTA COLLEGE 4 COMMUNITY SERVICES AND BUSINESS DEVELOPMENT AT 2075 LAS PALMAS DRIVE FOR THE PURPOSES OF OPERATING A 5 TECHNOLOGY CAREER INSTITUTE AND SMALL BUSINESS DEVELOPMENT CENTER. 6 7 WHEREAS, the City has determined it is desirable and in the best interest of the 8 community to enter into a six year lease agreement with MiraCosta College Community Services and Business Development to lease the Las Palmas building located at 2075 Las Palmas Drive, for the purposes of establishing and maintaining a technology career institute and small business development center; and WHEREAS, the City's economic development goal is to focus on creating quality 14 jobs for the businesses in the City's main industry clusters; and 15 WHEREAS, the City's economic development goal is also to become a focus for 16 higher education and research to grow the skilled labor force in the city; and 17 WHEREAS, support of the robotics and engineering skilled workforce that 18 remains a required job requirement of many of the major companies in Carlsbad and more 19 2Q specifically in the City Center in which the subject property is located; and 21 WHEREAS, the City has determined that it is necessary and appropriate to enter 22 into the subject lease and extend the use ofthe building for the Technology Career Institute in order to further support the workforce training goals and industry recognized certificate programs including workforce training in electromechanical engineering, robotics/automation, and fluid power; and 23 24 25 26 27 28 1 WHEREAS, the City and MiraCosta College Community Services and Business 9 10 11 12 13 16 17 18 19 20 23 24 25 26 27 28 Development have agreed to all terms ofthe lease. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows that: 1. The above recitations are true and correct. 2 3 4 5 6 7 2. That upon approval as to form, by the City Attorney, the Mayor is 8 authorized to execute the lease agreement attached hereto between the City of Carlsbad and MiraCosta College Community Services and Business Development. /// /// /// 14 /// 15 /// /// /// /// /// 21 /// 22 /// /// /// -2- 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City of Carlsbad on the 8th day of July 2014, by the following vote to wit: AYES: NOES: Council Members Hall, Packard, Wood, Schumacher, Blackburn. None. ABSENT: None. ATTEST: BARBARA ENGLESONCxity Clerk EXHIBIT 2 CITY OF CARLSBAD LEASE AGREEMENT PREMISES: 2075 Las Palmas Drive Carlsbad, CA 92011 LESSEE: Mira Costa Community Services and Business Development TERM: Six (6) Years CITY OF CARLSBAD LEASE AGREEMENT INDEX 1. DEFINITION OF TERMS 2 2. TERM 2 3. TERMINATION OF LEASE 2 4. OPTIONS TO RENEW 3 5. VACATION OF PREMISES 3 6. RENT 4 7. COST OF LIVING ADJUSTMENT 4 8. SECURITY DEPOSIT 4 9. UTILITIES PAYMENTS 4 10. TAXES, ASSESSMENTS, AND FEES 4 11. ACCEPTANCE AND MAINTENANCE 5 12. ALTERATIONS 5 13. USE 5 14. OCCUPANCY, ASSIGNMENT AND SUBLETTING 6 15. LESSEE'S GOALS 6 16. BENCHMARKING AND REPORTING 7 17. PETS 8 18. NOTICES 8 19. RIGHT OF INSPECTION 8 20. AUDIT 8 21. RIGHT TO SHOW PREMISES 8 22. INSURANCE 8 23. INDEMNIFICATION 10 24. NONDISCRIMINATION 10 25. HAZARDOUS AND/OR CONTAMINATED SOIL AND MATERIAL 10 26. LAW TO GOVERN; VENUE 10 27. AMERICANS WITH DISABILITIES ACT (ADA) 11 28. WAIVER OF RELOCATION ASSISTANCE 11 -7 LEASE AGREEMENT This Lease Agreement ("Lease") is made this 17* day of July, 2014 Between: City of Carlsbad a chartered municipal corporation 1200 Carlsbad Village Drive Carlsbad, Califomia 92008 ("City") And: MiraCosta Community College District, on behalf of the MiraCosta Community Services and Business Development ("Lessee") WHEREAS, City desires to rent to Lessee and Lessee desires to rent from City certain publically ovmed property located at 2075 Las Palmas Drive in the City of Carlsbad, for the purpose of operating a Technology Career Institute and Small Business Development Center. The Premises is defmed below and fully described in Exhibit "A," which is incorporated by this reference. NOW THEREFORE, it is mutually agreed by and between City and Lessee as follows: L DEFINITION OF TERMS. The following words in this Lease Agreement shall have the significance attached to them in this clause unless otherwise apparent from their context. a. "Lease" means this Lease Agreement. b. "Premises" means 2075 Las Palmas Drive, Carlsbad, Califomia, which includes a 22,627 square foot building and parking as more fully described in Exhibit "A." c. "Lessee" means the MiraCosta Commuity College District on behalf of MiraCosta Community Services and Business Development and does not include its heirs, assigns, or successors-in-interest. d. "Invitees" means any individual or organization who enters the Premises at the express or implied invitation of Lessee. 2. TERM. The term of this Lease shall be six (6) years, commencing on July 17, 2014. 3. TERMINATION OF LEASE. 3.1 Each party shall have the right to terminate this Lease without cause for any reason by giving ninety (90) days prior written notice to the other party. 3.2 City Manager shall have the right to tenninate this Lease for cause by giving thirty (30) days prior written notice to Lessee for any of the following events: 3.2.1 Lessee's failure to comply with the following clauses in this Lease shall constitute cause to terminate the Lease: Acceptance and Maintenance, Paragraph 11 Alterations, Paragraph 12 Use, Paragraph 13 Occupancy, Assignment and Subletting, Paragraph 14 Insurance, Paragraph 22 Americans with Disabilities Act (ADA), Paragraph 27 3.2.2 If the City discovers at any time during the lease term that the Lessee or any other party has used, is using, or will use the Premises in an unlawful manner or for an unlawful purpose, or in any manner that is inconsistent with any provision of this Lease. 3.2.3 Failure to pay any installment of Rent, continuing for a period of five (5) days after receipt of City's written notice that such amount is due. Lessee agrees that any such written notice delivered by the City shall, to the fullest extent permitted by law, serve as the statutorily required notice under applicable law to the extent Lessee fails to cure such failure to pay within such five (5) day period. In addition to the foregoing. Lessee agrees to notice and service of notice as provided for in accordance with applicable statutory requirements. 3.2.4 Failure in the performance of any of the Lessee's agreements, or obligations which failure continues for 30 days after written notice thereof from the City to the Lessee; provided that, if Lessee has exercised reasonable diligence to cure such failure and such failure cannot be cured within such 30 day period despite reasonable diligence. Lessee shall not be in default under this subparagraph unless Lessee fails thereafter diligently and continuously to prosecute the cure to completion. OPTIONS TO RENEW. If Lessee desires to renew this Lease, Lessee shall provide written notice to City of Lessee's intent to renew not less than sixty (60) days prior to the expiration ofthe initial Lease term or first renewal year. City shall respond to Lessee's renewal request in writing within thirty (30) days of receiving such notice. City reserves the right to modify the rent rate for each renewal year at the City Council's discretion. VACATION OF PREMISES. 5.1 Upon termination of this Lease for any reason. Lessee shall peaceably vacate, and shall cause its Invitees to peaceably vacate, and deliver the Premises to City in the same condition as Lessee found them upon its acceptance of the Premises hereunder, excepting ordinary wear and tear, conditions caused by acts of God and improvements made in accordance with Section 12 herein. 5.2 Upon such termination. Lessee shall immediately: 5.2.1 Arrange and pay for the disconnection of all utilities and services ordered by Lessee; 5.2.2 Provide a written statement to the Municipal Property Manager of Lessee's new address for purpose of refunding monies , if any due Lessee under this Lease, and forwarding mail; and 5.2.3 Deliver any keys for the Premises to the Municipal Property Manager or send said keys by certified mail to the address stated in Paragraph 18 below. 6. RENT. In consideration of the possession and use of the Premises, Lessee shall deliver and pay rent to City during the term of this Lease in the amount of Five Thousand Six Hundred Fifty Six dollars and Seventy Five cents ($5,656.75) per month. 7. COST OF LIVING ADJUSTMENT. Not applicable in initial lease term. 8. SECURITY DEPOSIT. Lessee shall not be obligated to deliver a security deposit in connection with this Lease. 9. UTILITIES PAYMENTS. Lessee will be solely responsible to pay for any utilities and services necessary for the occupancy of the Premises. 10. TAXES. ASSESSMENTS. AND FEES. 10.1 The terms of this Lease may resuh in the creation of a possessory interest. If such a possessory interest is vested in Lessee, Lessee may be subjected to the payment of personal property taxes levied on such interest. Lessee shall be responsible for the payment of, and shall pay before delinquent, all taxes, assessments, and fees assessed or levied upon Lessee, on said Premises or any interest therein, on any buildings, structures, machines, appliances, or other improvements of any nature whatsoever, or on any interest therein. 10.2 Lessee fiirther agrees not to allow such taxes, assessments, or fees to become a lien against said premises or any improvement thereon. Nothing herein contained shall be deemed to prevent or prohibit Lessee from contesting the validity of amount of any such tax, assessment, or fee in any manner authorized by law. 11. ACCEPTANCE AND MAINTENANCE. 11.1 Lessee hereby acknowledges that Lessee has inspected the Premises, that Lessee accepts said Premises "as is" and "where is," that the Premises are in a good and sanitary order, condition, and repair. 11.2 Lessee agrees to take good care of the Premises and all improvements, alterations, fixtures, and appurtenances thereon. Lessee agrees to provide for maintenance and upkeep of the Premises, as necessary to preserve the Premises in good order and condition, except that City shall provide for maintenance and repair of all landscaping, grounds, roof, electrical and HVAC. Said repairs and maintenance shall be made in a good and professional manner, and at least equal to the condition and quality of the repaired items at the inception of this Lease. Lessee agrees to be solely responsible for all costs of maintenance and repair except as noted above. 11.3 In the event Lessee fails to properly maintain the premises as required by City, then City may notify Lessee in writing of said failure. In the event Lessee fails to perform said maintenance within thirty (30) days after such notice by City, City may immediately terminate this Lease, pursuant to Paragraph 3.2 above. 12. ALTERATIONS. 12.1 Lessee shall make the aherations and improvements to the Premises, at Lessee's sole cost and expense, that Lessee reasonably believes are necessary to operate said Premises. Any and all alterations and improvements made to the Premises must first be approved in writing by the Municipal Property Manager. 12.2 At the City's option, any improvements made with the consent of the Municipal Property Manager shall become a fixture to the realty and shall remain on and be surrendered with the Premises upon termination of this Lease. If the City opts for the removal of the fixtures, the Lessee will remove at the Lessee's sole expense upon termination of the Lease. 12.3 Noncompliance by Lessee or its Invitees with any provision of this clause shall be cause to terminate this Lease for the City pursuant to Paragraph 3.2 above. 12.4 Before making any improvement that require a City and/or other jurisdictional permit(s), the Lessee is responsible for obtaining all such jurisdictional permit(s) from the City or other agency with jurisdictional authority at Lessee's sole cost and expense. Written approval of alterations and improvements by the Municipal Property Manager as described in Section 12.1 above does not negate the need to obtain such required City or other jurisdictional agency permit(s). 13. USE. Lessee agrees to use the Premises as follows: 13.1 To create a center that will serve as a technology career institute where attendees can become skilled professionals in advanced manufacturing and be trained on machinery and/or new technology that will create jobs and benefit Carlsbad businesses and the region. The center will provide learning opportunities for businesses utilizing the Small Business Development Center and could potentially create additional partnerships to strengthen the educational goals and improve the skills ofthe workforce. Lessee shall be allowed to hold events and functions that will promote the center's purpose and function, such as Job Fairs, Industry Open Houses, STEM summer outreach programs from High School and Middle School students, and program fund raisers. 13.2 Lessee shall not use, nor permit the use of, the Premises other than as described in Paragraph 13.1 above. In any case where Lessee is, or should reasonably be, in doubt as to the propriety of any particular use, Lessee may request, and will not be in breach or default if Lessee abides by, the written determination of the Municipal Property Manager that such use is permitted. 13.3 Noncompliance by Lessee or its Invitees with any provision of this clause shall be cause to terminate this Lease for the City pursuant to Paragraph 3.2 above. 13.4 All uses shall be in compliance with the City codes, the underlying Specific Plan for the Carlsbad Airport Business Park and its the Covenants, Conditions and Restrictions for the Premises. 14. OCCUPANCY. ASSIGNMENT AND SUBLETTING. The Premises shall only be occupied by Lessee and Lessee's Invitees. Lessee agrees to require its Invitees to utilize the premises in accordance with the Lease Agreement. Lessee shall not assign this Lease or any interest therein without the prior written consent of the Municipal Property Manager. Any such assignment without the City's consent shall be void and shall, at the option of City, be cause for the terminate this Lease, pursuant to Paragraph 3.2 above. 15. LESSEE'S GOALS. In consideration for the letting of the Premises and amenities provided by the City, Lessee agrees to use its best efforts to accomplish the following objectives in order to provide a public benefit: 15.1 Order machines and equipment. 15.2 Implement Trade Adjustment Community College and Career Training (TAACCCT) grant-funded programs in phases based on industry need. Lessee may first start these programs at the current facility at the Landes Center in Oceanside, and then move the program over with the machinist program when the Premises is ready. 15.3 Move its current machinist program and other non-technology based programs into the Premises. 15.4 Securing national certifications. Many of these certifications take many months of paperwork, training and testing, site visits, etc. 15.5 Develop transfer agreements, set-up initial coursework, and continue discussions with Cal State San Marcos, Palomar College, University of San Diego, Brown University, and other colleges and universities for long-term educational partnerships. 16. BENCHMARKING AND REPORTING. During the duration of this Lease term, Lessee agrees to provide the Economic Development Manager with annual reports on July I of each year for progress on the Technology Career Institute. Key performance indicators to identify in the annual report: • TCI will enroll 550 new students and 225 incumbent workers, totaling 775. • TCI will graduate 495 students per year and 225 incumbent workers, if 90% new students enrolled graduate and 100% of incumbent workers are enrolled. • The total number of actual participants enrolled and graduated in TCI programs each year. • TCI will be awarding nationally approved work skills certifications, such as National Career Readiness Certificate, International Society of Automation Certification, Electronics Technicians Association Certification, and National Institute for Metalworkign Skills (NIMS) Certification. The number of National Certifications will be reported each year. • The number of graduates who have been placed in full-time employment and part- time employment within 3 months of graduation, target is 446, if 90% of new student program graduates. • The number of graduates who have been placed in full-time employment and part- time employment in Carlsbad within 3 months of graduation, target is 75. • TCI's involvement, contributions, and collaboration with Carlsbad industry and work skills agencies. 16.1 Lessee, Invitees and their guests shall at all times conduct themselves in a quiet and dignified manner so as not to cause annoyance or inconvenience to neighbors of Lessee or nearby residents. 16.2 Lessee and Invitees shall not violate, or permit the violation of, any City or County ordinance, or state or federal law, in or about the Premises. 16.3 Noncompliance by Lessee or its Invitees with any provision of this clause shall be cause to terminate this Lease for the City pursuant to Paragraph 3.2 above. 17. PETS. No pets or livestock of any kind may be kept on the Premises without the prior written consent of the Municipal Property Manager. 18. NOTICES. Any notice or other documentation required or permitted to be given by this Lease must either be personally served on the other party or served by certified mail, retum receipt requested, to the addressee below. Notices served by mail shall be sent to the address listed below and shall be deemed delivered as of the date shovra on the delivery receipt as the date of delivery, the date delivery was refused, or the date the notice was retumed as undeliverable. A change of either party's address must also be immediately served in the manner described above. For Citv; For Lessee: Christina Vincent, Economic Development Charlie Ng, Vice President Business and Manager Administrative Services City of Carlsbad MiraCosta Community College District Community and Economic Development 1 Bamard Drive, 1635 Faraday Avenue Oceanside, CA 92056 Carlsbad, CA 92008 19. RIGHT OF INSPECTION. City reserves the right for its agents or employees to enter upon and inspect the Premises during business hours to ascertain if Lessee is complying with the provisions of this Lease. 20. AUDIT. City reserves the right to have city employees or its agents conduct financial audits of Lessees financial records in any way related to the Premises once yearly. City shall provide at least three (3) business days advance notice to Lessee of City's intent to inspect such records. 21. RIGHT TO SHOW PREMISES. City reserves the right, during the last sixty (60) days of this Lease, or any extension thereof, to conduct an "open house" of the Premises in order to facilitate re-leasing or sale the Premises. Said "open house" shall not exceed four hours total duration (maximum of two separate days), and when possible, be scheduled from 3:00 p.m. to 5:00 p.m., Monday through Friday. 22. INSURANCE. Lessee will obtain and maintain for the duration of this Lease and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with the occupancy or use of the Premises by Lessee or its Invitees, visitors, agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of Califomia. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:Vn" OR with a surplus line insurer on the State of Califomia's List of Eligible Surplus Line Insurers (LESLI) with a rating in the latest Best's Key Rating Guide of at least "A:X". 22.1 Coverages and Limits. Lessee will maintain the types of coverages and minimum limits indicated below, unless the City Risk Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Lessee's indenmification obligations under this Lease. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Lessee pursuant to this Lease are adequate to protect Lessee. If Lessee believes that any required insurance coverage is inadequate. Lessee will obtain such additional insurance coverage, as Lessee deems adequate, at Lessee's sole expense. 22.2 Commercial General Liabilitv Insurance. $1,000,000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Lease or the general aggregate will be twice the required per occurrence limit. 22.3 Workers' Compensation and Employer's Liabilitv. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Lessee has no employees and provides, to City's satisfaction, a declaration stating this. 22.4 Additional Provisions. Lessee will ensure that the policies of insurance required under this Lease contain, or are endorsed to contain, the following provisions: 22.4.1 The City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to the City. 22.4.2 Lessee will obtain occurrences-type coverage. 22.4.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Lease. 22.5 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Lease, Lessee will fumish certificates of insurance and endorsements to City. 22.6 Failure to Maintain Coverage. If Lessee fails to maintain any of these insurance coverages, then City will have the option to declare Lessee in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Lessee is responsible for any 1$ payments made by City to obtain or maintain insurance and City may collect these payments from Lessee within ten (10) days of payment. 22.7 Noncompliance by Lessee or its Invitees with any provision of this clause shall be cause to terminate this Lease for the City pursuant to Paragraph 3.2 above. 23. INDEMNIFICATION. Lessee shall defend, indemnify, and hold harmless City, its officers, agents, volunteers and employees from and against any and all claims, demands, and liabilities for loss of any kind or nature which City, its officers, agents, volunteers or employees may sustain or incur or which may be imposed upon them or any of them for injury to or death of persons or damage to property as a resuh of, arising out of, or in any manner connected with this Lease or with the occupancy and use of the Premises by Lessee, its Invitees, visitors, or any other persons whatsoever. Lessee further agrees to pay any and all costs and expenses, including, but not limited to, court costs and reasonable attomey's fees incurred by City on account of any such claims, demands, or liabilities. However, the provisions of this Lease shall not be construed to indemnify City for claims or acts arising from City's sole negligence, active negligence or willful acts. 24. NONDISCRIMINATION. Lessee herein covenants that this Lease is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on account of physical or mental disabilities, race, color, creed, religion, sex, marital status, national origin or ancestry in the use, occupancy, tenure or enjoyment of the leased premises. Lessee shall not establish or permit any such practice of discrimination or segregation with reference to the selection, location, number, or use of occupancy by customers, tenants, invitees or vendees in the leased Premises. 25. HAZARDOUS AND/OR CONTAMINATED SOIL AND MATERIAL. Lessee will not place or permit to be placed materials and/or contaminated soils on the Premises which under federal, state, or local law, statute, ordinance, or regulations require special handling in collection, storage, treatment, and/or disposal. Lessee also hereby covenants and agrees that, if at any time it is determined there are materials and/or contaminated soils located on the Premises which under any environmental requirement require special handling in collection, storage, treatment, or disposal. Lessee shall notify City. Within thirty (30) days after written notice to City or from City, Lessee shall commence to take and thereafter diligentiy complete, at Lessee's sole expense, such actions as may be necessary to comply with environmental requirements. This obligation shall survive the term or the early termination of this Lease. 26. LAW TO GOVERN: VENUE. This Lease Agreement shall be interpreted, construed and governed according to the laws of the State of Califomia. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of San Diego, North County Branch. In the event 10 of litigation in a U.S. District Court, venue shall lie exclusively in the Southem District of Califomia, in San Diego. 27. AMERICANS WITH DISABILITIES ACT (ADA). It is the duty of the Lessee while operating under this Lease to comply with all local, state, and federal laws, including, but not limited to, the Americans with Disabilities Act and to indemnify City from any violation of any such law. Failure by Lessee or its Invitees to comply with a provision of local, state, or federal law is grounds for immediate termination of this Lease by the City pursuant to Paragraph 3.2 above. 28. WAIVER OF RELOCATION ASSISTANCE. Lessee is aware of the provision of California's Relocation Assistance Act (Cal. Gov. Code § 7260, et seq.) and hereby irrevocably waives any and all benefits of said act on behalf of Lessee, all Lessee's of the Premises as of the date of execution hereof, and each of Lessee's assignees or subtenants under this Lease. Lessee agrees to this waiver after consuhing with its attomeys, and being advised of the full implications of this waiver. 11 n IN WITNESS WHEREOF, the parties below are authorized to act on behalf of their organizations, and have executed this Lease as of the date set forth below. Date: MiraCosta Community Services and Business Development By: V ViceTfesident, fel^i^^ess and Administrative Services Date: Date: CITY OF CARLSBAD By: Mayor By: City Clerk APPROVED AS TO FORM Celia Brewer, City Attorney By:. Jane M9ijDaldi, Assistant City Attomey Dated: ^-.?^'// 12 \0 6 EXHIBIT A - PREMISES SITE PLAN AND FLOOR PLAN T V \ y. „ i J . I yy .. ••-' '•V''' \ / / Ul TECHNICAL CAREER INSTTTLTTE MImCosIa Collage ;>) I ' ' L, 3 "?—^ •'Vj .... I y i III I 1^ 1 J -4 ZI I 1' i y" j "• i i i i 0 5> TECHNICAL CAREER INSTnUTE MiraCosta College 13 1 EXHIBITS PROPOSAL FOR The Las Palmas Building 2075 Las Palmas Drive, Carlsbad Issued by MiraCosta College Community Services & Business Development y INTRODUCTION This is an unsolicited proposal to develop the North San Diego Technology Career Institute (TCI) within the Las Palmas building. We are proposing the city of Carlsbad lease us the Las Palmas building, at a reduced cost, to create an extensive training facility for advanced manufacturing programs that will serve the industry needs in North San Diego County, and more specifically in Carlsbad. The building will also serve as the new home ofthe Small Business Development Center, currently housed at the MiraCosta College Community Learning Center. TCI will expand MiraCosta College's successful Industry-recognized Machining Technology certificate program and create industry-recognized electromechanical engineering, robotics/automation, and fluid power certificate programs. MiraCosta College will work with industry to create an accelerated training approach that quickly trains qualified workers, increases student retention rates and connects participants with jobs much more quickly than a traditional training program. Within 12 weeks, TCI participants will have a certificate that will help them find a Job and move up a career ladder in their chosen field. Because ofthe community benefit we are providing, we are requesting a significantly reduced lease with a term of at least 6 years, with the option of up to 20 years. We request that the building is leased to us in good working order, with no deferred maintenance, and that the city of Carlsbad continue to be responsible for any typical landlord maintenance that may need to be addressed over the course ofthe lease. The TAACCCT grant will cover many of our initial expenses, but a long-term reduced lease fee will allow us to keep student tuitions low and affordable. In addition, it will free up funds to ensure that we have state-of-the-art equipment for student training. This is imperative as we need to train students on the most up-to-date advanced manufacturing equipment found currently in high tech companies. TCI will achieve a number of important goals: 1. It will provide the local industries a steady supply of skilled workers to replace the large population of employees who are retiring from the workforce. Due to the shift in education, there is a large gap of untrained workers. Industry has come to us, requesting basic level training in advanced manufacturing. This allows them a solid foundation in which to continue training on skills that are specific to their industry or company. 2. It will provide the local industries a training facility to offer incumbent workers additional training. Employees will gain skills leading to fewer mistakes and fines, increased production, increased revenue, company expansion, and higher employee satisfaction. 3. We envision the potential for more companies moving into the area knowing that their training needs will be met and a continuous stream of potential employees will be available. With the growth of new businesses in Carlsbad, more jobs become available, more citizens and other industries see opportunities for relocating to Carlsbad. 4. San Diego County is recognized as a national leader in Maritime Technology, however there is little to no training offered for this specific industry. TCI can help Carlsbad become an important educational hub for this growing sector and for the new desalination plant. We have a close relationship with the Maritime Technology Alliance (multiple representatives attended our advisory meeting) and they support our programs and will continue to provide guidance as we develop curriculum and training. Carlsbad can continue to be a leader in new technology, such as what is being done with the new desalination plant, knowing that skilled employees and future training are available to support this growth. 5. We are in discussions with Brown University to discuss a partnership with the School of Engineering. Brown is also located in an area which houses a lot of maritime industries. In addition, the two gentlemen we are working with went to UCSD and are familiar with the possibilities of our area. We feel confident that they will want to develop some collaboration over the next few years. This brings an Ivy League school with a well-known engineering reputation into the area. We understand that this is an important long-range goal for the city of Carlsbad. This initial partnership could lead to other recognized educational institutions coming into the area to provide advanced education, which in turn brings in more industry knowing they can rely on outstanding instruction/training. TAACCCT GRANT OVERVIEW On October 1, 2014, MiraCosta College Community Services & Business Development was awarded the third round of the Department of Labor Trade Adjustment Assistance Community College and Career Training (TAACCCT) grant. The grant program provides eligible institutions of higher education with funds to expand and improve their ability to deliver education and career training programs that can be completed in two years or less, are suited for workers who are eligible for training under the Trade Adjustment Assistance (TAA) for Workers Program. The primary intent ofthe TAACCCT program is to meet the educational or career training needs of Veterans and workers who have lost their Jobs or are threatened with Job loss as a result of foreign trade by funding the expansion and improvement of education and career training programs that are suited for these individuals. The overarching goals ofthe TAACCCT program are to: 1. Increase attainment of degrees, certificates, diplomas, and other industry-recognized credentials that match the skills needed by employers to better prepare Veterans and TAA- eligible workers and other adults for high-wage, high-skill employment or re-employment in growth industry sectors. 2. Introduce or replicate innovative and effective methods for designing and delivering instruction that address specific industry needs and lead to improved learning, completion, and other outcomes for Veterans and TAA-eligible workers and other adults. 3. Demonstrate improved employment outcomes. A key feature of the Round 3 Solicitation is the pre-conditions for all applicants to demonstrate employer engagement, use labor market information to focus training on local economic needs and improve programs, and evaluate their programs. In addition to asking all applicants to demonstrate employer engagement, the evaluation criteria includes scoring criteria for training models that include work-based training opportunities, such as apprenticeships and paid and for-credit internships, and include partnerships with community-based organizations and other nonprofits focused on providing services to workers. Our goal is to implement a new Technology Career Institute (TCI) that will expand MiraCosta College's successful machinist program and create additional industry-recognized technician certificate programs in North County. Our long-term vision is to: • Create a hub of training for North County where industry can count on a steady supply of skilled, motivated, and innovative workers. 7^ • Create a place where high school graduates, unemployed, underemployed and veterans can get trained quickly and transfer right into vacant Jobs or continue their education for further advancement. • Create pre-engineering certificate and credit programs that will eventually develop into a BS in Engineering through university partnerships. We have attached our project abstract for your reference so you can see our response to the grant and our intent for TCI. NOTE: As part of the grant package, MiraCosta College submitted many letters of participation and support from industry, local schools, and organizations. These letters can be provided upon request. WHAT WE HAVE ACCOMPLISHED BY DECEMBER 12.2013 This section is provided to the board so that you can see our investment in the Technology Career Institute and the pace at which MiraCosta College has been moving forward to ensure that we develop and deliver successful programs to our students. Since October 1, our department has done the following: • We traveled to over 10 colleges around the U.S. to learn about best practices. From these conversations, many schools have shared their curriculum and a variety of valuable resources. In addition, we have received a handful of verbal commitments to help us design curriculum, to help develop instructional equipment, and to be available for any follow up questions/support. • We began the hiring process for four new staff positions to support TCI. These positions will be filled over the next few months. • We have had an internal steering committee meeting with various departments and our Senior Administrators on campus to ensure all involved are informed and working together. • We have had an advisory board meeting with industry and local colleges/universities. With over 20 representatives, we were provided important perspectives on the manufacturing, biotech and maritime industries. We have met with local colleges and universities, as well as had communication with Brown University in order to collaborate and provide a streamlined educational plan for our students. We have met with someone who has expressed interest in working with us on another DOL grant that will expand our ability to purchase equipment for TCI. The consortium will consist of a local middle school, high school, our college. University of Southern California, and our local workforce investment board. This grant will focus on robotics/automation repair. We have researched national certifications in the areas of machining, electro-mechanical, automation/robotics, and hydraulics/fluid power. We are in the process of obtaining a new registration software program that will allow us the capability to track and better support our students. We have met with our evaluation team and are working on developing our data collection techniques that will be reported to the DOL, our college, and any interested parties within our community. yh NEXT STEPS By October 1, 2014 (conclusion of year one ofthe grant), we plan on accomplishing the following: • Hire expert instructors to assist with curriculum development and course implementation. These instructors, along with our educational partners and the data collected from our industry advisory meeting will guide us in designing our coursework and programs. These conversations will also help us in determining what equipment to purchase. • Early in 2014 we will form an external steering committee of schools and support service organizations that can help us with supplemental services for our students. • We will continue to hold both internal steering committee meetings and advisory board meetings to ensure that we are moving forward appropriately. • Secure the building for TCI and modify as needed. • Order machines and equipment. • Implement TAACCCT grant-funded programs in phases based on industry need. Depending on the building timeline, we may first start these programs at our current facility at the Landes Center in Oceanside, and then move them over with the machinist program when the new facility is ready. • Move our current machinist program and other non-technology based programs into the new building. • Begin the process of securing national certifications. Many of these certifications take many months of paperwork, training and testing, site visits, etc. • Begin developing transfer agreements, set-up initial coursework, and continue discussions with Cal State San Marcos, Palomar College, University of San Diego, and Brown University for long- term educational partnerships. By October 1, 2016 (conclusion of year three of the grant), we plan on accomplishing the following: • Maintain full classes of students to ensure best use of the facility and equipment, as well as serving as many students as appropriate given classroom and equipment available. • Successfully train almost 700 students within our advanced manufacturing and pre-engineering courses. • Graduate at least 90% of our students. • Continue to work closely with industry to provide Job shadowing, externships, and hiring opportunities for our students. • Help prepare at least 75% of our students to get (and retain a job) through our Job readiness coursework and support services. • Have multiple educational pathways established for students to continue their education beyond our initial courses and programs. • Create stackable academic credentials within all programs, creating additional educational opportunities for our students, both onsite at TCI and through transfer to nearby Universities. • Have all national certifications approved. • Add incumbent worker training programs to meet industry needs and provide further education to previous students. • Continue to look for and participate in grant projects to expand our current programs, develop additional industry requested programs, and purchase equipment that will enhance our offerings. Our hope is that this grant is funding the seed money for a regionally (if not nationally) recognized training center to successful educate students and get them into careers they love. We will continue to grow our successful work skill programs and develop new courses and programs as student and industry needs arise. Financially, our long-range goal is to have the tuitions charged for our courses sustain the building and programs, including all staffing and equipment. THE TEAM MiraCosta College Community Services & Business Development will be the primary organization using the Las Palmas facility. Community Services is the not-for-credit, fee-based arm of the college. We offer a variety of courses and programs, from enrichment courses. College for Kids and drivers education, to contract training and work skill programs. Over the last few years, we have been expanding our work skill programs to include training for unemployed, underemployed, active duty military personnel and veterans. We currently have twenty-two programs approved for WIA funding and nine programs approved for Gl Bill funding. For more information about who we are and what we offer, please visit www.miracosta.edu/communitv or www.miracostatraining.com. Unda Kurokawa is the Director of Community Services & Business Development. Linda has been working at MiraCosta College since August 2007. She has spent almost 20 years as an educational and program specialist. She has created and directed a huge variety of programs such as College for Kids, music academies, educator institutes, and career development training. Over the last few years she has most notably designed and implemented multiple grant-funded work skill training programs, pushed many of our work skill programs through the local career centers for WIA funds, worked with the city of Oceanside to create an additional training center within one of their city owned buildings, developed the highly successful manufacturing machinist technician program (all graduates are now employed), and done extensive outreach to our local community organizations and businesses in both a collaborative or training capacity. Christine Jensen, Ed.D. is the Special Programs Coordinator within the Community Services & Business Development office and will be the grant coordinator, housed at the new facility. She has been working at MiraCosta College since March 2007. Prior to MiraCosta, she has extensive years working in high schools and colleges. She has been a teacher, coach, and administrator, performing a variety of duties and creating a number of new programs. Over the last few years she has most notably designed and implemented multiple work skill training programs and submitted (and awarded) Gl bill approval for our office and nine work skill programs. The North San Diego Small Business Development Center (SBDC), currently housed on Mission Avenue in Oceanside, needs to relocate. Our hope is that they can use a portion of the building for their offices and share classroom space. The SBDC is a leading provider of consulting services and workshops for small businesses in North San Diego County. They offer workshops and resources that provide step-by- step information, as well as free one-on-one consulting services. For more information about who they are and what they do, please visit www.sandiegosmallbiz.com. y The credit department at MiraCosta College may share classrooms and labs. The President and board of MiraCosta College, as well as many of the staff and faculty would like to see Carlsbad as a fourth campus, better serving our district. The most likely courses and programs would include pre-engineering classes, 3D printing, and/or career and technical education courses. We have had a meeting with the Dean and Director of California State University, San Marcos Extended Education and they have shown interest in partnering with our organization. Although they do not currently have an engineering degree, their physics department is looking to build engineering classes and a B.S. degree. Their extended education department has the opportunity to offer credit classes and degrees all the way through a Master's degree. By housing some or all of these future courses with us, we help streamline a student's educational pathway. We have reached out to the engineering department at Brown University in Rhode Island (Christine Jensen's alma mater). Within this last year, the School of Engineering has received two large donations (in addition to some smaller donations), totaling $44 million. As a result, they are going to improve and expand their engineering facilities, equipment, and overall program. They have demonstrated interest in partnering with us in one or more ofthe following ways: • Brown faculty hosts pre-engineering coursework to potential students • Using the facility as an offsite location to offer Brown University courses and research • The development of Joint hands-on curriculum using equipment that they may not have, but would broaden the scope of student learning • Partnering with industry to work on projects PROJECTED REVENUE SOURCES Our office is self-supporting. In order to address this concern, we plan to receive money from the following sources: • Tuition. Our class costs are set up to cover the cost of the instructor, supplies/materials, basic marketing costs, and overhead costs. • Grants. Within the TAACCCT grant we have funds set aside for some basic building renovations and utilities. In addition, we will be able to purchase most of our equipment with the current grant. We anticipate participating in more grants in the future, and hope to use future funds to purchase additional equipment, cover initial program costs, as well as possibly scholarship students who might not have alternative funding sources. • Industry. We are working closely with industry and plan to continue to request donations of materials, equipment, and potentially donations to either go towards our general operating costs or to scholarship students. • Subleasing & RentaL Due to the size of the Las Palmas building, there are many opportunities to share classrooms/labs space and sublease offices to schools and organizations. Please see the "TEAM" section above for potential subleasing and rental partnerships. We believe that this combination of revenue sources will enable us to operate the Technology Career Institute, as long as we have some financial support from the City of Carlsbad (reduced monthly lease rate). Most of the TAACCCT grant money will go towards building renovations and start-up costs. By the time the grant funding is no longer available, we hope to have our courses and programs running on a regular basis, with full classes. In addition, we look to have the subleasing/rental options, new grant funds, and industry support in place to maintain additional costs no longer covered by the TAACCCT grant. OUR REQUEST We would like to request the use of the Las Palmas building at the reduced rate of 25 cents per square foot. At 22,627 square feet, that would be $5,656.75 a month and $67,881.00 a year. We would like a six year lease, with the option of extending the lease up to 20 years. Priorto move-in, we request that the city make the following improvements: • New roof • Update a couple of HVAC units • Power wash the outside of the building • Asphalt in the parking lot needs sealing and restriping • Make any additional repairs needed to meet ADA or Education Code standards for occupancy We request the ability to put up signage on the building and in the front ofthe lot. These signs will fall within the Carlsbad city requirements. IN CONCLUSION We understand that there is a significant reduction in the leasing rate. We hope that our proposal has provided you enough information to understand our commitment to creating an excellent, widely- recognized training facility. Both Linda Kurokawa and Christine Jensen are highly motivated to make TCI a success and get our unemployed, underemployed, and veteran population trained in advanced manufacturing and engineering technician skills. We are also very invested in creating opportunities for women to enter into STEM education, from the K-12 level all the way through retirement. We have the support ofthe college President, Board of Trustees, and many ofthe employees as well as local constituents to make this successful. Thank you for your time and consideration. (JRLSBAD CHAMBER OF COMMERCE EXHIBIT 4 December 6, 2013 City of Carlsbad 1200 Carlsbad Village Drive Carisbad, CA 92008 Dear City Council Members: We are writing to urge you to support MiraCosta College in its proposal to lease a City of Cai-lsbad-owned facility for Its new Technology Career Institute (TCI). At your upcoming council meeting on January 14, we urge you to vote to support of MiraCosta College's proposal to lease the property at 2075 Las Palmas, Carlsbad. In the Technology Career Institute's accelerated 12-week training program, students will take courses to learn and gain skills in electro-mechanical technology, process control, robotics, automation, fluid power, and machining technology. This curriculum ensures training on the latest developments in today's evolving technology fields. Students enrolled in TCI full-time will earn a credential in just three months and be exposed to local businesses through guest speakers, field trips to local businesses, and internship and job placement services. TCI plans to graduate more than 100 students each year, supplying North County technology businesses with the skilled workforce we need to grow and prosper. Founded in Oceanside in 1934, MiraCosta College has a long history of partnering with North County businesses to prepare students, including returning military veterans and the unemployed, for local workforce demands. Now, as it establishes the Technology Career Institute with Department of Labor funding from the Trade Adjustment Assistance Community College and Career Training grant program, MiraCosta College intends to meet North County's growing demand for skilled workers, including machine operators, programmers, and industrial technicians. We the Carlsbad Chamber support MiraCosta College's efforts to train qualified workers for technology positions in Nortii County through Technology Career Institute. On January 14, please vote to approve MiraCosta College's proposal to lease the property at 2075 Las Palmas. Sincere Charl&s T. Owen President & CEO Carlsbad Chamber of Commerce 5934 Priestly Drive • Carlsbad, California 92008 _ Phone: (760) 931-8400 • Fax: (760) 931-9153 • E-mail: chamber@carlsbad.org • Web: www.carlsbad.org qC^ Lease Agreement between the City of Carlsbad and Mira Costa Community College for 2075 Las Palmas DriveChristina Vincent, Economic Development ManagerJuly 8, 2014 Recommended ActionAdopt Resolution 2014‐171 approving the six year lease agreement between the City of Carlsbad and Mira Costa College Community Services and Business Development for lease of the city‐owned building, located at 2075 Las Palmas Drive to establish a North San Diego Technology Career Institute and relocate the Small Business Development Center.2 Timeline•Oct. 2013 –Mira Costa approached city staff for potential location in Carlsbad•Dec. 2013 –Mira Costa submitted an unsolicited proposal for Las Palmas facility•Feb. 2014 –Letter of Intent •June 2014 – Planning Commission approved conditional use permit Technology Career Institute•Extensive training and certification for advanced manufacturing–Automation certification–Electronics Technician certification–Metalworking Skills certification 4 2075 Las Palmas Drive5 Lease Agreement•Technology Career Institute and North County Small Business Development Center•Term: six years •Annual rent: $67,881•City obligation: deferred maintenance –HVAC, roof, parking lot•Mira Costa obligation: interior tenant improvements–signage, furnishings, internal setup, utilities, etc.6 Benchmarks and Reporting•Enrollment 550 new students annually and 225 incumbent•Graduation rate: 90% for new and 100% incumbent•Job placement rate: 90% for new–Within 3 months of graduation•Job placement number for Carlsbad companies: 75•Annual reporting July 1, each year7 Letters of Business Support•Carlsbad Chamber of Commerce•Precision Aircraft Group•NELGO Manufacturing•Cii CompucraftIndustries, Inc.•Asigma Corporation•Alphatec Spine•Legacy Machining Methods•C&H Machine•Forecast 3D•Somerset Capital Group•Predictive Biology•ViaSat•San Diego North EDC8 Recommended ActionAdopt Resolution 2014‐171 approving the six year lease agreement between the City of Carlsbad and Mira Costa College Community Services and Business Development for lease of the city‐owned building, located at 2075 Las Palmas Drive to establish a North San Diego Technology Career Institute and relocate the Small Business Development Center.9 Questions?10