HomeMy WebLinkAbout2015-06-16; City Council; 22023; Agreement The Rochester Institute of TechnologyCITY OF CARLSBAD-AGENDA BILL 1
AB# 2Z,Dn DEPT. DIRECTOR ~
MTG. 06/16/15 APPROVE EXCLUSIVITY AGREEMENT WITH CITY ATTORNEY Jf1
DEPT. City Mgr. THE ROCHESTER INSTITUTE OF TECHNOLOGY CITY MANAGER f'1rl'\
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RECOMMENDED ACTION:
Approve Resolution No. 2015-152 entering into an exclusivity agreement between the City of Carlsbad
and the Rochester Institute of Technology.
ITEM EXPLANATION:
As part of their economic development initiative, the Carlsbad City Council voted to add the recruitment
of a higher education institute to their priority projects list after their goal setting session in 2012. This
was confirmed in subsequent goal setting sessions. In support of this goal, city council approved hiring
higher education recruitment consultant in 2013 and approved the use of the facility located at 5815 El
Camino Real by a higher education institution in January 2014.
In May 2014, the City of Carlsbad released a Request for Expressions of Interest (RFEI) soliciting interest
from the higher education community to offer graduate level programs that would align with the city's
high-tech talent needs, specifically in the field of engineering. The city sent the RFEI directly to over 30
academic institutions that were identified based on their science, technology and engineering academic
and research programs, their potential initiatives to develop remote academic programs, and their
geographic location. For the latter category, there was a focus on schools with strong engineering and
technology programs that are located in declining employment markets with the assumption that the
vibrant life sciences and communication technology sectors in North San Diego County would be of
particular interest.
Twelve institutions of higher education contacted the City of Carlsbad in response to the RFEI. Three
formal responses to the RFEI were received and evaluated by the city's goal team for the project
including representatives from Library & Cultural Arts, Public Works, Community & Economic
Development, Administrative Services, and Police. The responding institutions were Arizona State
University, Missouri University of Science & Technology and Rochester Institute of Technology.
Ultimately, Arizona State University withdrew their interest in the process due to other strategic
priorities on the part of their engineering school. Staff evaluated and interviewed Rochester Institute of
Technology and Missouri University of Science & Technology and recommends the city enter into
exclusive negotiations with Rochester Institute of Technology.
As a university with both a national and international focus and highly recognized programs in
computing, engineering, and imaging science, Rochester Institute of Technology {RIT) would be a strong
fit for Carlsbad and serve the objectives ofthe City's Higher Education Initiative. RIT is recognized for its
DEPARTMENT CONTACT: Kathy Dodson 760-434-2829 kathy.dodson@carlsbadca.gov
FOR CITY CLERKS USE ONLY. ~ COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC D
DENIED D CONTINUED TO DATE UNKNOWN D
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Higher Education Update
June 16, 2015
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interdisciplinary research centers and centers of excellence in such fields as Digital Imaging, NanoPower
Research, Sustainable Manufacturing, and Media, Arts and Gaming. Additionally, RIT has been ranked
by Aviation Week as third nationally (after Penn State and Georgia Tech, and just ahead of MIT) as one
of the key schools companies prefer when recruiting and hiring in critical skills areas for the aerospace
and defense industries.
As part of the proposal process, RIT leadership and staff met with representatives of several of
Carlsbad's largest technology sector employers and have tailored their projected academic program to
specifically meet these companies' skills needs. RIT has therefore proposed for its first phase in
Carlsbad a series of career-oriented educational programs with a focus on research-based graduate-
level programs in computer engineering, electrical engineering, and sustainable engineering. Further,
several additional programs could be offered in Phase 1 or future phases depending on need and
demand; these could include multidisciplinary graduate programs in bioscience and clean technology.
RIT has requested exclusivity in order to dedicate their resources to further pursue this initiative. RIT
staff and representatives are visiting Carlsbad to meet with the city, local and regional businesses, other
higher education institutions and key stakeholders to determine the viability of establishing a physical
presence in Carlsbad. City staff will discuss potential lease terms with Rochester Institute of Technology
for the portion of the building located at 5815 El Camino Real which the institution has proposed
utilizing in their response to the RFEI. Should the due diligence being conducted by RIT prove fruitful,
and the institution desires to move forward with plans to establish a physical presence in Carlsbad, city
staff will negotiate formal lease terms and return to City Council for approval of proposed lease terms.
FISCAL IMPACT:
Exclusive negotiations with RIT do not have a direct fiscal impact to the City of Carlsbad. The exclusivity
agreement agreed upon by Rochester Institute of Technology allows them to conduct more detailed
research into the viability of establishing a satellite campus. Any lease terms that are negotiated as a
result of this exclusivity agreement will be presented to City Council for approval along with anticipated
fiscal impacts, including real estate options for the city-owned property located at 5815 El Camino Real.
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. Proposed future development of 5815 El Camino Real and any adjacent
city-owned lots may require CEQA review and will be required to comply with all appropriate CEQA
requirements.
EXHIBITS:
1. City Council Resolution No. 2015-152
2. Exclusivity Agreement
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EXHIBIT 1
RESOLUTION NO. 2015-152
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ENTERING INTO AN EXCLUSIVITY AGREEMENT
BETWEEN THE CITY OF CARLSBAD AND THE ROCHESTER
INSTITUTE OF TECHNOLOGY
WHEREAS, the Carlsbad City Council voted to add the recruitment of a higher education
institute to their priority projects list after their goal setting session in 2012, recognizing the
need to attract talent so support the city's thriving business community; and
WHEREAS, in May 2013, City Council approved hiring a higher education consultant to
assist with the recruitment process and approved the use of the facility located at 5815 El
Camino Real by a higher education institution in January 2014; and
WHEREAS, in May 2014, the City of Carlsbad released a Request for Expressions of
Interest (RFEI) soliciting interest from the higher education community to provide graduate
level programs that would align with the city's high-tech talent needs; and
WHEREAS, twelve higher education institutions contacted the city in response to the
RFEI and three institutions -Arizona State University, Missouri University of Science &
Technology, and Rochester Institute of Technology-submitted formal responses; and
WHEREAS, Rochester Institute of Technology is determined to be the best fit for
Carlsbad because of its ranking as a top engineering institution, its strength in the cooperative
education model, its recognition for interdisciplinary research centers as well as its recognition
as a key school which companies prefer when hiring in critical skills areas for aerospace and
defense industries; and
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WHEREAS, Rochester Institute of Technology has requested exclusivity in order to
dedicated their resources to further pursue this initiative and determine the viability of
establishing a physical presence in Carlsbad.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California
as follows:
1. That the above recitations are true and correct.
2. That the City Council entering into an exclusivity agreement with the Rochester
Institute of Technology.
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1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
2 of Carlsbad on the 16th day of June, 2015, by the following vote to wit:
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AYES: Council Members Hall, Blackburn, Schumacher, Wood, Packard.
NOES: None.
ABSENT: None.
ATTEST:
EXHIBIT 2
Exclusivity Agreement
This Exclusivity Agreement ("Agreement") is entered into this f]-lh day of June,
2015 ("Effective Date"), by and between the City of Carlsbad, a California municipal
corporation, ("City") and the Rochester Institute of Technology, a (qp:>v-M~("RIT")
(collectively, the "Parties").
RECITALS
WHEREAS, in May 2014 City issued a Request for Expressions of Interest for a Higher
Education Institution, Research Facility or Consortium of Institutions.
WHEREAS, RIT provided a proposal in response to the Request for Expressions of
Interest.
WHEREAS, after reviewing the responsive proposals, City has selected RIT as its
preferred Higher Education Partner to bring a graduate level engineering campus to Carlsbad.
WHEREAS, Parties wish to enter into a 90 day exclusivity agreement to allow RIT to
complete its necessary research and due diligence regarding its proposal to bring a graduate
level engineering campus to Carlsbad.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, Parties agree as follows
1. For a period of Ninety (90) days beginning on the Effective Date ("90 Day
Period"), the Parties will work exclusively with each other on the establishment of a graduate
level engineering facility in Carlsbad.
2. City agrees that during the 90 Day Period it will not enter into negotiations with
any other higher education institution for the establishment of a graduate level engineering
facility in Carlsbad.
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3. RIT agrees to deliver to City, by the end of the 90 Day Period:
a) An updated description of the Carlsbad Academic Program to include a
detailed description of the program and implementation schedule, and
b) An updated description of the Project Costs for implementation of a
physical campus at 5815 El Camino Real, Carlsbad, California, to include the
scope of work, design of project and sources of financing.
4. 10 business days after the conclusion of the 90 Day Period, the City of Carlsbad
and RIT will determine whether the project is feasible and, if so, the Parties will enter into lease
negotiations. If either Party does not wish to proceed, there shall be no further obligations on
the part of either Party.
ROCHESTER INSTITUE OF TECHNOLOGY
Provost and Senior Vice President
for Academic Affairs
Rochester Institute of Technology
CITY OF CARLSBAD, a municipal corporation of
the State of California
By:~
Kathy Dodson~
Interim City Manager
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