REPORT TO THE CITY COUNCIL FROM: GEORGEANNE A. WHITE, City Manager Office of the Mayor & City Manager BY: JENNIFER RUIZ, Deputy City Manager Office of the Mayor & City Manager SUBJECT ..Title Actions pertaining to an Exclusive Negotiating Agreement with Fresno's Chaffee Zoo Corporation: 1. Invoke Exception to the Better Business Act pursuant to Section 2 pertaining to certain Exclusive Negotiating Agreements. 2. Enter into an Exclusive Negotiating Agreement with Fresno's Chaffee Zoo Corporation to develop the terms of an Amendment to the Lease Agreement and to negotiate terms to construct, operate, manage, and maintain anticipated improvements to parking facilities. ..Body RECOMMENDATION Staff recommends the City Council invoke the exception to the Better Business Act pursuant to Section 2 pertaining to certain Exclusive Negotiating Agreements and to approve the Exclusive Negotiating Agreement between the City of Fresno and the Fresno Chaffee Zoo Corporation and authorize the City Manager to sign all implementing documents, approved as to form by the City Attorney's Office. EXECUTIVE SUMMARY Pursuant to City Council approval of an exception to the Better Business Act pertaining to certain Exclusive Negotiating Agreements, staff recommends invoking the exception for the proposed Exclusive Negotiating Agreement with the Fresno Chaffee Zoo Corporation to develop the terms of an amendment to the Lease Agreement and to negotiate terms to construct, operate, manage, and maintain anticipated improvements to parking facilities. Fresno's Chaffee Zoo Corporation ("Zoo"), a privately created California public benefit corporation, entered into the current lease agreement with the City of Fresno on January 1, 2006. In July 2007, the Zoo released a Facility Master Plan to serve as a "roadmap" for future Zoo development. The proposed Exclusive Negotiating Agreement (ENA) will open negotiations between the City and the Zoo regarding the desire to jointly undertake improvements to the parking facilities in Roeding Park in the general vicinity of the current employee and overflow parking lots, and maintenance yard to the north of the Fresno Chaffee Zoo boundary ("Project Area"). The improvements would include the construction of up to two multi-story parking structures along with related landscaping and parkland improvements, collectively referred to as the "Parking Facilities Project". BACKGROUND Fresno's Chaffee Zoo Corporation ("Zoo"), a privately created California public benefit corporation, entered into the current lease agreement with the City of Fresno on January 1, 2006. The Zoo's history at Roeding park dates back to as early as 1907, although official recognition as a zoo by The American Association of Zoological Parks and Aquariums (AAZPA - now AZA) occurred in 1929. Over the years the zoo has gone through various changes in its governance, and within its exhibits, and in 2004, Measure Z was approved as a Fresno County sales tax to financially support zoo improvements. In July 2007, the Zoo released a Facility Master Plan to serve as a "roadmap" for future Zoo development. The proposed Exclusive Negotiating Agreement (ENA) will open negotiations between the City and the Zoo regarding the desire to jointly undertake improvements to the parking facilities in Roeding Park in the general vicinity of the current employee and overflow parking lots, and maintenance yard to the north of the Fresno Chaffee Zoo boundary ("Project Area"). The improvements would include the construction of up to two multi-story parking structures along with related landscaping and parkland improvements, collectively referred to as the "Parking Facilities Project". The project is anticipated to provide a substantial public benefit by improving public access to the Zoo and Roeding Park, as well as improving traffic flow and parkland improvements. The City anticipates that cooperation on the Parking Facilities Project will require negotiating the terms of several project components, including but not limited to: * Negotiation of an Amendment to the Lease Agreement to expand the leased premises and extend to term beyond 30 years; and * Negotiation of terms to operate, manage, and maintain the facilities constructed as part of the Parking Facilities Project; and * Negotiation of each Party's financial contribution to the construction of the Parking Facilities Project; and * Negotiation of terms relevant to allocation of revenue from the Parking Facilities Project once operation begins; and * Negotiation of any other terms as may be necessary to facilitate the Parking Facilities Project, including, but not limited to, terms relevant to utilities and public infrastructure necessary to serve the project site. The Parties intend to negotiate mutually acceptable terms and conditions in an Amended Lease Agreement and such other ancillary agreements as may be necessary (collectively the "Agreements"), that will define the Parties' rights, obligations and participation in the development of the Parking Facilities Project. Pursuant to City Council approval of an exception to the Better Business Act pertaining to certain negotiating agreements, staff recommends invoking the exception for the proposed Exclusive Negotiating Agreement with the Fresno Chaffee Zoo Corporation to develop the terms of an Amendment to the Lease Agreement and to negotiate terms to construct, operate, manage, and maintain anticipated improvements to parking facilities. ENVIRONMENTAL FINDINGS The Exclusive Negotiating Agreement is not a project for the purposes of the California Environmental Quality Act or the National Environmental Policy Act, however it will require that the Parking Facilities Project complies with applicable environmental impact laws. LOCAL PREFERENCE Local preference is not applicable as this is not a solicitation for a contract or funds. FISCAL IMPACT There is no fiscal impact to the General Fund or any other fund within the City of Fresno. Attachment: Exclusive Negotiating Agreement