MEMORANDUM OF UNDERSTANDING REGARDING MANAGEMENT OF THE LAKE MERCED TRACT

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June 24, 2011 Draft MEMORANDUM OF UNDERSTANDING REGARDING MANAGEMENT OF THE LAKE MERCED TRACT THIS MEMORANDUM OF UNDERSTANDING ("MOU"), dated for reference purposes only as of, 2011, is entered into by and between the City and County of San Francisco Recreation and Park Commission ("RPD") and the City and County of San Francisco acting in its proprietary capacity through the San Francisco Public Utilities Commission ("SFPUC"). RECITALS A. The Lake Merced Tract ( Tract ) is owned by the SFPUC, purchased in 1930 as part of the acquisition of the Spring Valley Water Company. B. On January 30, 1950, the SFPUC adopted Resolution No. 10,435 (Exhibit A), which gave RPD the right to "occupy, use and improve, for park and recreational purposes" the entire Tract, along with the right to grant concessions or leases. C. The RPD Commission adopted Resolution No. 1919 on February 15, 1950 (Exhibit B) accepting SFPUC's offer of managing the Tract for recreational purposes, subject to the conditions in SFPUC Resolution No. 10,435 and the exceptions noted in a February 9, 1950 letter from SFPUC General Manager James Turner concerning the 6.1 acre Lake Merced Pump Station Tract, enumerated rights-of-way for SFPUC subsurface pipelines through the Tract, and the connecting pipeline between the North and South Lakes (Exhibit C). D. The 1950 resolutions of SFPUC and RPD concerning the Tract did not constitute an interdepartmental transfer of property; the Tract remains utility property and is not considered "parkland" as that term is defined in provisions of the California Government Code and the San Francisco Charter. E. Since the adoption of SFPUC Resolution No. 10,435, RPD has managed the surface of the Tract for recreational purposes, including leases to third parties for the Lake Merced Boathouse, the Pacific Rod & Gun Club, and the Harding Park Golf Course. Addtionally, RPD manages the landscape surrounding the lakes, including the natural areas, and leads monthly volunteer work parties. F. Since the adoption of Resolution No. 10,435, the SFPUC has undertaken a number of studies to determine the relationship between the Tract and the Westside Basin Aquifer, has taken steps to stabilize Lake Merced water levels through agreements with the City of Daly City for the provision of recycled water to nearby golf courses, and is currently studying the use of treated stormwater for maintaining water levels. G. The San Francisco Board of Supervisors adopted Resolution No. 14-07 urging the SFPUC and RPD to work together to modify the provisions of SFPUC Resolution No. 10,435 to allow the SFPUC to manage the Tract following standards applied to the management of an urban watershed, and to allocate the resources necessary to have the SFPUC assume a greater role in the protection of water quality through creation of a long-term vision for the Tract that sustainably balances multiple beneficial uses, including management of natural areas, watershed protection and restoration, public education, and recreation. Page 1 of 12

June 24, 2011 Draft H. The purpose of this MOU is to further define the framework of cooperation between the SFPUC and RPD as it pertains to the beneficial uses and facilities of Lake Merced and the Tract in San Francisco, and certain other matters set forth below. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: AGREEMENT Recitals. The foregoing recitals are true and correct and are incorporated herein by this reference. A. Boundaries of the Tract. This MOU pertains to the Tract, as shown on SFPUC drawing no. X-1736A and attached hereto as Exhibit D. B. Effective Date; Term; Termination of Use. Effective Date; Term. The term of this MOU shall commence on November 1, 2011, and terminate on October 31, 2016. This MOU may be renewed for additional five year terms with written approval from both SFPUC and RPD. C. SFPUC Management Responsibilities in the Tract. Activities to be undertaken by the SFPUC in accordance with this subsection shall include, but not be limited to, the following: 1. Manage Lake Merced and the Tract in collaboration with RPD. 2. Design, develop, and fund projects and programs to augment Lake Merced water levels pursuant to water level goals adopted by the SFPUC. 3. Monitor and protect the water quality of Lake Merced. 4. Maintain and operate existing water supply and wastewater infrastructure within the Tract as referenced in Exhibit C, and shown on Exhibit D. 5. Fund RPD to (a.) operate and maintain existing public access facilities at Lake Merced, including public restrooms, paved paths, park benches, picnic areas, trash collection facilities and security structures and (b.) provide gardening, maintenance, and custodial services to maintain the grounds and the natural areas surrounding the Tract. The level of funding will be discussed and agreed upon by both SFPUC and RPD subject to review and approval by both parties commissions and the Board of Supervisors. Funding of capital expenditures at the Tract over and above $100,000 will be negotiated by SFPUC and RPD. 6. Monitor recreational, educational and maintenance activities in the Tract to ensure protection of water quality and compliance with SFPUC watershed management principles and public safety concerns. If the SFPUC determines, in its sole discretion, that an activity is having unacceptable impacts, the SFPUC will notify RPD to either modify or terminate the activity. 7. Work with the California Department of Fish and Game to enhance recreational fishing opportunities at Lake Merced. 8. Work with the San Francisco Department of Public Works and San Francisco Department of Parking and Traffic to ensure regular upkeep and maintenance of all roadways and parking facilities found within the Tract. Page 2 of 12

June 24, 2011 Draft D. RPD Management Responsibilities in the Tract. RPD will exercise the following responsibilities at Lake Merced: 1. Plan, program, and manage recreational activities within the Tract, with a particular focus on active outdoor recreation and waterborne programming. Administer the permitting process for all recreation activities including the charging and collecting of all fees. Respond timely to notices from the SFPUC regarding the need to modify or terminate activities that the SFPUC determines have unacceptable impacts on the Lake. 2. Provide RPD gardening and other appropriate staff for the maintenance of facilities and other agreed-upon tasks. SFPUC will provide funding for these tasks as described in Section C.5. 3. Restore, re-vegetate, and conserve the ecological system found within the natural areas surrounding the Tract, through RPD s Natural Areas Program in consultation with the SFPUC Natural Resources and Lands Management Division. 4. Work with the Department of Public Works, Neighborhood Parks Council, RPD-arranged Volunteer Work Parties, and other interested stakeholders in regularly scheduled clean up and restoration efforts at Lake Merced and within the Tract. E. Joint Responsibilities of SFPUC and RPD in the Tract. RPD and PUC will jointly be responsible for the following activities at Lake Merced: 1. Creation of an Annual Work Plan that responds to, and addresses, relevant management issues, events, and community interests that may impact existing uses, water quality, and/or any other existing activities at the Tract. 2. Convene an annual meeting of stakeholder groups to discuss management issues pertaining to the Tract and to solicit feedback from the community. 3. Develop a signage strategy plan for the Tract that incorporates wayfinding signs, ecology awareness and primary landmarks. Funding for this item has not yet been determined. F. Management of Leases, Licenses, and Management Agreements. In consultation with the SFPUC, recreational and park-related leases and licenses currently managed by RPD, with the exception of the Pacific Rod and Gun Club lease, will continue to be managed by RPD. The signing of this MOU will result in the transfer of Pacific Rod and Gun Club s lease from RPD to SFPUC. All lease and license payments from boating clubs, as well as revenues from fees and concession operations at the Harding Park Golf Course, shall accrue to RPD. RPD will be responsible for permitting events within the Tract. RPD will be responsible for issuing and managing Requests for Proposals ( RFP ) involving potential opportunities for recreational and park amenities. The SFPUC shall be responsible for issuing and managing Requests for Proposals involving potential opportunities for watershed management. RPD will be solely responsible for issuing and managing Requests for Proposals involving potential opportunities for the Lake Merced Boathouse, but will work cooperatively with SFPUC to find a tenant and a user agreeable to both parties. SFPUC will be represented on any selection committee for any Lake Page 3 of 12

June 24, 2011 Draft Merced Boathouse RFP. Future land use decisions within the Tract will be jointly coordinated between SFPUC and RPD Current tenants include: Dolphin Rowing Club PGA Tours & PGA The Players Championship Pacific Rowing Club San Francisco Rowing Club - UCSF San Francisco State University South End Rowing Club St. Ignatius Rowing Club Pacific Rod and Gun Club (The signing of this MOU will result in the transfer of the Pacific Rod and Gun Club lease from RPD to SFPUC.) G. Notices. All notices, demand, consents or approvals which are or may be required to be given by either party to the other under this MOU shall be in writing and shall be deemed to have been fully given when delivered in person to such representatives of RPD and SFPUC as shall from time to time be designated by the parties for the receipt of notices, or when deposited in the United States mail, postage prepaid, and addressed, if to RPD to: General Manager San Francisco Recreation and Park Department 501 Stanyan Street, McLaren Lodge San Francisco, CA 94117 and if to SFPUC to: General Manager San Francisco Public Utilities Commission 1155 Market Street, Eleventh Floor San Francisco, CA 94103 or such other address with respect to either party as that party may from time to time designate by notice to the other given pursuant to the provisions of this Section. H. Resolutions. Following approval of the Recreation and Park Commission and the San Francisco Public Utilities Commission, the respective resolutions indicating such approval shall be attached hereto as, respectively, Exhibit E and Exhibit F. IN WITNESS WHEREOF, the parties have caused this agreement to be executed as of the date first written above. Page 4 of 12

AGREED TO AS WRITTEN ABOVE: CITY AND COUNTY OF SAN FRANCISCO, a municipal corporation operating by and through THE SAN FRANCISCO RECREATION AND PARK DEPARTMENT AGREED TO AS WRITTEN ABOVE: CITY AND COUNTY OF SAN FRANCISCO, a municipal corporation operating by and through THE SAN FRANCISCO PUBLIC UTILITIES COMMISSION By: PHIL GINSBURG General Manager By: EDWARD M. HARRINGTON General Manager Date: Date: Authorized by Recreation and Park Commission Authorized by Public Utilities Commission Resolution No.: Resolution No.: Adopted: Adopted: Attest: Secretary Recreation and Park Commission Attest: Secretary Public Utilities Commission 5 N:\SPCLPROJ\AWOOD\PUC\MOU\MtDavidson8.doc

EXHIBIT A SFPUC RESOLUTION NO. 10,435 6 N:\SPCLPROJ\AWOOD\PUC\MOU\MtDavidson8.doc

EXHIBIT B PARK COMMISSION RESOLUTION NO. 1919 7 N:\SPCLPROJ\AWOOD\PUC\MOU\MtDavidson8.doc

EXHIBIT C FEBRUARY 9, 1950 LETTER FROM JAMES TURNER TO PARK COMMISSION 8 N:\SPCLPROJ\AWOOD\PUC\MOU\MtDavidson8.doc

EXHIBIT D Map of Lake Merced Tract 9 N:\SPCLPROJ\AWOOD\PUC\MOU\MtDavidson8.doc

EXHIBIT E RECREATION AND PARK COMMISSION RESOLUTION APPROVING MOU 10 N:\SPCLPROJ\AWOOD\PUC\MOU\MtDavidson8.doc

EXHIBIT F SFPUC RESOLUTION APPROVING MOU 11 N:\SPCLPROJ\AWOOD\PUC\MOU\MtDavidson8.doc

EXHIBIT G LAKE MERCED TRACT LEASES 12 N:\SPCLPROJ\AWOOD\PUC\MOU\MtDavidson8.doc