MEMORANDUM OF UNDERSTANDING

							                                        ADDENDUM NO. 2
                                         To Contract #04-77
                                 Joint Use Agreement Between The
                                       City of San Luis Obispo
                             and San Luis Coastal Unified School District


Addendum No. 2 is supplemental to the Joint Use Agreement (Agreement) between the City of San
Luis Obispo (City) and the San Luis Coastal Unified School District (District) for the Joint Use of
Facilities and the Provision of Programs dated December 17, 2002. Addendum No. 2 shall be effective
as of June 20, 2006, and relates to facilities and programs of the City of San Luis Obispo Parks &
Recreation Department (Recreation) and the District and is specific to the matters contained herein.
Other than the specifics outlined below, the Agreement remains in full force and effect. The parties
agree to the following:

                       III. Length of the Agreement and Provisions to Amend

3.1 [revised ] This Agreement shall remain in effect for a period of five (5) years, except that the tenure
and method of termination of the agreement with respect to those facilities specified in section 3.1.1
below shall be as specifically set forth in that section.

      3.1.1    In consideration of the fact that certain lease term requirements are associated with an
               application for a state or federal grant that may be requested for development of
               Sinsheimer Park, both parties hereto agree to keep in operation for a period of twenty-
               five (25) years from the date of acceptance of the Grant Project any recreational facility
               within Sinsheimer Park on which state or federal grant or bond monies were expended.

               Those Grant Project facilities currently intended to be subject to the provisions of this
               section are as follows:

                      1. Addition of a Children’s/Therapy Pool located at the Sinsheimer Swim center
                         facility located at 900 Southwood Ave. funded through a State Department of
                         Parks and Recreation Per Capita Grant Program under the California Clean
                         water, clean Air, Safe Neighborhood Parks, and Coastal Protection Act of
                         2002.

               This Community Recreation Agreement may be terminated only by mutual agreement of
               the parties. In the event that the District initiates action mutually to terminate this
               agreement and District elects to retain any City constructed improvements, District shall
               reimburse City for sums, if any, required by the terms of any grant to be repaid to the
               State or other grantor. Further, the District shall reimburse City for improvements placed
               on said site by City in an amount equal to the fair market value of said improvements as
               of the date this cancellation is to be effective, and title thereto shall vest in District
               without the necessity of a formal documentation of transfer effective on said date. In the
               event the parties cannot agree upon the fair market value of the improvements such
               market value will be determined by an independent real estate appraiser appointed by and
               agreeable to District and City. The expenses of such appraisal shall be borne equally by
               both parties. In the event the parties shall not agree upon the appointment of said
               appraiser, the parties shall petition the Presiding Judge of the Superior Court for the State
               of California, County of San Luis Obispo, to appoint the appraiser. In the event the City
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                initiates action to mutually terminate this agreement, all improvements and personal
                property placed on said site shall vest in District without further obligation of payment or
                reimbursement to City or any grantor and without the necessity of formal documentation
                of transfer, effective on the date of termination. Should District not desire such
                improvements and properties, District shall so notify City in writing and thereupon City
                shall remove said improvements and properties within a reasonable period of time, as
                mutually agreed but not to exceed 18 months, return the sites to their original condition
                insofar as possible. In the event of such City initiated mutual termination, or any mutual
                termination under which the District does not elect to retain any City constructed
                improvements, City shall be responsible for repayment of sums, if any, required by the
                terms of any grant to be repaid to the State or other grantor.


                                    IX. Electronic Key System (New)

9.1    Installation - At the request of City, District has installed an electronic key system for
       Recreation’s access to the following six gymnasiums:

                                  Hawthorne Elementary
                                  Los Ranchos Elementary School
                                  Pacheco Elementary School
                                  Sinsheimer Elementary School
                                  C.L. Smith Elementary School
                                  San Luis Obispo High School Taylor Gym

                                        XI. Park Ranger Service

11.1   City offers to District park ranger patrol services for school athletic fields and tennis courts
       within the San Luis Obispo City limits at a cost of $25.75 per hour, to be adjusted annually in the
       manner described in section 10.1 of this agreement, and $.405 cents per mile, to be adjusted
       quarterly. The level of service required by the District will be negotiated on an annual basis.
       City estimates cost at $400 ($320 staff, $80 mileage) per week when fields are closed and $200
       ($160 staff, $40 mileage) per week when fields are available for use.


IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and
year first above written.

ATTEST:                                            City of San Luis Obispo
                                                   (A Municipal Corporation)


City Clerk                                         David F. Romero
                                                   Mayor

Approved as to form:                               San Luis Coastal Unified School District


City Attorney                                      Russell Miller
                                                   Assistant Superintendent, Business Services

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