DATE: April 22, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: APPROVAL OF AN AMENDMENT TO THE AGREEMENT FOR REIMBURSEMENT OF ARCHITECTURAL DESIGN COSTS FOR THE OCEANSIDE MUSEUM OF ART EXPANSION PROJECT AND APPROVAL OF AN AGREEMENT FOR DISTRIBUTION OF CALIFORNIA NATURAL RESOURCES AGENCY GRANT FUNDS
RECOMMENDATION
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Staff recommends that the City Council:
1. Approve the Amendment to the Agreement for Reimbursement of Costs for Architectural Design Fees for the Conversion of Old Fire Station No. 1 with the Oceanside Museum of Art to allow the City's $600,000 contribution to be provided as an advance rather than reimbursement;
2. Approve the Agreement for Distribution of Grant Funds between the City of Oceanside and the Oceanside Museum of Art for the administration and distribution of California Natural Resources Agency (CNRA) General Fund Specified Grant funds; and
3. Authorize the City Manager to execute the amendment and agreement upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
The City of Oceanside and the Oceanside Museum of Art (OMA) are parties to an Amended and Restated Lease Agreement approved by City Council on December 3, 2025, which expanded the museum premises to include the historic Old Fire Station No. 1 and established the framework for its renovation as part of the museum campus.
As part of the City's commitment to support the project, the City previously entered into an Agreement for Reimbursement of Costs for Architectural Design Fees dated June 5, 2024, under which the City agreed to reimburse OMA up to $600,000 for eligible architectural and engineering design costs associated with the Fire Station renovation.
OMA has requested that the City modify the payment structure to allow funds to be provided as advances rather than reimbursements to support project cash flow during the design phase.
The proposed amendment revises the agreement to allow the City to advan...
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