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HomeMy WebLinkAboutCC AG PKT 2015-09-28 #I CITY OF SEAL BEACH OFFICE OF THE CITY ATTORNEY 211 Eighth Street,Seal Beach,California 90740 Telephone 562.431.2527 Facsimile 562.431.4067 MEMORANDUM TO: Honorable Mayor and Members of the City Council CC: Jill R. Ingram, City Manager FROM: Craig A. Steele DATE: September 21, 2015 SUBJECT: Lease Agreement with the Seal Beach Historical Society Summary of Request: That the City Council approve Resolution No. 6598: 1. Approving the new lease agreement between the City and the Seal Beach Historical Society for the continued location of the Red Car. 2. Authorizing the Mayor to sign the lease on behalf of the City. 3. Directing the City Manager and City Attorney that if the new lease agreement is not fully executed by the Seal Beach Historical Society within seven(7)business days of approval by the City Council, staff shall deliver notice to the Historical Society that the existing lease is terminated. Background and Analysis: In October of 1981, the Seal Beach Redevelopment Agency granted a lease to the Seal Beach Historical Society for a portion of the old Pacific Electric right-of-way that is now the Seal Beach Greenbelt. The lease grants use of the property to the Society for the display of the Society's historic Red Car for the sum of one dollar per year. The lease renews automatically each year, but may be terminated by either party on thirty (30) days written notice. The lease also grants to the Society the use of a large area of the Greenbelt to the north of the Red Car location that is not needed for the day-to-day display of the Red Car. The Society occasionally uses this excess property for a special event. The existing lease and ownership of the property transferred to the City with the dissolution of the Redevelopment Agency. Upon acquisition of the historic Anaheim Landing cottage,the City notified the Society that it wishes to reclaim the excess leased property from the existing lease, Agenda Item CITY OF SEAL BEACH MEMORANDUM Honorable Mayor and Members of the City Council September 21, 2015 Page 2 and amend the lease to show the City as the property owner and lessor. Removing the excess property from the lease could potentially facilitate the location of the cottage slightly to the east of where it sits currently, and enhance the historic nature of the displays in that area of the Greenbelt. Former City Attorney Quinn Barrow has reached out to the officers of the Society on a number of occasions to try and get this matter worked out. Unfortunately, as of this writing, the Society has not yet responded finally and officially to the City's request to amend the lease. To move the matter along, our office has prepared and presented to the Society a new lease agreement that provides all the terms we have discussed with them. The more significant changes to the lease contemplated by this new lease are as follows: 1. Change the property owner party from the Redevelopment Agency to the City. 2. Change the commencement date from October 27, 1981 to October 1, 2015 and provide that the old agreement is superseded. 3. Change the description of the surrounding property in Section 2 from Pacific Electric Right of Way to City of Seal Beach Greenbelt. 4. Provide a new depiction of the reduced space being leased to the Society, in Exhibit A of the Agreement, which is sufficient to allow for the Society's continuing use of the site for display of the red car,but no longer includes the excess City Greenbelt property to the north not needed for the red car location. 4. In Section 3, clarify that the Society cannot impede public use of the public sidewalk that traverses the site, which may also be used for future access to the cottage site. 5. Clean-up language in Section 5 to clarify that the Society may have to apply for permits for special events. This is not a new requirement, only a clean-up of existing language. 6. Clarify that the City has the right to repair, replace or extend the public sidewalk that exists on the Site. We hope to have the Historical Society's consent to this new lease prior to the City Council meeting on September 28. They asked us to continue the City's decision to that date to allow them time to respond. If the Society decides not to cooperate in this change which still provides the property sufficient to display the Red Car,we recommend that the City terminate the existing lease so that the City can take further necessary steps to plan for the future of that area. CITY OF SEAL BEACH MEMORANDUM Honorable Mayor and Members of the City Council September 21, 2015 Page 3 The amendment of the lease and the historical display in that area of the Greenbelt are consistent with the General Plan and the applicable Specific Plan,which contemplates the location of the Red Car and other displays relating to Seal Beach's history in that area of the Greenbelt. Environmental Impact: This action is exempt from CEQA review as it can be seen with certainty that the approval of a new lease for the existing location of the Red Car will have no impact on the environment. Fiscal Impact: If the new lease is fully executed, there will be no economic impact as the lease payment remains the same. If the existing lease is terminated,the City will lose one dollar per year in lease revenue. Recommendation: Staff and the City Attorney recommend that the City Council approve Resolution No. 6598: 1. Approving the new lease agreement between the City and the Seal Beach Historical Society for the continued location of the Red Car. 2. Authorizing the Mayor to sign the lease on behalf of the City. 3. Directing the City Manager and City Attorney that if the new lease agreement is not fully executed by the Seal Beach Historical Society within seven(7) business days of approval by the City Council, staff shall deliver notice to the Society that the existing lease is terminated. Attachment(s) RESOLUTION NUMBER 6598 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING A LEASE AGREEMENT WITH THE SEAL BEACH HISTORICAL SOCIETY FOR THE CONTINUED LOCATION OF THE HISTORIC RED CAR AND GIVING DIRECTION TO STAFF THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: SECTION 1. The City Council hereby approves the revised lease agreement between the City and the Seal Beach Historical Society for the continued location of the historic red car, in the form attached as Exhibit A. SECTION 2. The City Council hereby authorizes and directs the Mayor to execute the lease on behalf of the City. SECTION 3. The approval of the lease agreement is exempt from CEQA review as it can be seen with certainty that the proposed action will not make any physical change to the environment that could possibly have any adverse environmental impact. SECTION 4. The proposed lease is consistent with the General Plan and the applicable Specific Plan, which contemplates the location of the red car and other displays of Seal Beach's history in that area of the Greenbelt. SECTION 5. If the approved lease is not fully-executed by the Seal Beach Historical Society within seven (7) business days of approval by the City Council the City Manager and City Attorney are directed to provide written notice to the Seal Beach Historical Society that the existing lease of City property is terminated. PASSED, APPROVED, and ADOPTED by the Seal Beach City Council at a regular meeting held on the 28th day of�e ter, 2015 by the following vote: AYES: Council Members-, NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: Mayor ATTEST: Acting City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Tina Knapp, Acting City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6598 on file in the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council at a regular meeting held on the 28th day of Septemb ir,,2015. Acting City Clerk "" ���,,r�y� �lw"•"�'�wf�� /%, "„ / /J OF, Jaub / to"" �' � ✓rrl/f i r IJ r ,w oji ro� I s / I Fl j7//"fi r r I � o i Z, CIA / , I� w f r � /o r r J� �, ✓ �' �i a/Ili, V, I AGREEMENT THIS AGREEMENT is made and entered into this 1st day of October, 2015, by and between THE CITY OF SEAL BEACH, hereinafter referred to as "City," and the SEAL BEACH HISTORICAL SOCIETY, a California corporation, hereinafter referred to as "Society." WITNESSETH WHEREAS, Society is a nonprofit corporation interested in the accumulation, preservation, and restoration of historical artifacts representing the City's past history; and WHEREAS, City recognizes the need to accumulate and preserve these artifacts for future citizens of the City of Seal Beach; and WHEREAS, Society owns an original Pacific Electric railroad car that has become a historical focal point for the community. NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is agreed by and between the parties hereto as follows: 1. This Agreement supersedes that certain agreement between parties (with the City of Seal Beach now the legal Successor Agency to the dissolved Seal Beach Redevelopment Agency) dated October 27, 1981 pertaining to the same subject matter. 2. The term of this Agreement shall be for a period of one year commencing on October 1, 2015 and shall be renewed automatically for a one year term each year thereafter unless terminated earlier. Either party may cancel this Agreement upon thirty (30) days prior written notice to the other party. 3. City hereby leases to Society the portion of the City of Seal Beach Greenbelt now occupied by the railroad car as well as a portion of the adjacent area("the Site") as shown on Exhibit A, attached hereto and incorporated herein by this reference, at an annual lease fee of one dollar($1.00)per year,payable in advance. 4. Society shall control and regulate ingress to and egress from the Site and all of Society's activities within the Site, except that Society shall have no right to exclude any person from using the public sidewalk that traverses the Site. 5. Society shall restrict all vehicular access to the Site except for the loading and unloading of supplies. 6. The uses of the Site may include museum showings, concerts, art shows, and other similar activities including fund raising functions. All activities conducted on the Site shall comply with the ordinances of the City of Seal Beach and any applications for permits for activities as required by such ordinances shall be completed and submitted to City by Society in advance. -1- Error! Unknown document property name. 7. Society shall hold harmless and indemnify City against any and all obligations or liabilities whatsoever arising out of Society's use or possession of the Site. Society shall obtain and maintain at all times during the term of this Agreement public liability and property damage insurance protecting Society in amounts not less than. $1,000,000.00 for personal injury to any one person, $1,000,000.00 for injuries arising out of any one occurrence, and $500,000.00 for property damage. Said insurance shall name City, its officers, agents and employees as additional named insured parties, and shall not be cancellable nor shall the coverage be reduced without a thirty (30) day prior written notice to City. Society shall file and maintain on file with City at all times during the term of this Agreement a current copy or certificate of said insurance. 8. Society shall maintain the Site in a neat and orderly condition so that the activities thereon will have a minimum impact on adjacent properties to the satisfaction of City. 9. City shall maintain the landscaped area within and adjacent to the Site. City may, in its sole discretion, control the use of areas adjacent to the Site and may repair, replace and/or extend the public sidewalk on the Site. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. SEAL BEACH HISTORICAL SOCIETY, THE CITY OF SEAL BEACH a California corporation By: By: President Ellery A. Deaton, Mayor ATTEST: By: Secretary By: Tina Knapp, Acting City Clerk APPROVED AS TO FORM: By: Craig A. Steele, City Attorney -2- Error! Unknown document property name.