Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of February 26, 2019
Title
ONE-YEAR EXTENSION OF THE ROTARY CLUB LEASE
AGREEMENT FOR USE OF THE ROTARY FACILITY
(2521 VALLEY DRIVE); AND AUTHORIZATION TO
BEGIN NEGOTIATING WITH THE ROTARY CLUB
FOR FUTURE LEASE AGREEMENTS
(Community Resources Manager Kelly Orta)
Body
Recommended Action:
Recommendation
Staff recommends that the City Council:
1. Approve the one-year extension of the Rotary Club lease agreement, retroactive to July 31, 2018, to expire July 31, 2019; and
2. Authorize staff to negotiate a future lease agreement with the Rotary Club for the Rotary Facility beyond July 31, 2019.
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Executive Summary:
In the early 1950’s, the Rotary Club of Hermosa Beach, a local non-profit organization, constructed the current Rotary facility at 2521 Valley Drive at its expense. The Rotary Club has since managed and maintained the facility, primarily focused on providing a location for various youth organizations to meet. In consideration of current efforts by the Parks, Recreation and Community Resources Advisory Commission’s Municipal Lease Subcommittee in creating guidelines for the development of a formal municipal lease policy, staff recommends a one-year extension to the current lease agreement with the Rotary Club, retroactive to July 31, 2018. This recommended extension would be valid through July 31, 2019. Further, Staff requests Council authorization to begin negotiating a future agreement with Rotary Club representatives for their use of the facility, which would be brought back to the City Council for formal approval prior to July 31, 2019.
Background:
In the early 1950’s, the Rotary Club of Hermosa Beach, a local non-profit organization, constructed the current Rotary facility at 2521 Valley Drive at its expense. The Rotary Club has since managed and maintained the facility, primarily focused on providing a location for various youth organizations to meet. In September 2009, the City entered into the most recent formal lease agreement with the Rotary Club for its exclusive use of the facility for a three-year term, expiring July 28, 2012 (Attachment 1). A first amendment to this agreement was approved by the City Council at its February 12, 2013 meeting, which included an additional three-year term, expiring July 31, 2015 (Attachment 2). Most recently, a second amendment was approved by the City Council at its July 28, 2015 meeting, extending the agreement to a final three-year term through July 31, 2018 (Attachment 3).
Discussion:
The Rotary Club of Hermosa Beach independently manages and maintains the Rotary facility, which hosts private gatherings, meetings, and a variety of youth programming. All proceeds collected through private use of the facility are required to be utilized for building upkeep and maintenance, as described in paragraph 4 of the lease agreement (Attachment 1).
Since 2016, the Parks, Recreation and Community Resources Advisory Commission (Commission) has been working on the creation of guidelines to inform a comprehensive municipal lease policy to formalize the use of City facilities by various organizations. The Commission created a Municipal Lease Policy Subcommittee (Commissioners Rosenfeld and Pizer-Mains) specifically tasked with furthering the Commission’s efforts in creating parameters for a lease policy that staff will recommend to City Council for formal adoption. Since creation of the Subcommittee, expiring lease agreements for facilities at the Community Center have been extended for one-year terms in anticipation of a newly adopted policy that could be implemented at each lease agreement’s expiration. In order to allow staff and Rotary Club representatives to negotiate a future lease agreement, staff recommends a similar one-year agreement approach.
Additionally, on the City Council’s agenda this evening is an update from the Subcommittee including policy guidelines that, if approved, will guide the creation of a formal lease policy. While there is not an anticipated date for presentation of the policy to the City Council, the Subcommittee remains committed to its work and desires returning to the Commission with its recommended policy guidelines, which will ultimately inform a formal recommendation for Council adoption as soon as possible.
General Plan Consistency:
This report and associated recommendations have been evaluated for their consistency with the City’s General Plan. Relevant policies are listed below:
• Parks and Open Space Goal 3. Community parks and facilities encourage social activity and interaction.
o 3.4 - Balance space needs. Balance the space needs and demand on public resources of formal and informal events.
o 3.6 - Availability of City facilities. Consider the demand and availability of City facilities for general community use in the long-term lease and/or rental of City facilities.
Fiscal Impact:
Per paragraph 4 of the lease agreement, the Rotary Club of Hermosa Beach would be charged $1 for the one-year extension.
Attachments:
1. Rotary Club Lease Agreement
2. First Amendment to the Rotary Club Lease Agreement
3. Second Amendment to the Rotary Club Lease Agreement
4. Third Amendment to the Rotary Club Lease Agreement (DRAFT)
Respectfully Submitted by: Kelly Orta, Community Resources Manager
Noted for Fiscal Impact: Viki Copeland, Finance Director
Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager