TITLE
Recommendation to authorize City Manager to execute a Ninth Amendment to Historical Site Lease No. 24291 with Rancho Los Alamitos Foundation to provide for the annual increase of the management fee to $503,200. (District 3)
DISCUSSION
On October 3, 1995, the City Council authorized a historical site lease with the Rancho Los Alamitos Foundation (Foundation) to manage, operate and interpret the City's historical site known as Rancho Los Alamitos Historic Ranch and Gardens (Rancho). As stated in the Historical Site Lease (Lease), the Foundation is responsible for enhancing the educational value of the site through public and community activities, assemblies and visits. Maintenance responsibilities include maintenance of gardens, residential and agricultural structures, interiors and furnishings, fixtures, utilities, carpeting, and equipment.
In consideration of the Foundation's agreement to. manage the educational, historical and community service aspects of the Rancho, the City pays the Foundation an annual management fee. The Lease provides for an annual increase to the fee based on the Consumer Price Index (CPI). The annual fee with the CPI increase for 2007 is $503,200. A lease amendment is required to reflect the increase. All other terms and conditions of the Lease will remain in effect.
This matter was reviewed by Senior Deputy City Attorney Donna F. Gwin on November 2, 2006, and by Budget Management Officer David Wodynski on November 8, 2006.
TIMING CONSIDERATIONS
City Council action is requested on November 21, 2006, to authorize the execution of the Ninth Amendment.
FISCAL IMPACT
Sufficient funds are budgeted for the Foundation's annual management fee of $503,200 in the General Fund (GP) in the Department of Parks, Recreation and Marine (PR).
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
PHIL T. HESTER
DIRECTOR OF PARKS, RECREATION AND MARINE
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APPROVED: |
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GERALD R. MILLER |
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CITY MANAGER |