TITLE
Recommendation to authorize City Manager to execute a first amendment to Lease No. 22849 with the Long Beach Casting Club to extend the term through January 18, 2033, to establish in-kind programming; define future payment responsibilities for the costs of electrical, water, and sewer services; and undertake $77,000 in proposed building improvements and upgrades. (District 3)
DISCUSSION
On January 19, 1993, the Long Beach City Council authorized the execution of Lease No. 22849 with the Long Beach Casting Club (Casting Club). Casting Club is a 501 (C)(3) nonprofit organization, founded in 1925, to promote an interest in fly-fishing in Long Beach, through the provision of hands-on instruction, classes, and events for its members and guests. Casting Club has occupied its current site at Recreation Park (Attachment A) since 1932, and is the oldest continuously operating fly-fishing club in the United States. During its time at Recreation Park, Casting Club has hosted many national casting events and is widely considered amongst its peer organizations as one of the sport's premier organizations.
In addition to membership-based programming and tournament involvement for its 385 members, Casting Club instructs 150 to 200 non-member pupils per year at Recreation Park. Casting Club has also recently begun expansion of its educational programming and outreach to include work with various nonprofit organizations, most notably, Operation Healing Waters, which teaches fly-fishing to disabled veterans, a partnership which has earned its members national recognition by veterans advocacy groups.
In December 2007, Casting Club endured a catastrophic loss when a fire severely gutted portions of its clubhouse and destroyed irreplaceable club memorabilia. The clubhouse, originally built in 1925, sustained approximately $300,000 in damages to its interior and furnishings. Casting Club, in a joint effort with its insurance carrier, the Department of Parks, Recreation and Marine (PRM), and the City of Long Beach's Risk Manager, began efforts to reconstruct the clubhouse almost immediately. Through partnerships with peer organizations and private donors, Casting Club was able to not only successfully solicit monies to fully cover the clubhouse reconstruction, but received an additional $77,000 that they would like to utilize to complete their proposed building improvements and upgrades (Attachment B).
In recognition of Casting Club's significant investment and in the spirit of continued partnership, PRM has negotiated an extension of the lease term, along with additional financial terms, as follows: the addition of in-kind programming, including the provision for organized youth and teen classes and programs, and responsibility to assume future payment of utilities, including electrical, water, and sewer services (see details below).
The proposed amendment would extend the term of the lease an additional 20 years, through January 18, 2033, for a total term of 25 years.
The proposed first amendment to Lease No. 22849 will add and/or restate the following provisions:
· Term: Twenty years, through January 18, 2033, for a total term of 25 years.
· In-Kind Proqramminq: In consideration for the rent of $1 per month, Casting Club shall provide in-kind programming as a benefit to the community. Casting Club proposes the provision/operation of fly-fishing classes, in conjunction with PRM, mutually agreed to and subject to the approval of the Director of Parks, Recreation and Marine or his designee.
· Payment of Water/Sewer Services: Beginning January 1, 2013, Casting Club shall pay to the City an annual adjustable flat rate as a reimbursement for payment of water and sewer services to the leased grounds. Beginning in calendar year 2009, a minimum flat rate amount of $2,700 will be adjusted annually on January 1 of each lease year, and based upon the Long Beach Water Department's published cost per 100 cubic feet of potable water.
· Payment of Electrical Service: Beginning February 1, 2013, Casting Club shall make payments directly to Southern California Edison for all electrical costs resulting from its operations on the leased grounds.
· Improvements: Casting Club has proposed improvements to the leased grounds and facility totaling $77,000.
This matter was reviewed by Deputy City Attorney Gary J. Anderson on July 29, 2008, and Budget Management Officer Victoria Bell on August 4, 2008.
TIMING CONSIDERATIONS
City Council action is requested on August 19, 2008, in order to enable the execution of the first amendment to Lease No. 22849.
FISCAL IMPACT
Revenue in the amount of $12 will accrue to the General Fund (GP) in the Department of Parks, Recreation and Marine (PR). Beginning in 2013, annual reimbursements in an amount greater than or equal to a minimum of $2,700 per annum will be made to 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
|
APPROVED: |
|
|
|
|
|
PATRICK H. WEST |
|
CITY MANAGER |