TITLE
Recommendation to authorize City Manager to execute a Seventh Amendment to Historical Site Lease No. 24291 with the Rancho Los Alamitos Foundation to provide for the annual consumer price index increase to the management fee for a total of $482,316. (District 3)
DISCUSSION
Rancho Los Alamitos (Rancho) is a historic site of state significance placed on the National Register of Historic Places. The site was transferred to the City by the Bixby Home Property Trust on December 1, 1967. The City Council authorized Historic Site Lease No. 24291 with the Rancho Los Alamitos Foundation (Foundation), a California nonprofit corporation, on October 3, 1995. The 25-year lease provides the Foundation the exclusive right to manage, operate and interpret the Rancho. The Foundation is required to maintain the historic site, including the gardens and all residential and agricultural structures, the interiors and furnishings, furniture, fixtures, utilities, carpeting, and equipment.
In consideration of the Foundation's agreement to manage the educational, historical and community service aspects of the Historical Site, the City pays the Foundation an annual management fee. The lease provides for an annual increase to the management fee based on the Consumer Price Index (CPI). The management fee with the CPI increase for 2006 is $482,316. A lease amendment is required to reflect the increased amount.
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 June 2, 2006, and by Budget Management Officer David Wodynski on June 5, 2006.
TIMING CONSIDERATIONS
City Council action is requested on June 13, 2006, to authorize the execution of the seventh amendment.
FISCAL IMPACT
Sufficient funding for the Foundation's annual management fee, $482,316, is currently budgeted in the General Fund (GP) in the Department of Parks, Recreation and Marine (PR).
SUGGESTED ACTION
Approve recommen...
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