TITLE
Recommendation to authorize City Manager to execute the First Amendment to Lease No. 28350 with The Bolder Group, Inc., to extend the term through September 30, 2014, and adjust the annual minimum rent. (District 3)
DISCUSSION
The Bolder Group, Inc., (Bolder Group) has leased the Alamitos Bay Marina fuel dock from the City since 1997. The fuel dock is located just inside the entrance to the Alamitos Bay Marina. In addition to the sale of gasoline and diesel fuel, Bolder Group offers services, which include fuel tank cleaning, fuel polishing, fuel tank replacements, salvage and recovery, and towing services. The Department of Parks, Recreation and Marine has found Bolder Group to be a responsible and responsive operator, both operationally and fiscally. Bolder Group has made its services available to assist with non lease-related City emergencies, such as vessel fuel leaks and fueling of impounded vessels. Bolder Group maintains three fully equipped vessel-assist boats that provide aid and rescue to stranded boaters throughout Los Angeles County, Catalina Island, and beyond, making Bolder Group an asset to the City's marinas.
Since April 2009, Bolder Group has managed the Long Beach Oil Absorbent Exchange Center (Center) at the Alamitos Bay Marina fuel dock. The Center provides a free and convenient way for Long Beach boaters to recover, collect, and recycle petroleum products. The bilge pad exchange program is the major component of the Center.
Bilge pads are oil-absorbent pads, which, when placed in the bilge, will absorb between 12 ounces to a gallon of liquid petroleum product (fuel and/or oil). Through this program, boaters are provided with a simple means of containing bilge waste, a convenient disposal location, and replacement pads. All services, including the pads, are provided free of charge. Funding for the Center is provided through the Santa Monica Bay Restoration Foundation. Similar programs are in place in Marina Del Rey and Redondo Beach.
On February 25, 2003, the City Council authorized the execution of Lease No. 28350 (Lease) for operation of the fuel dock through September 30, 2009, with one five-year option for renewal (Attachment A). At this time, Bolder Group is requesting authorization to exercise the renewal option. In accordance with the provisions of the Lease, the annual minimum rent shall be adjusted concurrently with the extended term.
The proposed First Amendment contains the following revisions:
. Term: The term shall be extended through September 30,2014.
. Rent: The annual minimum rent shall be adjusted to $21,182.
All other provisions remain unchanged.
This matter was reviewed by Deputy City Attorney Gary J. Anderson on July 16, 2009, and Budget and Performance Management Bureau Manager David Wodynski on July 24,2009.
TIMING CONSIDERATIONS
City Council action is requested on August 11, 2009, in order to authorize the execution of the First Amendment to Lease No. 28350.
FISCAL IMPACT
Revenue in the amount of $21,182 will accrue in the Marina Fund (TF 403) in the Department of Parks, Recreation and Marine (PR).
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
PHIL T. HESTER
DIRECTOR OF PARKS, RECREATION AND MAREIN
NAME |
APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |