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Title:
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Approval of a Memorandum of Understanding/Lease Agreement with the Friends of the Culver City Scout House and the Culver City Rock and Mineral Club, Inc. for the Renovation/Repairs and Leasehold Interests in the Property Located at 10866 Culver Boulevard (the Scout House).
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City of Culver City, California
Agenda Item Report
Meeting Date: 12/05/11 Item Number: C-9
CITY COUNCIL AGENDA ITEM: Approval of a Memorandum of
Understanding/Lease Agreement with the Friends of the Culver City Scout House
and the Culver City Rock and Mineral Club, Inc. for the Renovation/Repairs and
Leasehold Interests in the Property Located at 10866 Culver Boulevard (the Scout
House).
Contact Person/Dept.:
Martin R. Cole, Assistant City Manager
Phone Number:
(310) 253-6000
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [] Date: _______________
Public Notification: (E-Mail) Meetings and Agendas – City Council (12/1/11)
Department Approval:
Martin R. Cole ()
City Attorney Approval:
Carol Schwab (by H. Baker) (11/29/11)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) ( 11/30/11)
City Manager Approval:
John M. Nachbar (12/1/11)
RECOMMENDATION:
Staff recommends the City Council approve a Memorandum of Understanding/Lease
Agreement with the Friends of the Culver City Scout House and the Culver City
Rock and Mineral Club, Inc. for the property located at 10866 Culver Boulevard.
BACKGROUND:
Pursuant to negotiation instructions provided by the City Council, staff has been
negotiating with the Friends of the Culver City Scout House (FOCCSH) and the
Culver City Rock and Mineral Club, Inc. (CCRMC) regarding a proposal from
FOCCSH to raise the necessary funds and complete the required work to renovate
the two buildings and restroom located at 10866 Culver Boulevard. In return for the
significant costs of completing the restoration work, FOCCSH requested the City
enter into a long-term lease with FOCCSH for Building No. 1 (the Scout House).
Additionally, FOCCSH also requested the City enter into a long-term lease with
CCRMC for Building No. 2 (the CCRMC Workshop).
Currently, the City does not have funds identified to complete the renovations to the
Scout House. By entering into this public-private partnership with FOCCSH, the
Scout House and restroom will be renovated (including any necessary ADA
compliance improvements). Upon completion of the work, the Scout House and
restroom will be available for use by the City for recreation purposes at times when
FOCCSH is not using Building No. 1. City of Culver City, California
Agenda Item Report
DISCUSSION:
After three years of working together, staff, FOCCSH, and CCRMC have reached a
tentative agreement with the following terms and conditions:
1. FOCCSH will raise funds (estimated at $120,000) and complete the work
necessary to bring Building No. 1 and the restroom into compliance with
current standards.
2. The work shall be completed within six months of the issuance of a notice to
proceed by the City. This initial six month period can be extended by up to
one additional six month period by the City Manager upon request of
FOCCSH.
3. Upon completion of the work, the work shall become the property of the City.
4. FOCCSH and CCRMC are required to obtain and keep in full force and effect
appropriate insurance during the term of the Memorandum of
Understanding/Lease Agreement. Further, both FOCCSH and CCRMC will
indemnify and hold harmless the City.
5. Upon completion of the work and issuance of a Certificate of Occupancy (or
similar document), FOCCSH shall then have a non-exclusive leasehold
interest in Building No. 1 and the restroom and CCRMC shall have an
exclusive leasehold interest in Building No. 2 (because of the unique
configuration of Building No. 2, it is unsuitable for general City use).
6. The leasehold interests are for a term of 20 years beginning on the first day of
the first month after the Certificate of Occupancy is issued. Upon issuance,
the Certificate of Occupancy shall become an exhibit to the Memorandum of
Understanding/Lease Agreement.
7. Should the City terminate the FOCCSH leasehold interest before the
expiration of 10 years, then the City would pay an early cancellation penalty.
Such penalty begins at the amount of the renovation costs and declines by
10% each year of the lease until year 11 of the lease at which time the early
cancellation penalty is no longer applicable. The CCRMC leasehold interest
may be terminated by either party at any time without penalty with 90 days’
notice.
8. During the term of the leasehold interests, the FOCCSH shall bear the costs
of maintenance of Building No. 1 and CCRMC shall bear the costs of
maintenance of Building No. 2. Maintenance of the Restroom shall be borne City of Culver City, California
Agenda Item Report
by CCRMC. FOCCSH and CCRMC shall be jointly responsible to pay for
utilities.
9. In return for completing the work at their cost, FOCCSH shall be provided up
to 2080 hours of Priority Calendar Use of Building No. 1 on an annual basis.
The remainder of the time, Building No. 1 shall be available for City
recreational use. FOCCSH and the City will work cooperatively to manage
the Master Use Calendar with each party exercising reasonable flexibility to
address unforeseen schedule changes. Additionally, at times when FOCCSH
may not need to occupy Building No. 1, the parties shall work cooperatively to
make that time available for City use.
10. The City and FOCCSH shall meet at least once each year on or before May 1
to agree on the Master Use Calendar.
11. FOCCSH shall be allowed to make Building No. 1 available to other area
community youth groups (also referred to as other Scouting related groups)
for scouting related purposes.
12. Certain areas within Building No. 1 are designated as Exclusive Use Areas
(mostly storage and office space). Such areas shall be for use by FOCCSH
only (unless the City obtains permission from FOCCSH to use such areas).
As noted above, the entirety of Building No. 2 is for the exclusive use of
CCRMC.
FISCAL ANALYSIS:
Approval of the Memorandum of Understanding/Lease Agreement does not have a
direct fiscal impact on the City. However, the completion of the renovation to the
building (estimated at $120,000) will be done at the sole cost of FOCCSH, thereby
saving the City the costs of renovation. As a result of the renovation, Building No. 1
shall become available to the City for general City recreational purposes, including
potential rental as a meeting space, at times when FOCCSH does not have the
building booked on the Master Use Calendar.
ATTACHMENTS:
None.
MOTION:
That the City Council:
City of Culver City, California
Agenda Item Report
1. Approve a Memorandum of Understanding/Lease Agreement by and amongst
the City, FOCCSH, and CCRMC; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.