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HomeMy WebLinkAboutVisit Huntington Beach (VHB) - 2019-10-07 (2) ;URWDa9WA( ,v� conlsl1)et71ON t .• ;', City of Huntington Beach No 4%4770A� 7%W&-*D File #: 19-994 MEETING DATE: 10/7/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Kellee Fritzal, Deputy Director of Economic Development Subject: Approve and authorize a 5-year Lease Agreement between the City of Huntington Beach and Visit Huntington Beach (VHB) for the International Surf Museum located at 411 Olive Avenue and allow VHB to sub-lease the Museum to Surfing Heritage Cultural Center (SHACC) Statement of Issue: The City Council is requested to approve a five (5) year lease agreement and one five (5) year option with Visit Huntington Beach for the operation of an International Surf Museum located at 411 Olive Avenue. The Lease would allow VHB to sub-lease the Museum to Surfing Heritage Cultural Center, with approval from the City. Financial Impact: Lease revenues received from the sub-lease agreement with Visit HB is deposited into the General Fund. The first year will generate an additional $1,044, for a total annual amount of$7,200. Each successor year will increase by the Consumer Price Index (CPI-U, all consumers, for the Los Angeles, Long Beach, Anaheim Metro Statistical Area for the period ending June 30). Recommended Action: A) Approve and authorize the Mayor, City Clerk, and City Manager to execute the "Lease Agreement between the City of Huntington Beach and Visit Huntington Beach"; and, B) Authorize the City Manager to consent to the Sub-Lease Agreement on behalf of the City. Alternative Action(s): Do not approve the Lease Agreement and direct staff accordingly. Analysis: On January 27, 2012, the City Council approved a five (5) year lease with Huntington Beach Marketing and Visitors Bureau ("MVB") for operation of the International Surf Museum located at 411 Olive Avenue. During that time, MVB sought to keep the International Surf Museum in Huntington Beach and establish it as a reputable, first-class attraction that highlights Huntington Beach's surfing City of Huntington Beach Page 1 of 3 Printed on 10/2/2019 powerel&3j LegistarTM File #: 19-994 MEETING DATE: 10/7/2019 heritage. The lease has expired and has been on a carry-over month-to-month. As the future operation and direction of the Surf Museum was determined. MVB, has since changed its name to Visit Huntington Beach ("VHB) Staff has negotiated a new lease ("New Lease") with Visit Huntington Beach ("VHB") for continued operation of the Surf Museum. The proposed terms are as follows: • Term: Five (5) year initial term • Extension: One five (5) year option to extend, mutual written consent by both parties • Minimum Operating Days: 300 days per calendar year • Use of Premises: Surfing Museum open to the public and hosting special events in the adjacent parking lot subject to required permits. • Rent: $600 per month • Rent Increases: Annual increases based on Consumer Price Index (CPI-U, all consumers, for the Los Angeles, Long Beach, Anaheim Metro Statistical Area for the period ending June 30). • Maintenance: VHB shall maintain the Surf Museum in good order and repair and be responsible for all maintenance except for sewage lines. VHB has been actively pursuing an experienced surf museum operating partner with ties to the local surfing community and a proven track record of understanding surf culture and heritage to create a more sustainable and enriching experience at the existing Huntington Beach International Surfing Museum. VHB is looking to partner with the Surfing & Heritage Cultural Center ("SHACC") to operate the International Surfing Museum. In addition to creating world class exhibits, SHACC will be permitted to sell surf memorabilia and clothing in addition to hosting special events in the parking lot subject to special event permits. The proposed Lease contains a sublease clause that will permit VHB to sublease the Museum to SHACC, under the terms set forth in the agreement subject to the approval of the City. VHB has met with key community stakeholders to address concerns they may have had, as well as met with the International Surf Museum Board of Directors regarding the operation of the existing Surf Museum. Based on the desire to have an experienced surf museum operator, VHB is proposing the sub-lease with SHACC. The Economic Development Committee has reviewed the Lease proposal and recommended the community outreach that has occurred. Staff recommends approval of the New Lease. Environmental Status: Not applicable Strategic Plan Goal: Strengthen long-term financial and economic sustainability Attachment(s): 1. Lease Agreement between the City of Huntington Beach and Visit Huntington Beach 2. Certificate of Insurance City of Huntington Beach Page 2 of 3 Printed on 10/2/2019 poweret8bq,Legistar." File #: 19-994 MEETING DATE: 10/7/2019 3. Sub-Lease Agreement between Visit Huntington Beach and Surfing Heritage Cultural Center City of Huntington Beach Page 3 of 3 Printed on 10/2/2019 powered Legistar— City Council/ ACTION AGENDA October 7, 2019 Public Financing Authority 22. 19-966 Approved and authorized execution of Amendment 2 to the original three-year contract with Waymakers (formerly known as Community Service Programs, Inc. CSP), to add additional contract compensation in the amount of$77,950 for the management of the Juvenile Diversion Program Recommended Action: A) ,Approve and authorize theMayor and Cif„ Clerk to exesute "Amend.en} No. 1 to- A ffeement between the Gity of Huntington Beach and (`emm nit y Qenln s RmgF rn B) Approve and authorize the Mayor and City Clerk to execute "Amendment No. 1 to Agreement between the City of Huntington Beach and Community Services Program, Inc. for Management of Juvenile Diversion Program" for additional compensation. Approved 6-0-1 (Carr-Absent)as amended by SC to strike Rec. Action A) 23. 19-973 Awarded and authorized execution of a construction contract with Dependable Construction, Inc. in the amount of $720,000 for the Murdy Community Center Improvements project, MSC-531; and, authorized project contingency expense not to exceed $144,000 Recommended Action: A) Accept the lowest responsive and responsible bid submitted by R. Dependable Construction, Inc. in the amount of$720,000; and, B) Authorize project contingency expense not to exceed $144,000; and, C) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Approved 6-0-1 (Carr-Absent) 24. 19-994 ITEM WITHDRAWN FROM CONSIDERATION-Approve and authorize of Huntington Beach and Visit Huntington Beach (VHB) for the International Surf Museum located at 411 Olive Avenue and allow VHB to sub-lease the Museum to Surfing Heritage Cultural Center (SHACC) Recommended Action: A) Approve and authorize the Mayor, CiP9� Clerk, and City Manager to execute the t"e "Lease B) Authorize the City Manag to __„Vent to the Sub Lease A.. ee e t .. behalf of the r��,, _� �J�+r ._ . ... ..... Sub � , .fir behalf . ..� GAY_ Page 6 of 7 o CITY OF HUNTINGTON BEACH Interdepartmental Memo TO: Honorable Mayor and Members of the Cit Council VIA: Oliver Chi, City Manager r -� FROM: Kellee Fritzal, Deputy Director of Economic Development DATE: October 7, 2019 SUBJECT: Consent Calendar Item #24 Lease Agreement with Visit Huntington Beach for the International Surf Museum Staff is recommending that the Lease Agreement be removed from tonight's City Council Meeting and be considered at October 21, 2019 City Council Meeting. SUPPLEMENTAL COMMUNICATION Date: /D-O d 1 Of Agenda nem No.; o2 y�l q-qq Ll , Mr.Amory Hanson 8102 Ellis Avenue Apartment 121 Huntington Beach CA 92646 October 7.2019 The Honorable Erik H.Peterson Mayor of Huntington Beach 2000 Main Street Huntington Beach CA 92648 Dear Mister Mayor, I am writing in opposition to Item XXIVB,The proposal by Miss Fritzal,the Directress of the Huntington Beach Department of Economic Development,to sublease the International Surfing Museum to the Surfing Heritage and Cultural Center's Board of Directors. I recognize the value of promoting Huntington Beach's surfing history,especially in light of the International Olympic Committee's recent decision to make surfing an Olympic Sport for the Summer Olympics in Tokyo on July 24-August 9,2020.I am hopeful that surfing will also be an Olympic Sport for future Summer Olympics. I greatly respect the efforts by Mr..Michael,The Chairman of the Surfing Heritage and Cultural Center's Board of Trustees,Mr.Eshelman,the Vice Chairman and Treasurer of the Surfing Heritage and Cultural Center's Board of Trustees,and the Surfing Heritage and Cultural Center's Board of Trustees to preserve San Clemente's Surfing history.However,I believe that Huntington Beach must maintain and retain local control over it's own surfing history.There are differences between the histories and beaches of Huntington Beach and San Clemente that must be appreciated. I also am disappointed that the Huntington Beach City Council failed to consult the Huntington Beach Historic Resources Board,of which I am a member,regarding this issue.The Huntington Beach Historic Resources Board's responsibility is to advise the Huntington Beach City Council and Huntington Beach's other deliberative assemblies on historical matters. Sincerely Yours, Mr.Amory Hanson CC:The Honorable Lyn Rossi Semeta CC:The Honorable Patrick Brenden CC:The Honorable Kimberly Ballenger Carr SUPPLEMENTAL CC:The Honorable Barbara Delgleize COMMUNICATION CC:The Honorable Jill Hardy CC:The Honorable Michael Posey Mee"Date: _ p 7_—2 9 �Q- Agenda Item No.- �` Esparza, Patty From: Estanislau, Robin Sent: Thursday, October 24, 2019 7:20 PM To: chris macdonald Cc: Esparza, Patty Subject: Re: Supporting The Huntington Beach International Surfing Museum Received, thanks. Sent from my Wad On Oct 24, 2019, at 12:49 PM, chris macdonald <justlistedkyahoo.com> wrote: Hello Robin, I Chris MacDonald a former 2008 Board Member of The Huntington Beach International Surfing Museum would like to see it stay as it is and not be bid to The Surfing Heritage Museum in San Clemente. This City has made a name for itself as Surf City USA and we should keep that recognition with our Surf Museum. The founders would want it kept they way it is. This Museum brings lots of joy to people that tour it and have had some famous Surfers and Musicians in it during it's time in This City. Sincerely, Chris MacDonald Huntington Beach International Surfing Museum Former 2008 Board Member 1 City of Huntington Beach, Mayor & City Council: The amazing community of Huntington Beach "Surf City USA" requests that the City Mayor and City Council agree to complete government transparency when it comes to leasing city owned buildings. We ask that you please require a bid process for the leasing of the Surfing Museum located at 411 Olive Ave., Huntington Beach, CA 92648. This is in order to leverage the city assets to its best ability, for city use, our surfing and beach loving community, its residence and tourism support. Our community goal is to preserve and keep local one of Surf City USA's most cherished significant cultural resourses, and prized posessions. Huntington Beach Surf City USA started as a surfing community, and we feel strongly that we need to manage locally and preserve the history, culture, and future of Surfing in Huntington Beach. We believe this is in the best interest of our city. We fought long and hard to keep the name "Surf City USA" why would we only give our history and culture away to an organization that is not from Huntington Beach? Please review the petition below with 1,755 signatures of residents and community advocates who would like to keep our Surfing Museum local, and request the city to go out for bid for the building, as the standard city process for leasing city owned buildings. change.org Start a petition My petitions Browse Membership Keep the Huntington Beach International Surfing Museum local to Huntington Beach. Petiticndetaiis Keep the Huntington Beach International Surfing Museum local to Huntington Beach. 1,755 have signed.Let's het to U 2.5001 R �}x I N IV1 Tharkt; ., has a chance at wmning`We oniv U need 745=n' Please find the full petition here: https://www.change.org/p/`huntington-beach-keep-the- huntington-beach-iriternationaI-surfing-museum-local-to-huntington-beach We would appreciate your signature. Thanks for your kindness, leadership and guidance. �« RECENED FROM AS PUBLIC RECORD FM COUNCIL mEETwi OF /e? / - z (ni7 CITY CLEW OFFICE ROM ESTANISUIU,CITY D F',:.