REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Eric McCoy, Fire Chief
PREPARED BY: Carlina Thomas, Assistant to the City Manager
Subject:
title
Approve and Authorize Amendment to the Lease Agreement Between the City of Huntington Beach and Tank Farm LC
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Statement of Issue:
The City of Huntington Beach and Tank Farm LC wish to amend the Original Agreement to extend term and provide additional provisions. The term will be extended for an additional fifteen (15) years, expiring in 2055. City grants Tank Farm LC exclusive license to use premises for any and all lawful purposes, subject to City Municipal and Zoning Codes, and all other applicable laws, rules and regulations.
Financial Impact:
City to pay Tank Farm LC rent that will not exceed One Dollar ($1.00) per year beginning after all City improvements in Section 5 of the Amendment are completed. Tank Farm LC will pay City an annual License fee of One Dollar ($1.00). City is responsible for removing existing concrete and fencing and installing new concrete and fencing. City will remove all existing utility lines from the premises.
Recommended Action:
recommendation
Approve and Authorize Amendment to Lease Agreement between the City of Huntington Beach and Tank Farm LC.
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Alternative Action(s):
Do not approve and authorize the recommended action, and direct staff accordingly.
Analysis:
The City of Huntington Beach and Tank Farm LC wish to amend the Original Agreement to extend term and provide additional provisions. The term will be extended for an additional fifteen (15) years, expiring in 2055. Rent to be paid by City to Tank Farm LC will not exceed One Dollar ($1.00) per year beginning after all City improvements in Section 5 of the Amendment are completed. City grants Tank Farm LC exclusive license to use premises for any and all lawful purposes, subject to City Municipal and Zoning Codes, and all other applicable laws, rules and regulations. Tank Farm LC will pay City an annual License fee of One Dollar ($1.00). City is responsible for removing and replacing concrete and fencing and removing all existing utility lines. Tank Farm LC also grants the City first right of refusal to purchase the premises and/or adjacent parcel and improvements for a then fair market value.
Environmental Status:
The requested action to approve an amendment to extend term and remove and replace concrete and fencing and remove utility lines is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Goal 2 - Fiscal Stability, Strategy A - Consider new revenue sources and opportunities to support the City's priority initiatives and projects.
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. Amendment to Lease Agreement Between the City of Huntington Beach and Tank Farm LC
2. Original Lease Agreement Between Tank Farm LC and the City of Huntington Beach