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HomeMy WebLinkAboutStaff Report 3.E 06/19/2017Agenda Item #3.E � E DATE: June 19, 2017 TO: Honorable Ma or and Members of the City Council through City Manager FROM: Da St. J SC irector, Public Works & Utilities Jaso , M in Analyst SUBJECT: Adoption (Second Reading) of an Ordinance Authorizing Approval of Lease PRC7235.1 with the State Lands Commission and Authorizing the City Manager to Execute All Required Documents for Continued Use of Marina Premises on the Petaluma River Located Adjacent to 781 Baywood Drive RECOMMENDATION It is recommended that the City Council Adopt an Ordinance Authorizing Approval of Lease PRC7235.1 with the State Lands Commission and Authorizing the City Manager to Execute All Required Documents for Continued Use of Marina Premises on the Petaluma River Located Adjacent to 781 Baywood Drive. BACKGROUND On June 5, 2017, the City Council approved, by a vote of 6 -0, with Vice Mayor Barrett absent, the first reading of an ordinance authorizing approval of Lease PRC7235.1 with the State Lands Commission and authorizing the City Manager to execute all required documents for continued use of Marina premises on the Petaluma River located adjacent to 781 Baywood Drive. The recommended action provides for a second reading and adoption of the ordinance. FINANCIAL IMPACTS The City will realize a reduction in the annual lease payment to the State Lands Commission. For fiscal year 2016 -17, the lease payment was $1.4,184. The amount due for 2017 -18 under the new lease is $13,480. Additionally, the Marina is authorized for an allowance of live- aboard tenants, and will benefit from approximately $30,000 in additional revenue. ATTACHMENTS Ordinance ORDINANCE NO. N.C.S. EFFECTIVE DATE OF ORDINANCE Attachment 1 Introduced by Seconded by ORDINANCE AUTHORIZING APPROVAL OF LEASE PRC7235.1 WITH THE STATE LANDS COMMISSION AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL REQUIRED DOCUMENTS FOR CONTINUED USE OF MARINA PREMISES ON THE PETALUMA RIVER LOCATED ADJACENT TO 781 BAYWOOD DRIVE, PETALUMA, CA WITH THE STATE LANDS COMMISSION WHEREAS, THE City of Petaluma is the lessee of approximately 13.98 acres of real property located adjacent to the Petaluma River in the City of Petaluma, County of Sonoma, California, as authorized by the State Lands Commission pursuant to State Lands Lease No. PRC 7235.1, as amended; and WHEREAS, City and State Lands Commission propose to execute Lease No. PRC 7235.1 to supersede the current lease which is set to expire June 30, 2018; and WHEREAS, the new lease will allow the City up to six liveaboards; and WHEREAS, the new lease, effective July 1, 2017, is for a term of 20 years set to expire on June 30, 2037. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. The above Recitals are true and correct and incorporated into this ordinance as findings of the City Council. Section 2. The City Council approves the lease, between the State Lands Commission as Lessor, and the City of Petaluma as lessee, a copy of which is attached as Exhibit A. Section 3. On behalf of the City, the City manager is authorized and directed to execute documents substantially in accordance with Exhibit A, as determined by the City Attorney, and 2 all other documents reasonably necessary to complete the lease transaction. Section 4. If any section, subsection, sentence, clause, phrase or work of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by State legislation, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this Ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful other otherwise invalid. Section 5. This Ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 6. The City Clerk is hereby directed to publish or post this Ordinance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. 3