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HomeMy WebLinkAboutReso 25-25 Morro Bay Marina_Mooring Zone A1-4 - signedRESOLUTION NO. 25-25 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING AMENDMENT #1 TO THE LEASE AGREEMENT FOR MOORING ZONE A1-4, LOCATED AT 699 EMBARCADERO, BETWEEN THE CITY OF MORRO BAY AND MORRO BAY MARINA T H E C I T Y C O U N C I L City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain properties on the Morro Bay Waterfront described as City Tidelands leases and properties; and WHEREAS, Morro Bay Marina. is the current master leaseholder of Mooring Zone A1-4; and WHEREAS, this Amendment #1 is to that certain Lease, which was signed on behalf of the Parties and is effective as of June 30, 2015, (the "Master Lease"); WHEREAS, the Parties agree to amend the term of the Master Lease to add an additional five (5) additional years, WHEREAS, the Parties agree to amend the Master Lease to conform with the standard privately owned mooring rent on City’s Master Fee Schedule and adjusted annually throughout the term; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, as follows: 1. The attached Amendment #1 to the Master Lease Agreement for Mooring Zone A1-4 is hereby approved. 2. The Mayor is hereby authorized to execute said Master Lease Agreement Amendment. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 13th day of May 2025 on the following vote: AYES: Wixom, Eckles, Edwards, Landrum, Luffee NOES: None ABSENT: None ABSTAIN: None RECUSE: None ______________________________ Carla Wixom, Mayor ATTEST: _____________________________ Dana Swanson, City Clerk Carla Wixom (May 14, 2025 12:32 PDT) Carla Wixom 1 of 2 AMENDMENT #1 TO THE LEASE AGREEMENT FOR MOORING ZONE A1-4, LOCATED AT 699 EMBARCADERO This Amendment ("this Amendment #1") is deemed to have been made and entered into as of 13th day of May 2025, by and among the City of Morro Bay, a municipal corporation of the State of California, whereinafter called "City," and Morro Bay Marina, hereinafter called "Tenant." (Collectively, City and Tenant are sometimes referred to herein as the "Parties.") WHEREAS, this Amendment #1 is to that certain Lease, which was signed on behalf of the Parties and is effective as of June 30, 2015, (the "Master Lease"); WHEREAS, the Parties agree to amend the term of the Master Lease to add an additional five (5) additional years, WHEREAS, the Parties agree to amend the Master Lease to conform with the standard privately owned mooring rent on City’s Master Fee Schedule and adjusted annually throughout the term; and NOW THEREFORE, Tenant and City agree, as follows: Tenant and City shall provide for the amendment of Lease as follows: 1. SECTION 1.01 TERM: The Termination Date shall be amended to read “June 30, 2030”. 2. SECTION 2.02 CPI ADJUSTMENT TO ANNUAL MINIMUM RENT: Remove language in its entirety. The parties agree as of every July 1 following the Commencement Date (each, a "CPI Adjustment Date"), the annual Minimum Rent shall be increased or decreased in direct proportion to any upward or downward movement in the Consumer Price Index for January 2015 which is hereby agreed to be 239.72 (Base Index). The percentage adjustment for any given year shall be based on the monthly average Consumer Price Index for the calendar year immediately preceding the CPI Adjustment Date as compared with the Base Index. The Consumer Price Index referred to herein is the Consumer Price Index (all items indexes, all urban consumers) for Los Angeles - Anaheim - Riverside, California, compiled and published by the United States Department of Labor, Bureau of Labor Statistics, 1982-84 Base Year = 100 (the "Index"). The Annual Minimum Rent shall be adjusted as of each CPI Adjustment Date, and will remain in effect as adjusted until the next CPI Adjustment Date. As an illustration only, if the Base Index (Jan. 1, 1999 CPI) is 166.1 and the monthly average CPI for 2000 is 171.6, then the percentage increase is equal to 3.31%. Therefore, the Minimum Rent would be increased by 3.31% as of July 1, 2001, and would continue at that rate through June 30, 2002. If the United States Department of Labor, Bureau of Labor Statistics, ceases to compile and make public the Consumer Price Index as now constituted and issued, but shall substitute another index in its place, then that substituted index shall be used for the purpose of adjusting the Minimum Rent for the Premises. If the Consumer Price Index is changed so the base year differs from that in effect on the Commencement Date, then the Consumer Price Index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. 2 of 2 3. SECTION 2.03 CALCULATION OF NEW MINIMUM RENT: Is hereby replaced, thereto to read as follows: Commencing on the first anniversary of the Commencement Date, and annually thereafter, the Minimum Rent shall be adjusted in accordance with the rate established in the City’s Master Fee Schedule for privately-owned moorings, based on the number of moorings authorized for TENANT within the Premises. The annual Minimum Rent shall be calculated by multiplying the current Master Fee Schedule mooring rate by the total number of TENANT’s moorings and rounded up to the nearest $500 increment. As an example only, if the Master Fee Schedule rate is $960 per mooring per fiscal year and TENANT maintains 26 non-transient moorings, the annual Minimum Rent would be $24,960 and rounded up to $25,000. In the event the adjusted Minimum Rent calculation results in a lower amount than the Minimum Rent for the prior year, the then-current Minimum Rent shall remain unchanged until such time as the adjusted calculation exceeds the prior Minimum Rent. 3. Except as expressly stated herein, all provisions of the Master Lease shall remain in full force and effect. 4. The effective date of this Amendment # 1 shall be deemed to be date first noted above. IN WITNESS WHEREOF, the parties hereto have executed this Amendment #1 as of the date written above. CITY OF MORRO BAY Morro Bay Marina By: ______________________ By: Carla Wixom, Mayor Tenant APPROVED AS TO FORM: Rob Schultz, Interim City Attorney ATTEST: _____________________________ Dana Swanson, City Clerk Reso 25-25 Morro Bay Marina_Mooring Zone A1-4 Final Audit Report 2025-05-14 Created:2025-05-14 By:Heather Goodwin (hgoodwin@morrobayca.gov) Status:Signed Transaction ID:CBJCHBCAABAA2Id3tPbKcltJKdvXshJAYB7eTQOgpuuC "Reso 25-25 Morro Bay Marina_Mooring Zone A1-4" History Document created by Heather Goodwin (hgoodwin@morrobayca.gov) 2025-05-14 - 7:25:24 PM GMT Document emailed to cwixom@morrobayca.gov for signature 2025-05-14 - 7:26:28 PM GMT Email viewed by cwixom@morrobayca.gov 2025-05-14 - 7:30:48 PM GMT Signer cwixom@morrobayca.gov entered name at signing as Carla Wixom 2025-05-14 - 7:32:15 PM GMT Document e-signed by Carla Wixom (cwixom@morrobayca.gov) Signature Date: 2025-05-14 - 7:32:17 PM GMT - Time Source: server Document emailed to Dana Swanson (dswanson@morrobayca.gov) for signature 2025-05-14 - 7:32:19 PM GMT Email viewed by Dana Swanson (dswanson@morrobayca.gov) 2025-05-14 - 8:04:25 PM GMT Document e-signed by Dana Swanson (dswanson@morrobayca.gov) Signature Date: 2025-05-14 - 8:17:25 PM GMT - Time Source: server Agreement completed. 2025-05-14 - 8:17:25 PM GMT