Loading...
SR-11-26-2013-3FCity Council Meeting: November 26, 2013 Agenda Item: 3- r To: Mayor and City Council From: Wright Rix, Acting Library Director Subject: Santa Monica Historical Society Museum Lease Modification Recommended Action Staff recommends that the City Council authorize the City Manager to: Negotiate and execute a first modification of Lease Agreement No. 7895 with the Santa Monica Historical Society Museum, a California nonprofit corporation, to permit alcohol to be served on Museum premises for two fundraising events per calendar year and update the Museum's insurance requirements. Executive Summary The City and the Santa Monica Historical Society Museum entered into a lease agreement on September 27, 2006, for the Museum to occupy 5,000 square feet in the Main Library facility. Following a successful capital fundraising campaign to build out the space and to make tenant improvements, the Historical Society opened the Santa Monica History Museum in this space on October 24, 2010. The Chair of the Museum's Board of Directors has requested that the lease be amended to allow serving alcohol at fundraising events on Museum premises. Staff recommends that the lease be modified to facilitate fundraising to support the Museum's ongoing goals of collecting, preserving, interpreting and making accessible the history of the Santa Monica Bay area and to update the Museum's insurance requirements. Background The Santa Monica Historical Society was founded in 1975 under the auspices of the Santa Monica Centennial Committee to collect and preserve the history, culture and art of the City. In 1988 the Santa Monica Historical Society Museum was founded to "make 0 accessible the historical collection to the public; to advance historical knowledge and information; and to impart to residents and others, particularly youth, a sense of community and appreciation for the diverse, multicultural past of Santa Monica." After several years of searching for a permanent location to house its expanding collections and services to the community, on February 27, 2001, the City Council authorized an additional 5,000 square feet of space for the Museum in the Main Library building project and outlined major terms for a 20 -year lease agreement between the City and the Museum. Following a successful capital building campaign, the Santa Monica History Museum opened on October 24, 2010, at 1350 Seventh Street, in the northeast corner of the Main Library campus. Discussion In its new home on the Main Library campus, the Santa Monica History Museum provides public access to its collections of art, artifacts, photographs and documents through interpretive exhibitions and interactive displays. Its educational programming includes free tours for school classes and youth groups, lectures, events and workshops at the Museum and in the community. Researchers have access to the Morley Builders Research Library and more than 600,000 photographs, one of the largest photographic archives in Southern California. The Museum is actively digitizing and making its image archives available online. Upon successfully concluding its Permanent Home Capital Campaign through the build out of its space and installation of permanent exhibitions, the Santa Monica History Museum continues its fundraising efforts to ensure the vitality of its operations, acquisitions, and exhibition and educational programs. The Museum's Board of Directors believes the prohibition of serving alcohol on the Museum's premise in its lease impedes its fundraising ability and requests an amendment to this term. Specifically, the Museum's Board of Directors wishes to provide special evenings with food and wine to thank donors and attract new donors. As is the case with other museums and cultural organizations such as the Los Angeles County Museum of Art, 2 the Santa Monica Museum of Art and other Los Angeles' area museums, the Board views this as a fundamental fundraising tool. Santa Monica Municipal Code Section 4.08.200 prohibits the consumption of alcoholic beverages on public property, including public buildings. There is an exception for public property occupied pursuant to a lease, permit or license, when the lease, permit or license authorizes the sale and consumption of alcohol. Staff recommends that the Museum's lease Section 4.3(f) with the City be deleted and replaced with terms to permit alcohol service and consumption under the following conditions and restrictions: a) The Museum is permitted to serve alcoholic beverages at two fundraising events each calendar year, held on the premises and specifically to benefit the Museum. b) Alcohol service and consumption must be held within the Museum's leasehold site and is not permitted on adjacent public areas or the Library Common Areas. c) The Museum must give prior notice (according to the lease terms of Article XVII, 17.1 Notices) of alcohol service at its fundraising event at least ten (10) business days to the attention of the Landlord's representative, the City Librarian, with copies to the Director of Community and Cultural Services and the City Attorney. d) The Museum must comply with all applicable California laws regarding alcoholic beverages and service. e) Alcohol service at museum fundraising events must only be through properly licensed and bonded caterers (their employees and subcontractors) and may not be served by volunteers of the Museum. f) Alcohol service must cease at least one -half hour before the end of the Museum's fundraising event. For the Museum to serve alcohol at fundraising events requires amendments to its Commercial General Liability (CGL) insurance requirements Specifically, if the Museum holds a fundraising event on its premises that includes alcohol service, the Museum will ensure that the event vendor or caterer serving the alcohol provide the City with 3 evidence of liquor liability coverage with limits of no less than $1,000,000 per occurrence. Further, if the Museum fundraiser involves the sale of alcoholic beverages (e.g., a no- host bar) then the vendor /caterer must provide the City with evidence of a valid liquor sales license and liquor liability insurance covering alcohol sales. Other modifications to the original terms of the lease included revisions of language to make them consistent with more recent leaseholds and deletion of insurance requirements (e.g., Builders' Risk Insurance) that were superseded with the completion of the construction of the Museum space. The recommended actions of modifying the lease to permit alcohol service at two Museum fundraisers annually would result in better opportunities to recognize and attract donors and increase social connection with staff and other patrons to the mutual benefit of the Museum as Tenant and the City as Landlord. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared by: Susan E. Annett, Principal Librarian — Public and Branch Services roved: Wright Rix Acting Library Director 11 Forwarded to Council: Rod Gould City Manager Reference: Modified Agreement No. 7895 (CCS)