Center lease on hold

A proposed lease of $1 a year between the city and Laguna Beach Seniors Inc. for the new center now under construction took a double-barreled hit Tuesday.

City Manager Ken Frank presented the proposed lease to the City Council with a recommendation not to adopt it, because of comments he had received from more than one source.

The council unanimously agreed to withhold approval after Mayor Pro Tem Jane Egly, an attorney, and Councilwoman Cheryl Kinsman, a certified public accountant, took shots at holes in the lease, as presented.

“It’s just too vague,” Egly said.

Kinsman, who cannot vote on the Community/Senior Center because she owns property that might be financially impacted by the project, spoke out against the proposed lease as a resident.

“As an accountant, I couldn’t stand it,” Kinsman said. “This will just lead to hostility later on.”

She said terms of the lease that deal with the division of responsibilities and uses need to be clarified.

“How about separate utility meters so we are not dependent on a handshake for payment?” Kinsman said.

She also questioned the wisdom of setting the senior liability insurance at $1 million.

“It’s not enough for liability,” Kinsman said. “Nobody sues for just $1 million any more.” Kinsman also was concerned that the long-term lease could be transferred to someone else that the city might want to charge more than $1 a year in rent.

Egly said the seniors must have adequate insurance for employees and volunteers and voiced concern about omissions in the lease.

“Premises is mentioned, but not defined,” Egly said. “Responsibility for the common areas is not spelled out. And what does current operations and policies mean?”

Egly also wanted to know what remedies would be imposed if promises were broken.

“I could go on and on,” Egly said.

Parking arrangements as outlined in the lease also were deemed too loose.

“One of my biggest concerns is how the parking works,” Councilwoman Elizabeth Schneider said.

Councilman Kelly Boyd said use of the parking spaces need to be assigned.

“We need to define allocated spaces for the community center,” Boyd said. “This needs more work.”

Key provisions set forth by City Manager Ken Frank in the proposed lease:

Frank noted that the Seniors’ own lease consultant had reservations about specifics in the document.

“Steve Gromet has been hired by the Seniors and he felt it might be a good idea to take a few weeks to iron out some of the language although there will be no changes in policies,” Frank said.

Lease revisions probably will take four or five months, Frank said. No council action was required.

The council also was updated on the progress of the Community/Senior Center project underway on Third Street.

“We originally told the council that no work would be done on the site during the summer, but it is going so well, the project is being accelerated,” Frank said.

All summer work would be confined to the site.