That the City Council approve and authorize the City Manager to execute a lease agreement with the La Habra Art Association for their continued use of the City facility located at 151 West La Habra Boulevard, Room 102.

A lease agreement has been prepared that, if approved, would allow the La Habra Art Association (Association) to continue to use the Community Center Expansion Building at 151 West La Habra Boulevard, Room 102. The Association shall use the premises for the sole purpose of operating community-based art programs and services benefiting the residents of La Habra. The agreement provides for an initial term of two years, with possible extension by the Association for an additional two-year term (four years in total), subject to the termination conditions of the agreement or unless the extension is denied by a 4/5 vote of the City Council. 

The annual rent paid by the Association for use of the space is $1 per year.  In consideration of the nominal rent, the Association shall provide and pay for an appropriate share of the maintenance, possessory interest tax, utilities, and such other costs and expense that are associated with the use and operation of the property, except for the driveways, parking areas, and landscape areas. The City will provide custodial services and maintain the heating and air conditioning system. The Association may be responsible for any weekend call-outs for repairs beyond the scope of the routine maintenance contract.

The lease agreement includes modifications to the workers' compensation insurance requirement and other maintenance terms to reflect the usage in the building.  It also allows the Association use of the lobby in the Community Center Expansion Building, with prior City approval, for art receptions and open houses.

The lease agreement will require that the La Habra Art Association pay for their electricity costs and other shared maintenance costs at the City facility.