HomeMy WebLinkAboutAgenda Report - May 18, 2005 E-06C
AGENDA ITEM Gr IV
ANNEZMMI
CITY OF LODI
COUNCIL COMMUNICATION
7M
AGENDA TITLE: Adopt resolution approving an amendment to the agreement between the City of Lodi
and the State of Califomia for use of the Lodi National Guard Armory facility at 333 N.
Washington Street, Lodi
MEETIING DATE: May 18, 2005
PREPARED BY: Parks and Recreation Director
RECOMMENDED ACTION: That the City Council adopt the attached resolution amending the
agreement between the City of Lodi and the State of Califomia for use
of the Lodi National Guard Armory facility at 333 N. Washington Street,
Lodi.
BACKGROUND INFORMATION: The City entered into a five year agreement with the State of California
in February 2002 for the use of the Lodi National Guard Armory facilty
for recreational activities for the period of April 1, 2002 to March 31,
2007. The agreement called for a net monthly rent of $425 plus any
utility expenses incurred for City activities above and beyond the State's average costs of $303 per month.
Upon review of the State's utilities prior to the City's use, staff discovered that the contracted utility figure of
$303 did not include the State's gas charges and therefore these costs were being incorrectly passed on to
the City.
Staff has been working with various State employees for some time to resolve the discrepancy in the utility
billing and has come to a fair resolution with the attached amendment. Additionally, an adjustment in the
landscape maintenance allowance was made to better reflect costs associated with those tasks involved.
The term of the lease will remain the same. In summary, the amendment, which takes effect June 1, 2005, if
approved, calls for the following:
• Each entity will be responsible for 50% of all utility costs incurred for utilities (electric, gas, water,
sewer and trash disposal). The State will bill the City quarterly.
• The net monthly rental fee due will be reduced from $425 to $350 per month to reflect an accurate
landscape maintenance allowance (Exhibit B of the amendment).
•
With prior State approval, the department may rent the facility for a 50150 share of the revenues. (The
original lease agreement did not allow the City to sublet the facility.)
FISCAL IMPACT: The rental fee has been reduced by $75 per month which will save the City $900
annually for the remainder of the contract. Additionally, the State is amicable to
allowing the department to rent the facility, with prior approval, thereby potentially
increasing revenues to the City.
APPROVED: � �,
Blair King,d'# anager
Adopt resoluffm app Wiry an smendr»snt tD the epmeenwit between the City of Lodi and the State of Caftmis lint use of the Lodi Nakwel GUaW
Armory bc#ty at 333 N. YlSse kr&n Street, Lodi
May 18, 2005
Page 2
FUNDM AVi MAKE: Funding for the monthly rental and mainiananoe costs associated with this
a ment are bud in ft Parks and Recreation operating budgets.
J s R. KnwWr, Finance Director
Tony ring
Parks and Remotion Director
Prepared by: Susan ejorh, Mlanagemert Analyst
cc: City Attorney
AGENCY: Military Department LEASE No.. L-2015
This Amendment No. I to Lease, dated for reference purposes only, April 22, 2005, by
and between the City of Lodi, Department of Parks and Recreation, hereinafter called LESSEE,
and the State of California, acting by and through its Director of the Department of General
Services (the DGS), with the consent of the Military Department, hereinafter called STATE,
WHEREAS, the STATE has under its jurisdiction certain real property located in the
County of San Joaquin, State of California, commonly referred to as the Lodi Armory, and
WHEREAS, Pursuant to Government Code Section 14670(a), the Director of the
Department of General Services, with the consent of the Military Department, is authorized to
let state real property for a period not to exceed five years if the Director deems such letting is
in the best interest of the state, and
WHEREAS, the parties hereto entered into that certain Lease dated February 21, 2002,
covering the Premises including approximately 10,199 square feet of the total building area of
18,507 square feet together with its adjacent parking lots and grounds located at 333 N.
Washington Street, Lodi, in the County of San Joaquin, State of California; and
WHEREAS, the parties hereto desire to amend said Lease in order to adjust the
landscaping expense credit, rental payments, utility expenses payable, subleasing ability, and
holding over by the LESSEE.
WITNESSETH:
NOW, THEREFORE, effective June 1, 2005, ft is mutually agreed between the parties
hereto as follows:
Paragraph 4, UTILITIES, shall be deleted and replaced by the following*
LESSEE shall, at its sole cost and expense, reimburse the State for one half (1/2) of the
monthly utility fees of the entire premises. LESSEE will be billed and will pay State quarterly for
its portion of the utility bills. Utilities include electric, gas, water, sewer and trash disposal.
AMENDTLS L-2015 1- RESD (1Q/97)
2. Paragraph 6, IN LIEU BENEFITS, Sentences 3, 4 and Paragraph (b) shall be
deleted and replaced by the following:
As long as LESSEE completes the proposed improvements to the Premises, provides
landscaping maintenance and operates basketball and other recreation programs for the
community, the rental payment will be reduced to $350.00 per month. The basis for and
calculation of these in lieu benefits are listed in exhibit "B" also amended and made part
consisting of one (1) page attached hereto and made a part therein.
(b) LESSEE shall make rental payments for the [eased Premises monthly in advance
on the first day of each month as follows'.
'39
5 --Jr
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H I -- :: I
3. Paragraph 12. HOLDING OVER, the first paragraph shall be deleted and replaced
by the following,
Should LESSEE hold over after the expiration of the term of this Lease with the consent
of STATE, expressed or implied, said tenancy shall be deemed to be a tenancy only from
mons' th-to-rj ionth subject to a fent lncrease io $2,500,00 per month less allowances for
landscape maintenance of $250,00 per month, less the emergency displacement allowance of
$25.00 per month, and less one half of the balance of the rent of $2,225.00 per month for a net
monthly rental rate of $1,112.00 payable in advance, subject otherwise to all the terms and
conditions of this Lease insofar as applicable.
4. Paragraph 13. NO SUBLET shall be deleted and replaced by the following:
(a) LESSEE shall not transfer nor assign this Lease, or cause of permit any change of
any equipment installed in such Premises without prior written approval of the STATE.
(b) Not withstanding the above, the LESSEE is authorized to license the Armory minus
restricted areas to others in accordance with the same provisions hereto for community oriented
events, with prior written approval of the Military Department, All license fees for such approved
licenses are to be divided equally between the Military Department and LESSEE, The LESSEE
will make its records of licensing available at any reasonable time for inspection and will provide
routine documentation of licensed events and accounting of funds received, to the Military
Department upon request. Consent to one license is not a consent to any subsequent licenses.
(c) No licensing for use of space permitted herein, whether with or without the Military
Department's consent, shalt release LESSEE, or change LESSEE'S primary tiability to pay the
rent and to perform all other obligations of LESSEE under this Lease. STATE'S acceptance of
rent from any other person is not a waiver of any provision herein,
5. Except as expressly amended herein, all of the terms and conditions of said lease
shall remain unchanged and in full force and effect.
AME[NDTLS L-20015 .2- RESD (10W)
IN WITNESS WHEREOF, this Amendment No. 1 to Lease has been executed by the
parties on the date written below.
MA 01 MIZ, M W1 =ZVVJ'14%4���
By:
Bob Clark, Manager
State Owned Leasing & Development
EXECUTED DATE.
By:
Patrick E. Sproul, Chief
Contracting Section
Approves Terms
Department of General Services
By:
Patricia . Liva,-.RE6-'
AMENDTLS L-2015
[W***W
By:
Blair King, City Manager
By:
Susan J. Blackston, City Clerk
073312�,.
By:
D. Stephen Schwabauer
City Attorney
RESD (10197)
sommm
Economic Rent Ili Month $2,500.'aa l.
Repairs and Improvements to
Armory Building, Divided by 60
Months: $91,481/60 -$1,525.00
43�
Divided by two for allowance for
Joint use and operation of City
Basketball and other community
Oriented recreation programs
....... ......
AMENDTLS L-2015 4 RESD (10197)
RESOLUTION NO. 2005-99
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING AMENDMENT TO
LEASE AGREEMENT BETWEEN THE CITY OF LODI AND THE STATE OF
CALIFORNIA FOR USE OF THE NATIONAL GUARD ARMORY BUILDING
WHEREAS, in 2002, the City of Lodi entered into a five-year Lease Agreement with the
State of California for joint use of the Armory facility located at 333 N. Washington Street, Lodi; and
WHEREAS, upon review of the State's utilities prior to the City's use, staff discovered a
discrepancy in the utility billing and has come to a fair resolution with the attached Amendment
marked Exhibit A; and
WHEREAS, additionally, an adjustment in the landscape maintenance allowance was made
to better reflect costs associated with those tasks involved; and
WHEREAS, the amendment, which takes effect June 1, 2005, calls for the following:
1) Each entity will be responsible for 50% of all utility costs incurred for utilities (electric,
gas, water, sewer and trash disposal). The State will bill the City quarterly.
2) The net monthly rental fee due will be reduced from $425 to $350 per month to
reflect an accurate landscape maintenance allowance (Exhibit B of the Amendment).
3) With prior State approval, the department may rent the facility for a 50150 share of
the revenues. (The original lease agreement did not allow the City to sublet the facility.)
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve an
Amendment to the Lease Agreement between the City of Lodi and the State of California for use of
the National Guard Armory Building located at 333 N. Washington Street, Lodi; and
BE IT FURTHER RESOLVED that the Lodi City Council hereby authorizes the City Manager
to execute the Amendment to the Lease Agreement on behalf of the City of Lodi.
Dated: May 18, 2005
I hereby certify that Resolution No. 2005-99 was passed and adopted by the City Council of
the City of Lodi in a regular meeting held May 18, 2005, by the Following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and
Mayor Beckman
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLA KSTON
City Cleric
AGENCY; Military Department
PROJECT: Lodi Armory
AMENDMENT NO.1 TO LEASE
E
LEASE No.: L-2015
This Amendment No. 1 to Lease, dated for reference purposes only, April 22, 2005, by
and between the City of Lodi, Department of Parks and Recreation, hereinafter called LESSEE,
and the State of California, acting by and through its Director of the Department of General
Services (the DGS), with the consent of the Military Department, hereinafter called STATE,
RECITALS:
WHEREAS, the STATE has under its jurisdiction certain real property located in the
County of San Joaquin, State of California, commonly referred to as the Lodi Armory, and
WHEREAS, Pursuant to Government Code Section 14670(a:')-,. the Director of the
Department of General Services, with the consent of the Military Department, is authorized to
let state real property for a period not to exceed five years if the Director :deems such letting is
in the best interest of the state, and
WHEREAS, the parties hereto entered into that certain Lease dated February 21, 2002,
covering the Premises including approximately 10,199 square feet of the total building area of
18,507 square feet together with its adjacent parking lots and grounds located at 333 N.
Washington Street, Lodi, in the County of San Joaquin, State of California; and
WHEREAS, the parties hereto desire to amend said Lease in order to adjust the
landscaping expense credit, rental payments, utility expenses payable, subleasing ability, and
holding over by the LESSEE.
WITNESSETH:
NOW, THEREFORE, effective June 1, 2005, it is mutually agreed between the parties
hereto as follows:
1. Paragraph 4, UTILITIES, shall be deleted and replaced by the following:
LESSEE shall, at its sole cost and expense, reimburse the State for one half (112) of the
monthly utility fees of the entire premises, LESSEE will be billed and will pay State quarterly for
its portion of the utility bills. Utilities include electric, gas, water, sewer and trash disposal.
Ah4FMTLS L•2015 .1• PESO (10197)
26
2. Paragraph 6, IN LIEU BENEFITS, Sentences 3, 4 and Paragraph (b) shall be
deleted and replaced by the following:
As long as LESSEE completes the proposed improvements to the Premises, provides
landscaping maintenance and operates basketball and other recreation programs for the
community, the rental payment will be reduced to $350.00 per month. The basis for and
calculation of these in lieu benefits are listed in exhibit "B" also amended and made part
consisting of one (1) page attached hereto and made a part therein.
(b) LESSEE shall make rental payments for the [eased Premises monthly in advance
on the first day of each month as follows;
THREE HUNDRED FIFTY AND 001100 dollars ($350.00)
3. Paragraph 12. HOLDING OVER, the first paragraph shall be deleted and replaced
by the following:
Should LESSEE hold over after the expiration of the term of this Lease with the consent
of STATE, expressed or implied, said tenancy shall be deemed to be a tenancy only from
month -to-, i Month subject to a rent increase to $2,M0.00 per month iess'aliowances for' -
landscape maintenance of $250.00 per month, less the emergency displacement allowance of
$25.00 per month, and less one half of the balance of the rent of $2,225.00 per month for a net
monthly rental rate of $1,112.00 payable in advance, subject otherwise to all the terms and
conditions of this Lease insofar as applicable.
4. Paragraph 13. NO SUBLET shall be deleted and replaced by the following:
(a) LESSEE shall not transfer nor assign this Lease, or cause of permit any change of
any equipment installed in such Premises without prior written approval of the STATE.
(b) Not withstanding the above, the LESSEE is authorized to license the Armory minus
restricted areas to others in accordance with the same provisions hereto for community oriented
events, with prior written approval of the Military Department. All license fees for such approved
licenses are to be divided equally between the Military Department and LESSEE. The LESSEE
will make its records of licensing available at any reasonable time for inspection and will provide
routine documentation of licensed events and accounting of funds received, to the Military
Department upon request. Consent to one license is not a consent to any subsequent licenses.
(c) No licensing for use of space permitted herein, whether with or without the Military
Department's consent, shall release LESSEE, or change LESSEE'S primary liability to pay the
rent and to perform all other obligations of LESSEE under this Lease. STATE'S acceptance of
rent from any other person is not a waiver of any provision herein.
5. Except as expressly amended herein, all of the terms and conditions of said lease
shall remain unchanged and in full force and effect.
AMENOTLS -2045 -2- RESD (10197)
9N
27
IN WITNESS WHEREOF, this Amendment No. t to Lease has been executed by the
parties on the date written below.
STATE OF CALIFORNIA: LESSEE:
DIRECTOR OF DEPARTMENT OF
GENERAL SERVICES
By:
Bob Clark, Manager
State Owned Leasing & Development
EXECUTED DATE:
Consents to the' Lease
MILITARY DEPARTMENT
By: - -
Patrick E. Sproul, Chief
Contracting Section
Approves Terms
Department of General Services
By: .
Patricia Liva, REQ
AMENRTLS L-2015 -3-
26
CITY OF LODI
By:
Blair King, City Manager
Attest:
By:
Susan J. Blackston, City Clerk
Approved as to form:
By:
D. Stephenn-Schwabauer
City Attorney
R£SO (10V97)
LEASE NO.: L-2015
EXHIBIT B
Lodi Armory Rent Calculation
Economic Dent Per Month $2,500.00
Less:
Repairs and Improvements to
Armory Building, Divided by 60
Months: $91',481160 -$1,525-00
Landscape Maintenance Allowance -$ 250.00
Emergency Termination Allowance 25.00
Balance: $ 700.00
Divided by two for allowance for
Joint use and operation of City
Basketball and other community
Oriented recreation programs -$ 350.00
Net Monthly Rent $ 350.00
AMENDTLS L-2015 -d- RESD 410197)
29