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HomeMy WebLinkAboutResolutions - No. 2005-99RESOLUTION 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 50/50 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 1 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. BLACKSTON City Clerk 2005-99 AGENCY: Military Department LEASE No.: L-2015 PROJECT: Lodi Armory AMENDMENT NO. 1 TO LEASE 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, if 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 (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. AkWNOTLS L-201 5 -1- 26 RESO (10197) 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 '*13" 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 leased 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-month subject to a rent incfease to $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, 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. AMENDTLS L-20 15 -2- 27 PESO {10/97) IN WITNESS WHEREOF, this Amendment No. 1 to Lease has been executed by the parties on the date written beiow. STATE OF CALIFORNIA: LESSEE: DIRECTOR OF DEPARTMENT QF CITY OF LODI GENERAL SERVICES By: Bob Clark, Manager State Owned Leasing & Development EXECUTED DATE: Consents to the Lease MILITARY DEPARTMENT By: BlairKing, City Manager Attest: By: Susan J. Blackston, City Clerk By: Approved as to form: Patrick E. Sproul, Chief Contracting Section By: D. Stephen Schwabauer Approves Terms City Attorney Department of General Services By: Patricia Live, REO AMENDTLS L-2015 -3- 28 RESD (10/97) LEASE NO.: L-2015 EXHIBIT 13 Lodi Armory Rent Calculation Economic Rent Per Month $2,500.00 Less: Repairs and Improvements to Armory Building, Divided by 60 Months: $91,481/60 -$1,525.00 Landscape Maintenance Allowance -$ 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 Net Monthly Rent $ 350,00 AMENDTLS L-2015 -4- RESD (10N7) 29