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Home My WebLink AboutAgenda Report - May 6, 2015 C-11AGENDA ITEM C__ I I CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Lease Agreement Renewal for Fire Station No. 2 with Design Space Modular Buildings, Inc., of Dixon ($46,506) MEETING DATE: May 6, 2015 PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute lease agreement renewal for Fire Station No. 2 with Design Space Modular Building, Inc., of Dixon, in the amount of $46,506. BACKGROUND INFORMATION: City Council, on March 6, 2013, adopted Resolution No. 2013-32 authorizing the City Manager to execute a 24 -month lease agreement (Exhibit A) for a temporary modular building to replace the Fire Station No. 2 living quarters during the construction of the new fire station. This lease will expire on May 14, 2015. The new estimated completion date of the Fire Station No. 2 construction project is now December of 2015 requiring a renewal of the existing modular building lease agreement in order to retain the current lease rate. Design Space Modular Building, Inc. has agreed to a seven month extension (Exhibit B) that will retain the existing monthly lease rate of $3,506 plus applicable taxes. While the construction project is moving ahead as planned, there is a chance the modular building may be needed beyond December of 2015 requiring month-to-month extensions. Staff recommends executing the seven-month lease extension to lock in the current rate until December 2015; and to authorize up to five month-to-month extensions as needed at a lease rate not to exceed $4,000 per month. FISCAL IMPACT: Funds are included in the FY 14/15 budget for the Fire Station 2 project. By not exercising an option to extend the current lease agreement, the monthly lease rate will increase. FUNDING AVAILABLE: General Fund Capital (43199000.77020). 0da-"Q n Ayers Deputy City Manager/Internal Services Director J/� / JQ A Xd1J,__ F. Wally Eondefin Public Works Director Prepared by Rebecca Areida-Yadav, Public Works Management Analyst FWS/RAY/eb Attachments cc: Larry Rooney, Fire Chief APPROVED: n K:\WP\COUNCIL\2015\CCFire2Modular (2) doc Manager 4/28/2015 LP1(0 1 Wout.' -. LEASE AGREEMENT NO: V-001178 eP" � ,a I CUSTOMER NUMBER: MODIILAH R U I L 0 1 N G 3 From Vision to Reality I On 1'1070 and On Budgot CUSTOMER PO/REF. NUMBER: RETURN EQUIPMENT TO DSMBI: Equipment Located At I Contact 2725 Fitzgerald Drive 706 E Lodi Ave Name: Larry Raon� r� Dixon, CA 95620 Lodi, CA 95240 Phoneme 2[}8-3336735 Phone; 707-678-6100 _ E-mail: Iroonevlodi.gov DESIGN SPACE MODULAR BUILDINGS, INC. (DSMBI) hereby leases the equipment specified below (the "Equipment") to: Lessee lame Customer 8 Address ----- �..-._ ddres Lodi ire Department 25 East Pine Street Lodi, CA 95240 Blllln� Contact: - _ Customer hereby leases Equipment from DSMBI for a minimum period of 24 months (the "Minimum Lease Period") from the start of the lease term in accordance with the terms and conditions of this Lease Agreement inciuding the terms and conditions set forth on the attached page (this "Lease"), Rental month is defined as a thirty -day period, Customer agrees to pay DSMBI without demand and in advance the monthly rental and other charges on the due dates set forth in this Lease. The anticipated delivery date for the Equipment, subject to Section 3(c) on the attached page, will be on or about the 11th day of March, 2013. Unit No. 4743-46 U a1 No._ Width I Length__ Monthly _ W+@ekly Dally Insurance ah 19902-05 _48 60 $ 3,506 _ $ 1.169 234 $125;O00.00 ONE TfME CHARGES T6i7'iWdAt 77me OfDOLATry Vy� _ W _ DELIVERY • BLOCK AND LEVEL/SET-UP AMOUNTMONTHi Y CHARGES_ BUILDING AMOUNT $3,606.00 Included AODITIONAL LEASE COSTS Included OTHER - INSURANCE WAIVER @ t.00iday_per floor ST>=P5 Quantity_9� _Included • ANCHORS Included Included _ _• SKIRTING _ _ _ • FOUNDATION AND RAMP PLANS$1,000.00 l3rileif At Time OfRetum RAMPS Size: (2) 36ft _ Included • RETURN DELIVERY _.• LIN BLOC K/TEARDOWN • ANCHOR REMOVAL Included TOTAL MONTHLY (Exct Tax) DOH/DMVIPPTTax $ 006..00 Included Included Included * ' Customer has or _ YAtl�ariee•Paprrieni8 Rppueci la 1 `f- lnvdi�v Applied to Final Invoice to renew for one year at the same rates. i7eaeript,,n of Charges 1 Payment to be Ap ed Amount No agent, employee or representative of DSMBI has any authority to make any representation or warranty concerning the Equipment that is not specifically included in this Lease. Unless specifically identified in this Lease, this Lease supersedes all prior negotiations, proposals and documents. This Lease will not be subject to any additional provision that may be contained in the Customer's purchase order, although the parties may use Customer's purchase order number as a convenient reference for invoicing purposes. Steps not turned are billed at $479,00/each, Keys not returned are billed at $50.00/each. Sign& duly a lld ents, with the intent to be legally bound, IS_LLdayof 2013. By.' rpt CEM00 U110INGSINC. y CUSTOMER O AUrHORIZEDAGENT l Name: Name: 1 cr 1A_ r, rl f I :; BRENT HOFFMAN (Please dnt A' ]1,l! r . 1 of 5 City Clerk Approved as to foxm� Cl# Attorsi,ey 1IN■:O Design Space 01 MODULAR BUILDINGS From Vesoon to Reality I On rima and On Budget Advance Notice of Lease Expiration Lodi Fire Department Attn: Rebecca Areida-Yadav 25 East Pine Street Lodi, CA 95240 Re: Customer Number: 04-LODIFD Expired Lease Number: V-001178 Unit Number: 4743-46 P.O. Number: N/A Location of Unit: 705 E. Lodi Ave Dear Customer: Your lease with Design Space Modular Buildings will expire on 5/14/15. Per our conversation, Lodi Fire Department wishes to extend the lease for seven (7) months. Please sign this renewal letter as an authorized agent for your company. The terms & conditions of your current lease agreement will remain. Option 1._ ✓_ Please renew our lease as indicated below. Lease Term ("✓") Number of Months Monthly Lease Rate* Month Rate # 7 $ 3.506.00 *Effective from expiration date. Excludes optional equipment and applicable taxes Authorized signature Please Print Name and Phone# New Purchase Order# (If Applicable Option 2. If you are interested in purchasing your mobile/modular office please call the number below to speak to a sales representative. Option 3. 1 will call 1-866-889-7777 to have my mobile/modular office to be picked up within the next 30 days. �) l N— Please respond by May 7th or your lease rate may be subject to an increased month- to-month rate. You may return this renewal letter by fax, mail, or email to. Brent Hoffman _(brent@dsmbi.com) Design Space Modular Buildings 2725 Fitzgerald Drive, Dixon, CA 95620 Approved as to fom (PH) 707-678-6100 (FX) 707-678-6111 City Attorney Thank you for your continued business with Design Space Modular Buildings. RESOLUTION NO. 2015-50 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT RENEWAL AND UP TO FIVE MONTH-TO-MONTH EXTENSIONS (AS NEEDED) FOR FIRE STATION NO. 2 WITH DESIGN -SPACE -MODULAR -BUILDINGS, INC. WHEREAS, on March 6, 2013, the City Council adopted Resolution No. 2013-32 authorizing the City Manager to execute a 24 -month lease agreement for a temporary modular building to replace the Fire Station No. 2 living quarters during the construction of the new fire station; and WHEREAS, the current lease agreement will expire on May 14, 2015; and WHEREAS, the new estimated completion date of the Fire Station No. 2 construction project is now December 2015; and WHEREAS, staff recommends executing a seven-month renewal of the existing modular building lease agreement, in order to retain the current lease rate of $3,506 plus applicable taxes with Design Space Modular Building, Inc., of Dixon, California; and WHEREAS, while the construction project is moving ahead as planned, a possibility exists that the modular building may be needed beyond December 2015, and staff recommends that the City Council authorize up to five month-to-month extensions, as needed, at a rate not to exceed $4,000 per month. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve: 1) a seven-month Lease Agreement Renewal for the temporary modular building for Fire Station No. 2 with Design Space Modular Buildings, Inc., of Dixon, California; and 2) up to five month-to- month extensions, as needed, at the lease rate not to exceed $4,000 per month; and BE IT FURTHER RESOLVED that the total amount for the seven-month lease and five month-to-month extensions shall not exceed $46,506; and BE IT FURTHER RESOLVED that the City Council does hereby authorize the City Manager to execute the Lease Agreement Renewal and month-to-month extensions on behalf of the City. Dated: May 6, 2015 I hereby certify that Resolution No. 2015-50 was passed and adopted by the City Council of the City of Lodi in a regular meeting held May 6, 2015, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Kuehne, and Mayor Johnson NOES: COUNCIL MEMBERS — Mounce and Nakanishi ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None tvNZIFER . FERRAIOLO lerk 2015-50