Title
Staff Report for a Resolution Approving, and Authorizing the City Manager to Execute, a Lease of Approximately 3,675 Square Feet of Office Space on the Second Floor of San Leandro City Hall, Formerly Occupied by the Alameda County Fire Department, to the San Leandro Unified School District for District Administration
Staffreport
SUMMARY AND RECOMMENDATIONS
The City Manager recommends that the City Council approve a resolution that approves, and authorizes the City Manager to execute, a lease of approximately 3,675 square feet of office space on the second floor of San Leandro City Hall to the San Leandro Unified School District upon the following basic lease terms: Rent of $56,000 for the first year, and escalating by the Consumer Price Index (CPI) each year thereafter, for a term of 5 years, with a one-time option on the same terms for an additional 5 years, to be used exclusively for District Administration).
BACKGROUND
The City came upon available office space within the second floor of San Leandro City Hall when the Alameda County Fire Department (ACFD) recently vacated the premises. In accordance with the City Council's 2014 goal to strengthen its partnership with the City's schools, the City Manager offered the available office space in its "as-is, where-is" condition to the Superintendent of the San Leandro Unified School District, to be used exclusively for public school administration purposes. Upon the Superintendent's expression of mutual interest, the City Manager requested that the City Attorney draft an office space lease that the Superintendent could take to the San Leandro Unified School District Board of Education for approval. The Board of Education approved the draft lease, which is now subject to the City Council's final review and approval. The District would like to move into the office space on July 1, 2014.
Analysis
The Lease's basic terms are as follows:
Landlord: CITY OF SAN LEANDRO
Tenant: SAN LEANDRO UNIFIED SCHOOL DISTRICT
Leased Premises
Address: 835 East 14th Street, San Leandro, CA
Building: San Leandro City Hall
Property: San Leandro Civic Center
Rentable Area: Approximately 3,675 rentable square feet, all of which is on the second floor of the Building (office space formerly occupied by the Alameda County Fire Department)
Term: 5 Years
Commence Date: July 1, 2014
Expiration Date: Midnight, July 1, 2019
Extension Option: A one-time option to extend the Term of the Lease for an additional five (5) years
Base Rent: Minimum Annual Base Rent: $56,000.00 for the first year, $4666.67 per month, to escalate by the Consumer Price Index for the San Francisco/Oakland/San Jose Bay Area each year of the term. If the option is exercised, then the Minimum Annual Base Rent shall increase by the CPI for each subsequent year until the end of the Term.
Permitted Use: The Premises shall be used for public school district administration purposes only. Absolutely no instruction or training of pupils, teachers, invitees, or administrators may occur on the Premises.
Utilities & Services: Paid by Tenant, whether on a pro rata or metered basis according to the City's preference
Janitorial: Paid by Tenant
Security Deposit: None
The other Lease terms are standard for leases of public property, including all indemnities, hold harmless clauses, and insurance requirements.
Previous City Council Actions
None
Legal Analysis
The City Attorney drafted the lease, and presented it to the Engineering and Public Works Directors for review and comment. It is still in draft form; approval will be subject to minor amendments or changes by the City Manager, which will be subject to the City Attorney's approval as to form.
Fiscal Impacts
The proposed rent is similar to the amount paid by ACFD before they moved to Dublin earlier this year. Once the lease is complete, staff will recommend a revenue resolution to appropriate the rent revenue for the fiscal year 2014-15 budget.
ATTACHMENT
Attachment(s) to Resolution
ยท Draft Lease
PREPARED BY: Richard D. Pio Roda, City Attorney
2276233.1