Title
Staff Report for a Resolution Authorizing the City Manager to Execute a Lease Agreement with Family Services Counseling and Community Resource Center for the City Property Located at 2208 San Leandro Boulevard, Contingent upon the Completion of Certain Conditions
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff requests that the City Council grant the City Manager the authority to enter into a new lease agreement, subject to the City Attorney's approval as to form, with Family Services Counseling and Community Resource Center for the City's property located at 2208 San Leandro Boulevard for a period of five years with the option of an additional five-year extension.
BACKGROUND
The City entered into a lease agreement for its building located at 2208 San Leandro Boulevard with Family Service of San Leandro on September 1, 1997. The City declared the property surplus. Pursuant to that declaration, the City offered its use to the community. Family Service of San Leandro was chosen as the Tenant for this City surplus property because Family Service would provide professional and affordable counseling services to the community. The rent charged was $1 per year. The lease expires on August 31, 2012. The original agreement allowed the Lessee the option of renewing the lease for an additional 15 years if agreeable to both parties. However, Family Service was required to notify the City at least one year prior to the termination of the lease; it did not do so. Therefore, we will be entering into a new lease agreement effective September 1, 2012.
Analysis
Staff investigated the property and found a number of maintenance issues that need to be addressed by the Tenant. These items must be completed prior to the parties entering into the new lease. Among the tasks are improvements to the parking lot. Due to the cost of these improvements, which are the Tenant's responsibility, the Tenant asked the City to commit to the new lease before embarking on the improvements. Therefore, staff recommends that the City Council authorize the City Manager to enter into the new lease if all of the improvements identified by Public Works Services staff are addressed prior to August 15, 2012.
In addition, staff recommends that the rent be increased from $1 per year to $100 per year payable in advance and will require that the Tenant adhere to the City's updated insurance requirements.
Previous Actions
On August 18, 1997, by Resolution No. 97-107, the City Council approved the lease between the City and Family Service of San Leandro.
Applicable General Plan Policies
Policy 51.01 Families Support City and community programs that meet the needs of families and encourage their active participation in the community.
Committee Review and Actions
At its May 8, 2012 meeting the Facilities & Transportation Committee authorized staff to take this item to the full Council for acceptance.
Fiscal Impacts
The City will receive $500 for the first five years of the agreement and another $500 if the lease is extended another five years.
ATTACHMENTS
None.
PREPARED BY: Tara Peterson, Administrative Services Manager, Engineering and Transportation Department
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