HomeMy WebLinkAboutAGENDA REPORT 2014 0716 CCSA REG JNT DC ITEM 10DITEM 10.D.
FROM: Jeremy Laurentowski, Parks and Recreation Director
BY: Jessica Sandifer, Management Anal,
s
DATE: July 8, 2014 (CC Mtg. July 16, 2014)
SUBJECT: Consider Rescinding Previous City Council Action of December
18, 2013 and Re -Approve Second Amendment to Lease
Agreement with Moorpark/Simi Valley Neighborhood For
Learning, First 5 Ventura County
BACKGROUND & DISCUSSION
This item was first brought to the City Council's attention on December 18, 2013. The
original amendment that was approved by the City Council at that time required that the
City pay for the cost of the shade structure upfront, with Moorpark/Simi Valley
Neighborhood For Learning, First 5, Ventura County (First 5) repaying the City for the
cost of the structure and the long term maintenance. The amendment extended the
lease an additional five years and increased the lease amount by an additional
$260/month. After the initial five year lease term, the additional monthly costs would be
set aside for replacement of the shade fabric and any future maintenance costs
associated with the supporting structure.
The First 5 Board of Directors (Board) reconsidered the proposal and requested that the
City pay for half the cost of the shade structure. The Board believes that there is a
certain benefit to the City for the upgrade, particularly if First 5 were unable to continue
their lease, as the Board believes that the outside play area is not useable during the
warmer months without a shade canopy.
Staff estimates the total cost of the shade canopy, including installation, to be
approximately $17,000. First 5 will pay for half of the installation cost and the City will
pay for the other half. First 5 will also pay for the cost to replace the shade fabric after
the first ten years. This is estimated to cost $5,000. The total cost to First 5 will be
$13,500 and will be recaptured through a lease extension of seven years at a cost
increase of $112/month, with the increase in the lease terms staying the same until year
ten. After year ten, the additional lease terms to cover maintenance will be reduced to
$42/month (based on $5,000 amortized over ten years),_ or equivalent cost of the
Honorable City Council
July 16, 2014
Page 2
replacement fabric at that time. The lease amendment starts a new seven-year lease
term and adds the monthly repayment cost of the shade structure and fabric. The
amendment to the lease would be executed prior to construction of the shade structure.
The proposed Second Amendment will also correct the name of the organization
responsible for the lease. The Boys and Girls Club of Simi Valley is the recipient
organization of the 1998 Proposition 10 — Cigarette Tax, which created the First 5
Neighborhood for Learning program. The lease is being corrected to reflect the
organization responsible for the lease. The tenant name will be changed from
Moorpark/Simi Valley Neighborhood for Learning (NfL), First 5 Ventura County to Boys
and Girls Club of Simi Valley dba Moorpark/Simi Valley Neighborhood for Learning,
First 5 Ventura County. This reflects the correct organizational structure in that the non-
profit Boys and Girls Club of Simi Valley runs the Moorpark/Simi Valley NfL housed at
the Ruben Castro Human Services Center. This name will now also match the rental
payments which have been coming from the Moorpark/Simi Valley Boys and Girls Club
since the lease inception.
FISCAL IMPACT
As stated, the estimated cost of the shade structure is $17,000. Staff is proposing to use
remaining RDA 2006 Bond Funds to construct the shade structure. A staff report will be
prepared for the Successor Agency board to approve the construction agreement and
fund allocation for the shade structure at the next meeting of the City Council/Successor
Agency Board. The additional rent payment will go back to the General Fund to
reimburse the cost of the shade structure and be set aside for future replacement and
maintenance costs.
STAFF RECOMMENDATION
Approve Revised Amendment No. 2 to the First 5 Neighborhood for Learning lease,
reflecting the tenant name change to Boys and Girls Club of Simi Valley, extending the
term and providing for repayment of half of the construction costs for a shade structure,
and authorize City Manager to sign the amendment, subject to final language approval
of the City Manager.
Attachments:
1. Amendment
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AMENDMENT NO. 2
TO LEASE AGREEMENT BETWEEN THE CITY OF MOORPARK AND
MOORPARK/SIMI VALLEY NEIGHBORHOOD FOR LEARNING, FIRST 5 VENTURA
COUNTY
This Amendment No. 2 to the Lease Agreement between the City of Moorpark, a
municipal corporation ("City"), and Boys and Girls Club of Simi Valley dba
Moorpark/Simi Valley Neighborhood for Learning, First 5 Ventura County, a non-profit
organization, ("Tenant"), is made and entered into the day of
2014.
RECITALS
WHEREAS, on August 30, 2012, the City and Tenant entered into a Lease
Agreement for 612 Spring Road, Suite 401 at the Ruben Castro Human Services
Center (RCHSC); and
WHEREAS, on February 12, 2014, the City and Tenant entered into an
Amendment No. 1 for the Lease Agreement authorizing Tenant to park a mobile service
recreational vehicle at the Moorpark Public Services Facility; and
WHEREAS, Tenant desires to correct the name on the lease to accurately reflect
the actual organization responsible for the lease; and
WHEREAS, Tenant needs a shade structure to be built over the outdoor play
area adjacent to Suite 401; and
WHEREAS, City agrees to provide construction of said shade structure; and
WHEREAS, Tenant agrees to pay City an additional rental sum for half of the
cost to construct the shade structure, the maintenance of the shade structure and future
replacement of the shade sail cloth for a total cost of thirteen thousand five hundred
dollars ($13,500); and
WHEREAS, the City and Tenant now desire to amend the Agreement to reflect
Tenant's agreement to pay for fifty percent (50%) of the construction cost of the shade
structure and to extend the lease agreement for seven (7) years and increase the rental
rate by one hundred twelve dollars ($112) per month as payment for half of the cost of
the shade structure, the maintenance of the shade structure and future replacement of
the shade sail cloth over the outdoor play area adjacent to Suite 401 at the RCHSC,
and document said agreement to amend by jointly approving Amendment No. 2 to the
Agreement.
NOW, THEREFORE, it is mutually agreed by and between the parties to the
Agreement as follows:
I. The name of the organization responsible for the lease is hereby changed from
Moorpark/Simi Valley Neighborhood for Learning, First 5 Ventura County a non-profit
organization, to Boys and Girls Club of Simi Valley dba Moorpark/Simi Valley
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Neighborhood for Learning, First 5 Ventura County to reflect the fact that the Boys and
Girls Club of Simi Valley is the responsible organization for the Moorpark/Simi Valley
Neighborhood for Learning program.
Il. Section 2, TERM, is amended by replacing this section in its entirety as follows:
"The term of this Lease shall commence on August 1, 2014, and all
terms and conditions of the lease shall continue for a seven (7) year term
to July 31, 2021, unless sooner terminated as provided for in this
agreement.
City's obligations hereunder shall be contingent upon Tenant's
payment in full of any obligations described in Section 5 below, and
Tenant's complying with all other provisions set forth herein."
III. Section 3, OPTION TO EXTEND is amended by adding the following:
"The first three (3) year option to extend will include an additional
rental amount for the construction and maintenance of the shade structure
as outlined in Section 5. All options to extend after the first option, will
include a maintenance fee only for the shade structure as outlined in
Section 5."
IV. Section 5, RENT, is amended by replacing the first paragraph of Section 5 in its
entirety with the following language:
"Monthly rent for Premises shall be $1.35 per square foot based
upon 3,077 square feet totaling four thousand one hundred fifty-three
dollars and ninety-five cents ($4,135.95) per month during -the first two (2)
years of the initial term from August 1, 2014 to July 31, 2016. In August 1,
2016, the rental rate will be increased by three percent (3%) to four
thousand two hundred eighty dollars and eleven cents ($4,280.11). The
rental rate will be further increased by three percent (3%) for each of the
extended terms contemplated by Section 3, if Tenant should elect to
extend the Lease Agreement. In addition to the rental amounts outlined
above, Tenant will also pay an additional rental amount of one hundred
twelve dollars ($112) per month for half of the cost to construct the shade
structure, the maintenance of the shade structure, and future replacement
of the shade sail cloth beginning upon August 1, 2014 until July 31, 2021.
The one hundred twelve dollars ($112) per month will continue through the
first three (3) year extension. After the initial repayment term and three (3)
year extension for construction of the shade structure, the additional rental
fee will be reduced to forty-two dollars ($42) per month to cover future
maintenance costs and will be assessed during future lease extensions as
outlined in Section 3.
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In the event Lease is terminated prior to the end of the initial seven
year term, pursuant to Section 8 or Section 44 of this Lease Agreement,
the payments for construction and maintenance costs of the shade
structure shall be accelerated and Tenant shall pay City the remaining
lump sum balance owed upon Lease termination."
V. Section 17, MAINTENANCE is amended by adding the following paragraph:
"City shall provide repair and/or replacement of the shade structure
to be constructed over the outside play area next to Tenant's Lease Space
(612 Spring Road, Building B, Space D (Suite 401). Tenant shall pay an
additional sum, as defined in Section 5 to offset the repair and/or
replacement activities undertaken by the City."
VII. Remaining Provisions:
Except as revised by this Amendment No. 2, all of the provisions of the
Agreement shall remain in full force and effect.
In Witness Whereof, the parties hereto have caused this Agreement to be
executed the day and year first above written.
CITY OF MOORPARK
In
Steven Kueny, City Manager
Attest:
Maureen Benson, City Clerk
BOYS AND GIRLS CLUB OF SIMI
VALLEY dba MOORPARK/SIMI VALLEY
NEIGHBORHOOD FOR LEARNING,
FIRST 5 VENTURA COUNTY
In
Virginia Hayward, President and CEO
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