Item 12 - Lease and License Agreement Amendments with Greyhound Lines, Inc.

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Amend Site License and Lease Agreements with Greyhound Lines, Inc. January 18, 2022 Page 2 square feet of rental space, including ten bus bays, two surface parking lots, and a parking structure. On August 16, 2016, the City Council approved a site license and site lease agreements with Greyhound Lines, Inc., to license two bus bays and ticket counter office space at SARTC. The site lease agreement was for a three-year term with two one-year renewal options, which expired on November 30, 2021, and has continued on a month -to -month term. The site license agreement continues indefinitely, subject to termination with seven days' notice. Greyhound has expressed an interest in extending the site lease agreement for one additional year, beginning February 1, 2022, through January 31, 2023. Due to the current situation, given the COVID-19 pandemic and the impacts it has had on their operations, Greyhound Lines, Inc., has asked the City for a rent reduction for the first six- month period after which the rental rate will revert to the rates established prior to the COVID-19 pandemic. Greyhound has been a tenant at SARTC for over twenty years and has paid the monthly rent consistently. Staff recommends amending the site license and site lease agreements for a one-year period that will allow for the preparation of a new Request for Proposals for bus passenger services. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT With the approval of the requested appropriation adjustment, lease income for Fiscal Year 2021-22 in the amount of $28,340, consisting of $3,000 per month for five months of bus bay rental and $2,668 per month for five months of office space rental, will be recognized in the Public Works-SARTC Operations, Rental —Greyhound Lines, Inc., revenue account (No. 06717002-53810) and appropriated into the Public Works-SARTC Operations, Contract Services -Professional, expenditure account (No. 06717650-62300) for expenditure in Fiscal Year 2021-22. The remaining revenues and expenditures will be recognized and appropriated during the Fiscal Year 2022-23 budget process. Lease and License Agreement Term (February 1, 202Z through January 31, 2023) Fiscal Accounting Unit Fund Accounting Unit, Amount Year — Account No. Description Account Description 2021-22 Regional Public Works-SARTC (Feb -June) 06717002-53810 Transportation Operations, Contract $28,340 Center Services -Professional 2022-23 Regional Public Works-SARTC (July- Jan) 06717002-53810 Transportation Operations, Contract $59,626 Center Services -Professional Total: $87,966