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HomeMy WebLinkAbout25C - AGMT - LEASE AT SARTCREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 22, 2011 TITLE: AMENDMENT TO LEASE AGREEMENT WITH THE COUNTY OF ORANGE AT THE SANTA ANA REGIONAL TRANSPORTATION CENTER CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on V' Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an Amendment to the Lease Agreement with the County of Orange for office space at the Santa Ana Regional Transportation Center (SARTC), subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION Since 1997, the County of Orange has leased space at the SARTC for CALWORKS, a mandated partner in the WORK Center. The program works to assist welfare clients in finding employment. In March 2008, the City and County exercised the first three-year extension which will expire on February 28, 2011. The County of Orange has proposed to exercise its second three-year renewal option of the agreement. The current lease agreement consists of 6,354 square feet with monthly rent of $9,438. Under the second renewal option, the monthly compensation to the City will be adjusted on March 1, 2012 in accordance with the Consumer Price Index. Staff recommends that the City exercise the second renewal option of the lease agreement - effective March 1, 2011 and ending on February 28, 2014. FISCAL IMPACT Funds received from the lease will be deposited into the Rental - account (accounting unit 06717002-53812). < /1 Raul Godinez II Executive Direct Public Works Agency RG/CLK/jjwe Exhibit 1. Third Amendment to Lease Agreement County of Orange Revenue APPROVED AST FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency 25C-1 25C-2 THIRD AMENDMENT TO LEASE AGREEMENT THIS THIRD AMENDMENT, authorized on this 22"d day of February, 2011, by and between the County of Orange (hereinafter "Lessee") and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("Landlord"), collectively referred to herein as "the Parties". RECITALS A. The Parties entered into that certain agreement entitled "Lease Agreement between the City of Santa Ana and the County of Orange" hereinafter referred to as "said Agreement", to lease commercial space at The Santa Ana Regional Transportation Center to the County of Orange to be used for CALWORKS, a mandated partner in the WORK Center which assists welfare clients in finding employment. B. The parties hereto now desire to exercise the second three-year option of said Agreement to extend the "Term" and to increase the "Compensation" term pursuant to said Agreement. WHEREFORE, in consideration of the mutual and respective covenants and promises hereinafter contained and made, and subject to all of the terms and conditions of said Agreement as hereby amended, the parties hereto do hereby agree as follows: 1. The "Term" section of said Agreement is hereby amended by exercising the second three-year option to extend the Agreement, effective on March 1, 2011 through February 28, 2014. 2. Pursuant to the "Compensation" section of said Agreement, the monthly rental payment is currently $9,437.55, and shall be adjusted March 1, 2012, as proportionate to the change in the Consumer Price Index for Los Angeles- Riverside-Orange County, California, as set forth in the original Agreement. 3. The "Notice" section of said Agreement shall be amended to change the name and address of Lessor notice to: City of Santa Ana 20 Civic Center Plaza M-21 Santa Ana, CA 92701 SARTC Projects Manager Fax 714-647-5069 4. Except as hereinabove modified, the terms and conditions of said Agreement remain unchanged and in full force and effect. Exhibit 1 25C-3 IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to said Agreement the date and year first above written. ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: Joseph Straka, Interim City Attorney Laura Sheedy Assistant City Attorney RECOMMENDED FOR APPROVAL: w Raul Godinez, II Executive Directo Public Works CITY OF SANTA ANA David N. Ream City Manager COUNTY OF ORANGE By: Mike Ryan Acting Division Director, Administrative Services 25C-4