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Home My WebLink About20C - AA PARKING SPACE RENTAL AT YARDREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 17, 2019 TITLE: APPROVE AN APPROPRIATION ADJUSTMENT AND FIRST AGREEMENT AMENDMENT WITH SERCO, INC., FOR RENTAL OF PARKING SPACES AT THE CORPORATE YARD — STORES FACILITY TOTAL POTENTIAL REVENUE: $13,656 (STRATEGIC PLAN NO. 1, 5) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2n' Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Authorize the City Manager to execute a first amendment to the site lease agreement with Serco, Inc., for the lease of an additional six parking spaces located at the Corporate Yard, at the rate of $300 per month ($50 per parking space), with any partial month prorated at $12 per day ($2 per parking space), for the term beginning September 18, 2019, and ending June 30, 2020, with an option for three one-year extensions, for a net revenue increase of $13,656 for the entire term of the agreement, including optional extensions, subject to non -substantive changes approved by the City Manager and City Attorney. 2. Approve an appropriation adjustment recognizing Fiscal Year 2019-20 lease income of $2,856 into the Corporate Yard Operations Rental-Serco revenue account and appropriating the same amount to the Corporate Yard Contract Services -Professional expenditure account. DISCUSSION The Corporate Yard at Daisy/Center Street was constructed in 1985 and houses the Public Works Agency Administration Building, Central Stores, and Fleet Services. The facility consists of 11.5 acres and 140,000 square feet of structures. The operating hours are Monday through Thursday from 6 a.m. to 5 p.m., and Friday from 6 a.m. to 4 p.m. In addition to City departments, contractors providing street sweeping services and parking enforcement services are housed at the Corporate Yard. On June 19, 2018, the City entered into an agreement with Serco, Inc., to provide parking enforcement services. Serco, Inc., operates out of the Corporate Yard and stores their traffic enforcement vehicles at this site. Earlier this year, Serco, Inc., approached the City requesting to lease office space at the Corporate Yard. On June 18, 2019, the City entered into a lease 20C-1 Approve First Amendment with SERCO, Inc., for Parking Spaces at the Corporate Yard September 17, 2019 Page 2 agreement with Serco, Inc., to lease 230 square feet of available office space. The lease included one parking space. The City wishes to commemorate the utilization of an additional six parking spaces and Serco, Inc., has agreed to a monthly rate of $50 for each space, which is consistent with the monthly parking rate at the City -owned downtown parking structures. Staff has evaluated the request and has identified available parking spaces within the vicinity of the Corporate Yard -Stores Building. The City recommends entering into the first amendment to the lease agreement with Serco, Inc., for the rental of six parking spaces. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #1 — Community Safety, Objective #5 (provide high quality Police and Fire/Emergency Medical Services response within the City of Santa Ana). FISCAL IMPACT Approval of the site lease agreement amendment obligates Serco, Inc., to compensate the City $3,600 annually for the lease of six parking spaces at the Corporate Yard. The one-year agreement term begins September 18, 2019, and ends June 30, 2020. There is also an option for three one-year extensions. The requested Appropriation Adjustment will recognize Fiscal Year 2019-20 lease income of $2,856 into the Corporate Yard Operations Rental-Serco revenue account (No. 08517002-53739) and appropriate the same amount to the Corporate Yard Contract Services -Professional expenditure account (No. 08517138-62300). The total anticipated revenue and expenditures from this amendment is as follows: Fiscal Year Accounting Unit - Account No. Fund Accounting Unit, Account Amount (Project No.) Description No. Description REVENUE 08517002- City Yard City Yard Operations, FY 2019-20 53739 Operation Rental-Serco $2,856 08517002- City Yard City Yard Operations, FY 2020-21 53739 Operation Rental-Serco $3,600 08517002- City Yard City Yard Operations, FY 2021-22 53739 Operation Rental-Serco $3,600 20C-2 Approve First Amendment with SERCO, Inc., for Parking Spaces at the Corporate Yard September 17, 2019 Page 3 Accounting Unit - Fiscal Year Account No. Fund Accounting Unit -Account Amount Description No. Description (Project No.) 08517002- City Yard City Yard Operations, FY 2022-23 53739 Operation Rental-Serco $3,600 Total Revenues: $13,656 EXPENDITURES City Yard City Yard Operations — FY 2019-20 08517138-62300 Operation Contract Services - $2,856 Professional City Yard City Yard Operations — FY 2020-21 08517138-62300 Operation Contract Services - $3,600 Professional City Yard City Yard Operations — FY 2021-22 08517138-62300 Operation Contract Services - $3,600 Professional City Yard City Yard Operations — FY 2023-24 08517138-62300 Operation Contract Services - $3,600 Professional Total Expenditures: $13,656 PE, PLS Executive Rrector Public Work Agency FSS/TC/GL Exhibit: 1. First Amendment — SERCO. Inc. APPROVED AS TO FUNDS AND ACCOUNTS: l% . &W-il� Kathryn Do ns, CPA �� Executive Director Finance and Management Services Agency 20C-3 20C-4 Exhibit 1 FIRST AMENDMENT TO LEASE AGREEMENT WITH SERCO. INC. THIS FIRST AMENDMENT to the above -referenced agreement is entered into on September 18, 2019, by and between Serco, Inc. ("Tenant") and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The parties entered into Agreement No. N-2019-118, dated June 18, 2019 ("Lease Agreement', by which City leased to Tenant certain office and parking space at the Santa Ana City Yard for Tenant's business operations ("Premises"). B. The Lease Agreement remains in effect through June 30, 2020, with provision for extension. C. The parties now wish to amend the Lease Agreement to include additional parking spaces in the Premises being leased by Tenant under the Lease Agreement. The Parties therefore agree: 1. Section 2, Premises, is amended to include in the Premises being leased by Tenant an additional six (6) parking spaces, as depicted on Exhibit A, so that the total parking spaces subject to the Lease Agreement is seven (7). 2. Section 6, Rent, is amended such that, effective September 18, 2019, the monthly rent payable under the Lease Agreement shall be increased by the monthly sum of three hundred dollars ($300), or fifty dollars ($50) per month for each additional spot, with any partial month prorated at $12 per day ($2 per parking space). 3. Except as modified by this First Amendment, all terms and conditions of the Lease Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Lease Agreement on the date and year first written above. ATTEST DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO, City Attorney ,By: ZT� J HN M. FUNK Assistant City Attorney CITY OF SANTA ANA KRISTINE RIDGE City Manager SERCO, INC. Name: 'D; e( r,Srn I c Title: SV�> Page I of 2 20C-5 FOR APPROVAL MAD S. SWEISS, PE, Executive Director Public Works Agency Page 2 of 2 20C-6 , MOP ri _ I =designated parking space I Tl i l i gifl:: ya I l l I-1 I1O I I1-I-I-I-IO >'T SMTA MA r1 The Premises P� Exhibit A N&IOWOUSAGSU 20C-• 20C-8