HomeMy WebLinkAbout25A - LICENSE AGMT - GIFT SHOP AT DEPOT
CITY COUNCIL MEETING DATE:
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REQUEST FOR
COUNCIL ACTION
CLERK OF COUNCIL USE ONLY:
APRIL 17, 2006
TITLE:
APPROVED
FIRST RENEWAL OPTION TO
LICENSE AGREEMENT WITH
K. LEE GIFTS AT THE DEPOT
o As Recommended
o As Amended
o Ordinance on 1 st Reading
o Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
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CITY MANAGER
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Direct the City Attorney to prepare and authorize the City Manager and
the Clerk of the Council to execute a First Amendment to the License
Agreement with K. Lee Gifts for a gift shop at The Depot at Santa Ana.
DISCUSSION
K. Lee Gift Shop has been located in the alcove on the southwest side of
The Depot since July 1, 1998. In this location, K. Lee Gifts has
provided a limited mix of merchandise for the travelers , visitors and
tenants of The Depot. On November 15, 2004, the City Council approved a
License Agreement with K. Lee Gifts for a two-year period beginning July
1, 2004, and ending July 30, 2006, with two 12-month renewal options.
Staff is recommending exercising the first 12-month renewal option
beginning July 1, 2006, and ending June 30, 2007. Under the first
renewal option, the monthly compensation to the City will be $743.10 per
month. This renewal option continues to contain provisions to ensure
that the gift shop operation portrays a positive image for The Depot at
Santa Ana.
The only alternative is not to execute this amendment and terminate the
license agreement with K. Lee Gifts for operations at The Depot. This
alternative is not viable as it would result in the loss of revenues of
$8,918.28 for FY 06-07, and create a void in services for our travelers,
visitors and tenants.
25A-1
First Renewal Option to
License Agreement with
K. Lee Gifts at the Depot
April 17, 2006
Page 2
FISCAL IMPACT
Funds from the First Renewal Option will be deposited into The Depot at
Santa Ana Rental - K. Lee revenue account (account no. 67-01-5493).
APPROVED AS TO FUNDS AND ACCOUNTS:
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Francisco Gutierrez fkJ~
Executive Director ~
Finance & Management Services Agency
Patricia C. Whitaker
Executive Director
Community Development Agency
PCW/CKF/mlr
H:\ACTIONS\2006 CC\lstRewalOpt to License Agreement K Lee
4-l7-06.doc
25A-2