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HomeMy WebLinkAboutCC 3 LAMBERT SCHOOL 01-16-84CONSENT CALENDAR /" ~A?£: O y 9, 1984 Intel*-Com FROM: SUBJECT: William A. Huston, City Manager Jeff Kolin, Recreation Superintendent LAMBERT SCHOOL LEASE RENEWAL RECOMMENDATION: Renew the lease with the Tustin Unified School District for the use of Lambert School for a period of two years at $1,425. per month. FISCAL IMPACT: Sufficient revenue is generated by fee and charge programs based at Lambert School to absorb the increased lease rate at no additinal cost to the City. BACKGROUND: The City. has leased approximately 6,000 square feet in ~lassroom space at Lambert School from the Tustin Unified School District for the past two years. The leased space makes it possible to offer numerous classes, a large Tiny Tots program', and occasional meeting or practice facilities for community groups. The lease rate for the past two years was $1,250. per month or $15,000. annually. This computes to about 21~ per square foot. Ths Tustin Unified School District provides maintenance, repairs, and utilities as part of the lease. The School District has experienced an increase in both labor and utility costs in the past two years. They are proposing to raise the lease fees approximately 18% to $1,475. per month, $17,700. annually, or 25~ per square foot. The current rate for commercial office space ranges from 85~ to $1.50 per square foot in the Tustin area. Classes and activities at Lambert School generated gross revenues in excess of $60,000. during the past year. After deducting instructor payments and supply costs, over $15,000. remained. Increased participation and scheduled fee increases during the next two years should be more than adequate to cove~ increased lease costs. Until City-owned facilities are built, the leasing of closed school sites is the most attractive alternative available for the provision of Community Services programs. The lease at Lambert School allows the Community Services Department to serve over 2,600 participants per year. The City has achieved excellent utilization of the facility through the lease agreement. The cooperative relationship achieved with the School District has enabled the Community Services Department to provide City residents with an outstanding program of community services. LAMBERT SCHOOL LEASE RENEWAL Page Two January 9, 1984 The renewal of the Lambert School lease is essential to continuing the current level of service provided by the Community Services Department. Without the classroom facilities available at Lambert School, numerous classes and the Department's Tiny Tots program would be cancelled. Until alternate facilities are built, the Lambert School lease provides an economical site for needed Community Services programs. At their January 3, 1984 meeting, the Board of Education approved the extension of the lease of Building "C" at-Lambert School for the period of February 1, 1984 through January 31, 1986. The Amendment to the existing lease is attached for your information. Recre~ri~tendent JK:sk Attachment 1 4 ? 8 9 10 11 12 14 AMENDMENT NUMBER 2 This Amendment to a Lease is made and entered into as of this 4th day of January , 1984, between the Tustin Unified School District (hereinafter designated as "LESSOR") and the City of Tustin (hereinafter designated as "LESSEE"). WITNESSETH: WHEREAS, LESSOR and LESSEE have previously entered into a lease for the following: The premises and building thereon known as Building C of the C. E. Lambert School, located at llE1 San Juan Street, Tustin, California. AND WHEREAS, the parties hereto desire to amend said lease. NOW THEREFORE, parties agree as follows: 1. The term of the lease is hereby extended by a period of two (2) years 1§ %on~nencing on February l, 1984 and terminating January 31, 1986. 16 2. The monthly rental for'such period shall be at the rate of $1,475.00 17 (ONE THOUSAND FOUR HUNDRED SEVENTY-FIVE DOLLARS} and shall be payable quarterly 18 ITM ~dvance. 19 3. In all other respects the existing lease is hereby continued on the 20 terms and conditions thereof. 21 IN WITNESS WHEREOF, on the day and year first above written, the LESSOR has 9.2 caused this Lease to be executed by its duly authorized officer and the LESSEE 9.3 has caused this Lease to be executed by having its name affixed by its duly 9.4 authorized officers. 26 9_? 9.9 39. TUSTIN UNIFIED SCHOOL DISTRICT, Lessor .. 'Maurice A..Ross, k~.u. Title Superintendent and Secretary Board of Education CITY OF TUSTIN, Lessee BY Title