HomeMy WebLinkAboutItem No. 04 - Lease Extension Agreement - Vanir Tower Building, Inc.
Staff Report
City of San Bernardino
Request for Council Action
Date: May 20, 2020
To: Honorable Mayor and City Council Members
From: Teri Ledoux, City Manager
By:Kris Jensen, Director of Public Works
Subject: Lease Extension Agreement - Vanir Tower Building, Inc.
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino adopt
Resolution 2020-105 authorizing the City Manager to execute Amendment No. 2
("Second Amendment") to the Lease with Vanir Tower Building, Inc., at 290 North D
Street, San Bernardino, California, extending the Lease Agreement through June 30,
2021.
Background
On November 21, 2016 the Mayor and City Council approved Resolution 2016-240
directing the City Manager to execute a Lease Agreement for office space at Vanir
Tower, Inc. (290 North D Street, San Bernardino, California - APN 0134-311-42-0000)
to house City staff. The agreement was amended on March 6, 2017 by Resolution
2017-039, resetting the lease period to commence on April 15, 2017 for a two year
period with the option of two six-month extension periods. On April 3, 2019, the Mayor
and City Council authorized the City Manager to exercise both of the six-month
extension options, extending the Lease Agreement term through April 15, 2020. The
original Lease Agreement and Amendment No. 1 to the Lease Agreement are included
as attachments to this report.
Discussion
The office space leased by the City at the Vanir Tower on the third and eighth floors are
currently occupied by the Offices of the Mayor, City Council, City Attorney, City
Manager, City Treasurer, Finance and Human Resource Departments. The ground level
SB Direct Call Center staff.
2020. While staff has been working with Vanir Tower owners to negotiate a new multi-
year lease agreement, those negotiations were unable to be completed prior to the
lease term expiration. The proposed amendment will extend the term of the Lease
Agreement through June 30, 2021, and incorporate minor adjustments to true-up the
the agreement will remain in effect.
Page 1
6678
By approving this lease extension, the City will have the opportunity to continue
occupying the existing office space without incurring additional costs associated with
relocating City personnel. Staff will continue to evaluate the City's office space needs
and present the Mayor and City Council with a longer term option prior to the expiration
of this extended lease term.
2020-2025 Key Strategic Targets and Goals
Approval of the proposed amendment aligns with Key Target No. 1.c: Create a
framework for spending decisions. Extending the lease through June 30, 2021,
provides cost stability related to the lease for budgeting purposes through FY 2020/21.
Fiscal Impact
No additional fiscal impact to the City in FY 2019/20. The adjusted monthly lease
payment of $46,131.44 will be effective July 1, 2020. This is a modest increase of less
than 2% from the current year. Funding for this lease payment will be incorporated in
proposed FY 2020/21 Operating Budgets in Account No. 001-090-0053-5171.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino adopt
Resolution 2020-105 authorizing the City Manager to execute Amendment No. 2
er Building, Inc., at 290
North D Street, San Bernardino, California, extending the Lease Agreement through
June 30, 2021.
Attachments
Attachment 1 Resolution No 2020-105; Exhibit "A" - Amendment No. 2 (Second
Attachment 2 Resolution No. 2016-240 - Original Lease Agreement
Attachment 3 Resolution No. 2017-039 - Amendment No. 1 to Lease Agreement
Ward: 1
Synopsis of Previous Council Actions:
11/21/2016 Resolution 2016-240 of the Mayor and Common Council of the City
of San Bernardino was adopted, authorizing the City Manager to
execute a Lease Agreement between the City of San Bernardino
and Vanir Tower Building Incorporated for the Lease of Office
Space. (#4737)
3/06/2017 Resolution No. 2017-039 of the Mayor and City Council of the City
of San Bernardino was adopted, directing the City Manager to
execute the Amendment Number One to the Lease with Vanir
Tower Inc.
4/03/2019 The Mayor and City Council authorized the City Manager to
execute two, six month lease extensions to the lease agreement
Page 2
6678
between Vanir Tower Building, Inc., and the City of San Bernardino
extending the Lease agreement through April 15, 2020.
Page 3
RESOLUTION NO. 2020-105
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, CALIFORNIA,
AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT NO. 2 ("SECOND AMENDMENT") TO
THE LEASE AGREEMENT WITH VANIR TOWER
BUILDING, INC., AT 290 NORTH D STREET, SAN
BERNARDINO, CALIFORNIA, EXTENDING THE LEASE
AGREEMENT THROUGH JUNE 30, 2021
WHEREAS, the City of San Bernardino and Vanir Tower Building, Inc. entered into a
ffice space at the Vanir Tower property
on February 8, 2017; and
WHEREAS, the Agreement was amended on March 6, 2017 by Resolution 2017-039,
resetting the lease period to commence on April 15, 2017 for a two year period with the option of
two six-month extension periods; and
WHEREAS, current lease agreement term, including all term extensions,
expired on April 15, 2020; and
WHEREAS, the City continues to occupy the office space originally leased as a
holdover tenant, and wishes to extend the Agreement through June 30, 2021.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this
reference.
SECTION 2. The City Manager is hereby authorized to execute Amendment No. 2
e Agreement between the City of San Bernardino and Vanir
SECTION 3. The City Manager is hereby authorized to execute any other such
documents as may be necessary to effectuate the intention of this Resolution
SECTION 4. The City Council finds this Resolution is not subject to the California
Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA
applies only to projects which have the potential for causing a significant effect on the
environment. Where it can be seen with certainty, as in this case, that there is no possibility that
the activity in question may have a significant effect on the environment, the activity is not
subject to CEQA.
SECTION 5. Severability. If any provision of this Resolution or the application thereof
to any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications, and to this end the provisions of this Resolution are declared to be severable.
SECTION 6. Effective Date. This Resolution shall become effective immediately.
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested
by the Acting City Clerk this ___ day of __________ 2020.
John Valdivia, Mayor
City of San Bernardino
Attest:
Genoveva Rocha, CMC, Acting City Clerk
Approved as to form:
Sonia Carvalho, City Attorney
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true
copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______
2020 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of
____________ 2020.
Genoveva Rocha, CMC, Acting City Clerk
AMENDMENT NUMBER TWO TO THE LEASE AGREEMENT BETWEEN THE CITY
OF SAN BERNARDINOANDVANIR TOWER BUILDING, INC.
This Amendment Number Two Second Amendment
of San Bernardino, a charter city organized under the laws of the State of California (hereinafter
the , and Vanir Tower Building, Inc. ( as of May 20, 2020.
WHEREAS, City and Landlord entered into a Lease Agreement dated February 8, 2017
Bernardino, CA 92401, as further set out therein; and
WHEREAS, City and Landlord entered into Amendment Number One to the Lease
Agreement Between the City of San Bernardino and Vanir Tower Building, Inc., on March 6,
rstwo six-month extension options
available to it under the Lease Agreement, as amended; and
WHEREAS City continues to occupy the space leased pursuant to the Lease Agreement
as a holdover tenant; and
WHEREAS, the Parties now desire to extend the term of the Lease Agreement, as
amended, through June 30, 2021.
NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein,
the Parties agree as follows:
1. Term. The term of the Lease Agreement, as amended, is extended through June
30, 2021.
2. Monthly Rent. The monthly rent from July 1, 2020 through June 30, 2021 shall
be Forty Six Thousand One Hundred Thirty One Dollars and Forty Four Cents ($46,131.44).
The monthly rent for the holdover term shall remain as stated in the Lease Agreement, as
amended by the First Amendment.
3. Square Footage. The Premises shall remain the same, however, references to the
square footage of the leased premises being approximately 23,716 square feet of useable space
shall be replaced with 24,538 square feet of rentable space.
4. Effect on Other Provisions. All other provisions of the Lease Agreement, as
amended by the First Amendment, shall remain in full force and effect.
SIGNATURES ON FOLLOWING PAGE
SIGNATURE PAGE TO
AMENDMENT NUMBER TWO TO THE LEASE AGREEMENT BETWEEN THE CITY
OF SAN BERNARDINO AND VANIR TOWER BUILDING, INC.
IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to
be executed the day and year first above written.
CITY LANDLORD
__________________________ __________________________
Teri Ledoux, City Manager Dorene C. Dominguez, President
ATTEST:
___________________________ __________________________
Genoveva Rocha, Acting City Clerk \[***Insert name***\], Secretary