DATE: October 9, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: AMENDMENT TO LEASE AGREEMENT WITH INTERFAITH COMMUNITY SERVICES, INC. AT LIBBY LAKE COMMUNITY CENTER
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 1 to the Lease Agreement with Interfaith Community Services, Inc., to lease a portion of the Libby Lake Community Center located at 4700 North River Road, extending the term for five-years, for the purpose of providing programs and activities to economically disadvantaged members of the community, for total revenue of $131,925; and authorize the City Manager to execute the amendment upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
Interfaith Community Services (“ICS”) has been providing supportive services, which include providing shelter, food, clothing, family self-sufficiency case management programs, and employment assistance services to economically disadvantaged persons in Oceanside since 1982. ICS has been administering such services at the Libby Lake Community Center since 2014.
On May 7, 2014, the City of Oceanside (City”) entered into a Lease Agreement with ICS to lease a portion of the Libby Lake Community Center, consisting of approximately 1,314 square feet (“Premises”). The term was for a period of five years commencing on April 30, 2014, and expired on April 29, 2019.
On December 18, 2019, the City entered into the current Lease Agreement with ICS to occupy the Premises for five years, commencing on December 1, 2019 and expiring on November 30, 2024 with two 5-year extension options. ICS has requested to exercise its first 5-year option.
ICS seeks to continue the current partnership and extend the lease for five years, commencing on December 1, 2024 and expiring November 30, 2029. The First Amendment (“Amendment”) will modify the rent and the Common Area Maintenance (CAM) charges. The Amendment also documents that there is one remaining five-year extension option, and the Lease may be terminated by ICS upon providing 60 days written notice should ICS lose funding that supports the lease.
ICS continues to provide valuable services to our community by supporting emergency family needs, offering self-sufficiency case management programs and providing employment assistance services. Therefore, staff recommends approval of the lease extension request.
FISCAL IMPACT
Annual rent to be paid by ICS for its use of the Premises is $16,556. Additionally, ICS will be required to pay CAM expenses, estimated to be $9,829 annually. Total revenue generated for both rent and CAM costs over the five-year term is $131,925. All revenue will be deposited to account 900876300101.4353.0006.
|
Description |
Annual Costs |
Total Revenue (Five-Year Term) |
Revenue Account Number |
|
Rent |
$16,556 |
$ 82,780 |
900876300101.4353.0006 |
|
CAM Costs |
9,829 |
49,145 |
900876300101.4353.0006 |
|
TOTAL |
$26,385 |
$131,925 |
|
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Candice Diaz, Property Agent I
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Amendment 1