SR 05:234 - Laserfiche WebLink

. The Use Agreement term will be until the end of calendar year 2006 after which time it will be subject to annual approval. The City may terminate the lease for any reason with 90 written notice. . Rent is ~ 1.00/annually . The two rooms will be used exclusively by the PPIE for its volunteer services . PPIE will be responsible for maintaining its two rooms. The City will (and has) assume maintenance of the building exterior, grounds, roof, heating, AC, and building security. The City will handle all major maintenance to the building such as carpeting, plastering, painting etc. . PPIE pays for its phone service and Internet Access. The City pays for utilities. . PPIE will provide insurance While not part of the Agreement, PPIE has agreed to reimburse the City for use of a City copier that has been placed in the building for City employee use. The above terms, which are consistent with terms that were applied previously to the Center, are not intended to recoup cost of operating the building or to "profit" from lease/rent charges. Rather, the use of the building is seen as part of the City's commitment to work cooperatively with the Pleasanton Unified School District through the PPIE that is one of the District's major supporters. As a result, the Use Agreement provides the City with terms that protect its interest while assisting the efforts of the PPIE. To be more consistent with other City building uses by private individuals or firms, the Council could assess a lease fee more consistent with a market lease rate. Assuming an estimated facility use of approximately 250 square feet and a current market lease rate of ~2.50 square foot, the monthly lease amount would be ~625/month. FINANCIAL IMPACT Staff estimates annual utility cost of this building at ~2 ,825. Annual maintenance cost is ~750. As a result, because the City is assuming these costs, it can be viewed that it is "contributing" some portion of these costs to PPIE. However, because PPIE's use of the building may vary from week to week and as a result, it is difficult to accurately identify the exact uses attributed by PPIE. Also, the City would most likely experience similar costs for these services regardless of whether or not PPIE is leasing a portion of the building. These costs are in addition to the reduced lease charges. Respectfully submitted, SfblJ /L Steven Bocian Assistant City Manager J~ ~.....; ~ 8' Sue Rossi Finance Director Nelson Fialho City Manager SR 05 :234 Page 2