SR - AGR-6366 - GROUND LEASE MCHPERSON RESOURCE CENTER 210 MCPHERSON RD
1. SUBJECT
Lease Agreement with the East Orange County Water District to ground lease the McPherson
Resource Center located at 210 N. McPherson Road.
2. SUMMARY
The subject property is the McPherson Resource Center. The property is improved with an
asphalt parking lot and has a 12' x 40' modular office trailer on it. The McPherson resource
Center has not been used for the last several years and is vacant. The East Orange County Water
District is located across the street at 185 N. McPherson Road and has requested to lease the
property with the intention of purchasing the property if the City declares it surplus and makes it
available for sale in the future.
3. RECOMMENDED ACTION
1. Approve Lease Agreement between the City of Orange and East Orange County Water
District; and
2. Authorize the Mayor to execute and the City Clerk to attest to the Lease Agreement on behalf
of the City.
4. FISCAL IMPACT
The Proposed Lease provides for a rent of $2,300 per month.
The monthly rent will be deposited to the following account:
100.0000.44210.20304
Rents & Leases — McPherson Resources Center
ITEM J . 9 1 7/12/16
5. STRATEGIC PLAN GOAL(S)
2. Be a fiscally healthy community
b. Analyze future fiscal needs and potential revenue opportunities.
d. Effectively manage and develop City assets.
6. GENERAL PLAN IMPLEMENTATION
Economic Development Elements Goal 3.0 Strengthen the City's economic base and stimulate
employment through new commercial and industrial development and expansion.
Policy 3.2: Encourage public and private sector investments that promote commercial
development and expansion opportunities.
7. BACKGROUND and DISCUSSION
The subject property is an improved parcel of land, 11,580 square feet in size. It is mostly paved
with asphalt and there is a modular office trailer (12' x 40') on it. The office trailer has three
offices and a one -half bathroom. The East Orange County Water District wants to lease both the
office trailer and the parcel mostly for parking vehicles for their sanitation district operation. At
no time will the storage of any hazardous chemicals or materials be allowed on the parcel. They
plan on securing the parcel with a temporary construction site rental fence. During the term of
the lease, the lease may be cancelled by either party upon 30 days written notice to the other
party.
The former McPherson Resource Center property is not needed for present or prospective City
projects. As such, staff recommends the approval of the lease agreement allowing the East
Orange County Water District to park vehicles there and at the same time generate income for
the City.
S. ATTACHMENTS
• Lease Agreement between the City of Orange and East Orange County Water District.
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NAPublic Works\ADMIN\LYoung \Council Items \COUNCILUuly - 2016 \7- 12\Agenda - Lease - McPherson Resource Center.doc
ITEM 2 7/12/16
20. AUTHORITY
Lessor and Lessee each represent that the persons executing this Agreement on their
behalf have full power and authority to execute this Agreement, and that each entity executing
this Agreement is duly authorized to enter into this Agreement.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by its
officers thereunto duly authorized, all as of the date first above written.
"LESSOR"
CITY OF ORANGE, a municipal corporation,
DATED: , 2016 By:
Teresa E. Smith, Mayor
APPROVED AS TO FORM: ATTEST:
Wayne W. Winthers, City Attorney Mary E. Murphy, City Clerk
"LESSEE"
DATED: , 2016 EAST ORANGE COUNTY WATER DISTRICT
By:
Printed Name:
Title:
By:
Printed Name:
Title:
CITY COUNCIL MINUTES JULY 12, 2016
3. CONSENT CALENDAR (Continued)
3.5 Award of Consultant Services Agreement to Annealta Group for as- needed
Construction Inspection Services. (A2100.0; Agr -6365)
ACTION: Awarded a contract to Annealta Group, and authorized the Mayor and City Clerk
to execute on behalf of the City.
3.6 Number not used.
3.7 First Amendment to Attorney Services Agreement with the law firm of Kutak Rock
LLP to provide for an additional $150,000 for legal services related to litigation
defense for a total amount not to exceed $250,000. (A2100.0; Agr -6248)
ACTION: Authorized the appropriation of $150,000 from the Liability unreserved fund
balance to expenditure account number 740.0301.51600.00000 Liability -Legal Services;
and approved and authorized the Mayor and City Clerk to execute the First Amendment to
Attorney Services Agreement with Kutak Rock LLP.
3.8 Lease Agreement with the East Orange County Water District to ground lease the
McPherson Resource Center located at 210 N. McPherson Road. (A2100.0; Agr -6366)
ACTION: Approved the Lease Agreement between the City of Orange and East Orange
County Water District; and authorized the Mayor to execute and the City Clerk to attest to
the Lease Agreement on behalf of the City.
APPROPRIATIONS
3.9 Appropriation of Donation from the Orange Public Library Foundation (OPLF) of
$30,000. (C2500.I)
ACTION: 1) Accepted into the City's revenue budget a $30,000 donation from OPLF into
revenue Account No. 100.2001.48390.19322 (Library Foundation Donations); and 2)
Appropriated the donation into the following expenditure accounts:
100.2001.53301.19322 - OPLF (Book Budget) $13,500
100.2004.55131.19322 - OPLF (Furniture & Machinery -Tech) $5,000
100.2016.53340.19322 — OPLF (Craft Supplies - Adult) $1,000
100.2016.55131.19322 - OPLF (Furniture & Machinery - Adult) $7,500
100.2017.51670.19322 — OPLF (Other Professional & Consulting) $3,000
$30,000
BIDS
3.10 Bid No. 167 -02; Approval of plans and specifications, and authorization to advertise
for bids for construction of Fiscal Year 2015 -16 (FY16) Community Development
Block Grant (CDBG) Alley and Street Improvements Project: Highland
Neighborhood Streets and Alleys. (S4000.S.7)
ACTION: Approved plans and specifications and authorized advertising for bids for the
CDBG FY16 Alley and Street Improvements Project.
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