CITY COUNCIL STAFF REPORT
MEETING DATE: JUNE 17, 2015
PREPARED BY: Chris Ghione, Community Services Director
APPROVED BY: City Manager
TITLE
FIFTH AMENDMENT TO GAVILAN COMMUNITY COLLEGE LEASE
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt a resolution authorizing the City Manager to execute and administer a fifth amendment to the lease with Gavilan Community College.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
Supporting youth
2015 Focus Areas
Stimulate Economic Development
Participate in Regional Issues
REPORT NARRATIVE:
Gavilan Community College has leased space at the Community and Cultural Center as a satellite campus for a number of years. The original lease was executed in December of 2001. Since then, four amendments have been made to the lease extending it through June 2015. Both City staff and Gavilan College staff consider the facility use a partnership and a benefit to the Morgan Hill Community. Classes are held daily at the site with thousands of students utilizing the campus each year.
For the duration of the lease, Gavilan has paid a per square foot monthly lease rate and the direct costs and fair share costs for maintenance services provided by the City. Increases in the lease have occurred annually and are tied to the consumer price index. For the future lease agreement, Gavilan has requested that some changes in responsibility be made for maintenance. In the proposed amendment, the City will begin paying for specific maintenance functions directly and in return the college will increase the monthly lease rate by $0.12 per square foot ($15,000 annually) to cover the cost of these maintenance services. Gavilan will continue to pay directly for all utilities and will also begin providing all staffing and supplies related to the janitorial service of their site. The half-time City staff member that is currently providing janitorial servi...
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