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CITY COUNCIL AGENDA ITEM NO. 17

Meeting Date: June 28, 2005
Subject/Title: Adopt a Resolution approving the renewal of a Parking Lot Lease with the Gill E. F. Trust, for the Second Street Parking Lot and amending the 2005/06 -2006/07 Operating Budget to reflect the rental changes.

Prepared by: Engineering: M. Sullivan

Submitted by: Engineering: B. Grewal

RECOMMENDATION
Adopt a Resolution approving the renewal of a Parking Lot Lease with the Gill E. F. Trust, for the Second Street Parking Lot and amending the 2005/06 – 2006/07 Operating Budget to reflect the rental increase of an additional $5,000 in Fiscal Year 2005/06 and an additional $5,900 in Fiscal Year 2006/07. This renewal is for real property identified as portions of 715 and 739 Second Street and 219 Oak Street, further identified as APN 013-080-005, 006 & 008, generally located on the southwest side of Second Street across from the City Park; hereby authorizing the Mayor or City Manager and City Clerk or any of their designees to execute the Parking Lot Lease and such other documents as may be needed to complete the transaction.

PREVIOUS ACTION
On June 26, 2002, by authority under the Purchasing Policy, the City Manager entered into a three-year lease for real property identified as portions of 715 and 739 Second Street and 219 Oak Street, further identified as APN 013-080-005, 006 & 008, generally located on the south side of Second Street across from the City Park.

On November 12, 2002, by Resolution No. 2739, City Council awarded a contract to construct the Second Street Parking Lot, CIP Project No. 336-3135.

On June 14, 2005, by Resolution No. 2005-143, City Council adopted the 2005/06 – 2006/07 Operating Budget.

BACKGROUND
As part of the City’s desire to make more parking available around City Hall and the downtown business area, staff explored and evaluated different alternatives several years ago. During the time frame of 2001 to 2003, the City constructed two parking lots in the downtown area; both funded by the Redevelopment Agency. Continuing the efforts to improve parking availability, the City entered into a three-year lease of the subject property from the Gill E. F. Trust (private property owner), which made it feasible for the City to pave what was a gravel lot being leased on a monthly basis and the City added additional lighting for the safety and benefit of the general public. These improvements were funded by the Redevelopment Agency. This added an additional highly desirable 60 parking spaces to the downtown business area, reducing parking congestion around City Hall and the downtown area. This parking lot is providing major relief until a permanent downtown parking garage structure or some other alternative becomes available. City vehicles and City employee vehicles use this lot for overflow parking to free up parking in front of the downtown businesses. This parking lot also provides the much-needed parking for City activities such as the Cornfest, Art and Wine Festival, Farmers Market and the Friday Night Music in the Park Concerts during the summer months. The current lease will be expiring on June 26, 2005. Unless the lease is renewed, the City will no longer be able to have this additional parking available in the downtown area at this location.

At the time that the 2005/06 – 2006/07 Operating Budget was prepared, we were allowing for an 8% increase in Fiscal Year 2005/06 and an 8.5% increase in Fiscal Year 2006/07. We were not aware that the renewal would increase by more than that. Therefore, the 2005/06 – 2006/07 budget needs to be amended. The Finance Director and the City Engineer have reviewed this agreement.

FISCAL IMPACT
This is a three-year contract. The terms are $18,000 for the first year, $18,900 for the second year, and $19,845 for the third year, payable on the effective date of the fully executed Parking Lot Lease. The budget for Fiscal Years 2005/06 and 2006/07 is $13,000 and $13,400, respectively. Therefore, the General Fund Non-Departmental budget will be amended to reflect the increase of $5,000 in Fiscal Year 2005/06 and $5,500 in Fiscal Year 2006/07.

Attachments:
Resolution
Parking Lot Lease

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING THE RENEWAL OF A PARKING LOT LEASE WITH THE GILL E. F. TRUST, FOR THE SECOND STREET PARKING LOT AND AMENDING THE 2005/06 – 2006/07 OPERATING BUDGET TO REFLECT THIS INCREASE. THIS RENEWAL IS FOR REAL PROPERTY IDENTIFIED AS PORTIONS OF 715 AND 739 SECOND STREET AND 219 OAK STREET, FURTHER IDENTIFIED AS APN 013-080-005, 006 & 008, GENERALLY LOCATED ON THE SOUTHWEST SIDE OF SECOND STREET ACROSS FROM THE CITY PARK, HEREBY AUTHORIZING THE MAYOR OR CITY MANAGER AND CITY CLERK OR ANY OF THEIR DESIGNEES TO EXECUTE THE PARKING LOT LEASE AND SUCH OTHER DOCUMENTS AS MAY BE NEEDED TO COMPLETE THE TRANSACTION.

WHEREAS, on June 26, 2002, by authority under the Purchasing Policy, the City Manager entered into a three-year lease for real property identified as portions of 715 and 739 Second Street and 219 Oak Street, further identified as APN 013-080-005, 006 & 008, generally located on the southwest side of Second Street across from the City Park; and

WHEREAS, on November 12, 2002, by Resolution No. 2739, City Council awarded a contract to construct the Second Street Parking Lot, CIP Project No. 336-3135; and

WHEREAS, on June 14, 2005, by Resolution No. 2005-143, City Council adopted the 2005/06 – 2006/07 Operating Budget; and

WHEREAS, real property generally located on south side of Second Street across from the City Park is required to reduce parking congestion in the downtown area; and

WHEREAS, the Second Street Parking Lot has added an additional highly desired 60 parking spaces to the downtown business area, and reduced parking congestion around City Hall and the downtown area; and

WHEREAS, a three-year parking lot lease between the City and the vested property owner has been developed and is necessary for the continued use of said property; and

WHEREAS, the terms are $18,000 for the first year, $18,900 for the second year, and $19,845 for the third year, payable on the effective date of the fully executed Parking Lot Lease; and

WHEREAS, the budget for Fiscal Years 2005/06 and 2006/07 is $13,000 and $13,400, respectively; therefore, the General Fund Non-Departmental budget needs to be amended to reflect the increase of $5,000 in Fiscal Year 2005/06 and $5,500 in Fiscal Year 2006/07.

NOW, THEREFORE BE IT RESOLVED that the Mayor or the City Manager and City Clerk or any of their designees are authorized to execute the Parking Lot Lease and any related documents necessary to complete the transaction.

BE IT FURTHER RESOLVED that the 2005/06 – 2006/07 Operating Budget will be amended to reflect the rental payment of $18,000 for Fiscal Year 2005/06 and $18,900 for Fiscal Year 2006/07.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 28th day of June 2005 by the following vote:

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