title
CC - CONSENT ITEM - Approval of a License Agreement with 9449 Jefferson Owner LLC to License Property Located at 9405 Jefferson Boulevard for an Initial Period of 12 Months and Month-to-Month Thereafter.
body
Meeting Date: August 14, 2023
Contact Person/Dept: Sean Singletary/Public Works - EPO
Phone Number: (310) 253-6457
Fiscal Impact: Yes [ ] No [X] General Fund: Yes [] No [X]
Attachments: []
Public Notification: (E-Mail) Meetings and Agendas - City Council (08/09/2023);
Department Approval: Yanni Demitri, Director of Public Works, City Engineer (07/31/2023)
____________________________________________________________________________
RECOMMENDATION
Staff recommends the City Council approve a license agreement with 9449 Jefferson Owner LLC to license property located at 9405 Jefferson Boulevard for an initial period of 12 months.
BACKGROUND/DISCUSSION
City-owned property for storage of vehicles and equipment is limited, and leasing of privately-owned land is occasionally necessary. As State regulations have expanded with regard to the recovery of recyclable waste streams, Public Works’ Environmental Programs and Operations (EPO) Division has increased its fleet with the addition of organics and recycling trucks, as well as roll-off bins rented by developers to collect construction and demolition debris that is processed by the City. EPO has leased land with underlying Caltrans ownership at 11520 Jefferson Boulevard since 2018 to store and conduct roll-off operations, which requires space for large vehicles to load and un-load large dumpers and maneuver safely. In May 2023, Caltrans gave the City three-months’ notice that they would be terminating the use of this land so they can use it for their own storage and maintenance yard purposes.
Staff looked at use of existing City-owned properties including Parks parking lots and is able to move residential and commercial bins to alternate sites, but there is nothing suitable for the roll-off trucking operations, which require dedicated space, to be conducted safely, especially with the volume of construction and demolition debris generated by large-scale development projects that are currently ongoing in the City. Staff was able to negotiate favorable terms with 9449 Jefferson Owner LLC, the owners of property at 9405 Jefferson Boulevard, which is conveniently sited between the Public Works Maintenance building at 9505 Jefferson Boulevard and EPO’s Transfer Station at 9255 Jefferson Boulevard. The proposed license fee is less than half the square-foot price of the terminated lease.
9449 Jefferson Owner LLC has plans to eventually develop this property but has committed to a year lease which can be renewed on a month-to-month basis thereafter, which allows EPO to look for a more permanent location.
FISCAL ANALYSIS
The cost of the lease is $11,000 a month, with payment of a $22,000 security deposit due on license execution. Sufficient funding was included in the Adopted Budget for Fiscal Year 2023-2024 in Account No. 20260410.605200 (Public Works Transfer Station - Rental of Land).
ATTACHMENTS
None.
MOTION
That the City Council:
1. Approve a license agreement with 9449 Jefferson Owner LLC to license property located at 9405 Jefferson Boulevard for an initial period of 12 months and month-to-month thereafter;
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.