TITLE
Recommendation to authorize City Manager, or designee, to enter into a Lease Agreement with Sean Khan Consulting Company, Inc., of Chino Hills, CA, for the lease of a prefabricated modular building, for a period of five years, in an amount not to exceed $81,300. (District 4)
Levine Act: Yes
DISCUSSION
Due to the limited space in the Parks, Recreation and Marine Department (PRM) Administrative building, PRM has a history of using mobile office units to provide workspaces for employees. In 2016, the Park Planning and Partnerships Bureau, known as Planning and Development Division at the time, was seeking to replace a mobile office trailer near the PRM Administration building to continue accommodating a small number of staff.
After researching several companies that sell or lease modular buildings, Sean Khan Consulting Company, Inc., dba SKC Company was selected as the vendor to provide the temporary modular building. SKC Company provides prefabricated modular buildings for education and commercial uses. The modular buildings are available for purchase or lease and can be customized to provide the specific office design based on customer need. The City entered into a month-to-month lease with SKC for a 24’ x 60’ modular building that is currently still in use. Recently, SKC Company informed the City that it can no longer support a month-to-month lease. City staff propose a five-year lease that is equivalent in cost to what the City currently pays to lease the modular building.
It is requested that City Council approve a Lease Agreement containing the following terms and conditions:
· Leased Unit: 24’ x 60’ Prefabricated Modular Building
· Term: One (1) five-year period from June 1, 2023, through May 31, 2028
· Rent: $16,260 annually/$81,300 for five years
· Maintenance: Will be maintained by the City during lease period
· Early Termination Options: During Year Two: $10,800 penalty; Year Three: $9,840 penalty; Year Four: $8,780 penalty; Year...
Click here for full text