04-11-2022 BPU RPT 06 - Laserfiche WebLink

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W A T E R E N E R G Y I T F F r� E ItV RIVERSIDE PUBLIC UTILITIES .kl& P U B L I C U T I L I l I L S Board Memorandum BOARD OF PUBLIC UTILITIES DATE: APRIL 11, 2022 SUBJECT: CHANGE ORDER AUTHORTITY FOR THE FISCAL YEAR 2021/22 COMMERCIAL LEASE AGREEMENT WITH RONALD L. JUDD AND KATHRYN K. JUDD FOR CLEARWATER SHOP AND OFFICE SPACE AT 1700 RAILROAD STREET CORONA, CALIFORNIA, IN THE TOTAL AMOUNT OF $7,536 ISSUE: Consider approval of a change order for the Fiscal Year 2021/22 Commercial Lease Agreement with Ronald L. Judd and Kathryn K. Judd for the Clearwater shop and office space at 1700 Railroad Street Corona, California, in the total amount of $7,536. RECOMMENDATION: That the Board of Public Utilities approve a change order for the Fiscal Year 2021/22 Commercial Lease costs with Ronald L. Judd and Kathryn K. Judd, in the total amount of $7,536. BACKGROUND: On February 23, 2010, the City Council approved the Commercial Lease with Ronald L. Judd and Kathryn K. Judd for shop and office space located at 1700 Railroad Street, Corona, California, to efficiently evaluate, operate and maintain Clearwater. The building space accommodates staff and houses spare parts and machinery for Clearwater. The leased location is for approximately 6,485 square feet of commercial space. The term of the lease was for a year, with six, five-year renewal options. The cost during the initial one-year term was $0.53 per square foot ($3,437 monthly), plus association and maintenance fees (initially $250 per month). For each lease extension, the rental cost would be recalculated based on the prevailing cost of similar properties, with annual fixed -percentage increases during each extension. On March 4, 2010, the Commercial Lease Agreement with Ronald L. Judd and Kathryn K. Judd was executed for one year with six (6) options to extend the lease for an additional term of five (5) years each, with the term ending on February 28, 2016. On January 26, 2016, an Exercise of Option to Extend the Commercial Lease Agreement was executed, to exercise an option to extend the lease from March 1, 2016 and ending on February 28, 2021, with base lease amounts (plus monthly association and maintenance fees of $350): March 1, 2016 through February 28, 2017: $4,539.00 per month. March 1, 2017 through February 28, 2018: $4,698.00 per month. March 1, 2018 through February 28, 2019: $4,862.00 per month.