ITEM TITLE:
#17-53 - Authorizing Amendment #3 to the Building Lease Agreement for the Valdez Senior Citizens Housing and Multi-Purpose Facility with the Valdez Senior Citizens Center, Inc.
SUBMITTED BY: Kate Huber, Community Development Planning Technician.
FISCAL NOTES:
Expenditure Required: None.
Unencumbered Balance: N/A.
Funding Source: N/A.
RECOMMENDATION:
Approve resolution #17-53, authorizing amendment #3 to the building lease agreement for the Valdez Senior Citizens Housing and Multi-Purpose Facility with the Valdez Senior Citizens Center, Inc.
SUMMARY STATEMENT:
This action represents approval of Amendment #3 to the Valdez Senior Citizens Housing and Multi-Purpose Facility (Valdez Senior Center) Lease and will renew the lease agreement for a period of five years beginning January 1, 2018. The lease renewal will be at the same annual rental rate of $1.00. This renewal will expire on December 31, 2022. In addition to renewing the lease, this amendment will update the maintenance agreement between the City of Valdez and Valdez Senior Citizens Center, Inc.
The City and the Valdez Senior Citizens Center, Inc. entered into the original lease for the Valdez Senior Citizens Housing and Multi-Purpose Facility in 1982. The current lease agreement, executed in 2001, is set to expire on December 31, 2017. Amendment # 1 (attached) was approved in 2012 and replaced the language in Section 4 - Building Maintenance and Repair. Later in 2012, Amendment #2 was approved and added December 31, 2017 as a termination date for the lease. Prior to that amendment there was no set termination date.
The Valdez Senior Center mission is to serve as community support for the seniors of Valdez, while enhancing their quality of life through care and services. The Valdez Senior Center has 175 members, many of whom regularly utilize their programs. The residential portion of the facility contains 15 apartments, currently occupied by 16 residents. There are 25 people on the waiting list to move into the facility. In addition to providing housing to local seniors, the Valdez Senior Center provides numerous other services to the community including; meal services (on site and in homes), regular activities, annual events, personal care assistants, and transportation. During the 2016/2017 fiscal year, the Valdez Senior Center provided over 1,800 rides to residents and community members. During the 2016 calendar year they served 13,988 meals and by October 2017, they had already reached 13,141 meals for this year.
In November 2017, Valdez Senior Center Executive Director, Deborah Plant, approached the city to propose clarification on the terms of the lease related to maintenance. Staff agreed that the lease renewal was an appropriate time to reevaluate the language to ensure that the agreement aligns with the available staffing and resources at the Senior Center. City staff (including representatives from Capital Facilities, Building Maintenance, Clerks Office and Community Development) met with Senior Center staff and board members to discuss proposed changes to lease language in Amendment #3.
The resulting language in Amendment #3 replaces Section 4 - Building Maintenance and Repair. This section was previously updated in Amendment #1 to the lease. Both the current lease and Amendment #1 are attached for your reference. The proposed changes to Section 4 include moving responsibility to the lessor for the replacement of floor coverings, drain and water line maintenance, landscaping and driveway/parking lot repair.
Lease Amendment #3 has been reviewed by the capital facilities director, building maintenance supervisor and community development director. Both Capital Facilities Director Nathan Duvall and Building Maintenance Supervisor Stan Porritt expressed their support for Amendment #3, but clarified that further discussion regarding potential long-term projects required at the facility will need to take place. A work session is planned in February with City Council and the Senior Center to discuss potential projects to be proposed in the 2019 budget. Section #5 of the 2001 lease documents contains provisions for Capital Improvements.
Although Lease Amendment #3 will renew the Valdez Senior Center lease for a period of five years, there are provisions within the lease document that allow the city to terminate the lease, as long as 60 days notice is given to the lessee. The lease may also be terminated at any time by mutual agreement of the lessor and lessee.
Approval of this resolution will extend the lease for the Valdez Senior Center for five years, while updating the provisions for lessor and lessee building maintenance and repair. Renewal of the Valdez Senior Center lease will continue the support of a local organization providing house, meals and other services to the senior members of the Valdez community.