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AUTHORIZE THE CITY MANAGER TO EXECUTE A LEASE FOR LINDEN LIBRARY WITH MAGNASCO INVESTMENTS
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RECOMMENDATION
It is recommended that the City Council adopt a motion authorizing the execution of a three-year lease with Magnasco Investments for the Linden Library facility and authorize the City Manager to take all appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The City of Stockton manages the Stockton-San Joaquin County Public Library system (“Library”) through an agreement with San Joaquin County. The Library operates thirteen branches and three micro-libraries. Linden Library and seven other library branches are located throughout the County. Linden Library has operated at 19059 E. Highway 26, Linden, in a commercial space since 2004. Magnasco Investments owns the building which Agent Peter Boysen Realty manages.
DISCUSSION
Background
The City of Linden is an unincorporated area located at the eastern side of San Joaquin County, seventeen miles from Stockton. The population of Linden is approximately 1,700 residents. The area is less than seven square miles and lacks a government building or other permanent site for a library. The Linden Library has operated continuously at the current location since 2004, under three separate agreements. The Library is centrally located in a commercial area with adequate parking.
Present Situation
The current lease will expire on August 31, 2021. With the lack of a permanent location or inventory of commercial spaces adequate for a library branch, staff desires to provide consistent services to the community by entering into a new lease agreement. There are no complaints or concerns regarding the facility or location from library patrons, staff, or members of the Friends of the Linden Library. This location remains a desirable location for library services. The lease will be one original three-year term, with the option for one additional three-year term. The lease payments will mirror the current lease terms through the expiration date and then escalate gradually with the cost of living. The Library paid a security deposit of $2,300 under the prior lease which remains on the account held by Boysen Realty.
Monthly Lease Payments:
Lease year runs September 1 through August 31 of each year listed.
Term
Y-1 2021 (partial year) $2,400.00
Y-2 2022 $2,562.00
Y-3 2023 $2,562.00
Renewal term
Y-4 2024 $2,735.00
Y-5 2025 $2,735.00
Y-6 2026 $2,735.00
It is recommended the City Council adopt the motion authorizing the execution of a three-year lease with a three-year renewal option with Magnasco Properties for the Linden Library facility.
Financial Summary
The Stockton-San Joaquin County Operating Agreement provides County funds and financial resources to operate and manage the County branches, including the Linden Branch Library. The Library will pay for the Linden lease through the annual allocation of County funds. The currently held security deposit is sufficient under this lease. The Library will continue to pay for the following: interior pest control, internet services, equipment, network and wiring, computers and IT services, daily janitorial services and cleaning supplies, materials and supplies, garbage service, security, telephone equipment, and service. The Library will make small, general maintenance and repairs for the first $1,000 per year for items not to exceed $200.00 per invoice. The property owner will pay for structural, utility, plumbing, and major repairs and improvements, including exterior pest control, and charges over $200 per repair invoice.
Lease payments and related operational costs are included in the FY 2020-21 Library Approved Budget. This ongoing cost will be included in future year budgets in account 5012-810-630017-100- 120-40-50-000-000. There is no financial commitment to the City from the recommended action. All operational costs for the Linden Library are funded by San Joaquin County through the Stockton-San Joaquin County Operating Agreement.
Attachment A - Linden Lease 2021