To:   HONORABLE MAYOR AND

                        CITY COUNCIL                                  

From:  Ralph G. Tonseth

  Subject:   FIFTH AMENDMENT TO SPACE LEASE WITH USO OF NORTHERN CALIFORNIA, INC.

Date:  11/17/03

 

 

COUNCIL DISTRICT:  City-Wide

 

 

RECOMMENDATION

 

Approval of a Fifth Amendment to Space Lease with the USO of Northern California, Inc. to relocate the leased premises and to extend the term from June 30, 2005 through June 30, 2008, with no change to the rental rate of $1.00 per year. 

 

 

BACKGROUND

 

The USO of Northern California, Inc. entered into a Space Lease with the City on July 2, 1991, pursuant to which the USO leased a 1,400 square foot trailer located adjacent to the north end of Terminal C.  The Lease originally provided that the premises were to be used only as a rest area for United States military personnel and their families.  On June 28, 1994, the Lease was amended to extend the Lease and to allow the City to use the premises for meetings and special events related to Airport business.  The Lease was further amended on September 26, 1995 to extend the term through July 2, 2000 and to include the payment by the USO of its pro-rata share of utility costs for the facility.  On May 28, 1996, a Third Amendment was executed which made the facility available to Airport passengers experiencing distress or under difficult circumstances at the request of the Director of Aviation, staff at the Convention and Visitors Bureau Information Booth, or managers of the airlines at the Airport.  In consideration of services made available to members of the traveling public by Tenant, the City agreed to provide utilities to the premises at no cost to the USO.   On May 30, 2000, Council approved a Fourth Amendment to extend the term through June 30, 2005. 

 

The Blue Lot on the Airport, which is the current location of the USO facility, must be cleared by February 2004, to prepare for the planned North Concourse construction.  Airport staff has worked with the USO to find an acceptable relocation site, and the USO has agreed to move to a new location across Terminal Drive, South of the Terminal A Garage. 

 

ANALYSIS

 

The proposed Fifth Amendment reflects the relocation of the USO facility to the new site South of the Terminal A Garage and extends the Lease through June 30, 2010.  All other Lease terms, including rent at $1.00 per year and provision of utilities by the City at no cost to the USO, remain unchanged.  The City will be responsible for the cost to relocate the USO trailer from the current site in the Terminal C Blue Lot to the new location at an estimated cost to the City of $100,000.

 

By making its facility available as a rest area for United States military personnel and their families, for passengers experiencing distress or traveling under difficult circumstances, and to

the City for Airport business, the USO continues to provide a significant benefit to the Airport. 

 

The Fifth Amendment also includes provisions authorizing the Director of Aviation to approve future amendments to the Lease as necessary to further relocate the USO premises to accommodate Airport development and operations.

 

 

PUBLIC OUTREACH

 

Not applicable.

 

 

COORDINATION

 

This Agreement has been coordinated with the Budget Office and City Attorney’s Office.

 

 

COST IMPLICATIONS

 

None

 

 

BUDGET REFERENCE

 

N/A

 

 

CEQA

 

Resolution No. 67380 and 71451, PP 03-07-231

 

 

RALPH G. TONSETH

Director of Aviation

Airport Department