LG-Saratoga Recreation Facilities Use AgreementWN p
toa cAtog COUNCIL AGENDA REPORT
DATE: April 17, 2014
TO: MAYOR AND TOWN COUNCIL
MEETING DATE: 04/21/14
ITEM NO: ID
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: AUTHORIZE THE TOWN MANAGER TO ENTER INTO AN AGREEMENT WITH
THE LOS GATOS — SARATOGA RECREATION AND EDUCATION AGENCY TO
CONTINUE USE OF LIMITED OFFICE FACILITIES IN THE ADULT
RECREATION CENTER
RECOMMENDATION:
Authorize the Town Manager to enter into an agreement with the Los Gatos — Saratoga Recreation and
Education Agency to continue use of limited office facilities in the Adult Recreation Center.
BACKGROUND:
In late 2009, the Town entered into a lease agreement with Los Gatos - Saratoga Community Education
and Recreation (LGS) regarding the Town's building at 208 E. Main Street, now called the Adult
Recreation Center (ARC). That lease called for escalating but still discounted rates for LGS use of the
ARC and provision of senior adult and other services.
As part of that long -term lease, the Town sub - leased back approximately 1,262 square feet of space for
office and conference room use at the same proportional rates at which the entire building was leased to
LGS. The Town has since reduced its use of space in the ARC to 792 square feet solely for Human
Resources. The authorization for the sub -lease expired at the end of 2013.
ANALYSIS:
The construction of new Town office space in the lower level of the old library has been delayed
pending final determinations as to space configuration for the Los Gatos Museums' portion of the
building, as well as required elevator and HVAC improvements. It is now anticipated that the Museums
will not be obtaining delivery of its portion of the old library until late 2014, with opening of the new
Museums anticipated in mid -2015.
PREPARED BY: GREG LARSON
Town Manager
Reviewed by: Assistant Town Manager own Attorney finance
N :MGR\AdminWorkFi1es\2014 Council Reports\April 2 1\ 4.21.14 LGS Lease Agreement Staff Repon.doe
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: AUTHORIZE THE TOWN MANAGER TO ENTER INTO AN AGREEMENT WITH
THE LOS GATOS — SARATOGA RECREATION AND EDUCATION AGENCY TO
CONTINUE USE OF LIMITED OFFICE FACILITIES IN THE ADULT
RECREATION CENTER
April 17, 2014
Consequently, the Town has continued to use space in the ARC for Human Resources and will likely
need to continue to do so through 2014.
LGS has requested execution of a side letter agreement (see draft attached) extending the Town's sub-
lease of the space for Human Resources under the same terms as previously agreed. Under those terms,
LGS does not have to pay discounted rent to the Town for the portion of space used by the Town. The
Town will recommend extending the sub -lease on a month -to -month basis through at least the end of
2014.
FISCAL IMPACT:
The lost revenue from LGS for the Town's continued use of the ARC space for Human Resources is
under $10,000 and can be covered by existing budgetary approvals and appropriations.
Attachment:
Draft ARC Sub -lease Extension Side Letter
DRAFT ARC SUB -LEASE EXTENSION SIDE LETTER
Mr. Greg Larson
Town Manger
Town of Los Gatos
110 E. Main Street
Los Gatos, CA 95030
RE: Sublease of 208 E. Main Street
Dear Greg:
This letter will serve to confirm our conversation about the town's interest to continue subleasing space
in the 208 E. Main Street building.
Pursuant to the lease between the Town of Los Gatos (Town) and the Los Gatos - Saratoga Community
Education and Recreation (LGS) dated December 16, 2009, the town subleases 1,262 square feet of
office space in room numbers 203, 204, 205, 208, 211 and 212. The sublease expired on January 31,
2013.
Over the past few years, LGS has taken backspace (Rooms 203, 204, and 212) for its own use. It is my
understanding that the town desires to continue subleasing 792 square feet of office space in Rooms
205, 208 and 211 until September 1, 2014. 1 propose we keep all conditions of the sublease the same
including the rental rate formula for the renewal period from January 1, 2014 to September 1, 2014.
(NOTE: The Town will request that the sub -lease be extended on a month -to -month basis as needed
through 2014)
Acknowledged and Agreed
Greg Larson, Town Manger Date
Stephen G. Ma, Executive Director Date
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