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HomeMy WebLinkAboutReso 62-2014RESOLUTION NO. 62 -2014 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A SUBLEASE AGREEMENT AMENDMENT WITH PANAGIOTA PAPADOPOULOS, D.B.A. EL CAMINO FLORIST, FOR THE COMMERCIAL SPACE AT 636 EL CAMINO REAL WHEREAS, on August 14, 2013, the City Council authorized the City to enter into a Sublease Agreement with Panagiota Papadopoulos to relocate his business, El Camino Florist, to 636 El Camino Real; and WHEREAS, on April 23, 2014, the City Council awarded a construction contract for the tenant improvements at 636 El Camino Real in the amount of $449,909 to Southland Construction. At the time the City Council awarded the contract, staff reported to the City Council that based on the Southland Construction's bid, El Camino Florist's share of the construction costs would be $21,876; and WHEREAS, El Camino Florist has expressed concerns about their share of the costs and City has agreed to apply industry standards whereby it is customary for the owner of a new commercial space to provide the tenants with an allowance for all construction costs necessary to meet their business needs and to meet all current building codes; and WHEREAS, based on this industry standard approach to sharing of construction costs, the City will increase El Camino Florist's tenant allowance by $4,000 from $12,000 to $16,000. The increased allowance will also provide the tenant with partial funding to replace two functional walk - in refrigerators with new units as required California building codes requiring greater energy efficiency in walk -in refrigerators and for business signage; and WHEREAS, based on this industry standard approach to sharing of construction costs, the City will assume an additional $17,000 of construction costs, including the cost of drilling the concrete foundation and installing all necessary water supplies, drainage and electrical service as needed; and WHEREAS, amendment of Sections 1.16, 17.2 and Exhibit C of the Sublease Agreement is required to increase the tenant allowance from $12,000 to $16,000 and to allow the City to assume responsibility for additional construction expenses in the amount of $17,000 . NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby: 1. Approves the Sublease Agreement Amendment, attached hereto as Exhibit A, and incorporated herein. BE IT FURTHER RESOLVED by the City Council that the City Manager, or his designee, is authorized to execute the Sublease Agreement Amendment and any related documents and to take any other actions as necessary to carry out the intent of this Resolution. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the I It" day of June, 2014 by the following vote: AYES: Councilmembers Mark N Addiego Pradee-p Gupta and Liza Normandy Vice Mayor Richard A Garbarino and Mayor Karel Matsumoto NOES: None ABSTAIN: N ABSENT: None ATTEST:A` -� Anna Brown, Deputy City Clerk