HomeMy WebLinkAbout12 - Amendment No. 1 to Lease Agreement for Temporary Fire Station No. 5 FacilityTO:
FROM
CITY OF
NEWPORT BEACH
City Council Staff Report
September 10, 2019
Agenda Item No. 12
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Peter Tauscher, Senior Civil Engineer,
ptauscher(a-)newportbeachca.gov
PHONE: 949-644-3316
TITLE: Approval of Amendment No. One to Lease Agreement with Williams
Scotsman, Inc. for Temporary Fire Station No. 5 Facility (151`12)
ABSTRACT:
On January 23, 2018, the City entered into a Lease Agreement with Williams Scotsman,
Inc. to provide a modular building for the temporary relocation of the Fire Station No. 5
facility during the construction of the new Corona del Mar Library and Fire Station No. 5
(C-8136-1). Due to nearly 50 rain days, the project completion was extended beyond the
June 16, 2019, completion date. Amendment No. One is needed to cover the additional
rental period.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Approve Amendment No. One in the amount of $30,000.00 to the Lease Agreement
with Williams Scotsman, Inc. for additional rental charges for a new not -to -exceed total
price of $150,000.00, and authorize the Mayor and City Clerk to execute the
Amendment.
FUNDING REQUIREMENTS:
Sufficient funding is available in the current Capital Improvement Program budget.
Charges will be expensed to account No. 53201-980000-15F12 (Facilities Maintenance
CIP - Major Facility Financing Plan).
12-1
Approval of Amendment No. One to Lease Agreement with Williams Scotsman, Inc. for
Temporary Fire Station No. 5 Facility (15F12)
September 10, 2019
Page 2
DISCUSSION:
On January 23, 2018, the City entered into a Lease Agreement with Williams Scotsman,
Inc. in the amount of $120,000 to provide a modular building for the temporary relocation
of the Fire Station No. 5 facility during the construction of the new Corona del Mar Library
and Fire Station No. 5. Construction, and in turn the initial lease term was planned for
14 months. However, an unusually wet winter resulted in 50 rain days and significantly
impacted the project timeline. In addition, the contractor has experienced difficulty in
obtaining final supplies to complete the building for occupancy. Staff is working diligently
to bring the project to completion.
Amendment No. One will allow for extension of the modular building lease for continuous
operation of the Corona del Mar Fire Station No. 5 during final construction. Removal of
the Temporary Fire Station 5 complex is set to begin in mid-September 2019.
ENVIRONMENTAL REVIEW:
Leasing services are not subject to the California Environmental Quality Act ("CEQA")
pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably
foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is
not a project as defined in Section 15378) of the CEQA Guidelines, California Code of
Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical
change to the environment, directly or indirectly.
�[9]iEli 1►LC3
This agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item). The Notice Inviting Bids was
advertised in the City's official publication and in construction industry publications.
ATTACHMENTS:
Attachment A — Location Map
Attachment B — Professional Services Agreement
12-2
LENGEND
® TEMPORARY FIRE STATION No. 5
TEMPORARY
EIRE STATION No.
S�N�C
�ST�F
TEMPORARY FIRE STATION #5
LOCATION MAP
Attachment A
OASIS
COMMUNITY
CENTER
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C-8136 1 09/10/19
12-3
ATTACHMENT B
AMENDMENT NO. ONE TO
LEASE AGREEMENT
WITH WILLIAMS SCOTSMAN, INC. FOR
TEMPORARY TRAILER
THIS AMENDMENT NO. ONE TO LEASE AGREEMENT ("Amendment No. One")
is made and entered into as of this 10th day of September, 2019 ("Effective Date"), by
and between the CITY OF NEWPORT BEACH, a California municipal corporation and
charter city ("Lessee"), and WILLIAMS SCOTSMAN, INC., a Maryland Corporation
("Lessor"), whose address is 11811 Greenstone Avenue, Santa Fe Sprints, CA 90670-
4628, and is made with reference to the following:
RECITALS
A. On January 23, 2018, Lessee and Lessor entered into a Lease Agreement ("Lease
Agreement").
B. The parties desire to enter into this Amendment No. One to increase the total
compensation and amend the "Term of Lease; Extension" clause.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. TERM OF LEASE: EXTENSION CLAUSE
Section 5 of the Lease Agreement is amended in its entirety and replaced with the
following: "5. Term of Lease; Extension. The term of this Lease Agreement begins on the
date of delivery of the Equipment ("Date of Delivery") and ends on the last day of the
Minimum Lease Term, as defined in the Lease Order Agreement ("Term") or the
Extension Period (as herein defined). Either party may terminate this Lease Agreement,
with or without cause, upon (30) days' written notice of intent to terminate. Acceptance of
Equipment returned to Lessor prior to expiration of the Term or any Extension Period
thereof, does not constitute a release of Lessee's rental obligations. In the event Lessee
terminates the Lease Agreement during the Term, Lessee unconditionally agrees to pay
any applicable charges for services or modifications performed by Lessor to make the
Equipment ready for Lessee's use, and any applicable charges related to Ancillary
Products, plus the Final Return Charges. At the end of the Term or Extension Period,
Lessee shall be responsible for any "Final Return Charges" as estimated in the Lease
Order Agreement. Lessee understands and agrees that the Final Return Charges stated
in the Lease Order Agreement are estimates only and that Final Return Charges
including, but not limited to, dismantle and return freight charges, will be charged at
Lessor's then prevailing rate at the time of surrender. Any amounts prepaid by Lessee for
rent or estimated return freight and knockdown shall be applied as a credit to Lessee's
final invoice once final charges are determined by Lessor. At the end of the Term, this
Lease Agreement is automatically extended on a month-to-month basis on the same
terms and conditions until the Equipment is returned to Lessor (the "Extension Period"), -
except that Lessee's rental rate shall be automatically adjusted to Lessor's then prevailing
renewal rental rate. Notwithstanding the above and unless agreed to by Lessee in
writing, in no case shall the total consideration to be paid by Lessee to Lessor
Williams Scotsman, Inc. Page 1 12-4
under this Lease Agreement, including but not limited to any Final Return Charges,
exceed One Hundred Fifty Thousand Dollars and 001100 ($150,000.00) nor shall the
entire term of the Agreement extend beyond two (2) years after the Date of Delivery.
After the end of the Term, either party can terminate this Lease Agreement on thirty (30)
days written notice."
The total amended compensation reflects Lessee's additional compensation for
this Amendment No. One, in an amount not to exceed Thirty Thousand Dollars and
001100 ($30,000.00).
2. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Williams Scotsman, Inc. Page 2 12-5
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: S127/Zot3
By: (2&
For'Aaron C. Harp ,q
City Attorney o'b
ATTEST:
Date:
In
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Diane B
Mayor
Dixon
CONSULTANT: Williams Scotsman, Inc.,
a Maryland Corporation
Date:
Bv:
Leilani I. Brown Bradley L Soultz
City Clerk Chief Executive Officer
Date:
By:
Bradley L. Bacon
Secretary
[END OF SIGNATURES]
Williams Scotsman, Inc. Page 3 12-6