HomeMy Public PortalAboutM 1966-04-05 - CC
REGULAR MEETING APRI:~ 5, 1966
The City Council of the City of Lynwood met in a regular
session in the City Hall, 11330 Bullis Road, on above
date at 7:30 p.m.
Mayor Siokos in the chair.
Councilmen Byork, Duncan, McMillan, Siokos, and Smith
answered the roll call.
It was moved by Councilman McMillan, seconded by Councilman
Duncan, that the minutes of the regular meeting of March 15,
166, and the minutes of the adjourned regular meeting of
March 18, 1866, be approved as written. All members voting
aye, the Mayor declared the motion carried.
RESOLUTION N0. 66-28 entitled: "RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF LYNWOOD ALLOWING AND APPROVING
THE DEMANDS PRESENTED AND ORDERING WARRANTS DRAWN THERE-
FORE." was presented. It was moved by Councilman Smith,
seconded by Councilman Duncan, that said resolution be
adopted.
Roll Call:
Ayes: Councilmen Byork, Duncan, McMillan, Siokos, Smith.
Noes: None.
Absent: None.
The Mayor acknowledged the presence in the audience of
Cub Scout Troop 691-C from St. Emydius Church, and Den
Mothers, Mrs. Mary Kozick and Mrs, Doris Epmeyer.
The Mayor acknowledged the presence in the audience of
the Comanche Tribe of YMCA Indian Guides,
Mr. George Martini their leader addressed the Council to
thank them and Mr. Jack Cleland for being judges at the
recent kite flying show.
Their letter of commendation was read by Mayor Siokos
and the boys presented each Councilman and Mr. Cleland
with a letter and a feather signifying their participation
in the kite flying show,
PUBLIC HEARING
The hour of 7:30 p.m. having arrived, said hour being
the time fixed for hearing on objections to the annual
weed abatement program on certain parcels of land in the
City, the Mayor inquired if anyone present wished to be
heard.
Mr. K. F. Thompson, 2652 E, 108th Street, questioned the
work being done on private property by City forces. He
cited an instances of lots being cleared by the city. The
Manager said that the job Mr. Thompson was referring to was
work done under the City's WDO program. He was also told
that the weed abatement program was done by City forces and
the City's cost is prorated among the owners of the lots
involved and the cost is collected on their property tax
bill. Also, that because of the small number of vacant
lots, the job has become too small for private contracting
and it is more feasible for the work to be done by the
City.
It was moved by Councilman Smith, seconded by Councilman
Byork, that the hearing be concluded. All members voting
aye, the Mayor declared the motion carried.
Res. 66-28
Demands
Hearing -
Weed abate=
ment prote~
~_ ~ ~./
As to income to the city, Mr. Campbell stated that in Discussion
addition to property taxes, there would be sales tax on sale of
accruing to the city. He said he felt the present and surplus city
anticipated increase in membership will stimulate business property
in Lynwood. (Wright Rd.,
Councilman Smith commented on the antic ipated revenue in
taxes, should Mobilease and Lease Plan International lease
the property.
Mr. Shafer of Lease Plan International stated that to
clarify the tax matter, he could not st ate how much
taxes the city would receive.
The Mayor inquired how the Land would be used.
Mr. Shafer replied that it would be strictly for office
space and parking area, and Mobilease will use it for
parking and repair of vehicles. He said that Mobilease
will move a structure onto the property and enlarge it
to accomodate more offices; when completed, it will have
a book value of $40,000 - $50,000. He said they were
prepared to move to the property as soon as the city has
the land ready.
The City Manager explained that the city has used the
site for storage of dirt in connection with the reservoir
construction and it would have to be compacted. It would
also be necessary to provide water and sewer lines.
Councilman Smith asked the City Manager if the proposed
lease is for 5 years with an option for an additional 5
years. The Manager replied that the lease would be
renegotiated at the end of the first five years. If at
the end of five years, they do not exercise the option,
the lease is renegotiated, but if they purchase at the
end ~f five years, it would be at $90,000.00.
The City Attorney outlined the method for renegotiation
of the lease as contained in the lease agreement he has
prepared. The proposed agreement also outlined the price
and monthly rental as follows: $90,000.00 as purchase
price, first year rent $1,968; second year, $5,076; third
year, $5,184; fourth year, $5,292; and fifth year, $5,400,
for a total of $25,920 for five years,
The matter of revenue to the city was discussed and the
Manager explained that in addition to property taxes on
the improvements, there would be use tax of 1% on leasing
done from that address.
It was moved by Councilman Byork, seconded by Councilman
McMillan, that the City Council accept the offer of Mobilease
Corp.
The City Attorney presented the lease-purchase agreement he
had prepared. As to assignment of the ~_ease, he provided
that the lease could be assigned pr°oviding that the sub-
lessee would execute an agreement to be bound by the
subject lease.
The Mayor inquired if there were any plans for other
companies to be involved and if there were any specific items ~
in the lease to which Mobilease Corp. objected.
Mr. Schoeneman of Mobilease Corp. stated there was no such
plan at present but they might move in another corporation
Q1
Discussion
on sale of
surplus city
property
(Wright Rd.)
in the future. He also said that they wished to have the
option to renew for a total of fifteen years--5 years with
option to renew for two additional five year periods. As
to the matter of subleasing, Mr, Schoeneman said he
assumed the City was concerned mainly with the type of
business that they might sublease to,
The Mayor declared a brief recess. Following the recess,
the Mayor called the meeting to order.
The Attorney resumed reading the high lights of the proposed
lease agreement.
The lease contained a clause requiring that the Mobilease
Corp. would warrant that the City would receive not less
than $40,000 per annum from all sales and use taxes from
the operations conducted upon the leased premises, and would
pay to the City the difference between that revenue and
$40,000 as additional rent. This clause was not acceptable
to Mobilease Corp. ar~d was removed.
The insurance provisions of the lease were described and
the Attorney explained that should the property be condemned
by the State for anything, such as a freeway, the lease
would be at an end, and if only part of the land be condemned,
the rent on the remainder would be prorated,
Damages to the improvements as the result of condemnation
were discussed, and Mr, Shafer said they would want to
receive any damages from the improvements. The Attorney
said that in the event that the State would take only part
of the land .and the City and the lessee could not come to
agreement as to the amount of the rent that should be paid,
the lease agreement provides for an arbitration procedure.
Prior consent of the City Council to a sublease and liability
in case of sublease was discussed, and it was agreed that there
would be the right to sublease without Council consent prior
to subleasing. As to liability, Mr. Shafer objected to the
term "joint and several liability," and stated he assumed the
City would use good judgment in approving a sublessee,
and the Attorney stated that apparently the term "a
corporation that qualifies" could be added as to the matter
of subleasing and liability:
The City Attorney went on to say that tree lease provides
that the lessee does not have the right to purchase the
premises during the first year, and the City Manager
affirmed that the property could be purchased for
$90,000 at any time after the first year, up to five years.
Councilman McMillan expressed doubt as to the advisability
of agreeing to extend the lease agreement up to a total
of fifteen years as it will be obligating future Councils
for a long period of time, and that he hoped to place
restrictions on the lease that would give future Councils
more to say about it, and that he didn't believe the
lease should be extended as long as fifteen years.
Councilman Duncan said he maintained that the City should
not be in the business of leasing, and that he felt the
land should be sold for $90,000.
The Mayor inquired if the lessee insisted on fifteen years
or if five years with option to extend for an additional
five years would be acceptable.
ADJOURN
It was moved by Councilman Smith, seconded by Councilman
Duncan, that the meeting be adjourned to Friday, March
18, 1966, at 3:30 p.m. All members voting aye, the Mayor
declared the motion carried.
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City.Cle , City of Ly wood
APPROVED APRIL 5, 1866
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Mayor f the City of Lynwood