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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. ,;' ~~~~'_ City.Cle , City of Ly wood APPROVED APRIL 5, 1866 ~~ ~ G~/ Mayor f the City of Lynwood