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HomeMy WebLinkAbout2002-03-26; City Council; 16697; Agreement with Mobile Mini - Lease of PropertyCITY OF CARLSBAD -AGENDA BILL I jI,:(dq7 m: APPROVAL OF AGREEMENT WITH MOBILE MINI, INC FOR MTG. 3/26/02 THE LEASE OF PERSONAL PROPERTY DEPT. LIB RECOMMENDED ACTION: CITY MGRa Approve Resolution No. ma -0hthorizing the Mayor to execute an Agreement for the Lease of Personal Property with Mobile Mini, Inc for the lease of two modular facilities. ITEM EXPLANATION: At their meeting of March 17, 2001, the City Council directed that the existing Pine School structures be razed and that modular units be placed on vacant space at this site as an interim use of the property. The modulars will be located in an area away from the school buildings to be razed and will house the Library's Centro de Informacion and Recreation's Stay-N-Play program. Both modulars are a standard 24' by 60' in size and come with interior restroom facilities. The City has made arrangements for sewer, water, electrical, and phone lines to be connected to the modulars. These actions will be taken as the master planning process for a future community park gets under way this year. Bids for the modular leases were received from four companies. The lowest and most responsive bid came from Mobile Mini, Inc. of San Diego. Mobile Mini has two of these modulars in stock and can move them to the Pine School site as soon as a Purchase Order is received. Prior to relocating the modulars, the site will be prepared and necessary utility connections will be completed. FISCAL IMPACT: The total cost for the first full year of the lease for these two modulars will be $42,132. This total includes $19,736 for all one time costs (delivery, installation, return fees, and the first month's lease) plus $2,036 for monthly lease costs for the next eleven months for both modulars. The term of the agreement will be eighteen (18) months from the time the agreement is signed and can be extended by the parties in writing for three (3) additional six (6) month periods for a total term of thirty-six (36) months. An option to purchase the modulars was also analyzed. Based on this analysis and the projected timeline for the units to be on site, as well as past difficulties the city has experienced in selling used and modified units, staff recommends leasing. Should it become necessary to purchase one or both of the modulars in the future, the city would have the option of negotiating such a purchase at that time. This process was determined to be better financially than a lease with the option of a fixed purchase price. Funds for the lease of these modulars are available in the current fiscal year budget. EXHIBITS: I. Resolution NO. JoO a -093 authorizing the Mayor to execute the Agreement for the Lease of Personal Property with Mobile Mini, Inc. 2. Agreement for the Lease of Personal Property with Mobile Mini, Inc. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT # 1 RESOLUTION NO. 2002-033 A RESOLUTION OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT WITH MOBILE MINI, INC FOR THE LEASE OF PERSONAL PROPERY. WHEREAS, the City Council of the City of Carlsbad, California has determined :hat it is in the best interest of the City to lease modular facilities to house the Library's Zentro de Informacion and Recreation's Stay-N-Play program during master planning and construction of a future Pine School community park: and WHEREAS, the City Council has further determined that these modular facilities Hill be located on the former Pine School property; and WHEREAS, bids were received from four companies with Mobile Mini, Inc. of 3an Diego submitting the lowest and most responsive bid. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of :arkbad, California, as follows: 1. That the above recitations are true and correct. 2. That the Mayor is authorized to execute the Agreement for the Lease of 'ersonal Property between the City of Carlsbad and Mobile Mini, Inc. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council 3f the City of Carlsbad, California, at a regular meeting held on the 26th day of MARCH , 2002, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Finnila, Hall NOES: None ABSENT: Council Member Nygaa ATTEST: 'LLd444.L h. 3;22,77yQ L0RRfINE M. WOOD, City Clerk (SEAL) AGREEMENT FOR THE LEASE OF PERSONAL PROPERTY MOBILE MINI, INC THIS PERSONAL PROPERTY LEASE AGREEMENT (“Agreement“) is made and entered into thisaq TIS day of RC U 200 2, by and between MOBILE MINI, INC, a California CEtoration (Les’sor) and the CITY OF CARLSBAD, a political subdivision of the State of California (“Lessee”), and is made with reference to the following facts: RECITALS A. Lessor is the manufacturer and vendor of mobile modular structures for temporary offices, classrooms, storage facilities, etc. B. Lessee has researched various companies specializing in the leasing of modular office space to provide for the temporary space needs of two City programs. C. Lessee has corresponded with several vendors and has determined that Lessor is the .best vendor source for the leasing of two Modular Units because of those reasons set forth in attached Exhibit “A, which is incorporated herein by reference. D. As part of the Lease Agreement, Lessee shall provide for all items listed on Exhibit “A which include, but are not limited to, handicap ramp, stairs, delivery and set up, return and knockdown, and skirting. NOW THEREFORE, incorporating the above recitals and in consideration of the covenants and obligations set forth herein, the parties hereto agree as follows: 1. Lease. Lessor agrees to lease to Lessee that equipment described in attached Exhibit ”A” (the 24’ x 60’ Modular Units and ancillary equipment), which is incorporated herein by reference, upon the terms and conditions contained herein. 2. Security Deposit. Incorporated into the initial payment to Mobile Mini, Inc, the Lessor shall include a refundable Security Deposit of two hundred dollars and no cents ($200.00). At the end of the Agreement term, Lessor shall inspect the Equipment and refund the security deposit to Lessee, if the modular unit is returned in a condition which has experienced only normal wear and tear. n 3. Payments. Upon Lessee's written notification to Lessor that the Modular Units and accessories have been installed as further described in Exhibit "A, Lessee agrees to pay to Lessor the sum of Nineteen Thousand Seven Hundred and Thirty Six dollars ($19,736), which includes all one time costs ("Lease Amount") associated with delivery, installation, return fees and the first months lease for 2 Modular Units. All subsequent payments of the monthly Lease Amount of Two Thousand Thirty-six dollars ($2,036) shall be due on the same day of each month and shall be paid to Lessor at its address set forth below or as otherwise directed by Lessor in writing. 4. Aqreement Term. The term of this Agreement shall commence on the date first written above and continue for a period of eighteen months following Lessee's written notification to Lessor that the Modular Units and Supplemental requirements identified as the responsibility of the Lessor outlined on Exhibit "A have been installed, subject to the annual appropriation of funds by the City Council and unless otherwise sooner terminated by the provisions of this Agreement or as otherwise agreed to in writing by the parties. The terms of this Agreement can be extended by the parties in writing for three (3) additional six (6) month periods for a total term of Thirty Six (36) months, subject to the annual appropriation of funds by the City Council. 5. Lessee's ObliQations. Along with the covenants and conditions contained herein, Lessee is responsible for the installation of all utilities required of the Modular Units. 6. Lessor's Obliqations. Along with the covenants and conditions contained herein, Lessor is responsible for the installation and removal of the Modular Units and all ancillary requirements including, but not limited to Tie Downs, Skirting, Security Screens, HCP Ramps, Stairs etc, to the satisfaction of the City of Carlsbad Building Department. There will be no additional charges to the Lessee for the provision of these ancillary requirements. 7. Month-to-Month Tenancy. Notwithstanding Paragraph 4 of this Agreement, should Lessee fail to surrender the Equipment upon the expiration of this Agreement, the Agreement shall continue on a month-to-month basis until Lessee does surrender the Equipment or purchases it in accordance with Paragraph 14 below. 8. Maintenance. Lessee, at its own expense, shall keep and maintain the Modular Units in good condition and working order. If Lessee modifies the interior configuration of the Modular Units, then the Unit must be returned to its' original configuration prior to return of Unit to the Lessor or the refundable deposit will be forfeited. 9. e. With respect to the Modular Unit, Lessee shall permit only safe, careful, qualified and authorized use of same. The Modular Unit shall at no time be subjected to any purpose other than that for which the same was designed, that being office space, classroom, meeting room, and similar uses. Lessee L shall comply with all applicable laws, rules, regulations and ordinances in using and operating such Modular Unit. 10. Surrender. Upon expiration of the term of this Lease, or upon demand by Lessor pursuant to the provisions hereof, Lessee, at its expense, shall surrender the Modular Unit(s) to the Lessor, in the same condition as when delivered to Lessee, reasonable wear and tear excepted. 11. Loss or Damaqe. In the instance of Modular Unit theft or damage not associated with normal wear and tear or modification on behalf of the Lessee, the required monthly Limited Liability Waiver (LLW) Fee shall remedy any loss associated with said theft or damage. The City may, at its discretion, provide proof of liability insurance through its insurance carrier to the satisfaction of Lessor. In such instance, the LLW requirement shall be waived by the Lessee. 12. Termination. Upon written ninety (90) day notice to Lessor, Lessee can terminate this Agreement at any time. Within thirty (30) days following termination, Lessee shall surrender to Lessor the Modular Units. 13. Ownership. The Modular Unit(s) and their associated amenities acknowledged in Exhibit "A are, and shall at all times remain, the property of the Lessor, and Lessee shall have no right, title, or interest in them except as expressly set forth in this Lease. 14. Notice. The name of the persons who are authorized to give written notices or to receive written notice on- behalf of the City and on behalf of the Contractor in connection with the foregoing are as follows: For City: For Contractor: Title ASSISTANT LIBRARY DIRECTOR Name GEOFF ARMOUR Address 1775 DOVE LANE CARLSBAD,CA 92009 Title SALES ASSOCIATE Name MICHAEL CARUSO Address 9293 CAMINO SANTE FE SAN DIEGO, CA 92121 15. Jurisdiction and Venue. Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 16. Entire Aqreement. This instrument constitutes the entire agreement between Lessor and Lessee, and it shall not be amended, altered, or changed except by a written agreement signed by the parties. 3 17. Titles, Titles to the Paragraphs of this Lease are solely for convenience and are not intended for interpretation or construction of this Lease. 18. Waiver. Any waiver by Lessor is ineffective unless in writing, and shall not be deemed a waiver of any other or future obligation. 19. Benefit. This Lease agreement inures to the benefit of and is binding upon the heirs, legatees, personal representatives, successors, and assigns of the parties hereto. IN WITNESS WHEREOF, the parties have executed this Equipment Lease on the date first set forth above. CONTRACTOR .e& (sign here) (print narheltitle) ail+ hnneeu VP If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation, Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-president **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer@) signing to bind the corporation. APPROVED AS TO FORM: RONALD R. BALL, City Attorney By: " - Deputy City Attorney 4 EXHIBIT "A" Quotation J Printed On: September 26,2001 '. Mobile Mini 9293 Camino Sante Fe San Diego, CA 92121 Voice:(858)578-9222 Fax:(858)578-9220 Web Site:www.mobilernini.com Quoted For: City of Carlsbad IZOOCadsbadVillage Drive Attn: Kleth Beverly Carlsbad. CA 92008 San Diego Shipping To: City of Carlsbad 1200 Carlsbad Village Drive Carlsbad. CA 92008 San Diego Atln: Kleth Beverly c L J Thank you for Ihe apportmity to speak with you on the phone. Enclosed is the pncing you requested. I am Catain you will find that Mobile Mini. Inc. has the anmr for ywr storage and oftice needs. Moblle Mlni begin providing storage SoUiOns In the earfy 1980's. Sem'ly 8. SeM'Ce is our trademark Mobile MiM patented 0 high Secuity loclung system that replaces the obsolete "lock box" used by other COrJaincr compalues. Mobile Mini offers their customers a complete llne of new manufactured and highty reconditioned secrnly stcfage units. OMce units. record MURS and custom conflgvations. Units are available for rent. purchase or lease purchase. I Quoted By I Quote Date I Quote For . I Page# I Quote I) MCARUSO Description Quantity 09/26/2001 I 1 .oo 24' x 60 ~odulsr office per enclosed flow plan. Double wlde office. 1 slair per offlce included 1.00 LLW Limited Liabllily Walver Only 10% of renlal rate No deductables on Containers and Steel Offices. 51000 Deductable on Mobile OKlces 1 .OO HCP Ramp Pendlng Slte Conditions 1 .oO Delivery/Setup Code Set. Includes Deliverj to Site 0nd BlocWLwel. Tle Downs Setup of HCP Ramp. Pendmg 511. condtions. 1 00 24 X 60 Sklrlmp Inslaledmemoved 1.00 RetuMnockdown Transportation from Slte and Knockdown Refundablc Secunly Deposil 1.00 r/= Taxable Item Ill 3658 UnitPrice 1 Extended Price $730.00 $730.00 $72.00 $72.00 $150.00 53.850.00 $150.00 * S3.850.00 162.850.00 $2.850.00 S1.950.00 S1.950.00 s200.00 $200.00 Ouotalion has 7 line Items NonTaxable SubTolal: $8.922.00 Taxable SubTotal: 1880.00 7.50% Sales Tax: $66.00 $9.868.00 Check ou! fhe Moblle Mlnl advantages' . Patenred Hlgh Securlty LocklnQ system on all units - No infenor lock boxes1 . Inexpenwe Loss Llmllallon Waiver - only 10% of your renlal rale per bllling penod wth no deduclable ' Larger! ProdUCl Lme ln the lnduslry Pi~es are valld for 30 days and are subject lo lhe terms and COnditlonr of Ihe contract agreement. Customer 15 rerponslble for all taxes lncludlnq State county. and personal properly taxes. 1 1 sincerer, . r. "/ x .. Z' x EXHIBIT "A" "----i u? r. X x 7 .'