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Finance Committee

Meeting Date:	08/29/2017
FROM:	Bill Gallardo

Subject:

Agreement with Brea Olinda Unified School District for Building Utilities and Services

RECOMMENDATION

Approve Agreement

BACKGROUND/DISCUSSION

The Brea Olinda Unified School District, which has occupied 9,300 square feet of office space in Brea's Civic & Cultural Center since it was built, rents the space for $1.00 per year. In addition to its office space, the School District uses the Council Chambers twice a month for School Board Meetings and has been assigned, without additional charge, 12 reserved parking spaces on Parking Level 2 (five spaces inside on P2 and seven spaces outside.)

The current Agreement for Building Utilities and Services between the City of Brea and the Brea Olinda Unified School District was approved in 2012 and expired on June 30, 2017. That Agreement allows for annual rate changes based on the previous 12 months' actual operating costs for the percentage of the building (7.4%) used by the School District, as calculated by the Public Works Department. During fiscal year 2016-17, the School District paid $6,261.10 per month for maintenance and operations, which is $8.08 per square foot annually.

At this time, it is recommended that the City enter into a new five-year Agreement with the School District for building utilities and services. Under the new Agreement, the annual maintenance and operations fee is based on the School District's percentage of the upcoming fiscal year's operating budget for the Civic Center. This budget is managed by the Public Works Department. The School District will be notified of any adjustments based on actual expenditures after September of the following year. These adjustments may result in a reimbursement to the School District for over-payment, or additional charges to the School District for under-payment.

The new five-year Agreement was reviewed and approved by the Brea Olinda Unified School District on August 16, 2017.

SUMMARY/FISCAL IMPACT

The Brea Olinda Unified School District has occupied 9,300 square feet of office space in Brea's Civic & Cultural Center since it was built. The School District pays the City for maintenance and operations charges based upon the square footage occupied. The current Agreement for building utilities and services between the City and the School District was approved in 2012 and expired on June 30, 2017. Staff is recommending that the City enter into a new agreement in order to recover costs for the next five years.

By renewing the Building Utilities and Services Agreement with the School District, the City will continue to recover actual maintenance and operations costs for the next five years.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Marie Dao, Management Analyst I
Concurrence: David Crabtree, Community Development Director
Kathie DeRobbio, Economic Development Manager

Attachments
Agreement