Administrator Initiating Item:

Serena Muindi

Victoria Lewis

Academic and Professional Matter Yes No Final Disposition

If yes, Faculty Senate Agreement Yes No

Senate President Signature

AGENDA ITEM BACKGROUND

TO: GOVERNING BOARD DATE

February 6, 2012

FROM: PRESIDENT

SUBJECT: Lease Agreement Amendment: Scotts Valley Center,

January 2012 – June 2015

ENCLOSURE(S)

Page 1 of 3

REASON FOR BOARD CONSIDERATION

ACTION

ITEM NUMBER

C.6

BACKGROUND: At the September 2006 meeting, the Governing Board authorized a three-year lease agreement with

Scotts Valley Partners that was extended for two additional years beginning in 2009 for 7,350 square

feet at 104 Whispering Pines Drive, Scotts Valley. Due to the difficult economic times, District

approached Scotts Valley Partners regarding options to lower the rent. Scotts Valley Partners agreed

to lower the rent.

The lease is currently up for renewal and has been amended to extend for three and a half additional

years beginning January 1, 2012 and will terminate as of June 30, 2015. In addition, the District is

responsible for utility and custodial costs.

Based on the new amended lease agreement the estimated costs for the next three and a half years

would be:

Year Six (2012): $123,000 plus custodial and utilities

Year Seven (2013): $127,500 plus custodial and utilities

Year Eight (2014): $132,000 plus custodial and utilities

Year Nine (2015): $ 66,000 plus custodial and utilities

FISCAL IMPACT:

$148,578 per year

RECOMMENDATION:

It is recommended that the Governing Board authorize the District to enter into a lease agreement

amendment with Scotts Valley Partners for 7,350 square feet at 104 Whispering Pines Drive,

Scotts Valley from January 2012 thru June, 2015.

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Approved

AMENDMENT # 2012-2 TO THAT CERTAIN LEASE DATED SEPTEMBER 11, 2006, BETWEEN SCOTTS VALLEY PARTNERS, A CALIFORNIA GENERAL PARTNERSHIP (LANDLORD) AND CABRILLO COLLEGE (TENANT) FOR THOSE CERTAIN PREMISES LOCATED AT 104 WHISPERING PINES, SCOTTS VALLEY, CA. Landlord and Tenant, by their signatures below, amend the Lease as set out below. In the event of a conflict between this Amendment and the Lease agreement, this Amendment shall control.

1. Reference Paragraph 1. Term:

The lease termination date shall be extended to June 30, 2105. Tenant shall have the right to terminate as of June 30 of 2013 and June 30, of 2014, by completing each of the following conditions:

a) Tenant shall serve written notice to Landlord on or before February

15 of the terminating year, and

b) With its notice, Tenant to pay to landlord $8,000.00 as unamortized leasing commissions and costs for a June 2013 termination and $4,000.00 as unamortized leasing commissions for a June 2014 termination.

2. Reference Paragraph 2. Base Rent:

The monthly base rent schedule is as follows: January 1, 2012 to June 30, 2013: $10,250.00 July 1, 2013 to June 30, 2015: $11,000.00

CALENDAR YEAR

RENT (BASE & COMMON

AREA) UTILITIES TOTAL

2012 (Jan – Dec) $ 10,250.00 $ 2,131.50 $ 12,381.50

2013 (Jan - June) $ 10,250.00 $ TBD $ 12,381.50*

2013 (July - Dec) $ 11,000.00 $ TBD $ 13,131.50*

2014 $ 11,000.00 $ TBD $ 13,131.50*

2015 (Jan-June) $ 11,000.00 $ TBD $ 13,131.50* *Estimated

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This base rent has hereby been amended to include the building operating expenses, as set forth in the Lease dated September 11, 2006, with Lessee additionally paying for certain utilities, maintenance and janitorial as originally agreed upon in the Lease. READ AND APPROVED AND RECEIPT OF A COPY IS HEREBY ACKNOWLEDGED: LANDLORD TENANT DATE:_______ DATE:_______ ___________________ __________________ Scotts Valley Partners Victoria Lewis, Vice President, Administrative Services

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