Governing Board A. CALL TO ORDER (5:30 p.m. ... - Chaffey College

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AGENDA ITEM Chaffey Community College District GOVERNING BOARD June 26, 2008 Board MeetingDate TOPIC EARLY TERMINATION OF OFFICE LEASE: 16730 ARROW BOULEVARD, FONTANA, CALIFORNIA Communication No. IV.F.3.g SUPPORTS BOARD ENDS STATEMENT/POLICY Supports and complies with policies 1.4.2 Conflict of Interest/Principles, 6.1 Delegation of Authority, 6.2.6 Purchasing, 6.2.7 Contracts, and 8.3.1 College Facilities. PROPOSAL To approve and authorize the district to enter into an early termination agreement with Steele Sacks, trustee of the Sacks Family Trust (the “lessor”), for the real property located at 16730 Arrow Boulevard, Suite CC, Fontana, California 92335, in an amount not to exceed $100,000, in accordance with the terms and conditions of the early termination agreement and escrow instructions, for the reasons set forth below. BACKGROUND The district is currently leasing an approximate 6,530-useable-square-foot facility for its Workforce Preparation and Nursing Program at 16730 Arrow Boulevard, Fontana, California. The lease is for a sixyear term, which began on July 1, 2006, at an annual base year rent of $94,032.00, with annual escalation of 3 percent thereafter, in accordance with the terms and conditions of the lease. The lease term ends on June 30, 2012. The annual payment for the third year (fiscal year 2008–2009) of the sixyear term is $99,758.55. Recent changes in instructional programming have made staff, faculty, and instructional space at the Chino campus, Chino IT Center, and Chino Center available that could be utilized by the current lessees of the Arrow Boulevard property. Therefore, due to the current availability of district-owned facilities, continuing to lease the Arrow Boulevard property until the end of the lease term is not advised. The district has provisionally negotiated an early termination agreement with the lessor, whereby the district shall pay the lessor the sum not to exceed $100,000 as good and valuable consideration in exchange for terminating the lease at the commencement of the third year of the lease term. Under the termination agreement, the district shall fund an escrow account in the amount of $100,000 by July 1, 2008, or as mutually agreed upon by the district and the lessor. Immediately following opening of escrow, the escrow holder shall release $19,330.02 to the lessor (representing lost brokerage fees prorated from the outstanding lease term remaining); thereafter, the escrow holder shall release remaining payments on the first day of each month equal to the amount of prorated monthly rent that would otherwise have been paid to lessor for year three of the lease. The payments to the lessor shall terminate either (1) once the entire escrow amount has been released to the lessor, or (2) upon execution of a lease agreement for the premises between the lessor and an alternate tenant, whichever occurs first. Under California Education Code Sections 81130 et seq. and Section 81530, the district, upon approval of its governing board, may enter into the proposed early termination agreement. Upon completion of due diligence review and negotiations, the early termination agreement of the 16730 Arrow Boulevard property would serve the best interests of the district. 40 6/26/08 Regular Board Meeting
Early Termination of Office Lease: 16730 Arrow Boulevard, Fontana, California June 26, 2008 Page 2 BUDGET IMPLICATIONS Funding Source – Unrestricted general fund. Status of Funds – Funds of $100,000 are available in the 2007–2008 unrestricted general fund for this agreement. Future Implications – The district will realize savings from the final three years of the lease. RECOMMENDATION It is recommended that the Governing Board approve and authorize the district to enter into an early termination agreement with Steele Sacks, trustee of the Sacks Family Trust (the “lessor”), for the real property located at 16730 Arrow Boulevard, Suite CC, Fontana, California 92335, in an amount not to exceed $100,000, in accordance with the terms and conditions of the early termination agreement and escrow instructions. Prepared by: Jeffrey K. Saito, Director, Purchasing Services Reviewed by: C. Earl Davis, Vice President, Business Services Recommended by: Henry D. Shannon, Superintendent/President 41 6/26/08 Regular Board Meeting
Page 1 and 2: Governing Board I. REGULAR SESSION
Page 3 and 4: TOPIC TECHNOLOGY REPORT Communicati
Page 5 and 6: New and Enhanced Colleague Function
Page 7 and 8: TOPIC APPROVAL OF MINUTES Communica
Page 9 and 10: Dr. Shannon thanked student governm
Page 11 and 12: Vickie Pappas, CalWORKs transitiona
Page 13 and 14: GOVERNANCE PROCESS The minutes of t
Page 15 and 16: CEO/STAFF REPORTS Superintendent/Pr
Page 17 and 18: A RESOLUTION OF THE GOVERNING BOARD
Page 19 and 20: NEW SPECIAL TOPICS AND INDEPENDENT
Page 21 and 22: AGENDA ITEM Chaffey Community Colle
Page 27 and 28: Contract No. 08C31 Mindy Rowe 08C31
Page 29 and 30: Contract No. 08C153 Senior Helpers
Page 31 and 32: Contract No. 08C390 Vendor City, St
Page 33 and 34: GENERAL FUNDS ( 10 ) CHAFFEY COMMUN
Page 35 and 36: RESOLUTION NO. 62608 A RESOLUTION O
Page 37 and 38: 1 Sony SSM-920 B/W Monitor 110958 (
Page 39: BHYGQ21 (122333); 1Y99Q11 (119858);
Page 45 and 46: PROJECT TERMS AND CONDITIONS Distri
Page 47 and 48: RESOLUTION No: 62608A RESOLUTION OF
Page 59 and 60: TOPIC TRUE COLORS WORKSHOP Communic
Page 63 and 64: ^ Chaffey College Office of Human R

Governing Board A. CALL TO ORDER (5:30 p.m. ... - Chaffey College

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