Item# 05
To: Mayor and City Council
From: Jim Schaad, City Manager
Anissa Leung, Finance Director
Subject: United States Postal Service (USPS) Lease Agreement Recommendation:
Pass a Motion to adopt Resolution 2026-XX, approving a five-year lease of approximately 6,600 square feet of parking space at the Fourth and C Streets parking lot to the U. S. Postal Service for $30,000 annually.
Rationale for Recommendation:
The proposed agreement will provide $30,000 revenue to the City’s general fund. This parking lot has historically been under-utilized and the long-term lease of a portion of the lot represents a steady revenue source. The Postal service has been an excellent tenant and would like to continue the mutually beneficial relationship.
Discussion & Analysis:
On September 8, 2011 Council approved the execution of an agreement with the US Postal Service (USPS) to lease approximately 6,600 square feet to provide 22 parking spaces at the city-owned parking lot at the southeast corner of Fourth and C Streets. The proposed agreed upon rent is $30,000 per year for five years, with renegotiation occurring during year five. The lease will expire on 09/30/2031 and no provisions for automatic extension. To provide more flexibility in use of the City Property, the lease agreement also allows either party to terminate the agreement with 180-day notice.
The Committee directed staff to work out the details of the lease and forward it to the City Council with their approval.
Fiscal Analysis:
The lease will generate $30,000 revenue toward the City General Fund.
Legal Review:
The City Attorney has reviewed the policy and approved to form.
Environmental Review:
The action proposed in this item is administrative in nature and does not constitute a project under the California Environmental Quality Act (CEQA).
Date: October 6, 2026
Item#
05 Attachments:
1) Resolution No. 2026-XX
2) Lease Agreement, attachments, and appendices