Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00719 April 26, 2022 Consent Item 09
Title: Second Amendment to Parking Validation Agreement Between the City of Sacramento and California Family Health, LLC
Location: 1012 K Street, District 4
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute a second amendment to Parking Validation Agreement No. 2012-0776 with California Family Health, LLC:1) approving a repayment plan for missed payments due to the pandemic; and 2) extending the initial term of the Agreement to June 30, 2028.
Contact: Matt Eierman, Parking Services Manager, (916) 808-5849, [email protected]
, Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Second Amendment
Description/Analysis
Issue Detail: California Family Health, LLC (“CFH”) owns and operates California Family Fitness Centers throughout the Sacramento region. In September 2021, CFH and the City entered into a Parking Validation Agreement, No. 2012-0776 (“Agreement”) for the purpose of issuing parking validations to guests of its gym located at 1012 K Street. A requirement of the Agreement is CFH must purchase 20 monthly parking permits at the City’s Memorial Garage to be used as employee parking.
Soon after the COVID-19 pandemic started in March 2020, CFH closed the K Street gym and ceased making payments on the 20 monthly parking payments. CFH plans to re-open the K Street gym on May 1, 2022 and will have accumulated $45,080 in outstanding fees for the 20 monthly parking payments. CFH has agreed to repay all outstanding fees by making 36 monthly payments of $1,252.22 in addition to their normal monthly fees.
CFH has also requested the expiration of the initial term of the Agreement be extended from May 1, 2024, to June 30, 2028, to match the term of their lease at 1012 K Street.
Staff recommends amending the Agreement to implement the 36-month repayment plan and extend the term to June 30, 2028.
Policy Considerations: This recommendation is consistent with the City’s General Plan and the goal of the City Council to enhance livability and economic development objectives to retain and support small businesses.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act (CEQA): The requested action would implement a repayment plan for outstanding monthly parking fees. This is an administrative activity of the City under the California Environmental Quality Act (CEQA) that will not result in any direct or indirect physical change in the environment and is not a project. No CEQA review is required. CEQA Guidelines section 15378(b)(5); 15060(c)(3).
Sustainability: Not applicable
Commission/Committee Action: None
Rationale for Recommendation: Due to economic impacts of the COVID-19 pandemic, CFH closed its California Family Fitness gym located at 1012 K Street and was unable to pay for the 20 monthly parking permits assigned to them as part of their parking validation agreement with the City. As economic conditions in the downtown area improve, CFH is planning to reopen the K Street gym on May 1, 2022. Approving the proposed repayment plan for the 20 monthly permits will allow CFH to repay their entire outstanding balance to the City.
Approving the proposed extension to the initial term of their Agreement will ensure they are able to provide convenient parking validations for their customers through the duration of their building lease.
Financial Considerations: Per its Agreement with the City, CFH receives a 30 percent discount on the 20 monthly permits it is required to purchase for Memorial Garage. At the onset of the pandemic, CFH was paying the City $1,960 each month for its monthly permits.
From June 2020 to May 1, 2022, the date CFH will reopen the 1012 K Street, CFH will have accumulated $45,080 in outstanding fees. Beginning May 1, 2022, CFH will resume paying the City for the monthly permits. In addition, and continuing for the next 36 months, CFH will pay the City an extra $1,252.22 per month to fully repay all outstanding fees for its monthly permits.
All monthly parking permit revenue will be credited to the Parking Fund (Fund 6004).
Local Business Enterprise (LBE): Not applicable