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CITY OF FRESNO
AMENDMENT NO. I TO
öà INTERDEPARTMENTAL MEMORANDUM OF UNDERSTANDING
REGARDING THE USE OF POLICE AG FARM
Between
AIRPORTS DEPARTMENT
And
FRESNO POLICE DEPARTMENT
This AMENDMENT NO. 1 TO INTERDEPARTMENTAL MEMORANDUM OF
UNDERSTANDING ("Amendment No. 1") is entered into this 1't day of March, 2014, by and
between the Airports Department, hereinafter referred to as "Airports" and the Fresno Police
Department, hereinafter referred to as "Police," both of which are depaftments of the City of
Fresno, a municipal corporation.
RECITALS
WHEREAS, the Airports and Police entered into a lnterdeparlmental Memorandum of
Understanding ("Agreement") effective July 1, 2013, and
WHEREAS, Police desires to reduce certain leased space from the Description of Use
Area covered by the Agreement from 22.72 acres to 16.87 acres, and
WHEREAS, Airports wishes to accommodate Police,
NOW, THEREFORE, in consideration of the premises and of the mutual promises
herein, it is hereby agreed as follows:
1. Exhibits A and C of the Agreement are amended and replaced with Exhibit A and Exhibit
C attached hereto.
The 254,761 square feet (5.85 acres) of space as shown on the Exhibit A attached
hereto is removed from the Description of Use Area, thereby reducing the area of the
Use Area to 734,857.2 square feet (16 87 acres).
The current rental rate shall remain unchanged at $0.05 per square foot, resulting in a
new Annual Rent of $36,742.86 for fiscal year 2014. Article Vl Section A of the
Agreement shall be amended to read as follows:
A. ANNUAL RENT AND DUE DATE
The Fair Market Rent ("FMR") is defined as 10% of the Market Value of the lJse Area is
based on the Market Value of the adjacent propefty (DPU Leaky Acres). This adjacent
properfy has the same use restrictions, zoning and properfy type and was determined to
be $.05 per square foot ($21,729.86 per acre) by an appraisal performed by AGI
Valuations and completed on June 8, 2012. Therefore, the 2013 Fair Market value of
the 734,857.2 square feet of fhis Use Area is thus determined to be $366.582.74, and
the Fair Market Renf rs $36,742.86 per year.
ln recognition of the significant increase resulting frorn the Fair Market Rent
determination, there shall be a three-year phase-in to progressively increase fhe rental
rates to FMR To allow orderly budgeting and planning, the first phase of the increase
will be effective July 1,2014, followed by the second phase effective July 1, 2015, and
the third phase effective July 1, 2016.
The Annual Rent will be determined by calculating the then-current, CPI adjustecl Fair
Market Rent each of the three phase-in years, using the initial Fair Market Rent of
MOU AMEND I for FPD-FYI Ag Farur Lease2.24 l4
Page 2 of 4
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$36,742.86 as the base year. The initial assessed rental rate for July 1, 2013 will be the
same rental rate as was assessed on July 1, 2012. The three years of phase-in of Fair
Market Rent willconsrst of 1/3 of the increase of the CP\-adjusted þase year Fair Market
Rent plus the full amount of the previous year rent. The calculation is demonstrated in
Exhibit "C".
4. Except as provided in this Amendment No, 1, the provisions of the "Agreement" as
heretofore amended are unchanged.
MOU AMEND I for FPD-FYI Ag Farm Lease2.24.14
Page 3 of 4
lN WITNESS WHEREOF, Airports and Police have entered into and executed this
AMENDMENT NO. 1 TO INTERDEPARTMENTAL MEMORANDUM OF AGREEMENT as of
the day and year first above written.
Kevin R. Meikle,
Director of Aviation
Address for Notice.
City of Fresno
Airports Department
4995 E. Clinton Way
Fresno, CA 93727
ATTEST:
Yvonne Spence, CMC
City Clerk
Address for Notice:
Fresno Police Department
Business Office
P.O. Box 1271
Fresno, CA93721
Exhibit "A" - Map of Use Area
Exhiblt "C" - Example Notice of Annual Rental AdjustmenV Rental Schedule
MOU AMEND I for FPD-FYl Ag Farm Lease 2 24.ì4
Page 4 of 4
APPROVED AS TO FORM:
Douglas T. Sloan
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AIRPORTS DEPARTMENT
FRESNO YOSEMITE INTERNATIONAL AIRPORT
AREA TO BE SURRENDERED TO AIRPORT
APN 438-14-127T AND APN 458-14-2457
/Èè FREsNo YÕsËMrrË.w#
NOTICE OF ANNUAL RENTAL ADJUSTMENT
(Based on USDLBLS Gonsumer Priee lndex
for U'rban Wage Earners and Clerical
Workers - ALL ITEMS, U.S. CITY AVERAGE)
February 24,2014 1:27 PltA
RE: FRESNO POLICE DEPARÏMENT
I NTERDEPARTMENTAL USE AGREEMENT
USE OF AG FARM
The rental adjustment calculation shown to the right was
completed in keeping with the intent of the lease for municipal
well operations and maintenance on land owned by Fresno
Yosemite lnternational Airport,
between
THE CITY OF FRESNO - AIRPORTS DEPARTMENT
AND
THE CITY OF FRESNO
POLICE DEPARTMENT
EFFECTIVE: July 1,2014
MONTHLY RENTAL WILL BE: $3,123.14
lf you have any questions
please contact the undersigned
Rick Duncan
Airports Properties Supervisor
City of Fresno, Department of Airports
DATE February 24,2014 1.27 PlVi
ANNUAL RENTAL ADJUSTMENT COMPUTATION
FOR LEASE YEAR COMMENCING:
July 1, 2014
USDLBLS CPI - JAN-DEL ,
USDLBLS CPI - JAN.DEC ,
AMOUNT OF CPI CHANGE
PERCENTAGE CPI CHANGE
SQUARE FOOTAGE
CURRENT MONTHLY RENTAL
CURRENT RENT P/SQ FTATR
AMOUNT OF ADJUSTMENT
NEW MONTHLY RENTAI
AMOUNT OF ADJUSTMENÏ
2012
2013
226 229
228 OO0
18
o 7828%
734,857 20
$3,061 91
005
0 001
0 051
$61 24
RENTAL $3,123.14
EFFECTIVE: July 1,2014 537,477.72
NOTES:
CITY OF FRESNO
DEPARTMENT OF AIRPORTS
PROPERTIES SECTION
4995 EAST CLINTON WAY
FRESNO, CA 93727-1504
TELEPHONE: (559) 621-4500
FACSTMTLE (559) 251-4825
" PER USDL/BLS
Page 1 of 2Exhibit "C"
J:\FYl\Tenant Files\Fresno Poltce Depl Ag Farm\Exhibits\Rental Adjustnent- ExhibitC SAMPLE ONLY
Assessed Rental Rate:
Fair Market Value:
Exhibit "C"
Fresno Police Depadment Ag Farm
Rental Schedule for FY14 - FYlB
Actual rental amount due for the identified Fiscal Year
Market Rental Rate of property plus the proportional increase of
Consumer Price lndex as calculated from the previous year(s)
using FY14 and $36,742.86 as the base.
ln recognition of the significant increase resulting from the Fair Market Rent determination there
shall be a three-year phase-in to progressively increase the rental rates to FMR. To allow
orderly budgeting and planning, the first phase of the increase will be effective July 1 , 2014,
followed bythe second phase effective July 1,2015, and thethird phase effective July 1,2016.
Example: Rental Rate lncrease FY14-FY19 assuming CPI increase remains steady at 2% per year.
Rent Fiscal
Beginning Year Fair Market Rental (FMR)Assessed (actual) Rental Rate
A July 1 ,2013 FY14 $36,742.86 $14,820
B July 1,2014 FY,I5 FY14 FMR + CPI (2013 through
2014)
1/3 x (FY15 FMR - FY14 Assessed Rent)
+FY14 Assessed Rent
C July 1,2015 FY16 FY15 FMR + CPI (2014 through
2015\
1/3 x (FY16 FMR - FY14 Assessed Rent)
+ FY15 Assessed Rent
D July 1, 2016 FY17 FY16 FMR + CPI (2015 through
201 6)
1/3 x (FY16 FMR - FY14 Assessed Rent)
+ FY15 Assessed Rent
E July 1 ,2017 FY18 FY17 FMR + CPI (2016 through
2017)FY18 FMR
F July 1, 2018+Rental adjustments subsequent FY18 will be made annually as described in Article Vl,
Section B of the lease agreement
CPI Rate
$ 36,742 86
$ 37,477 72
38,227.27 27,647.15
31,424.92$ 38,991.82
$ 39,771 65 39.771.65
$ 40,567 09
Exhibit C
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