File #: 14-185    Version: 1 Name: Annual Lease Agrmt R&R Svcs re: Darst Street
Type: Agreement Status: Approved
File created: 5/2/2014 In control: City Council
On agenda: 5/13/2014 Final action: 5/13/2014
Title: Communication from City Manager and Director of Public Works Requesting Approval of a New LEASE AGREEMENT with R&R SERVICES OF ILLINOIS, INC. for the Period of One Year Beginning May 15, 2014, for a Portion of the Property Located at 2201 S. DARST STREET and Authorize the City Manager to Execute the Document. [District 1] (Refer Also to 13-201)
Indexes: Goal 1 - Financially Sound City , Grow employers and jobs., Keep taxes and fees competitive, Support sustainability
Attachments: 1. 14-185 Commercial Lease Agmt R&R Services of Illinois, 2. Lease Agreement R&R Services for Darst Prop 2014, 3. Exhibit A R&R Lease, 4. Exhibit B R&R Lease, 5. Exhibit C Darst Street Property R&R Lease
ACTION REQUESTED:
Title
Communication from City Manager and Director of Public Works Requesting Approval of a New LEASE AGREEMENT with R&R SERVICES OF ILLINOIS, INC. for the Period of One Year Beginning May 15, 2014, for a Portion of the Property Located at 2201 S. DARST STREET and Authorize the City Manager to Execute the Document. [District 1] (Refer Also to 13-201)

Body
BACKGROUND:
The City has leased property to R&R Services since May 15, 2009 through agreements which have been renewed annually. R&R Services will continue to provide a tub grinder to grind & dispose of wood waste for the City at no charge. Staff estimates that the value of the wood waste grinding to be $10,000 to $12,000 per year. Also, this agreement includes R&R's continued acceptance (at no charge) of materials from wind and ice storms, which would potentially cost the City another $10,000 in fees for disposal.

R&R Services is working very well with the City and City Staff is completely satisfied with the working relationship and how the material is being processed by this company.

Pursuant to Paragraph 2, new subparagraph (C), R&R Services will also provide to the City, at no charge, up to 100 Cubic Yards of mulch, which has a value of approximately $2,000.00.

FINANCIAL IMPACT: The lease with R&R Services of Illinois, Inc. will continue to provide annual income to the City of $12,000, and annually save the City between $10,000 to $12,000 in contracting for wood grinding services. R&R Services will also provide to the City, at no charge, up to 100 Cubic Yards of mulch, which has a value of approximately $2,000.00. Also, based on past storms, storm damage from major storms could possibly reach $10,000.

NEIGHBORHOOD CONCERNS: No neighborhood concerns have been expressed. This property is located in an area that is zoned warehouse and industrial. There are several car and waste recyclers located in the area.

IMPACT IF APPROVED: The City will receive $12,0...

Click here for full text