For City Council Meeting July 22, 2025
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Barbara A. McGee, City Clerk
Title
Request City Council to Approve the Second Amendment to a Lease Agreement between the City of Rialto and the DiGiovanni Family Trust for continued use of the property located at 521 W. Rialto Avenue, Unit #B, Rialto, California.
Body
RECOMMENDATION
Staff recommends that the City Council Approve the Second Amendment to a Lease Agreement between the City of Rialto and the DiGiovanni Family Trust for continued use of the property located at 521 W. Rialto Avenue, Unit #B, Rialto, California
BACKGROUND
On April 27, 2010, the City Council approved a five (5) year lease for approximately 7,500 square foot of warehouse space at 521 West Rialto Avenue, Unit #B, Rialto, for the City Clerk’s records storage (“Original Lease Agreement”). The lease included two optional five-year extensions. A copy of the Original Lease Agreement is attached as Exhibit A.
On June 23, 2015, the City exercised the first five-year extension, commencing (July 1, 2015, to June 30, 2020), with the annual rent adjusted by the Consumer Price Index (CPI) for the Los Angeles-Riverside-Orange County area.
In 2020, they exercised its final five-year extension, commencing (July 1, 2020, to June 30, 2025), under the same CPI-based rent adjustment terms.
ANALYSIS/DISCUSSION
The City Clerk’s Office continues to require this facility for daily operations and secure records storage. The proposed Second Amendment to the Agreement covers a five-year term, from July 2025 to June 30, 2030. A copy of the Lease Agreement is attached as Exhibit B. Annual rent increases will be tied to the CPI (Los Angeles-Riverside-Orange County, CA area), not to exceed 4% annually. Monthly rent for each year is as follows:
Period Monthly Annual
July 1, 2025 - June 30, 2026 $5,501.48 $66,017.76
July 1, 2026 - June 30, 2027 $5,721.54 $68,658.48
July 1, 2027 - June 30, 2028 $5,950.40 $71,404.80
July 1, 2028 - June 30, 2029 $6,188.42 $74,261.04
July 1, 2029 - June 30, 2030 $6,435.95 $77,231.40
ENVIRONMENTAL IMPACT
This action is exempt from the California Environmental Quality Act (CEQA) under Section 15378(b) (5) of the CEQA Guidelines, as it constitutes a governmental administrative activity with no direct or indirect physical changes on the environment.
GENERAL PLAN CONSISTENCY
This action supports the City’s General Plan goals and policies, including:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney's Office has reviewed the agreement and approved it as to form.
FINANCIAL IMPACT
Lease payments will be funded through annual appropriations from the City’s General Fund Account No. 10103150 52021 and will be budgeted accordingly.
ATTACHMENTS
• Exhibit A - Original Lease Agreement (2010)
• Exhibit B - Proposed Lease Agreement (2025-2030)