SR-417-002
Council Meeting: September 12, 2000
Santa Monica,
California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute
a Ten-Year Lease with Two Five-Year Options with Equity Office for
Office Space for the City=s Transportation Management/Parking
Operations and Parking Citation Hearing Offices.
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate
and execute a ten-year lease with two five-year options with Equity Office for office
space for the City=s Transportation Management/Parking Operations ( AParking@)
office of the Planning and Community Development Department and the Parking
Citation Hearing (AHearing@) office, which is part of the Finance Department.
DISCUSSION
The Parking office is currently housed at City Hall, but has recently expanded its staff
and need for office space. The Hearing office is currently located at 612 Colorado
Avenue, which will be vacated as part of the implementation of the Transportation
Master Plan. No space for either of these functions exists within the City Hall
complex, and, after analyzing current market conditions and the availability of lease
space in Santa Monica, it was determined that the proposed 1,497 square foot space
located at 1453 3rd Street Promenade best fit the needs of both offices.
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Discussions with the property owner=s representative have resulted in agreement on
tentative terms and conditions for a lease. Present market conditions and competitive
offers are a key factor in presenting this request to Council at this time. The rental rate
will not exceed $3.75 per square foot, with an annual escalation keyed to the cost of
living index (CPI). Six parking spaces are available at prevailing market rates. The
proposed lease term is ten years, with two five-year options. This rental rate is
reasonable and competitive, based upon comparison to the available rental market.
BUDGET/FINANCIAL IMPACT
Funds for this lease, totaling $57,548, are in the current fiscal year budget at the
following account numbers:
01415.522620
01415533210
01274.544390
01274.522620
$33,000
5,400
6,148
13,000
Assuming an October 1, 2000 rent commencement date (the Parking office is not
currently paying rent elsewhere so this is the earliest date at which there would be
budget impact), the actual annual cost to rent this space in the first year will not exceed
$50,523.75 (including parking). $57,548 is currently budgeted on an annual basis.
$67,365 represents a maximum full year budget and, in future years, additional funds
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for the lease payment will be budgeted at the same account numbers, if needed, and
will reflect the appropriate costs.
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to negotiate and
execute a ten-year lease extension with two five-year options with Equity Office for
office space for the City=s Transportation Management/Parking Operations and Parking
Citation Hearing Offices.
Prepared By: Jeff Mathieu, Director of Resource Management
Suzanne Frick, Planning and Community Development Director
Mark Richter, Economic Development Manager
Lucy Dyke, Transportation Planning Manager
Gretchen Kubacky, Senior Real Estate Analyst
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