SR-900-002 (6)
F:\CMANAGER\Staff Reports\1717 Fourth Street final.doc
Council Meeting: February 27, 2001 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute
an Agreement with Times Mirror Company to sublease office space at 1717
Fourth Street
Introduction
This report recommends that the City Council authorize the City Manager to negotiate and
execute an agreement with Times Mirror Company to sublease office space at 1717 Fourth
Street.
Discussion
Additional office space is required for two City functions Risk Management and the
B
Finance Department. A search for appropriate space was undertaken.
Staff assessed sites in close proximity to City Hall before learning that this 4807 square
foot office space and six parking spaces at 1717 Fourth Street was available for sublease
from the Times Mirror Company. This space is on the same floor of the building where
Risk Management and the Finance Department are currently housed. The location also
provides space for a conference room for use by all City departments. The sublease term
will equal the remaining term of the Times Mirror lease (January 2010). The City may
sublease the property or terminate the sublease in January 2005 under the terms of the
agreement. The initial rent will be $2.50 per square foot with periodic rent increases. The
cost of parking is $ 80 per space with a two-percent annual rate increase beginning in
January 2003.
Budget/Financial Impact
The costs for the remainder of Fiscal Year 2000-2001 are $48,070 (rent) and $1,920
(parking). Funds for rent are available for Risk Management?s portion (33.3%) in account
number 59206.522620. Budget authority for the General Fund?s portion for rent and all of
the parking (66.7%) is available in account number 01274.544390. The annual cost in the
first full year to rent this space is $144,210. This cost will increase over the life of the
lease. In future fiscal years, funds for the lease payment will be included in the budget at
the appropriate account numbers and will reflect the accurate costs.
Recommendation
It is recommended that the City Council authorize the City Manager to negotiate and
execute an agreement with Times Mirror Company to sublease office space at 1717 Fourth
Street.
Prepared By: Katie E. Lichtig, Assistant to the City Manager for Management Services