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Council Meeting July 22, 1997
Santa Monica, Callforma
To
Mayor and CIty Council
From
City Staff
Subject
RecommendatIon to Authonze the City Manager to Execute the Lease
Option to Extend the Lease Term for the Northndge Earthquake Sewer Main
Repairs Office
1 ntroductlOn
This report recommends that the CIty CouncIl authorize the City Manager to execute the
lease option to extend the lease term for the Northndge earthquake sewer main repairs
office, located at 1530 Lincoln Blvd, SUIte E, Santa MOnica, through January, 1999
Background
On May 1. 1996, the CIty of Santa MonIca entered IOta an agreement to lease the office
located at 1530 Lincoln Blvd I Surte E, Santa Monrca from the Penmngton Holdmg
Company The offIce was established to handle the engIneering and constructIon
management dutIes for the repair of sewer maIns damaged In the Northndge Earthquake.
Accordmg to Section 406(e)(1) of the Robert T Stafford DIsaster Relief and Emergency
ASSIstance Act. direct costs reqUired to repair, restore, reconstruct or replace a disaster-
damaged public structure are eligIble for reimbursement The direct costs of engineering
and desIgn of construction draWings. preparation of bid specIfications, and construction
management have been found eligible for reImbursement With prevIous requests
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JUL 2 2 1997
Telephone, labor. space rental, computers, automobiles, and supplies are direct costs of
these activities and are expected to be eligible for reimbursement Staff has submitted a
request for reimbursement from the Federal Emergency Management Agency (FEMA) for
the offIce and related expenses, but as yet have not receIved a response
To date. office staff has managed the Closed Circuit TelevIsion (CCTV) sewer main
inspections of 517 thousand lineal feet of the City's small sewer mains (6" to 12" diameter)
This resulted In a projected sixty-eight million dollars ($6aM) of FEMA reimbursable repairs
Staff has designed and requested bids for more than $6 5 million In sewer repairs, $1 5
million IS under construction, and $5 million In repaIrs WIll start shortly Staff IS currently
preparrng the bid packages for another $5 millIon of sewer repair work
DISCUSSion
The ongmallease term was for Sixteen (16) months for $22,680, endmg August 31,1997
The ongmallease provided for two lease term extensions The first option Will extend the
lease through January 1999, at a cost of $25,651 50 ThiS office space IS necessary for
staff to conduct ItS work. store and review several hundred sewer main Video tapes, and
malntam the large number of documents and files reqUired by FEMA for reimbursement
of sewer mam mspectlon and repaIr costs A recommendatIon to exercise Option 2 WIll
be prOVided at the appropriate time
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BudgetlFmanclallmpact
Funds In the amount of $25,651 50 are available In Account #31-760-661-20096-8900-
99120 Staff expects full FEMA reImbursement for all space rental costs related to sewer
repairs
Recommendation
Staff recommends that the CIty CouncIl authorize the CIty Manager to exercise Option 1
to extend the lease term through January, 1999 for the Northndge Earthquake Sewer Mam
Repairs Office. located at 1530 Lincoln Blvd 1 SUIte E, Santa MOnica
Prepared by
Craig Perkins, DIrector, EnvIronmental & Public Works Mgt
Tony Antlch. P E , City Engmeer
Ruta Ski flUS, Sr Administrative Analyst
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