SR-6K (6)
. CIJYfir?/b(- ~ '130 'K
.
DEe t 5.
RMD EDD GK GK F \RESOURCE\USERS\GRETCHEN\MISC \1918MAIN WPD
Council Meetmg December 15, 1998 Santa Monica, Callforma
TO Mayor and City Council
FROM City Staff
SUBJECT Recommendation to Authonze the City Manager to Negotiate and Execute
an Agreement with Maury Herman as Trustee of The Maury Herman Family
Trust #1 dated September 17, 1985, as amended, and Cathenne Popesco
to lease office space at 1918 Main Street for the City'S Disaster Recovery
Office
INTRODUCTION
This report recommends that the City CounCil authonze the City Managerto negotiate and
execute an agreement with Maury Herman as Trustee of The Maury Herman Family Trust
#1 dated September 17, 1985, as amended, and Cathenne Popesco to lease office space
at 1918 Mam Street for the City's Disaster Recovery Office
DISCUSSION
The Disaster Recovery Office, which IS part of the Engineering DIVISion, must be relocated
from ItS present quarters at 1530 Lincoln Boulevard when the lease expires on January 31 ,
1999 No space for these functions eXists Within the City Hall complex A search for
appropnate space to relocate thiS function was undertaken The features Identified for the
space mcluded office space which could be configured to accommodate a plan readmg
room, public meeting area, storage, lateral file cabinets, and a Video viewing and storage
area, office space for 10 employees, and proximity to City Hall, With preference for a
1 {gK
DEe f 5 .
.
.
location on Mam Street where much of the project work IS to be performed Staff vIsited
numerous sites In close proxImity to City Hall and Identified a 3,800 square foot office
space at 1918 Mam Street as the most deSirable location to relocate staff DISCUSSions with
the property owner ensued and resulted In agreement on tentative terms and conditions
The City has proposed, subject to Council approval, that the term be five years with an
option to cancel the lease after year three Should the lease contmue for the full fIve
years, a four month rental credit will be granted the last two years The Imtlal rent will be
$245 per square foot (mcludlng nine parkmg spaces at no additional charge) with an
annual escalator of SIX percent The escalator will be m lieu of a CPI adjustment as well as
any Increases m operatmg expenses and real estate taxes The landlord IS planning to
provide a tenant Improvement allowance so that the space can be modified to meet the
speCific needs of the Disaster Recovery Office
BUDGET/FINANCIAL IMPACT
Funds for thiS lease are In the current fiscal year budget at account number 31-500-661-
00000-2262-00000 The annual cost In the first year to rent thiS space IS $111,720, of
which $51,205 will be drawn from the current fiscal year budget, assuming a January 15,
1999 commencement date Incorporatmg annual adjustments, the total cost of the lease
over three years would be $353,400, and the total cost over five years would be $560,120
In future fiscal years, funds for the lease payment will be budgeted at the same account
number and will reflect the appropriate cost
2
.
.
RECOMMENDATION
It IS recommended that the City Council authorize the City Manager to negotiate and
execute an agreement with Maury Herman as Trustee of The Maury Herman Family Trust
#1 dated September 17, 1985, as amended, and Catherme Popesco to lease office space
at 1918 Main Street for the City's Disaster Recovery Office
Prepared By KatIe E Llchtl9, ASSistant to the City Manager for Management Services
Anthony Antlch, City Engineer
Gretchen Kubacky, Semor Real Estate Analyst
3