SR-6-O (47)
GS:CP:lease
Council Meeting: April 14, 1992
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APR 1 4 1992
Santa Monica, California
To: Mayor and City Council
From: city Staff
Subject: Recommendation to Authorize the City Manager to Negotiate
and Execute an Office Space Lease Agreement for the
City's Environmental Programs Division and Environmental
Education Center
INTRODUCTION
This report recommends that city Council authorize the City Manager
to negotiate and execute a lease agreement for office space to
accommodate present Environmental Programs Division staff as well
as allow the creation of an Environmental Education Center for the
city.
DISCUSSION
At present, Environmental Programs Division staff are located at
three separate locations: city Hall, the Santa Monica pier and the
city Yards. The two employees located at the city Yards operate the
Household Hazardous Waste Drop-Off Facility and must be stationed
at the HHW facility. The division's remaining staff members are
currently located at both City Hall and the pier Carousel Building
due to the insufficiency of office space at the Pier. The pier
offices present many logistical impediments to a customer service-
oriented operation. For example, the Carousel office space is not
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APR 1 it 1992
handicapped accessible, the location on the pier makes it difficult
for members of the public to access the division's services and
resources in person, and there is not sufficient space to
accommodate program displays, printed information on City
environmental programs and other environmental issues, and regular
public workshops/seminars.
It is therefore proposed that the Environmental Programs Division
be moved to leased office space located at 1410 Second street
(Santa Monica Blvd. and Second Street). The proposed offices would
consist of the ground floor of a new building at this address and
would be highly visible and easily accessible to members of the
public. The space would be divided into staff offices (including
staff offices for a portion of the city's Transportation Management
Program) , a small conference room, and a multi-purpose
environmental display/public education area. The public education
area would include permanent and rotating exhibits on City
environmental programs and other environmental issues, a small
resource library for printed environmental education materials, a
PEN terminal, a public service counter for information and referral
as well as dissemination of application materials for city
services, and a flexible space for workshops, seminars and other
presentations to members of the public. These activities would fonn
the nucleus of the City's "Environmental Education Center".
The projected rental cost for the office space is approximately
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$7,500 per month for a full service gross lease (includes all
maintenance, utilities and janitorial services) . The building owner
will provide all initial tenant improvements as a part of the
agreement, and the offices would be ready for occupancy by June
1992. The initial lease term would be for five years with an option
to extend for an additional five years. During the first five year
term, there would be only one rental increase of 8 percent at the
beginning of the 37th month (year four).
The proposed location is the result of an extensive search for
compatible lease space in the downtown area. A downtown location is
desirable since the office will be able to attract and draw upon
the considerable pedestrian traffic in the area, public parking is
readily available in city parking structures, and the office will
be close to city Hall and the city's utilities Division located on
the Third street Promenade. Based on lease costs for other
comparable office space in the downtown area, the prospective lease
arrangement is a good financial arrangement.
BUDGET/FISCAL IMPACT
Given an effective date for the proposed lease of June 1, 1992,
there are sufficient savings in the current Environmental Programs
Division budget to absorb the lease costs in FY 1991-92. The full
annual lease expense for FY 1992-93 would be approximately $90,000.
This amount would be offset by a $25,000 reduction in the current
lease costs at the Pier for a net budget impact of about $65,000.
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This additional budget impact has already been factored into the
proposed Environmental Programs Division Budget submittal which is
currently under review by the City Manager's Office. No budget
adjustments will therefore be necessary to finalize and sign the
lease agreement.
RECOMMENDATION
It is recommended that City council authorize the city Manager to
negotiate and execute a lease agreement for office space to house
the city's Environmental Programs Division and Environmental
Education Center.
Prepared by:
Craig Perkins, Environmental Services Manager
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