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SR-900-002 (9) RMD:EDD:GK:F:\RESOURCE\SHARE\GRETCHSHARE\STAFFREPORTS\1918 Ma1revised12604.DOC Council Meeting: February 24, 2004 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Authorization for the City Manager to Negotiate and Execute an Agreement with Leaping Lounge Lizards, LLC to Lease Office Space at 1918 Main Street, Suite 200 for the City?s Environmental and Public Works Management Department INTRODUCTION This report recommends that the City Council authorize the City Manager to negotiate and execute an agreement with Leaping Lounge Lizards, LLC to lease office space at 1918 Main Street, Suite 200 for the City?s Environmental and Public Works Management Department. DISCUSSION A portion of the Engineering and Architecture Division?s staff and staff from the Environmental Programs Division is currently housed in leased space at 1918 Main Street, Suite 200. The current lease expires May 14, 2004. No other space for these functions is Deleted: available within City Hall or other City buildings at this time. This leased space totals Deleted: 3,800 square feet and continues to be necessary for ongoing staff activities such as completion of disaster recovery projects, implementation of community energy efficiency and sustainable construction programs, and other initiatives through at least the end of the current calendar year. Over the next several months, it is anticipated that a portion of the current staff will be reassigned and/or relocated to other worksites within the City as disaster recovery projects are completed. 1 An assessment of on-going space needs for the remaining staff will also be completed during the next several months and recommended options will be presented to the City Manager for review. Discussions with the property owners have resulted in agreement on tentative terms and conditions. The City has proposed, subject to Council approval, that the lease term be extended for an additional six months. The new agreement will expire on November 14, 2004. This agreement in no way affects the City?s lease for Suite 300 at the same address that expires December 31, 2006. The rent will be approximately $2.44 per square foot (including nine parking spaces, at no additional charge), which includes a 3% increase in lieu of a CPI adjustment or any increases in operating expenses and real estate taxes. No alterations will be made to the space. BUDGET/FINANCIAL IMPACT Funds for this lease are in the current fiscal year budget at Wastewater Division account number The total cost of the six-month extension is $55,858. 31662.522630. 2 RECOMMENDATION It is recommended that the City Council authorize the City Manager to negotiate and execute an agreement with Leaping Lounge Lizards, LLC to lease office space at 1918 Main Street for the Citys Environmental and Public Works Management Department. ? Prepared By: Jeff Mathieu, Director, Resource Management Gretchen Kubacky, Senior Administrative Analyst - Real Estate 3