SR-900-002 (12)
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EPWM:WR:GB:JH/1212 5 STREET Santa Monica, California
City Council Meeting: October 26, 2004
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Authorization for the City Manager to Negotiate and Execute an Agreement
With CIM Group for Office Space at 1212 Fifth Street 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 CIM Group to lease office space at 1212 Fifth Street for the
City?s Environmental and Public Works Management Department.
Background
Water Resources staff leases 4,140 sq.ft. on the third floor of 1212 Fifth Street. The
current rate is $2.73 per square feet and $1,000 per month for 15 parking spaces. The
lease will expire on January 31, 2005, and staff is proposing to opt to renew the lease for
three additional years.
The Energy and Green Building Program staff from the Environmental Programs Division
(EPD) currently occupies leased space at 1918 Main Street, Suite 200. The current lease
for this space expires November 14, 2004. No other space is currently available for these
functions within City Hall or other City buildings. Additional lease space is currently
available, however, at the same location as the Water Resources office. Physical
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consolidation of the two operations in the same building is therefore the recommended
approach.
Discussion
Water Resources staff has leased the third floor of 1212 Fifth Street for ten years and is
opting to renew the lease for three additional years. Since ground floor space is available
in the same building, it is proposed that it be leased for the EPD Energy and Green
Building Program staff for a 39-month term as a part of this lease extension. The number
of months differs since the EPD current lease expires three months earlier than the Water
Resources lease. This approach would allow a physical consolidation of the EPD staff in
the same location which should enhance customer service.
Discussions with the property owners in coordination with Resource Management Division
staff have resulted in agreement on tentative terms and conditions. The City has
proposed, subject to Council approval, that the lease term be 36 months for the third floor
and 39 months for the ground floor with an option to renew for two years.
The Water Resources Division currently leases approximately 4140 square feet on the
third floor at $2.73 per square foot and $1,000 per month for 15 parking spaces. The
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proposed new rate will be $2.80 per square foot increasing to $2.93 in the 19 month of
the lease. Parking rates stay the same. The proposed lease term will begin February 1,
2005, and end January 31, 2008.
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The EPD Energy and Green Building Program is proposing to lease 1,819 square feet at
approximately $3.10 per square foot plus $255 per month for 3 parking spaces. The rate
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increases to $3.20 in the 13 month and $3.25 in the 25 month. Tenant improvements
are included. The proposed lease term begins November 1, 2004, and ends January 31,
2008.
Other options for office space for both operations will be explored prior to the end of the
lease term.
Budget/Financial Impact
Funds required for the third floor space lease renewal from February 1, 2005, to the end of
the fiscal year are as follows:
$57,960
$2.80 per square foot X 4,140 square feet X 5 months =
Funds required for the ground floor lease are as follows:
$5,638.90 = 1,819 square feet X $3.10 per square foot
255.00 = 3 parking spaces
$47,151.20
$5,893.90 X 8 months (November through June) =
The cost of the Water Resources Division space will be evenly split between the Water
and Wastewater funds. The cost of the EPD space will be paid by the Wastewater Fund
(the fund in which the Environmental Program Division is budgeted). Funds in the amount
of $28,980 are available in Water account 25671.5226309. Funds in the amount of
$76,131.20 are available in Wastewater account 31661.522630. Beginning in 2005-06
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until the end of the lease, the funds for the ground floor space will be budgeted in the
Environmental Programs Division.
Recommendation
It is recommended that the City Council authorize the City Manager to negotiate and
execute an agreement with CIM Group to lease office space at 1212 Fifth Street for the
City?s Environmental and Public Works Management Department.
Prepared by: Craig Perkins, Director, Environmental and Public Works Management
Gil Borboa, Water Resources Manager
Susan Munves, Energy and Green Building Administrator
Jean Higbee, Water Resources Business Supervisor
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