SR-900-002 (18)'~/_
~ City of
Santa Monica
City Council Report
City Council Meeting: January 9, 2007
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Agenda Item: ~-Y---
To: Mayor and City Council
From: Craig Perkins, Director - Environmental and Public Works Management
Subject: Approval of Additional Funds for Tenant Improvements at 1433 Fourth
Street
Recommended Action
Staff recommends that the City Council authorize the City Manager to amend the lease
agreement with Metropolitan Pacific Capital, LLC to reflect payments in an amount not
to exceed $170,000 for the completion of tenant improvements for the Civil Engineering
and Architecture Division at 1433 Fourth Street.
Executive Summary
On September 26, 2006, the City Council authorized the City Manager to negotiate and
execute a fease at 1433 Fourth Street, with Metropolitan Pacific Capital, LLC, for the
Civil Engineering and Architecture Division. The lease provides a tenant improvement
allowance of approximately $38 per square foot. The estimates to implement the build-
out exceed the allowance by $170,000. The build-out includes, electrical wiring and
fixtures, fire alarms, plumbing, HVAC, ceiling, computer wiring, flooring, partitions, walls,
doors and painting.
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Discussion
Staff within the Civil Engineering and Architecture Division prepared plans for the tenant
improvements at 1433 Fourth Street. The plan includes reuse of existing furnishings,
partition systems, and materials from current lease space. Every effort has been made
to rriinimize the cost of the build-out by specifying inexpensive, readily available
materials. Value engineering exercises have resulted in cost reductions of over
$30,000. In spite of these efforts, an additional $170,000 is required to implement the
necessary tenant improvements.
As a part of the lease agreement, the building owner provided a tenant improvement
allowance of $38 per square foot. The actual estimates for the build-out of tenant
improvements are closer to $65 per square foot. Research into the cost of similar types
of tenant improvement work in this area reflects an average per square foot cost of
about $85. The $38 per square foot allowance was the highest amount that could be
negotiated with the property owner and was not intended to cover all of the tenant
improvement costs. City staff could not determine what the actual tenant improvement
cost would be, however, until a more detailed design for the space had been completed.
Under the lease agreement, the building owner assumes responsibility for all of the
tenant improvement construction that has been negotiated in the lease agreement.
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Budqet/Financial impact
Funds for the tenant improvement work are available in account M010085.589000, "City
Facility Maintenance."
Prepared by: Tony Antich, City Engineer
Approved:
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Crai erkins
Director - Environmental and Public
Works Management Department
Forwarded to Council:
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P. L~(ont Ewell
City Manager
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