SR-302-003
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council Meeting 4/24/90
APR 2 <1 1990
30 J.. -oD?
Santa Monica, California
TO:
Mayor and City Council
FROM:
City staff
SUBJECT:
Recommendation to Approve Lease Terms for the
Ken Edwards Center for Community Services
INTRODUCTION
This report requests Council approval of major terms of Lease
Agreements between the City and two senior agencies (WISE Senior
Services and Senior Health and Peer Counseling Center) for space
at the Ken Edwards Center. It further requests authorization for
the city Manager to negotiate and execute leases with these
agencies.
BACKGROUND
The construction of the Ken Edwards Center for Community
Services, a new City facility located at 1417 4th street, is
nearing completion. The facility, comprised of approximately
25,000 square feet of space, will house community meeting rooms
and a senior nutrition program site on the ground floor and major
senior social services on the second and third floors.
As discussed in previous staff reports on the Center, in a survey
of City-funded agencies during the programming phase,
availability of community meeting room space was the highest
priority for use of the remaining ground floor (approximately
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APR 2 Ii \990
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6,000 square feet). Therefore, the design of the ground floor
includes a "Community Meeting Center" comprised of four meeting
rooms, two having the capability of being divided into 5 smaller
rooms. A kitchen and reception/information and referral area will
also be included. They have been designed so they can be
converted to offices in the future if priorities for use change.
A bid package for construction of this space is being completed.
It is projected that the Meeting Center will open in september
1990 along with a dedication ceremony of the entire Edwards
Center.
The 16,000 square feet on the second and third floors will be
leased to WISE and Senior Health and Peer Counseling Center
(SHPCC) pursuant to prior Council approval. The two agencies
were instrumental in qualifying the city for $750,000 in State
Senior Center Bond Act funds and have also jointly contributed
$200,000 toward construction of the Center. WISE is scheduled to
move in on May 1, 1990 and SHPCC on June 15, 1990.
City staff has met with both agencies to discuss lease terms for
20-year leases as required by the State Senior Center Bond Act.
DISCUSSION
The proposed major lease terms are summarized below:
Premises. Rentable square feet, including pro rata share of
Common Areas, are 8,937 square feet for WISE and 7,718 square
feet for SHPCC. Agencies will also have the use of second floor
courtyard areas, 34 dedicated parking spaces, and storage areas.
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Lease Term. The lease term will be from the move-in dates
specified above through June 30, 2010.
Rent: Rent through June 30, 1991 will be $0.50/square foot.
Beginning July 1, 1991 (and every five years thereafter) an
adjusted rental rate will be calculated based on actual operating
costs of the facility. In all other years, a CPI adjustment will
be made to the base rental rate.
Required Services. As required by the State Senior Center Bond
Act, the agencies will provide a wide range of senior services
including information and referral, case management, health
screening, peer counseling, health and mental health education,
paratransit intake, and a range of independent living support
services.
Agencies are also required to serve a minimum of 51% lower-income
persons from the premises (pursuant to Community Development
Block Program which provided partial construction funding) and a
minimum of 75% Santa Monica residents.
Responsibilities of Agencies: Agencies will be responsible for
the entire operation of the second and third floor areas,
including the provision of a wide range of senior social
services, custodial services and interior security services.
Lessees will jointly be responsible for operating areas common to
both agencies, including a second floor reception area and
volunteer/staff lounge and kitchen areas on the third floor.
Lessees will prepare an operating agreement for use of common
space by December 31, 1990.
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Responsibilities of city. Through June 30, 1991, the city will
be responsible for all maintenance of lessee's premises. After
that date, lessees will assume responsibility for ongoing
maintenance and repair except for structural and systems
maintenance and for any major capital replacement or repair items
which will continue to be the responsibility of the city
throughout the lease term.
FISCAL/BUDGETARY IMPACT
There is no budgetary impact created by approving the proposed
leases. All necessary actions needed to appropriate lease
revenues, building fund contribution, and budget facility
expenses were included in the FY 1989-90 City Budget.
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RECOMMENDATION
city staff recommends that the City council: (1) approve the
lease terms proposed in the staff report, and (2) authorize the
City Manager to negotiate and execute leases with WISE and Senior
Health and Peer Counseling Center.
Prepared by: Barbara Stinchfield, Community Development Manager
Department of Community and Economic Development
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