sr-062612-3iCity Council Meeting: June 26, 2012
Agenda Item:
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Third Extension of Lease Agreement at 1212 Fifth Street, First Floor
Recommended ,fiction
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a third extension of the lease agreement for Contract No. 8404 with Wilshire &
5th I & II, LLC, a California -based company, for continued occupancy by the Office of
Sustainability and the Environment at 1212 Fifth Street, first floor to:
1. Amend the term of the existing lease, scheduled to expire on June 30, 2012, to
become a month -to -month term lease commencing on July 1, 2012; and
2. Continue the existing monthly base rent at $7,159.45, estimated common area
maintenance (CAM) fees at $909.50, and parking fees at $255 for a total of
$8,323.95 per month.
Executive Summary
The Office of Sustainability and the Environment (OSE) currently has three staff
members that occupy 1,819 sq. ft. of office space at 1212 Fifth Street, first floor. The
lease expires on June 30, 2012 and the property owner is allowing OSE to continue to
lease the space on a month -to -month basis, pursuant to termination by either party
upon thirty (30) days written notice. The proposed extension would allow OSE staff to
remain at the. Fifth Street location until their new offices at 1717 4th Street are ready to
be occupied.
Background
Since 2004, OSE has leased 1,819 sq. ft. of office space at 1212 5th Street, 1St floor.
The original lease was authorized by Council on October 26, 2004 and subsequently
amended on January 8 2008 and September 27, 2011. The second lease amendment
will expire on June 30, 2012.
Discussion
CityTV is the current tenant occupying leased space at 1717 4th Street and is waiting for
a security system to be installed at their new location at 1654 19th Street before moving
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their existing equipment from leased space at 1717 4th Street. OSE's Energy and
Green Programs Office intends to move into a portion of the space now occupied by
CityTV on the first floor of 1717 4th Street. The rest of the OSE staff currently residing on
the Pier will relocate to the Fourth Street offices once tenant improvements are
completed in Spring 2013. Tenant improvements will be completed in two phases and
OSE Energy and Green Programs Office staff will occupy a portion of the leased space
while tenant improvements occur.
In order for OSE to remain at its current location on a month -to -month term, staff
recommends modifying the existing lease through a lease extension. The third lease
extension would provide the following:
1. Amend the existing term of the lease to a month -to -month term, commencing on
July 1, 2012 to be terminated by either party upon thirty (30) days written notice;
and
2. Effective July 1, 2012, set the monthly base rent at $7,159.45, the estimated
monthly CAM expense at $909.50, and the monthly parking fees for three
reserved spaces at $255.
Financial Impacts & Budget Actions
The third lease extension of the leasing agreement for contract No. 8404 with Wilshire
and 5th Street I and Il, LLC is $8,323.95 per month effective July 1, 2012. Funds for the
lease extension with Wilshire & 5th I & II, LLC for rent, common area maintenance, and
parking expenses at 1212 5th Street are included in the FY 2012 -13 budget at account
01226.522630.
Prepared by: Elsa Trujillo, Senior Development Analyst
Approved: Forwarded to Council:
Andy Agle, Director `' Rod Gould
Housing and Economic Development City Manager
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Reference Amended
Contract No. 8404 (CCS)