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SR-04-09-2013-3BCity Council Meeting: April 9, 2013 Agenda Item: -5 ° . To: Mayor and City Council From: Andy Agle, Director of Housing and Economic Development Subject: Office of Emergency Management Lease Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a month -to -month lease at the rate of $1.00 per month with 2800 Wilshire, LLC for the storage of essential emergency management supplies. Executive Summary The City's Office of Emergency Management (OEM) currently stores essential emergency management supplies at one location, the Public Safety Facility at 333 Olympic Drive. The proposed month -to -month lease provides additional storage space at 2800 Wilshire Boulevard to accommodate emergency supplies for the northeastern portion of the City. The lease would commence on May 1, 2013 for $1.00 per month, with no cost -of- living increases or other expenses. Background Created in 2011, the OEM's mission is to protect the community of Santa Monica from the loss of life and property in the event of natural or other disasters. Crucial supplies such as food, water and sheltering materials need to be stored and readily accessible throughout Santa Monica to accomplish this mission. Due to the limited availability of storage space within City limits, existing supplies are housed at the Public Safety Facility in the southwest section of the City. Storing an emergency cache of essential items in the northeast section of the City would provide logistical benefits that would enhance response and recovery efforts for all residents. Discussion The property owner, 2800 Wilshire, LLC, is re- tenanting an existing one -story commercial property at 2800 Wilshire Boulevard and has available warehouse space totaling 2,513 square feet. The owner has agreed to lease the warehouse space to the 1 City on a month -to -month basis, at a rate of $1.00 per month, for the purpose of storing emergency supplies. Given the parking and occupancy requirements of the proposed primary tenant in the building, the commercial viability of the warehouse space is expected to be minimal. Use of the space for emergency supplies ensures minimal parking needs at the site, while benefitting the City's emergency response goals and objectives. The property owner has a fully executed lease for a food retailer as the primary tenant at the site. Press accounts indicate that occupancy by the primary tenant is uncertain, though likely outcomes include occupancy by another food retailer. Under either scenario, storage of emergency supplies would be a complementary use in terms of operations and storage. If a majority of the building is not used by a food retailer in the long run, storage may no longer be a complementary use. Alternatives If the City decides not to enter into the proposed lease, there are no alternative storage spaces currently available for a negligible cost and OEM would not have a secondary warehouse and storage facility to meet the needs of the eastern portion of the City. Financial Impacts & Budget Actions Funds are available in the FY 2012 -13 budget at account 01227.522310 to cover the monthly rental payments. Budget authority for subsequent budget years will be requested in each budget cycle for Council approval. Future funding is contingent upon Council approval and budget adoption. Prepared by: Gretchen Kubacky, Senior Administrative Analyst Approved: Andy Agle, Direct& Housing and Economic Development E Forwarded to Council: �j Rod Gould w� City Manager