BOARD MEETING DATE: October 9, 1998 AGENDA NO. 13
PROPOSAL:
Amend Contract with Pacifica Interchange for Lease of South Bay Field Office
SYNOPSIS
On April 14, 1995 the Board approved the execution of a lease for the South Bay field office. This action is to amend the contract to renew the lease with Pacifica Interchange, LLC, et. al. for a three-year term. Funding has been included in the FY 1998-99 Budget and will be requested in successive fiscal years for this contract.
COMMITTEE:
Administrative, September 18, 1998, Recommended for Approval
RECOMMENDED ACTION:
Authorize the Chairman of the Board to execute an amendment to the lease contract with Pacifica Interchange, LLC, et. Al. for the total sum of the three-year contract of $180,446.16.
Barry R. Wallerstein, D.Env.
Acting Executive Officer
Background
On April 14, 1995 the Board authorized a 40-month lease contract with Interchange Properties (which was the previous owner) for the South Bay Office. This field office is used by the inspectors that visit oil refineries in the area. The lease expired on September 30, 1998 and is currently on a month-to-month tenancy until the execution of the amendment is complete.
AQMD is paying approximately $1.15/sq. ft. that includes the base rate and AQMD’s direct cost for the initial tenant improvements amortized over the term of the lease. In anticipation of the expiration of this lease, staff has polled the current lease market for the area. The lease rates for comparable space in the area are listed from $1.35-$2/sq. ft. Staff has negotiated a renewal rate of $1.30/sq. ft. with an increase to $1.36/sq. ft. on the 18th month. The monthly base rate is $4,893.20 for the first 17 months and will increase to $5,199.04 for months 18-36 for a total sum of $180,446.16. All other terms and conditions of the contract remain the same.
Resource Impacts
Sufficient funds are available in the approved FY 1998-99 Budget for the remainder of this fiscal year. Since this will be a three-year contract, continuing funds will need to be included in the budgets for each of the remaining fiscal years of the contract.
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