South Coast Air Quality Management District

Amend Contract for Lease of South Bay Field Office

SYNOPSIS:

On October 9, 1998 the Board approved the renewal of the lease for the South Bay field office. This action is to amend the contract to renew the lease with Pacifica Interchange for a five-year term. Funding has been included in the FY 2001-02 Budget and will be requested in successive fiscal years for this contract.

COMMITTEE:

Administrative, June 8, 2001, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman of the Board to execute an amendment to the lease contract with Pacifica Interchange, LLC, a California limited liability company, extending the lease for five years at a total cost of $380,649, plus increases in operating expenses.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On October 9, 1998, the Board approved a three-year renewal of the lease for the South Bay field office. This field office is used by inspectors responsible for oil refinery inspections in that area. The lease expires September 30, 2001.

AQMD has been paying approximately $1.36 per square foot for this office. In anticipation of the expiration of this lease, staff surveyed current lease rates for the area and found comparable space to be at $1.50 - $2.45 per square foot. Staff has negotiated a renewal rate of $1.45 per square foot for the first year, with a $.05 per square foot increase each subsequent year. The monthly base rate for each of the five years is $5,934.85, $6,139.50, $6,344.15, $6,548.80, and $6,753.45. This lease also includes an annually set monthly fee for operating costs (utilities, janitorial and landscape maintenance services, etc.) anticipated to range from $127 to $447 during the five-year term of the lease. All other terms and conditions remain the same.

Proposal

Staff recommends amending the existing Contract #95138-1 with Pacifica Interchange, LLC, a California limited liability company, to extend its term five years at a total cost of $380,649 plus operating costs.

Resource Impacts

Sufficient funds for the subject lease are available in the approved FY 2001-02 Budget for the remainder of this fiscal year. Since this will be a five-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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