BOARD MEETING DATE: October 3, 2003
AGENDA NO. 12

Approve Leasing Out of Individual Workstations

SYNOPSIS:

In response to outside interest in leasing limited work space at AQMD Headquarters, staff recommends leasing individual workstations for a monthly fee that is consistent with prevailing commercial real estate rates.

COMMITTEE:

Finance, August 8, 2003. Less than a quorum was present during the discussion of this item; the Committee Member present communicated his concurrence.
Administrative, September 12, 2003, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Executive Officer to enter into month-to-month lease agreements for individual workstations with organizations and entities whose operations are compatible with AQMD interests and objectives for a monthly fee that is consistent with prevailing commercial real estate rates.
    
2. Authorize the Executive Officer to provide limited free space (individual workstations) to the California Fuel Cell Partnership on a month-to-month basis for its Southern California activities.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Several parties who have regular involvement with AQMD have expressed interest in leasing workstation space at the Diamond Bar facility. Given the current economic environment and the absence of tenants interested in leasing larger spaces, staff recommends leasing individual workstations to tenants whose activities are compatible with AQMD interests and objectives.

Proposal

Staff proposes to lease individual workstations on a month-to-month basis, much like a telecommuting center. Workstations would be in an open area that does not provide access to AQMD work areas. The starting monthly charge, set based on current commercial real estate rates in the area, would be $175 per month for an 8’ x 7’ workstation and $245 for an 8’ x 12’ station. Monthly charges would be adjusted periodically to keep pace with going rates in the commercial real estate market. Month-to-month leases could be ended by AQMD if an appropriate tenant became interested in leasing a larger area of available space.

Workstations would include a standard business telephone with local service and voice mail and a separate analog telephone line for fax or PC connection. Tenants would be responsible for providing their own computers, printers, fax machines, and any other needed equipment and supplies, and for their own long-distance telephone service and Internet access.

Staff further recommends that the AQMD provide limited free workspace to the California Fuel Cell Partnership for its Southern California activities. Such space would be provided on a month-to-month basis, with termination of the agreement at the sole discretion of the AQMD. This element of the proposal was not discussed at the Administrative Committee, but arose afterwards.

Fiscal Impacts

Monthly lease payments for workstations would cover AQMD costs and generate revenue, the amount being dependent on the number of workstation tenants.

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