Metro - File #: 2016-0626

• File #: 2016-0626
• Type: Contract
• Status: Passed
• File created: 8/11/2016
• In control: Executive Management Committee
• On agenda: 9/15/2016
• Final action: 9/22/2016
• Title: AUTHORIZE the Chief Executive Officer to execute the renewal of a five-year (5-year) lease agreement with Caltrans for Terminal 28 in Los Angeles at a monthly lease rate of eleven thousand six hundred dollars ($11,600) with annual increases of three percent (3%) per year, including one option to extend the term of the lease for an additional five years.
• Sponsors: Executive Management Committee
• Indexes: Budgeting, Contracts, Property Agreement, Systemwide Bus Ops Mgmt & Admin (Project), Terminal 28, Terminal operations, Terminals (Communications)

Date	Action By	Action	Result
9/22/2016	Board of Directors - Regular Board Meeting
9/15/2016	Executive Management Committee

Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
SEPTEMBER 15, 2016

Subject/Action
SUBJECT: RENEWAL OF LEASE AGREEMENT WITH CALTRANS AT TERMINAL 28

ACTION: AUTHORIZE THE CEO TO EXECUTE THE RENEWAL OF A FIVE-YEAR LEASE AGREEMENT

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to execute the renewal of a five-year (5-year) lease agreement with Caltrans for Terminal 28 in Los Angeles at a monthly lease rate of eleven thousand six hundred dollars ($11,600) with annual increases of three percent (3%) per year, including one option to extend the term of the lease for an additional five years.

Issue
ISSUE

Metro staff has negotiated the renewal of the lease agreement with Caltrans to provide for the continued use of Terminal 28 for Bus Operations.
Approval of the lease agreement requires board approval.

Discussion
DISCUSSION

Metro has maintained Terminal 28 as a bus layover site since 1976. The terminal is located under the Santa Monica Freeway at the southeast intersection of Hill Street and 17th Street. This site, which consists of approximately 68,135 square feet, accommodates buses serving the downtown area, West Los Angeles, the San Fernando Valley, El Monte, and the San Gabriel Valley. Terminal 28 is a critical location for layovers because there is insufficient on-street parking in the Central Business District for the buses. The site also services as a staging area for buses during special events and is the only close-in location that has adequate restroom facilities for the bus operators.
The current lease expired on December 31, 2014 and has continued on month to month holdover. The current monthly rent is $10,023.
Negotiations for a new five-year lease commenced in June 2014, however, the negotiations were unusually protracted due to Metro's efforts to negotiate competitive rental rates. Based on their rental survey, Caltrans had requested an increase to $15,000 per month or $0.22 per square foot for Terminal 28. Metro sta...