Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
NOVEMBER 17, 2016
Subject/Action
SUBJECT: LEASE OF OFFICE SPACE FOR ACCESS SERVICES
ACTION: CONSIDER APPROVING A LEASE RENEWAL FOR OFFICE SPACE AT METRO DIVISION 9, EL MONTE, CA
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to renew a five-year lease agreement, including two, five-year options, with Access Services (Access) effective January 1, 2017 for the rental of approximately 19,841 square feet of office space at Metro's Transportation Building Division 9, 3449 Santa Anita Avenue, El Monte, at an annual rental cost of $600,000, subject to both parties' mutual right to terminate on 12-month prior written notice.
Issue
BACKGROUND
As the regional funding agency, Metro funds Access' expenses, including office space, related taxes, and utilities at the rate of $600,000 annually. Access has occupied office space at Division 9 since 2010. The current lease was originally executed effective April 12, 2010 and will end December 31, 2016. The lease covers the use of approximately 19,841 square feet of office space on floors two and three of the Division 9.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
This Board action will not have an impact on safety standards for Metro operations.
Financial_Impact
FINANCIAL IMPACT
As the regional funding agency, Metro funds Access' expenses including office space, related taxes, and utilities. By utilizing vacant space at Division 9, the operating costs associated with rent is returned to Metro in the form of lease income. This offset results in no financial impact to Metro for this portion of Access' operating costs.
Impact to Bus and Rail Operating and Capital Budget
The current fiscal year cost of this lease is included in the existing FY17 annual budget. Access will pay the lease cost from its budget using local monies. No other source of funds was considered for this activity because the directly received federal fundi...
Click here for full text