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File #: 2018-0748   
Type: Contract Status: Agenda Ready
File created: 11/15/2018 In control: Operations, Safety, and Customer Experience Committee
On agenda: 1/17/2019 Final action:
Title: AUTHORIZE the Chief Executive Officer to execute a four-year, three month amendment to the existing lease agreement with Andy Azad 2002 Irrevocable Trust ("Landlord") for the use of 44,964 rentable square feet ("RSF") of warehouse space located at 2950 East Vernon Ave, Vernon, commencing May 1, 2019 at a monthly rate of $40,017.96 for the total value of $2,189,247 including annual escalations of three percent.
Sponsors: Operations, Safety, and Customer Experience Commit
Indexes: Contracts, Gateway Cities (Southeast LA County) Service Sector, Landlords, Location 34, Logistics, Metro Vision 2028 Plan, Operations and Maintenance, Payment, Property Agreement, Property management, Rail Ops Mgmt & Admin (Project), Rolling stock, Strategic planning, Supply chain management, Vernon
Attachments: 1. Attachment A - Location Map, 2. Attachment B - Lease Comparables
Related files: 2019-0035
Date Action ByActionResultAction DetailsMeeting DetailsAudio
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Meeting_Body
OPERATIONS, SAFETY AND CUSTOMER EXPERIENCE COMMITTEE
JANUARY 17, 2019

Subject
SUBJECT: LEASE AGREEMENT WITH ANDY AZAD 2002 IRREVOCABLE TRUST

Action
ACTION: APPROVE RECOMMENDATION

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to execute a four-year, three month amendment to the existing lease agreement with Andy Azad 2002 Irrevocable Trust ("Landlord") for the use of 44,964 rentable square feet ("RSF") of warehouse space located at 2950 East Vernon Ave, Vernon, commencing May 1, 2019 at a monthly rate of $40,017.96 for the total value of $2,189,247 including annual escalations of three percent.

Issue
ISSUE

Supply Chain Management/Logistics currently leases this property under an existing nine-month agreement. The lease will expire April 30th, 2019.
The warehouse is 26' clearance with dock high and ground level loading. It was constructed in 1989 and is centrally located on Vernon Avenue between Santa Fe and Soto Avenue, 4 blocks east of Metro's Vernon Yard Facility - Location 34 (See Attachment A). The proximity to downtown Los Angeles provides ideal central access to support Rail Fleet Services and Wayside Operations for the safe and secure storage of large high-dollar assets critical to the safe and effective operation of Metro's Rail fleet.

Background
BACKGROUND

Since the construction of the Blue Line, all Metro Rail projects include contractual spares used for the repair or replacement of failed components on Metro rail cars and mainline systems. For each rail car acquisition and mainline commissioning, a list of recommended rolling stock components is provided by the prime contractor to Metro Operations. Components and quantities are selected based on unit cost up to the original value for spare parts designated in the contract. It is the responsibility of Supply Chain Management/Logistics to house and secure these high-dollar rail assets in support of the daily operation of Metro's rail fleet a...

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