AgdaPkt 2005-09-12 - Laserfiche WebLink

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REPORT the Honorable Mayor and City Council From the City Manager September 12, 2005 Subject Redwood City Recycled Water Project - Redwood Shores Project Office Lease Recommendation By Motion, approve five-year Office Lease Agreement with Provident Credit Union for the purpose of maintaining a project office at 303 Twin Dolphin Drive in Redwood Shores, and authorize the City Manager to sign the lease agreement. Background On July 26, 2004, the City Council approved a one-year Sublease Agreement with PVG Management Inc. and Consent to Sublease Agreement with PVG Management Inc. and Provident Credit Union for the purpose of establishing a project office at 303 Twin Dolphin Drive in Redwood Shores. The office space has provided appropriate public access to the project and a centralized work space for individuals on the project team who are allocating the majority of their time to the effort (project office management, customer relations, customer site retrofits and project start-up planning). The Sublease Agreement with PVG Management Inc. expired on August 31, 2005. Because the City is the first potential public agency tenant in the subject facility, it has taken several weeks of additional time for the parties to work out and agree to insurance coverage terms and conditions. Provident Credit Union has agreed to continue the City's occupancy for a five-year period, beginning Sept. 1 2005, at a total average rate of $2,209.06 per month, or $2.17 per square foot per month. Provident has also agreed to provide and pay for some tenant improvements to the existing office space, in response to staff's request, including removal and relocation of meeting room walls and doors. The improvements (summarized in section 1.5 of the Lease, and noted on Exhibit A) will make the office much more functional and better meet project team needs for wall space and effective work sessions. The previous Sublease ratefor the office "As is" was $1.90 per square foot per month. Alternatives 1. Should the Council decline to approve this lease, the City will be obligated to pay the rent for September 2005, and vacate the premises by Sept. 30, 2005. Staff would then seek an alternative location. Additional costs would be incurred for moving and an unknown amount of time with no office would occur. 2. Vacate the premises by Sept. 30, 2005, and move the project office function into an existing - but yet unidentified City facility. Given the volume of records that are accumulating, and the intensity of the project, this option would be disruptive to on- Page 1 of 2