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Home My WebLink About7/16/2003 - STAFF REPORTS (6) DATE: July 16, 2003 TO: City Council FROM: Executive Director -Airports TRANSPORTATION SECURITY ADMINISTRATION (TSA) OFFICE SPACE LEASE AMENDMENT RECOMMENDATION: It is recommended that City Council approve Supplemental Lease Agreement #1 to GSA Lease GS-09B-01291, and City Lease Agreement A4582 for the new TSA office space currently under construction, and authorize the City Manager to enter into a Supplemental Lease Agreement#2 which will establish beneficial occupancy and institute the higher lease rates. SUMMARY: This Action would amend the current lease with the TSA for office space by adding newly constructed office space and delete portable office space. BACKGROUND: On October 16, 2002, the City Council approved a lease for office space at the airport with TSA. This lease was a standard form Government Services Administration (GSA) document. Currently, TSA leases the following space from the airport: Space Designation Common Name Sq. Ft. Annual Lease Block A Check Point Office 140 $ 3,934 Block B Art Gallery Office 572 $ 22,056 Block C Baggage Claim Office 1,080 $ 40,316 Block D Construction Office 872 $ 39,477 Block E Mobile Offices 2,880 $ 88,840 Totals 5,544 $194,623 The current lease was based on a rate of $35.10 /sq. ft./annum which included $7.03/sq. ft./annum for tenant improvements. Supplemental Lease Agreement #1 would delete Block E, the mobile offices, (leased space to be returned) and add Block F the new TSA offices under the Sonny Bono Concourse. Block A, B, C & D totaling 2664 sq. ft., with its tenant improvements fully amortized,will now be leased at$28.07/sq. ft./annum. Block E, the new TSA office space of 4816 sq. ft. would be leased at $46.45/sq. ft./annum. The amended lease would run for five (5) years from beneficial occupancy of the new offices at the rates outlined above. The new annual lease payments would be $298,481.68. The Airport Commission reviewed this item at its July 2, 2003 meeting and recommended City Council approval. Two minute orders are attached for City Council consideration. The first minute order would approve Supplemental Lease yR Transportation Security Administration Office Space Lease Amendment July 19, 2003 Page 2 Agreement#1 (using a standard form GSA document). The second minute order would authorize the City Manager to enter into a Supplemental Lease Agreement #2 (using a standard form GSA document)to establish beneficial occupancy of the new office space and establish the commencement of the new five (5) year term and increased lease. yQ �..�.� Allen F. Smoot, A. A. E. Executive Director - Airports APPROVED: City Manager ` Attachments: 1. Minute Orders (2) 2. Supplemental Lease Agreement#1 REVIEWED BY DK OF FINANCE y� � JUN-23-2003 09:57 GSA 619 557 2929 P.02 GENERAL SERVIGES AUMINISTRATIDN PUBLIC BUILDINGS SERVICE SUPPLEMENTAL DATE SUPPLEMENTAL LEASE AGREEMENT AGREEMENT No. 1 TO LEASE No. GS-09B-01291 Palm Springs International Airport 3400 East Tahquitz Canyon Way Palm S rings, CA 92262 THIS AGREEMENT, made and entered into this date by and between City of Palm Springs Whose address is 3200 E,Tahquitz Canyon Palm Springs,CA 92262-6959 Hereinafter called the Lessor,and the UNITED STATES OF AMERICA,hereinafter called the Government WHEREAS,the parties hereto desire to amend the above Lease. NOW THEREFORE,these parties for the considerations hereinafter mentioned covenant and agree that the said Lease is amended upon execution by the Government,to delete Space E,add Space F, and to extend the term of all remaing blocks of space as follows: Part II.Section A,5.c. (Rentable Sq. Ft.) is deleted in it's entirety. Part ll.Section A.6.b.(Room Numbers)is delted it it's entirety. Part II. Section B. (Term) is deleted in it's entirety and replaced with the following: TO HAVE AND TO HOLD said premises for the term commencing on November 1, 2002 and continuing for 60 months from the completion and acceptance of Block F. (See attached floor plan for Block F), Block F to be delivered no later than December 1,2003. A future Supplemental Lease Agreement will be executed to establish Beneficial Occupancy. Part II,Section C.7&1 (Amount of Annual Rent)&(Rate per month)are deleted in their entirely. Rider To Lease No.GS-09B-01291, Paragraph 3 is deleted in it's entirety and replaced with the following Paragraph 3 on Page 2 attached. Rider To Lease No.GS-09B-01291, Paragraph 4 is deleted in its entirely and replaced with the following Paragraph 4 on Page 2 attached- Page 1 of 2 IN WITNESS WHEREOF,the parties subscribed their names as of the above date. LESSOR: County of Riverside Dept.of Facilities Management BY (Signature) (Title) IN THE PRESENCE OF (witnessed by:) (Signature) (Address) UNREb STATES OF AMERICA BY Contracting Officet GGSA PBS RED GSA DC 68.1176 GSA FORM 276 JUL 67 YA 3 JUN-23-2003 10:09 GSA G19 557 2922 P.02 SHEET NUMBER 1 IS ATTACHED HERETO AND MADE A PART OF SUPPLEMENTAL LEASE AGREEMENT NO. 1 TO LEASE NO.GS-098-01291 '3. The Lessor hereby leases to the Government the following described premises to be used for office,security screening and other related purposes by the Transportation Security Administration in the building known as Palm Springs International Airport,3400 East Tahquitz Canyon Way. In addition,an employee parking lot will be available on-site within the grounds for the use of the TSA employees at no additional cost to the Government. Effective November 1,2002,the Government accepts the following space: Block A: 140 Rentable/Usable Square Feet Block B: 572 Rentable/Usable Square Feet Block C: 1,080 Rentable/Usable Square Feet Block D: 872 Rentable/Usable Square Feet Block E: 2,880 Rentable/Usable Square Feet TOTAL 5,544 Rentable/Usable Square Feet Effective upon the Government's execution of a future Supplemental Lease Agreement reflecting acceptance and Beneficial Occupancy of Block F,Space E will be deleted from this Lease leaving the following remaining space. Block A: 140 Rentable/Usable Square Feet Black B: 572 Rentable/Usable Square Feet Block C: 1,080 Rentable/Usahle Square Feet Block D: 872 Rentable/Usable Square Feet Block E: Intentionally omitted Block F: 4,816 Rentable/Usable Square Feet TOTAL 7,480 Rentable/Usable Square Feet' "4. The Government shall pay the Lessor annual rent as follows: Effective November 1,2002,the Government shall pay the Lessor annual roht as follows: Years 1 —2: Annual Rent of$194,623.00 payable at$16,218.00 per month in arrears comprised as follows: Blocks A-E: $194,623.00 (5,544 rentable square feet at the rate of approximately $35.10 per square foot), Effective upon the Government's execution of a future Supplemental Lease Agreement reflecting acceptance and Beneficial Occupancy of Block F and the deletion of Black E through the 60 month term,the Government shall pay the Lessor annual rent as follows: Annual Rent of$298,481,66 payable at$24,881.50 per month in arrears comprised as follows: Block A,B,C,&D: $74,778.43 (2,664 rentable square feet at$28.07 per square foot). Block E: Intentionally deleted Block F: $223,703.20 (4816 rentable square feet at$46.45 per square foot)" `21. The Lessor shall furnish all labor, materials, equipment, design, professional fees, permit fees, inspection fees, utilities, construction drawings,construction costs and services as well as other similar costs and expenses associated with providing Block P. All Provisions of the Lease shall apply to these changes provided herein. The Lessor shall be responsible for all maintenance and repair relating to these items. Title to said tenant improvements shall vest with the Government. The Government at its option,may choose to remove the tenant improvements upon vacating the leased premises without responsibility for restoration. Should the Government abandon these Improvements upon vacating the promises,title shall then vest with the Lessor. All other terms and conditions of the lease shall remain in full force and effect. Page 2 Of 2 Initial initial Vg q TOTAL P.02 MINUTE ORDER NO. APPROVING GOVERNMENTAL SERVICES ADMINISTRATION (GSA) FORM SUPPLEMENTAL LEASE AGREEMENT #1 TO FEDERAL LEASE GS-0913-01291 AND CITY LEASE AGREEMENT A4582 TO ADD NEW PERMANENT OFFICE SPACE TO THE TRANSPORTATION SECURITY ADMINISTRATION OFFICES AND DELETE MOBILE OFFICE SPACE. - - - - - - - - - - - - - - - - - - - - I HEREBY CERTIFY that this Minute Order approving, Governmental Services Administration(GSA)form Supplemental Lease Agreement#1 to Federal Lease GS-0913-01291 and City Lease Agreement A4582 to add new permanent office space to the Transportation Security Administration offices and delete mobile office space,was adopted by City Council of the City of Palm Springs, California in a meeting thereof held on the 19`h day of July, 2003. PATRICIA A. SANDERS City Clerk YJ MINUTE ORDER NO. AUTHORIZING THE CITY MANGER TO EXECUTE GOVERNMENTAL SERVICES ADMINISTRATION (GSA) FORM SUPPLEMENTAL LEASE AGREEMENT #2 TO FEDERAL LEASE GS-0913-01291 AND CITY LEASE AGREEMENT A4582 TO ESTABLISH BENEFICIAL OCCUPANCY OF THE NEW TRANSPORTATION SECURITY ADMINISTRATION OFFICES AND INITIATION OF HIGHER LEASE PAYMENTS. - - - - - - - - - - - - - - - - - - - - I HEREBY CERTIFY that this Minute Order authorizing the City Manger to execute Governmental Services Administration(GSA)form Supplemental Lease Agreement #2 to Federal Lease GS-09B-01291 and City Lease Agreement A4582 to establish beneficial occupancy of the new Transportation Security Administration offices and initiation of higher lease payments, was adopted by City Council of the City of Palm Springs, California in a meeting thereof held on the 19`h day of July, 2003. PATRICIA A. SANDERS City Clerk