LEASE AGREEMENT AND SITE PREPARATION
COSTS FOR CITY HALL ANNEX SPACE
November 7, 2023
City Council Meeting
Agenda Item #16
Received After Agenda Printed
11/7/23 Regular Meeting
Item 16 - Staff Presentation
2 • Approximately 120 full-time staff at City Hall
• Additional workspace is needed
• Recommendation to rent commercial
space to provide supplemental space
City Hall Workspace Needs
3 • Located at 24620 Jefferson
• Walking Distance from City Hall
• 4,868 square feet of leased space for
office use
• Proposed lease for six years with option
to extend if needed
• Most cost-effective option of those
evaluated
City Hall Annex – Proposed Location
4 Estimated Costs
• Annual Lease Cost:
• Year 1 - $110,0990
• Following years – add a 3% escalator
• Year 1 for Annual Operating Costs:
• Common Area Operating Expenses - $55,500
• Utilities + Other Operating Expenditures - $68,200
• Escalator for latter years
• One-Time Costs for Site Preparation and Furnishings:
$467,123, including contingency
5 • Light Tenant-Improvements, Paint, Carpet Cleaning
• 21 Workspaces
• 16 workstations
• 5 offices
• Conference Room
• Two-Person Collaboration & Meeting Pod
• IT Network Cabling and Security System
• Office Equipment, Copier, etc
• File Storage and Equipment
One- Time Costs for Site Improvements
6 • Execute Lease Agreement and all other necessary agreements • Complete site improvements and acquire furnishings
• Targeted move-in: Late January/early February
Next Steps
7 Conclusion
• Staff recommends Council:
• Authorize City Manager to
execute Lease Agreement and all
other necessary agreements
• Approve budget adjustments
8 Questions?
City Hall Annex – Proposed Location