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Approve Lease Agreement with SRK Engineering, Inc., for Office Space at the SARTC <br />February 19, 2019 <br />Page 2 <br />OCTA is the lead agency for the OC Streetcar Project. OCTA selected Walsh Construction as <br />the Contractor for the project. Walsh Construction approached the City to lease office space at <br />SARTC and on December 18, 2018, City Council approved a three-year lease agreement with <br />Walsh Construction. Since then, the City has been contacted by sub -contractors working on the <br />OC Streetcar Project to lease space at SARTC. SRK Engineering, Inc., is interested in leasing <br />934 square feet of office space at SARTC. SARTC has become a central hub for contractors <br />working on the OC Streetcar Project due to the availability of office space and the close proximity <br />to the OC Streetcar Project. <br />The OC Streetcar will provide a great service to the residents of the City. By leasing available <br />office space SRK Engineering, Inc., lease revenue will be generated for the SARTC day-to-day <br />operations. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, <br />Objective #2 (create new opportunities for business/job growth and encourage private <br />development through new General Plan and Zoning Ordinance policies), Strategy C (support <br />business development and job growth along transit corridors through the completion of critical <br />transit plans/projects including: The Fixed Guideway Project, Santa Ana Regional Transportation <br />Center Master Plan, Complete Streets and General Plan Circulation Element update). <br />FISCAL IMPACT <br />Approval of the site lease agreement obligates SRK Engineering, Inc., to compensate the City <br />$22,440 annually for the lease of interior office space at the SARTC. The one-year agreement <br />term begins February 20, 2019, and ends February 19, 2020. There is also an option for twelve <br />one-month extensions. The total anticipated revenue from this agreement is as follows: <br />FISCAL YEAR <br />REVENUE <br />Agreement 1 -year Term <br />2018/19 <br />$7,480 <br />2019/20 <br />$14,268 <br />Optional Extensions <br />2019/20 <br />$8,100 <br />2020/21 <br />$14,268 <br />TOTAL <br />$44,116 <br />20B-2 <br />