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Approve Lease Agreement with RailWorks Track Services, Inc. <br />February 1, 2022 <br />Page 2 <br />2 <br />4 <br />0 <br />4 <br />OCTA is the lead agency for the OC Streetcar Project and selected Walsh Construction <br />as the Contractor. SARTC quickly became a central hub for contractors working on the <br />Streetcar Project due to the close proximity to the project site and the availability of office <br />space. <br />The City Council approved a site lease agreement on April 6, 2021, with RailWorks Track <br />Services, Inc., for 326 square feet of office space at SARTC. Recently, RailWorks Track <br />Services approached City staff requesting additional office space. RailWorks is interested <br />in renting Suite 103, consisting of 1,452 square feet of office space. The intent is to <br />occupy both offices until the current lease expires on March 31, 2022, at which time, <br />RailWorks will continue to occupy Suite 103 until the lease termination date. Staff seeks <br />approval of the lease agreement, which will generate revenue for SARTC’s day-to-day <br />operations. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with the action. <br />FISCAL IMPACT <br />Approval of the site lease agreement obligates RailWorks Track Services, Inc., to <br />compensate the City $87,120 for the term of the lease agreement, including renewal <br />options, for lease of interior office space at the SARTC. The one-year agreement term <br />begins February 1, 2022, and ends January 31, 2023. There is an option for twelve one- <br />month extensions. <br />Approval of the appropriation adjustment will recognize Fiscal Year 2021-22 lease income <br />in the amount of $18,150 into the PWA-SARTC Operations, Rental-RailWorks revenue <br />account (No. 06717002-53832) and appropriate the same amount to the PWA-SARTC <br />Operations, Contract Services-Professional expenditure account (No. 06717650-62300) <br />for expenditure in Fiscal Year 2021-22. The remaining revenues and expenditures will <br />be recognized and appropriated during the Fiscal Year 2022-23 budget process. <br />Fiscal Year Accounting Unit <br />- Account # <br />Fund <br />Description <br />Accounting Unit, <br />Account Description Amount <br />2021-22 <br />(Feb-June)06717002-53832 <br />Regional <br />Transportation <br />Center <br />PWA-SARTC Operations, <br />Rental-RailWorks $18,150 <br />2022-23 <br />(July-Jan)06717002-53832 <br />Regional <br />Transportation <br />Center <br />PWA-SARTC Operations, <br />Rental–RailWorks $25,410 <br />Renewal Option: <br />2022-23 <br />(Feb-June)06717002-53832 Enterprise Fund PWA-SARTC Operations, <br />Rental–RailWorks $18,150