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Approve Lease Agreement with RailWorks Track Services, Inc. <br />April 6, 2021 <br />Page 2 <br />OCTA is the lead agency for the OC Streetcar Project and selected Walsh Construction <br />as the Contractor. Because of its proximity to the project, Walsh Construction approached <br />the City to lease office space at SARTC and the City Council approved a three-year lease <br />agreement with Walsh Construction at the end of 2018. SARTC quickly became a central <br />hub for other contractors working on the Streetcar Project due to the close proximity to <br />the project site and the availability of office space. One of those subcontractors, <br />RailWorks Track Services Inc., has expressed interested in leasing 326 square feet of <br />office space at SARTC. Staff seeks approval of the lease agreement, which will generate <br />revenue for SARTC's day-to-day 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 $19,560 for the term of the lease agreement including renewal <br />options for lease of interior office space at the SARTC. Approval of the appropriation <br />adjustment will recognize Fiscal Year 2020-21 lease income in the amount of $2,310 into <br />the SARTC Operations, Rental-RailWorks revenue account (No. 06717002-53832) and <br />appropriate the same amount to the SARTC Operations, Contractual Services <br />expenditure account (No. 06717650-62300). <br />The one-year agreement term begins April 6, 2021, and ends April 5, 2022. There is an <br />option for twelve one -month extensions. The total anticipated revenue from this <br />agreement is as follows: <br />Accounting Unit <br />Fund <br />Accounting Unit, <br />Fiscal Year <br />Amount <br />- Account # <br />Description <br />Account Description <br />Public Works-SARTC <br />2020-21 <br />06717002-53832 <br />Enterprise Fund <br />Operations, Rental- <br />$2,310 <br />(April -June) <br />RailWorks <br />Public Works-SARTC <br />2021-22 <br />06717002-53832 <br />Enterprise Fund <br />Operations, Rental — <br />$9,780 <br />(July -June) <br />RailWorks <br />Public Works-SARTC <br />2022-23 <br />06717002-53832 <br />Enterprise Fund <br />Operations, Rental — <br />$7,470 <br />(July -April) <br />RailWorks <br />Total: <br />$19,560 <br />EXHIBIT(S) <br />1. Lease Agreement with RailWorks Track Services, Inc. <br />