HomeMy WebLinkAboutItem 12 - Santa Ana Regional Transportation Center – Lease Agreement Public Works Agency
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Item # 12
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
February 1, 2022
TOPIC: Santa Ana Regional Transportation Center – Lease Agreement
AGENDA TITLE
Approve a Lease Agreement with Railworks Track Services, Inc., for Office Space at the
Santa Ana Regional Transportation Center for a One-year Term with Twelve One-month
Extensions for a Total Amount of $87,120 (Non-General Fund)
RECOMMENDED ACTION
1. Authorize the City Manager to execute a site lease agreement with RailWorks Track
Services, Inc., to compensate the City $3,630 per month, with any partial month
prorated at $120 per day, for the lease of 1,452 square feet of office space located at
the Santa Ana Regional Transportation Center, for a one-year term beginning
February 1, 2022, and ending January 31, 2023, with an option for twelve month-to-
month extensions, for a total of $87,120 in lease revenue for the entire term of the
agreement, including optional extensions, subject to non-substantive changes
approved by the City Manager and City Attorney.
2. Approve an appropriation adjustment recognizing Fiscal Year 2021-22 lease income
in the amount of $18,150 into the PWA-SARTC Operations, Rental-RailWorks
revenue account and appropriating the same amount to the PWA-SARTC Operations,
Contract Services-Professional expenditure account. (Requires five affirmative votes)
DISCUSSION
The Santa Ana Regional Transportation Center (SARTC) is a regional transportation hub
that brings together Amtrak, Metrolink, Orange County Transportation Authority (OCTA),
interstate bus services, and in the future, the OC Streetcar. The facility is open to the
public seven days a week from 5:00 a.m. to midnight and contains approximately 35,000
square feet of rental space, including ten bus bays.
The OC Streetcar is the first modern streetcar project to be built in Orange County. It will
service Santa Ana’s historic downtown, which includes federal, state, and local
courthouses; government offices; colleges; an artists’ village; and a thriving restaurant
scene. The OC Streetcar will operate along a 4.15-mile route that connects SARTC and
a new transit hub at Harbor Boulevard and Westminster Avenue in Garden Grove.
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Approve Lease Agreement with RailWorks Track Services, Inc.
February 1, 2022
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OCTA is the lead agency for the OC Streetcar Project and selected Walsh Construction
as the Contractor. SARTC quickly became a central hub for contractors working on the
Streetcar Project due to the close proximity to the project site and the availability of office
space.
The City Council approved a site lease agreement on April 6, 2021, with RailWorks Track
Services, Inc., for 326 square feet of office space at SARTC. Recently, RailWorks Track
Services approached City staff requesting additional office space. RailWorks is interested
in renting Suite 103, consisting of 1,452 square feet of office space. The intent is to
occupy both offices until the current lease expires on March 31, 2022, at which time,
RailWorks will continue to occupy Suite 103 until the lease termination date. Staff seeks
approval of the lease agreement, which will generate revenue for SARTC’s day-to-day
operations.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action.
FISCAL IMPACT
Approval of the site lease agreement obligates RailWorks Track Services, Inc., to
compensate the City $87,120 for the term of the lease agreement, including renewal
options, for lease of interior office space at the SARTC. The one-year agreement term
begins February 1, 2022, and ends January 31, 2023. There is an option for twelve one-
month extensions.
Approval of the appropriation adjustment will recognize Fiscal Year 2021-22 lease income
in the amount of $18,150 into the PWA-SARTC Operations, Rental-RailWorks revenue
account (No. 06717002-53832) and appropriate the same amount to the PWA-SARTC
Operations, Contract Services-Professional expenditure account (No. 06717650-62300)
for expenditure in Fiscal Year 2021-22. The remaining revenues and expenditures will
be recognized and appropriated during the Fiscal Year 2022-23 budget process.
Fiscal Year Accounting Unit
- Account #
Fund
Description
Accounting Unit,
Account Description Amount
2021-22
(Feb-June)06717002-53832
Regional
Transportation
Center
PWA-SARTC Operations,
Rental-RailWorks $18,150
2022-23
(July-Jan)06717002-53832
Regional
Transportation
Center
PWA-SARTC Operations,
Rental–RailWorks $25,410
Renewal Option:
2022-23
(Feb-June)06717002-53832 Enterprise Fund PWA-SARTC Operations,
Rental–RailWorks $18,150
Approve Lease Agreement with RailWorks Track Services, Inc.
February 1, 2022
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2023-24
(July-Jan)06717002-53832
Regional
Transportation
Center
PWA-SARTC Operations,
Rental–RailWorks $25,410
Total:$87,120
EXHIBIT(S)
1. Lease Agreement with RailWorks Track Services, Inc.
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency
Approved By: Kristine Ridge, City Manager
EXHIBIT 1