HomeMy WebLinkAboutItem 18 - AA and a Lease Agreement with RailWorks Track Services, Inc. Public Works Agency
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Item # 18
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
February 20, 2024
TOPIC: Santa Ana Regional Transportation Center – Lease Agreement
AGENDA TITLE
Approve an Appropriation Adjustment and a Lease Agreement with RailWorks Track
Services, Inc. for Office Space at the Santa Ana Regional Transportation Center for a
Five-Month Term with 12 One-Month Extensions, for a Total Amount of $73,031 (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 $4,356 per month, with any partial month
prorated at $145 per day, for the lease of 1,452 square feet of office space located
at the Santa Ana Regional Transportation Center, for a five-month term beginning
February 6, 2024 and ending June 30, 2024, with the option of 12 one-month
extensions, for a total of $73,031 in lease revenue for the entire term of the
agreement, including the optional extensions (Agreement No. A-2024-XXX).
2. Approve an appropriation adjustment recognizing Fiscal Year 2023-24 lease income
in the amount of $20,759 into the SARTC Operations, Rental-RailWorks revenue
account and appropriate the same amount to the SARTC Operations, Contractual
Services-Professional expenditure account (Requires five affirmative votes).
GOVERNMENT CODE §84308 APPLIES: Yes
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.
Santa Ana Regional Transportation Center – Lease Agreement
February 20, 2024
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OCTA is the lead agency for the OC Streetcar Project. OCTA selected Walsh
Construction as the Contractor for the project. SARTC quickly became a central hub for
contractors working on the Streetcar Project due to the close proximity to the project
site. RailWorks Track Services has been an active contractor of this project and has
been leasing office space at SARTC since April 2021. As the OC Streetcar project
continues, staff recommends continuing to lease Suite 103 consisting of 1,452 square
feet of office space at SARTC until June 30, 2024, with the option of 12 one-month
extensions. Staff seeks approval of the lease agreement, which will generate revenue
for SARTC’s day-to-day operations. Tenant has the ability to terminate with a 30-day
notice.
Meeting Date Display
FISCAL IMPACT
Approval of the site lease agreement obligates RailWorks Track Services, Inc. to
compensate the City $73,031 for the term of the lease agreement, including the option
for twelve one-month renewal options, for lease of interior office space at the SARTC.
Approval of the appropriation adjustment will recognize Fiscal Year 2023-24 lease
income in the amount of $20,759 into the SARTC Operations, Rental-RailWorks
revenue account (No. 06717002-53832) and appropriate the same amount to the
SARTC Operations, Contractual Services expenditure account (No. 06717650-62300).
Fiscal Year
Accounting
Unit -
Account #
Fund
Description
Accounting Unit,
Account
Description
Amount
Appropriation Adjustment
2023-24
(Feb-June)
06717650-
62300
Regional
Transportation
Center
Public Works-
SARTC Operations,
Contract Services-
Professional
$20,759
Optional Renewal
2024-25 06717650-
62300
Regional
Transportation
Center
Public Works-
SARTC Operations,
Contract Services-
Professional
$52,272
TOTAL $73,031
EXHIBIT(S)
1. Lease Agreement with RailWorks Track Services, Inc
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency
Approved By: Tom Hatch, Interim City Manager
EXHIBIT 1