TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for the First Amendment to Lease No. 34170 between 4811 Airport Plaza, LLC, a Delaware limited liability company (Landlord), and the City of Long Beach (Tenant), for additional janitorial services at the leased property at 4811 Airport Plaza Drive. (District 5)
DISCUSSION
On December 15, 2015, the City Council authorized the execution of Lease No. 34170 with 4811 Airport Plaza, LLC, for office space at 4811 Airport Plaza Drive, Suites 110, 120 and 200 (Attachment B), which was executed on February 1, 2016. The Lease allowed for the relocation of a one-stop resource center for job training and employment placement services, known as the WorkPlace, operated by the Economic Development Department’s Workforce Development Bureau at this location since August 1, 2018. Since operations began, staff has needed to adjust the janitorial services provided to the office space. The First Amendment would provide additional janitorial services by the Landlord, up to five days per week, for Suites 110, 120, and 200.
To allow for sufficient janitorial services in the Tenant suites provided through the Lease, a proposed First Amendment to Lease No. 34170 has been negotiated containing the following major terms and provisions:
• Landlord: 4811 Airport Plaza, LLC, a Delaware limited liability company
• Tenant: City of Long Beach, a municipal corporation.
• Leased Premises: Approximately 22,511 of rentable square feet (RSF) of office space at 4811 Airport Plaza Drive, Suites 110, 120, and 200 (Attachment A).
• Term: No change to the original term of 60 months from August 1, 2018.
• Option: No change to the original option of one, five-year option to renew the lease.
• Additional Expenses: Landlord to contract with a company for additional janitorial services. Tenant will reimburse the Landlord for costs of the services plus a 12 percent administrative fee. The annual cost to the Tenant is anticipated to be $53,760 ($4,480 per month).
This matter was reviewed by Deputy City Attorney Richard F. Anthony on July 23, 2019 and by Budget Management Officer Rhutu Amin Gharib on July 25, 2019.
TIMING CONSIDERATIONS
City Council action is requested on August 13, 2019, to execute the Lease Amendment in a timely manner.
FISCAL IMPACT
The requested amendment will include janitorial services to the office spaces at 4811 Airport Plaza for an approximate annual amount of $53,760. Sufficient funds for the additional services are budgeted in the Community Development Grants Fund Group in the Economic Development Department. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER