HomeMy WebLinkAboutAgenda Statement 1983/08/16 Item 6 COUNCIL AGENDA STATEMENT
Item 6
Meeting Date 8/16/83
'EM TITLE: Resolution /4.3K/9- Approving amended lease agreement between the City of
Chula Vista and Congressman Duncan Hunter for the
leasing of additional office space
BMITTED BY: Assistant City Manager — (4/5ths Vote: Yes NoX )
VIEWED BY: City Manager
On July 5, 1983, an 18 month lease agreement between the City and Congressman Hunter
was approved by the City Council for the leasing of office space in the legislative
office building. That lease agreement provided for the rental of approximately 120
square feet of office space at $100 per month, including utilities and janitorial
services. The amended agreement, effective August 1 , 1983, provides for the rental
of an additional 120 square feet at a total rent of $150 per month including
utilities and janitorial services. The amended agreement provides for a maximum
6% adjustment tied to the San Diego Metropolitan Consumer Price Index at the
conclusion of the first 12 months beginning July 1 , 1983.
RECOMMENDATION: Adopt resolution approving amended lease agreement.
BOARDS/COMMISSIONS RECOMMENDATION: N.A.
DISCUSSION
The per square foot rent of approximately $.60 is below market rate for comparable
office facilities, particularly when utilities and janitorial services are provided.
However, Congressman Hunter is limited in funds available for leasing office space,
at least until new appropriations are made for these purposes by the Congress. We
have verbal assurances from representatives of Congressman Hunter that if additional
funds are available in the new budget, a second amendment to the lease agreement
increasing the rent to $200 per month can be executed. It is felt that having
Congressman Hunter's office in the legislative office building helps fulfill the
goal of the City Council when the idea of a centrally located legislative office
building was first proposed. It is also valuable to the City and the residents of
Congressman Hunter's district to have this additional field office to serve the
needs of his constituents.
FISCAL IMPACT
Gross annual rent for the period beginning July 1 , 1983 thru June 30, 1984 will
generate $1 ,750. Estimated expenses for utilities, janitorial service and
building maintenance is estimated at approximately $386.40, the pro-rata share
for this office space, leaving a net income to the City of approximately $1 ,464
per year.
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