Title
Approve Kelso Train Depot Lease Renewal
Body
SUMMARY STATEMENT:
Cowlitz Transit Authority entered in to a two-year lease agreement with the City of Kelso on August 21, 2013 for the purpose of leasing office space at the Kelso Train Depot for a driver break room. Prior to entering into this lease agreement, transit operators had been driving their vehicles back to the City Shop in Longview to take their lunch breaks. This meant increased maintenance, fuel, and labor costs each time an operator was to take a lunch break.
The current lease agreement is for the lease of 359 square feet of office space, equipped with a sink and countertop. It also includes use of a meeting room. The lease agreement renewal covers a period of twenty-four (24) months with monthly lease amounts as follows:
• Months 1-12 $551.96
• Months 13-24 $565.76
These amounts reflect a 2.5% annual increase as required in the current agreement. RCT Staff has sent a letter of interest to the City of Kelso expressing a desire to renew the lease pending board approval. Since then, staff has received requests from a neighboring tenant to trade office spaces. We are in the process of working with city staff to determine if this is a reasonable trade and to determine if there will be a potential for a lower lease amount.
RiverCities Transit staff recommends the renewal of the Kelso Train Depot lease continued use of this space once a final agreement is negotiated.
FINANCIAL SUMMARY:
The project is included in the 2015-16 City of Longview budget or the 2015 Cowlitz Transit Authority budget.
Recommended Action
RECOMMENDED ACTION:
Motion to authorize execution of Kelso Train Depot Lease Renewal by the CTA Board Chair once final lease is negotiated.