Title
Introduction of Ordinance Authorizing the City Manager to Execute a Third Amendment to the Lease with the United States Navy for 3,895 Square Feet of Office Space in City Hall West at Alameda Point.
This action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15061(b)(3) (Common Sense). (Base Reuse and Economic Development 29061822, 29161822)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Through an existing lease, the City of Alameda (City) leases approximately 4,129 square feet of office space in City Hall West, 950 West Mall Square (Building 1) to the United States Government, on behalf of the Navy (Navy). The proposed third amendment would reduce the Navy’s leased space by one (1) room and proportionally reduce the Navy’s pro-rata share of utility and janitorial costs consistent with this reduced square footage. The amendment also confirms the Navy’s non-exclusive right to occupy up to 9 spaces at no cost in the parking lot behind City Hall West.
Staff recommends that City Council authorize the City Manager to execute the third amendment to the lease.
BACKGROUND
Pursuant to the terms of the Navy’s conveyance of Alameda Point to the City, the Navy has a right to lease office space in City Hall West (Building 1), 950 West Mall Square, Alameda 94501. The Navy retained the right to lease space in Building 1 in the quitclaim deed granting City Hall West to the City (Navy parcel ALA-37-EDC). Generally, the Navy uses this space for on-site and visiting staff who are managing Navy-owned properties and associated conveyance activities.
The Navy’s current lease, for approximately 4,129 square feet of office space, has an effective date of June 4, 2014. This lease was amended on April 13, 2016, and November 4, 2022. In 2024, the Navy exercised the first of three (3), five (5) -year renewal options, extending the lease term to June 3, 2029. Under the terms of the lease, the Navy does not pay rent; instead, it currently pays its pro-rata share of costs, not-to-exceed $420.06 per month, paid as an annual lump sum of $5,040.72 every June for the prior year’s occupancy. The proposed third amendment will reduce the Navy’s footprint by 234 square feet and its annual payment by $288.82.
DISCUSSION
At the City’s request, the Navy has vacated one (1) room of its leased premises, which is now being used by the City’s Public Work’s Department. To reflect this change, the parties negotiated a lease amendment reducing the Navy’s official occupancy to 3,895 square feet, and its monthly pro-rata costs to $395.99, paid in an annual lump sum of $4,751.90.
The existing lease provides that the Navy has a non-exclusive right to use the parking area. The proposed amendment specifically limits the Navy to up to 9 spaces and clarifies that this use is at no cost. While the City does not currently charge for parking at City Hall West, this amendment clarifies that if paid parking is implemented, the Navy employees will not need to pay.
Other terms, including the duration, would not change with this amendment.
ALTERNATIVES
After opening the public hearing and considering all the documents and testimony, City Council may consider alternative courses of action, including:
- Approve the first reading of the ordinance authorizing the City Manager to execute the third amendment to the lease with Navy on the terms described in this staff report.
- Choose not to approve the first reading and direct the City Manager to continue negotiations with the Navy. In this scenario, the City Council should identify the specific lease terms or conditions that require further negotiation.
FINANCIAL IMPACT
The proposed lease amendment will reduce the Navy’s footprint and annual financial contribution to the building maintenance, utility, and janitorial costs for Building 1 by $288.82. This will reduce revenues to Fund 291 (Alameda Point Tidelands).
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The recommended lease amendment is consistent with the General Plan policies for Alameda Point, the Adaptive Reuse subdistrict, and the Alameda Municipal Code zoning requirements for the property. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in CEQA Guidelines Section 15378 and therefore no further CEQA analysis is required.
Additionally, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15061(b)(3) (Common Sense).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report
RECOMMENDATION
Hold a public hearing to consider introduction of an ordinance authorizing the City Manager to execute a third amendment to the lease with the United States Navy for 3,895 square feet of office space in City Hall West at Alameda Point.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By,
Alexis Krieg, Management Analyst
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Proposed Amendment No. 3 to Lease
2. Existing Lease and Amendments