REPORT TO COUNCIL
SUBJECT
Title
Action on (1) Delegation of Authority to the City Manager to Negotiate and Execute a Lease Agreement with Gahrahmat Family Limited Partnership I, LP, A California Limited Partnership for the Commercial Space Located at 831 - 851 Martin Avenue, Santa Clara, for SVP Staff, (2) Authorize the City Manager to Negotiate and Execute Amendment(s) to the Lease Agreement at 881 Martin Avenue to Extend the Term, If Needed, and (3) Increase Current Authorization for City Manager to Issue Purchase Orders with Pivot Interiors, Inc. and Other Suppliers/Authorized Dealers for the Purchase of and Installation of Cubicles, Office Furniture and Related Products and Services at City Facilities.
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara's Electric Department, Silicon Valley Power (SVP), continues to experience significant electric load growth driven by increased demand from customers. SVP has a long-term capital improvement strategy to expand and modernize its electric infrastructure to meet this growth and will need ongoing resources to maintain the expanded system. As previously discussed with the City Council, SVP's customer demand for electric power is expected to nearly double over the next decade.
On October 27, 2015, the City Council authorized a five-year standard industrial/commercial multi-tenant lease net agreement with the Gahrahmat Family Limited Partnership II, LP for commercial space at 881 Martin Avenue in Santa Clara (881 Martin Lease) for SVP's Customer Services Division and its Resources, Power Trading and Marketing Division (RTC 16B.10). Around 2019, staff from other divisions including engineering also relocated to 881 Martin Avenue. On September 1, 2020, the City Council authorized the City Manager to execute an amendment extending the term 5 years until September 30, 2025 (RTC 20-715). The 881 Martin Lease expires on October 1, 2025....
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