Metro Warehouse Lease

Transcription

1 Planning, Program Development and Real Estate Committee Action Item IV-B April 11, 2013 Metro Warehouse Lease

2 Washington Metropolitan Area Transit Authority Board Action/Information Summary Action Information MEAD Number: Resolution: Yes No TITLE: Metro Warehouse Lease PRESENTATION SUMMARY: Request Board approval to negotiate and execute a warehouse lease at 6100 Farrington Avenue in Alexandria, Virginia to store capital spare parts that are acquired from major equipment and construction contracts. PURPOSE: Request Board approval to lease approximately 80,776 square feet of warehouse space and approximately 2 acres of surface lot at 6100 Farrington Avenue in Alexandria, Virginia for storage of large contract spare parts. DESCRIPTION: This warehouse lease will allow Metro to (1) properly receive spare parts from contractors working on capital improvement projects; (2) safely store/inventory these materials in a secured, temperature controlled building easily accessible to other WMATA facilities; and (3) efficiently identify and account for all federally funded capital assets in one warehouse location. Key Highlights: Warehouse location is easily accessible to the Interstate 95/495 corridor Warehouse building will be temperature controlled The 2-acre surface lot will allow Metro to store large items and equipment The lot will be fully secured and fenced Background and History: Metro currently has one warehouse and twenty-two storerooms that house materials used to maintain our current operating systems. Most of the storerooms are less than 50,000 square feet in size and they are all filled to capacity with materials to maintain rail cars, buses, elevators, escalators, track, facilities, fare vendors, and much more. Metro conducts review and removal of obsolete equipment on an annual basis. In early 2010, the Office of OIG conducted an audit titled Review of Controls Over Storeroom Operations. One of the findings in this audit was the inappropriate storage of capital spares in forward supply points throughout the system without proper accountability and recording of these assets. With the large number of capital improvement projects currently in progress as well as the future expansion initiatives coming in the next ten years, staff anticipates that there will be thousands of capital spare parts that will need to be accounted for and safely stored. This warehouse/surface lot at 6100 Farrington Avenue in Alexandria, Virginia is a proactive solution to managing our future contract spare parts. Rental rates were negotiated based on a contract appraisal.

3 Discussion: Leasing the property will give Metro the necessary space to store capital spare parts from major equipment and construction contracts. FUNDING IMPACT: Budget: Operating Budget, Fiscal 2014 Project/Account: Metro Warehouse Lease Project Manager: Janelle Alladin-Rieman Project Department/Office: CFO/LAND This Action: $746,000 Remarks: Budget: This Action: Prior Approval: Remaining Budget: None FY FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Approved total project budget, or approved amended budget Amount requested for approval Commitment s & obligations against the budget as recorded in Peoplesoft Budget (subtotal + prior approval) , , , , , , , , , TIMELINE: Previous Actions Anticipated actions after presentation None Lease negotiation and execution RECOMMENDATION: Approval to lease approximately 80,776 square feet of warehouse space and approximately 2 acres of surface lot at 6100 Farrington Avenue in Alexandria, Virginia for storage of large contract spare parts.

4 Washington Metropolitan Area Transit Authority Metro Warehouse Lease Planning, Program Development and Real Estate Committee April 11, 2013

5 Purpose Request Board approval to negotiate and execute a warehouse lease at 6100 Farrington Avenue in Alexandria, Virginia to store capital spare parts that are acquired from major equipment and construction contracts Farrington Avenue Alexandria, Virginia

6 Background o o Metro has no vacant warehouse space Current capital improvement and expansion projects will generate thousands of spare parts

7 Expansion Terms o o Term of the lease will be for 10 years Lease cost estimated at $8.5M o Contract appraisal was completed in March 2013

8 Recommendation Board approval to negotiate and execute a warehouse lease at 6100 Farrington Avenue in Alexandria, Virginia to store capital spare parts that are acquired from major equipment and construction contracts.