Update on Headquarters Office Space. March 24, 2017 Board of Directors Meeting
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1 Update on Headquarters Office Space March 24, 2017 Board of Directors Meeting
2 Office Space Considerations Conducted survey of approximately 30 buildings in Los Angeles area. Factors included: Accessibility to Metro/Metrolink stations Ease of access for Board members Accessibility of staff to/from other outlying SCRRA facilities Impact of move on staff and cost Survey results: Majority of buildings were inaccessible to commuter access Search narrowed to 4 buildings 3 buildings in Downtown Metro Center 1 building in Civic Center area 2
3 Map of Available Office Space 3
4 Remaining in the Los Angeles Area - PROS Center for regional transportation Accessibility to transit (Metro/Metrolink) Ease of Access for Board Members Retaining current work force Safety Accessing lower rent per square footage in LA area Accessibility of staff to/from outlying SCRRA facilities to Headquarters Reduction in rent due to ability to use SCAG Board and Conference Rooms 4
5 Moving outside the Los Angeles Area CONS Lack of transit access for Board members Lack of accessibility to transit (Metro/Metrolink) Reliance on driving versus use of public transit Extended commute time for majority of employees located at LA Headquarters Impact on retention of current work force Impact on work / life balance Extended commute time to/from outlying SCRRA Facilities to Headquarters 5
6 Employee Location Map All Employees (254) 6
7 Employee Location Analysis Summary Gateway Employees (105) Legend Los Angeles Orange Riverside San Diego Ventura Kern San Bernardino Gateway Employees Location by % 4% 3% 2% 3% 1% 14% Gateway Employees: Live in 7 counties Live in 42 cities 73% 7
8 Human Resources Employee Survey Results In consideration of a possible move to a new office location, please rate each of the following in terms of importance: Close or nearby the majority of Metrolink stations/passengers Proximity to amenities (Shops, restaurants, post office, etc.) Access to public transportation Very Important Somewhat Important Not Important Short commute time Q4: How much time would you be willing to add to your commute? (each way) 8.3% 88.1% 3.6% 15 minutes or less 16 minutes to 30 minutes 30 minutes or more Please include any additional comments or information you would like to share regarding Metrolink headquarters relocation Major Themes Identified in Rank Order from most to least mentioned 1 Concerned about additional commute time 2 Prefer downtown Los Angeles as a new HQ location 3 Requested more affordable parking at a new HQ location 4 Requested intermittent telecommuting as an option to offset additional commute time 5 Prefer to stay close to union station 6 Would likely leave in the event of a move 8
9 Human Resources Employee Survey Results 105 Gateway Employees Would you be willing to move to a new office location in Downtown Los Angeles? Would you likely leave Metrolink employment in the event of a Metrolink HQ relocation outside of Downtown Los Angeles? % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 84.5% 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 68.0% 32.0% 10.00% 0.00% Yes 15.5% No 10.0% 0.0% Yes No Answer Options Response Percent Response Count Yes 84.5% 71 No 15.5% 13 Answer Options Response Percent Response Count Yes 68.0% 66 No 32.0% 31 9
10 OTHER OPTIONS FOR CONSIDERATION OPTION 1 Remain at Gateway until lease expiration PROS Lowest Rent Board room facilities Commuter transit accessibility CONS Missed opportunity for lower rents in Los Angeles area if needed in future years 10
11 OTHER OPTIONS FOR CONSIDERATION OPTION 2 Build facility at the Pomona location estimated cost $20-25 million PROS Headquarter employees at one location CONS Cost to build a facility Limited accessibility for Board members 2 to 3 years needed to construct new headquarter space Temporary facilities could be needed if asked to vacate the Gateway building prior to lease expiration Additional moving expenses 11
12
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