Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Lease Agreement for 210 N. Tennessee Street for Office Space for the Information Technology and Utility Billing Departments
Summary
COUNCIL GOAL: Operational Excellence
MEETING DATE: May 16, 2017
DEPARTMENT: City Manager’s Office
CONTACT: Jose Madrigal, Deputy City Manager
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of this item as presented.
ITEM SUMMARY:
• This Resolution authorizes the City Manager to execute a lease agreement for 210 N. Tennessee Street to accommodate staff from the Information Technology and Utility Billing Departments.
• The final lease agreement has been negotiated to be acceptable with the City Manager.
BACKGROUND INFORMATION:
• The working lease space for the Information Technology Department is nearing the end of its term, and the current Utility Billing Department is in a space that is fully occupied.
• The tenant of 210 N. Tennessee St. is vacating the space, the space affords an opportunity for the Information Technology and Utility Billing Departments to be centralized, and the property provides adequate space at competitive rental rates.
FINANCIAL SUMMARY:
• Rental rates for the term of the lease:
o July 1, 2017 - July 31, 2017: $8,365
o August 1, 2017 - August 31, 2018: $26,700/month
o September 1, 2018 - August 31, 2019: $28,000/month
o September 1, 2019 - August 31, 2020: $29,300/month
o September 1, 2020 - August 31, 2021: $30,575/month
o Lease runs as NNN which will include a fluctuating monthly fee based on maintenance of common areas, insurance, and taxable values.
• Landlord will provide a $25,000 reimbursement for the associated parking lot accompanying the building.
BOARD OR COMMISSION RECOMMENDATION:
• N/A