Loading...
HomeMy WebLinkAboutRes2009-138 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2009 -138 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AGREEMENT WITH THE SEWARD ASSOCIATION FOR THE ADVANCEMENT OF MARINE SCIENCE (SAAMS) FOR THE TENANCY OF THE WEST AND CENTRAL OFFICE SPACES, INCLUDING COMMON AREAS AND RESTROOMS OF THE RAILROAD DEPOT ANNEX BUILDING LOCATED AT 501 RAILWAY AVENUE WHEREAS, as of January 1, 2010 the lease with Edward Jones will expire; and, WHEREAS, as of June 1, 2010 the lease with Petro Plaza will expire; and, WHEREAS, the electric department and the city are trying to save money in the area of rent expense; and, WHEREAS, the electric department is trying to consolidate all staff into one location; and, WHEREAS, the electric department is scheduled to occupy a warehouse /office building in approximately two years; and, WHEREAS, in the meantime the electric department staff must be able to function in an office setting; and, WHEREAS, city hall does not have additional room to house the electric department; and, WHEREAS, SAAMS already had plans to vacate the center office and west wing; and, WHEREAS, the lease agreement is mutually acceptable to both parties. NOW, TIIEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to enter into a lease agreement with Seward Association for the Advancement ofMarine Science, to lease and occupy the railroad depot annex building. Section 2. The term of this lease is from December 14, 2009 through December 31, 2011. Section 3. This resolution shall take effect 30 days after its adoption and posting. CITY OF SEWARD, ALASKA RESOLUTION 2009 -138 PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 14` day of December 2009. THE CITY OF SEWARD, ALASKA 77- Willard E. Dunham, Mayor AYES: Valdatta, Bardarson, Keil, Shafer, Amberg, Dunham NOES: None ABSENT: Smith ABSTAIN: None ATTEST: w J an Lewis ity Clerk (City Seal) l 6 W 4 •p • • • e • '• ra a r . .. T IP • �. O, ry ° +O C 4 C: '4- A;: dam. #T � w Council Agenda Statement Meeting Date: December 14, 2009 s tirso To: Mayor and City Council itter From: Phillip Oates, City Manager q P Agenda Item: Authorizing the City Manager to enter into a Lease Agreement for office space in the Railroad Depot BACKGROUND & JUSTIFICATION: The electric department has two lease agreements expiring within six months of each other in 2010. Through research, we have concluded that moving into an alternate location would be practical for the following reasons: First, the electric department would be in one location instead of multiple locations. This is preferable because there are situations and paperwork that the staff must discuss in person instead of by phone or email. In some situations the electric staff must converse with each other while on a teleconference phone call. The transfer of paperwork is an everyday occurrence within the department. Second, the electric department and the city would be saving money by being in fewer and less expensive locations. The electric department will have only one lease payment instead of two and has negotiated a less expensive lease than either ofthe current leases. The electric department cannot occupy city hall due to the fact that there isn't any room available. Leasing the Annex building is a temporary situation; the electric department is currently moving forward on an office/warehouse that staffcan permanently move into. For this reason the lease agreement is for two years. However, because of the uncertainty of time and funds, the electric department will have an option to extend the lease in one year increments. INTENT: The City Council authorizes the City Manager to enter into the lease agreement between the City of Seward and Seward Association for the Advancement of Marine Science. This agreement allows the electric department use of the facility commonly known as the Railroad Depot Annex Building. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter., Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: The City will pay all utilities( including heating fuel), will be responsible for snow removal on sidewalk, pathways, etc., be responsible to provide cleaning services for the building, will provide general liability and auto liability insurance. The estimated cost ofutilitics and heating fuel is $15,000 per year, with in -kind cleaning and snow removal costs of approximately S6,000, and $ 1,500 for insurance. This is a total cost of approximately 522,500 per year, for the electric fund versus the current lease amounts of $9,900 (Edward Jones) plus 514,000 (Petro Plaza). This will result in a decrease to the Electric Dept lease costs of $1,400, and a decrease in community development of 528,000 (by moving upstairs City Hall), for an overall decrease in City lease costs of approx. S29,400. Approved by Finance Department: v� ok�Glth°f i RECOMMENDATION: Council authorization of Resolution 2009-13] approving the City Manager's decision to enter into a lease agreement with Seward Association for the Advancement of Marine Science.