HomeMy WebLinkAboutRes2007-055
Sponsored by: Oates
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CITY OF SEWARD, ALASKA
RESOLUTION 2007-055
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
LEASE AGREEMENT WITH DALE & CAROL LINDSEY TO LEASE 1706
SQUARE FEET OF OFFICE SPACE IN THE PETRO PLAZA BUILDING
FOR A PERIOD OF THREE YEARS WITH TWO ONE-YEAR OPTIONS TO
EXTEND AT A RATE OF $2.05/SF
WHEREAS, the City of Seward currently leases 1,706 square feet of office space located at
the Petro Plaza Building, and that lease agreement expires May 31, 2007 with no additional options
to extend; and
WHEREAS, the City issued a Request for Proposals to lease between 1100 and 3100 square
feet of office space, and received two responses; and
WHEREAS, the lowest cost response was received from Petro Plaza located at 234 Fourth
Avenue, with a proposal to lease the existing 1706 square feet of modern office space at a price of
$2.05/sfinc1uding heat, electricity, water, sewer, and two off-street parking spaces; and
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WHEREAS, the City currently leases the same office space in Petro Plaza as is being
proposed, at the cost of $1.85/sf and would incur no additional costs associated with moving,
instalIation of telephone and communication lines, signage, etc; and
WHEREAS, the City stilI requires additional office space and wilI be investigating
alternative locations for electric department staff.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council hereby finds that, for the reasons stated in the above
recitals, acquiring City office space by lease under the terms and conditions in the attached
Lease Agreement is in the public interest.
Section 2. The Lease Agreement between Dale & Carol Lindsey and the City of Seward is
hereby approved in substantial form as attached hereto and the city manager is authorized to sign the
Lease Agreement in substantial form on behalf ofthe City. Any options to extend may be exercised
by the city manager without further approval and provided that funds are annually appropriated.
Section 3. The Lease Agreement is subject to annual appropriations of the Seward City
Council per Seward City Code Section 5.01.015.
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CITY OF SEWARD
RESOLUTION 2007-055
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Section 4. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 11 th
day ofJune, 2007.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
THE CITY OF SEWARD, ALASKA
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Vanta Shafer, May r
Dunham, Val datta, Bardarson, Schafer, Thomas, Amberg, Shafer
None
None
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Council Agenda Statement
Meeting Date: June 11, 2007
Through: Philip Oates, City Manager
From: Kris Erchinger, Finance Director
Agenda Item: Lease of Office Space for Engineering
Department, Project Manager/ Building
Department and Community Development
BACKGROUND & JUSTIFICATION:
The City of Seward issued an RFP to lease office space for the Engineering Department, Project
Manager/ Building Department and Community Development Department between 1100 and 3100
square feet, excluding restrooms. The RFP specified that at least 1700 square feet of office space to
City Hall is important and that cost was only one factor that would be considered.
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Two responses were received: (1) Petro Plaza (234 4 Avenue), with an initial lease price of $2.05
per square foot for a total of 1706 square feet, including utilities, heated sidewalks, two parking
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spaces, and back-up electrical power; (2) Resurrection Body Works (231 5 Avenue) with an initial
lease price of $2.10 per square foot for a total of 2800 square feet.
The city has leased the Petro Plaza since June 1, 2003. If the City remains in the Petro Plaza, they
will not incur additional costs associated with moving, installations of telephone and communication
lines, signage, and other such expenses.
The proposals were evaluated by a committee composed of Kris Erchinger, Tim Barnum, Tom
Shepard and Kirsten Vesel. The Petro Plaza was deemed to most closely meet the needs of the
Departments at the lowest over-all cost, including utilities and is therefore the recommended space for
occupancy. Administration recommends a three year lease term with two one-year options to extend.
Petro Marine Services has granted a temporary extension until the lease is presented to the City
Council.
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.
FISCAL NOTE:
The previous rate for the city leasing the Petro Plaza was for $1.86 per square foot for a total of 1706
square feet. The new lease rate will increase by $.20 per square foot. The annual lease would be
$41,967.60 versus the current rate of $37,873.20 for an increase of $4094.40.
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Approved by Finance Department
RECOMMENDATION:
Council approves Resolution 2007- _____ authorizing the City Manager to enter into a lease
agreement with Dale and Carol Lindsey and the City of Seward in substantial for as attached hereto
and the city manager is authorized to sign the Lease Agreement in substantial form on behalf of the
City. Any option to extend may be exercised by the city manager without further approval and
provided that the funds are annually appropriated.