Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE ADDENDA TO LEASES FOR SPACE AT 1769 AND 1566 GEORGETOWN ROAD FOR USE BY THE PUBLIC WORKS DEPARTMENT THROUGH JANUARY 1, 2027; AND DECLARING AN EMERGENCY.
Brief Description: The Department of Public Works currently leases space at 1769 and 1566 Georgetown Road, Hudson, OH for use as administrative office and operational space. The annual cost of these two leased spaces is $269,654.34 currently. It is necessary to continue to lease these spaces to ensure the minimal office and operational space required to carry out the responsibilities and services of the Public Works Department.
Body
Legislative History
Resolution No. 15-156, passed October 20, 2015.
Resolution No. 18-178, passed December 18, 2018.
Purpose & Explanation
The City currently leases space a 1769 and 1566 Georgetown Road. for the divisions of Service which includes streets, storm water, pipe maintenance & inspection, water distribution, administrative support, fleet maintenance and the sign shop.
Draft copies of the three (3) lease addenda are attached. (The original lease would be on file with the Clerk’s office). We have maintained our lease space with three separate leases, as it is more efficient to divide and track the lease costs per budget area. The respective leased areas total square footage of approximately 36,000 sq. ft. will remain unchanged.
The last 4-year lease term 2019-2022 there was a 0% increase over 4 years. Looking at that term and the new lease terms represents an annual increase of 1.875%. annually over 8 years.
The lease term option offered is as follows:
4-Year Lease Term
6% 1st year - $285,833.60 (Current lease amount - $269,654.34)
3% 2nd year - $294,408.60
3% 3rd year - $303,240.87
3% 4th year - $312,338.10
If the City chooses to stay in the lease for only 3 years it may cancel the 4th year with 12 months written notice and 80% of the amount due for the remaining months.
Staff recommends the four (4) year lease term which will commence on January 1, 2023 and expire on January 1, 2027.
Timing Considerations
As the current lease term expires on January 1, 2023, staff is requesting emergency language, so that this Resolution will be effective upon passage.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends that City Council approve this legislation authorizing the City Manager to enter into lease agreements with Zambrouck Development Co., PO Box 2262 Hudson, OH 44236 commencing on January 1, 2023, and expiring on January 1, 2027, for the annual lease amounts as per the Agreements submitted in exhibit A.
Submitted by,
Thomas Sheridan, City Manager
Frank J. Comeriato, Jr., Assistant City Manager - Operations
Eric Hutchinson, Assistant Public Works Director-Services