Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE WITH JACKLIN PROPERTIES, LLC FOR OFFICE SPACE AT 115 EXECUTIVE PARKWAY, HUDSON, OHIO; AND DECLARING AN EMERGENCY.
Executive Summary: This lease of 11,248 Sq. Ft. at 115 Executive Parkway (Westpark) would consolidate the City Manager's Office, Clerk of Council, Finance, Information Systems, Community Development, Economic Development and Engineering Departments into a single location.
Body
Legislative History
None.
Purpose & Explanation
As included in the recently-adopted Strategic Plan, Goal 3 is to improve the efficiency, effectiveness, quality and availability of services. One of the associated topics is a need for improved government facilities (Topic Area 3.2 Improved Government Facilities). To address the need for improved facilities and efficiency, I am recommending the lease of 11,248 Sq. Ft. at 115 Executive Parkway (Westpark) for the consolidation of City Manager's Office, Clerk of Council, Finance, Information Systems, Community Development, Economic Development and Engineering Departments.
The lease payments would essentially be equal to our current lease payments as there would be a savings from the relocation of Community Development, IS/GIS, Engineering and Economic Development, but the savings would be offset by the relocation of the City Manager's Office and Finance Department. Additionally, there would be first-year costs of approximately $20-50,000 for moving, minor building renovations and FFE (fixtures, furnishings and equipment). Consequently, the first year cost could be up to $35,000 more, while years two and three would be approximately $3,000-4,000 more, not considering other savings that will occur. However, this would provide the City with a number of benefits that can be achieved through a combination of administrative staff. For example, efficiencies can be gained through:
· the consolidation of City Manager's direct reports (except safety forces) into one location;
· the consolidation of all of Finance Director's direct reports into one location (IS/GIS);
· the combination of Engineering and Community Development physically, improving coordination between departments;
· the combination of Community Development and Economic Development physically, improving coordination between departments. This would also provide a better opportunity to study the merger of the departments as included in the Strategic Plan (Topic Area 2.3 Regional Perception of the Community);
· improved management of communications as the Communications Manager is more efficiently able to interact with all of the seven departments and divisions mentioned and manage their communications;
· reduction of personnel. I am confident that there will be opportunities to reduce staff with a consolidation, primarily through a reduction of administrative support personnel. Current vacancies alone could generate savings up to approximately $100,000 annually, as there are currently two full-time positions vacant and two part-time positions vacant that can be reorganized to provide savings;
· consolidation of copiers, office equipment, supplies, etc.; and
· other efficiencies that will develop through colocation.
Town Hall is an important asset for the community and can continue serving the community for decades to come. City Council Meetings and other public meetings would still be held at Town Hall. The former Finance Department offices could be converted into a conference room, shared office space for elected officials, copy room and storage room. Also, the City could begin conversations with other organizations for use of the first floor.
Timing Considerations
The proposed lease includes an incentive of $1,500/month lease through July 31, 2013, which would begin upon move-in. Consequently, consideration of emergency legislation is requested in order to take advantage of the incentive offered. Staff anticipates a move-in date of March 1, 2013, if approved.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
The aforementioned initiatives address the Strategic Plan goal of improving the efficiency, effectiveness, quality and availability of services through improved facilities while maintaining public meetings at Town Hall. The current situation with multiple facilities in multiple locations is not conducive to that goal. The City needs a facility that can support and improve the efficient, effective and quality services that Hudson expects. Staff recommends approval of the new lease with consideration of emergency legislation to take advantage of the incentive offered.
Submitted by,
Anthony J. Bales, City Manager