COUNCIL COMMUNICATION

DATE:

09-16-02

 

 

SUBJECT: FINAL READING OF ORDINANCE 2002-O-242 

AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AGREEMENT BETWEEN LAREDO METRO, INC., AND THE CITY OF LAREDO DEPARTMENT OF COMMUNITY DEVELOPMENT FOR THE LEASE OF 6,628 SQ. FT. OF BUILDING SPACE AT THE LAREDO TRANSIT CENTER LOCATED AT 1301 FARRAGUT ) SECOND AND THIRD FLOORS (EAST) FOR  A MONTHLY SUM OF $4,088.15.  THE MONTHLY BASE RATE WILL BE AMENDED ANNUALLY BY THE CPI.

INITIATED BY:

Larry Dovalina, City Manager

 

 

STAFF SOURCE:

Jose A. Guerra, Chief Executive Officer

 

PREVIOUS COUNCIL ACTION:

 

Previous contract was approved with Ordinance No. 98-O-239 on September 21, 1998 for a two year period commencing on February 1, 1998; and subsequently amended and extended to February , 2002.

 

BACKGROUND:              

 

The lease agreement by and between the Laredo Metro, Inc. and the City of Laredo Department of Community Development will be for the term of two years commencing on February 1,  2002. 

 

 

 

 

FINANCIAL IMPACT:

 

  • Monthly rent shall be based on 6,628 square feet at 60 cents per square foot plus an annual CPI.  Currently the CPI for Southern Urban All Items for 2001 is 2.8%. (60 cents x 1.028=.6168 per sq. ft. - See attached).
  • The utilities will be prorated.  Community Development will pay 20% of the electrical bill and 20% of the water utility bill.
  • Rental for parking of employee vehicles will be paid monthly at the rate set for City of Council.
  • Lessee shall pay 50% of the telephone system equipment maintenance agreement.
  • Monthly rent and service fee of $85.00 per month for a trash compactor 

 

 

                                                                              

LMI BOARD RECOMMENDATION: 

 

Board recommended introduction of this Ordinance at its August 15, 2002 meeting.

 

STAFF RECOMMENDATION: 

 

Approval of lease.

 

ORDINANCE # 2002-O-242

 

AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AGREEMENT BETWEEN LAREDO METRO, INC., AND THE CITY OF LAREDO DEPARTMENT OF COMMUITY DEVELOPMENT FOR THE LEASE OF 6,628 SQ. FT. OF BUILDING SPACE AT THE LAREDO TRANSIT CENTER LOCATED AT 1301 FARRAGUT SECOND AND THIRD FLOORS (EAST) FOR  A MONTHLY RENT OF $4,088.15.  THE MONTHLY BASE RATE WILL BE AMENDED ANNUALLY BY THE CPI.

 

 

WHEREAS, the City of Laredo Department of Community Development, hereinafter called “Lessee”, covenants and agrees to pay Laredo Metro, Inc, hereinafter called “Lessor”, as rent for the said premises in the sum of sixty cents (.60) per square foot monthly, plus the annual CPI of  2.8% equals to .6168 cents per square foot totaling $4,088.15; and

 

WHEREAS, the utilities will be prorated between Lessee and Lessor in which the Lessee will pay 20% of the electrical bill and 20% of the water utility bill; and

 

WHEREAS, the rental fee for parking of employee vehicles will be paid monthly at the rate set for City of Laredo employees by City  Council which is $25.00 per month per vehicle, or as set by City Council, and will be addressed by a separate agreement; and

 

WHEREAS, the Lessee shall pay 50% of the telephone system equipment maintenance agreement; and .

 

WHEREAS, THE Lessee shall pay a monthly rental and service fee for a trash compactor in the amount of $85.00 per month.

 

NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO, TEXAS:

 

Section 1.  That it hereby authorizes the City Manager to execute a lease agreement, containing the principal’s provisions enumerated below, by and between the Laredo Metro, Inc. as “Lessor”, and the City of Laredo Department of Community Development, as “Lessee”, for lease building space containing 6,628 square feet at the Laredo Intermodal Transit Center located at 1301 Farragut St (East).  The contract term is for two year beginning commencing on February 2002.             

 

  1. Monthly rent shall be based on 6,628 square feet at 60 cents per square foot plus an annual CPI.  Currently the CPI for Southern Urban All Items for 2001is 2.8%.  (See attached).
  2. The utilities will be prorated.  Community Development will pay 20% of the electrical bill and 20% of the water utility bill.
  3. Rental for parking of employee vehicles will be paid monthly at the rate set for City of Council, and will be addressed by separate agreement.
  4. Lessee shall pay 50% of the telephone system equipment maintenance agreement.
  5. Monthly rent and service fee of $85.00 per month for a trash compactor 

 

Section 2.  This ordinance shall become effective upon the passage hereof.

 

 

 

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE ___________  DAY OF ___________________2002.

 

 

 

                                                                                                _____________________________                               ELIZABETH G. FLORES

                                                                                                MAYOR

 

 

 

ATTEST:

 

 

________________________________ 

GUSTAVO GUEVARA, JR.

CITY SECRETARY

 

 

 

APPROVED AS TO FORM:

 

 

 

__________________________________

JAIME FLORES

CITY ATTORNEY