COUNCIL COMMUNICATION

DATE: 3-3-03	SUBJECT: FINAL READING OF ORDINANCE NO. 2003-O-057 Authorizing the City Manager to execute a lease with Texas Migrant Council for approximately 1,600 square feet constituting Suite No. 8 of Building No. 134 located at 4603 Maher Avenue at the Laredo International Airport. Lease term is for two (2) years commencing on November 1, 2002, and ending on October 31, 2004; providing for an effective date.
INITIATED BY: Cynthia Collazo Assistant City Manager		STAFF SOURCE: Jose L. Flores Airport Director
PREVIOUS COUNCIL ACTION: On February 18, 2003, Ordinance was introduced by City Council, and Staff was instructed to proceed.
BACKGROUND: Texas Migrant Council has been a tenant in good standing since 1996, and they wish to continuing leasing Suite No. 8 within Bldg. #134. The premises are presently being used as a resource room for it’s child day care service program. Due to budgetary constraints imposed on the agency this year, CCMS has expressed a concern with the proposed rental increases on the property and proposes to continue leasing the existing space at a revised monthly rental rate of $1.16 per square foot as opposed to the Airport’s proposed rate of $1.30. At present, approximately 1,600 square feet of office space is available within the building, should CCMS vacate the premises due to their inability to meet their rental obligations and locate off-Airport, this in essence would increase the available rental area within this building to approximately 70% of the total area. Lessee is responsible for providing Public Liability Insurance in minimum amounts of $500,000 per incident and $100,000 property damage per incident naming the City of Laredo as co-insured.
FINANCIAL IMPACT: Building Rent Revenues Account No. 242-0000-361-1060 Previous Monthly Rent: $1,800.00 Proposed Monthly Rent: $1,850.00 Percentage Increase: 2.777%
COMMITTEE RECOMMENDATION: The Airport Advisory Committee recommends approval.			STAFF RECOMMENDATION: That the City Manager be authorized to execute a lease with Texas Migrant Council.

ORDINANCE NO. 2003-O-057

AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE WITH TEXAS MIGRANT COUNCIL FOR APPROXIMATELY 1,600 SQUARE FEET CONSTITUTING SUITE NO. 8 OF BUILDING NO. 134 LOCATED AT 4603 MAHER AVENUE AT THE LAREDO INTERNATIONAL AIRPORT;

1. LEASE TERM IS FOR TWO (2) YEARS COMMENCING ON NOVEMBER 1, 2002, AND ENDING ON OCTOBER 31, 2004;

2. MONTHLY RENT SHALL BE $1,850.00 AND WILL BE ADJUSTED ANNUALLY ACCORDING TO CHANGES IN THE CONSUMER PRICE INDEX; PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, the Airport Director recommends that the City Council approve the proposed lease between the City of Laredo, as LESSOR, and Texas Migrant Council, as LESSEE, for approximately 1,600 square feet constituting Suite No. 8 of Building No. 134 located at 4603 Maher Avenue at the Laredo International Airport, as a contract and in furtherance of the development of the Laredo International Airport and as a support to the maintenance and operation of the Laredo International Airport.

WHEREAS, the Airport Advisory Committee finds that said lease and contract are in the best interest of the Airport and recommends that the City Council approve the proposed lease; and

WHEREAS, the City Council of the City of Laredo having heard the recommendations of the Airport Director and of the Airport Advisory Committee agrees with same.

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

Section 1: The City Manager be hereby authorized to execute a lease with Texas Migrant Council for approximately 1,600 square feet constituting Suite No. 8 of Building No. 134 located at 4603 Maher Avenue at the Laredo International Airport, a copy of which lease is attached hereto as Exhibit A, and incorporated herein as if set out at length for all intents and purposes.

Section 2: This Ordinance shall become effective upon passage hereof.

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE ____ DAY OF ________________, 2003.

_________________________

ELIZABETH G. FLORES

MAYOR

ATTEST:

_________________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

APPROVED AS TO FORM:

JAIME L. FLORES

CITY ATTORNEY

BY:_______________________

VALERIA M. ACEVEDO

ASSISTANT CITY ATTORNEY