HomeMy WebLinkAboutSummary FormDate: 8/9/2006
AGENDA ITEM SUMMARY FORM
FILE ID: 6' U 150 5
2006 fiUG 1? ON 10 25
Requesting Department: Public Facilities
Commission Meeting Date: 9/12/2006 District Impacted: n/a
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: Amendment to existing Lease agreement with Centennial Express, Inc. to exercise option
to renew renting of warehouse for City of Miami Police Department use.
Purpose of Item:
A Resolution of the Miami City Commission, with attachments, authorizing the City Manager to
execute a First Amendment to Lease (the "Amendment"), in substantially the attached form, between
the City of Miami ("Lessee") and Centennial Express, Inc. (the "Lessor"), for the City's use of
approximately 1,326 square feet of warehouse/office space (the "Premises") located at 1251 NW 36
Street, Miami, Florida; said lease will provide for: 1) exercise of the City's first of two, two (2) year
options to renew; and 2) Lessee shall pay rent at a rate $1,523.80 per month ($13.79 per square foot
or $18,285.54 for the year); allocating funds therefore from Account Code No. 001000.290201.6.610;
with other terms and conditions as more particularly set forth in the lease; further authorizirig_the_City
Manager to approve and execute non -substantive amendments to such agreement as needed.
Si.19,7e,cT `r Tim AVi�N.A�1�.+ d1F Fto1p5 p110 t3uDGEt APPRovoL. Ifs*
Background Information: See attached
Budget Impact Analysis,
No Is this item related to revenue?
Yes Is this item an expenditure? If so, please identify funding source below.
General Account No: 001000.290201.6.610
Special Revenue Account No:
CIF Project No:
No Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
CIP
$36,571.08 (a two year term at $18,285.54 per year)
!fusing or receiving•capitat funds
Grants
N/A
Final Approvals
(SIGN AND DATE)
Budget
Risk Management
Purchasing�/� N/,� Dept. Director
Chief ° City Manager
Pace 1 of 2
Subject: Amendment to existing Lease agreement with Centennial Express, Inc. to exercise option
to renew renting of warehouse for City of Miami Police Department use
Background Information:
This is a renewal of a lease between the City of Miami and Centennial Express, Inc. for warehouse space
for Police use. The landlord initially allowed the Police Department to occupy the warehouse for one
(1) year with no rent charged. The parties subsequently negotiated a lease agreement which did not take
effect until August 30, 2005, resulting in the Police not paying rent for a two (2) year period. The
original lease, which was approved by the City Commission on July 7, 2005, pursuant to Resolution 05-
0417, had a one year term and two (2) two-year options at a price to be negotiated.
With this Resolution, the City of Miami is now exercising its first of two options to renew and will enter
into a two year lease at a price of $13.79 per square foot over the two years. Funds for this lease will be
paid from General Funds. The second year of the option period is subject to the availability of funds as
the original lease provides the City with early termination rights of its lease obligations upon advance
notice to the Lessor.
The Department of Public Facilities undertook a survey of available spaces in the vicinity and found that
the subject property's price of $13.79 per square foot is very competitive given the quality of the space
rented, its location, and its high level of security. Indeed, warehouseswhich fit the needs of Internal
Affairs in this area was non-existent. The available warehouses surveyed in the area ranged from about
$13 to $15 per square foot, but they had minimum rental areas which were unnecessarily large, resulting
in higher annual costs, and they lack desired features such as secured fencing, bay doors for storing
vehicles, and proximity to the main office. The key advantage of the subject property is its close
proximity to Internal Affairs main office. Another key advantage is the secured perimeter fencing since
highly technical equipment is stored at the site.
In addition to renewing the original lease, the Amendment also serves to provide a formula for rate
increases of the lesser of 6% bi-annually or CPI. This is an important provision in Miami's tight
warehouse lease market.
Pave 2 of 2