HomeMy WebLinkAboutSummary FormM ENDA ITEM SUMMARY FORM
FILE ID: 1-2' 00 ;5.'
Date: 11 /26/2007
Commission Meeting Date: 3/08/2007
Type: E Resolution ❑ Ordinance
❑ Other . .
Requesting Department; EgillioFacjlities Nui 26 ISM
District Impacted: n/a
Emergency Ordinance ❑ Discussion Item
Subject: Lease A rp, eernent with SS,ptt R. McNay and Betty M. ycNary, owners Of 1150 SW 22"
reet, to rept office space for use by (Urban Search and Rescue (City of MitIrni as Sponsoring Agony).
Purpose of Item:
A Resolution of the Mianii City Commission, with attachments, authorizingtheCity Manager to
execute a Lease Agreement ("Lcasae."), iri substantially the attached form, belween the City of Miami
("City") and Scott R. McNary and Betty M. McNary, ("Lessor'), for the use of 3,9,00 square, feet of
office spud (the "Premises") located at 1 150 SW 22nd Street in Miami -Dade County, Florida; said
I.eaase to be for initial. term of two years with an initial rental rate of $7,800 monthly ($93,600
annually) for the first year, with five (5) additional one (1) year options to renew, subject to budget
feasibility, with rent increases occurring annually oiler the first year to be capped at thc lower of CPI
or 3%; allocating funds therefore from Account No. I8-180003.04.1292.544000.184010 (1Nlame!
I712MACUSAR 2006); with other terms and conditions as more particularly set forth iri thc Lease;
further authorizing the City Manager to approve execute non-suhstanti VL' arrlenclnlVnts 'rich
agreement as needled.
Background Information: Sew attached
IVA
pudget 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:
iSpr'ciul Revenue Account No: . 18-160003.04.1292 5440(30 184010 [FE MA! USAIZ 2000]
C!P Project No:
No Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
cIP
Erwimp or rccairin,: ci1piIni funds
(rants ._ ..—..._
$48 60Q for remainder of f Y 2007
Final AQprovals
t:si A J PA')i
PIA Budge, . ,.
1�.�P...._._.._.__.. .Risk Manaageanent
Purcha 'ng _ KIA...----..._.._._ Dept. Director
Chief City Manager
Paine 1 of 2
aESdNIW AlIZ:w0.4.J SS:a LO WC-L2-83.d
Subject: Lease Agreement with Scott R. and Betty M. McNary, owners of 1 150 SW 22" Street, to rent
office space -for use by Urban Search and Rescue (City of Miami as Sponsoring Agency).
Background Information:
This Resolution will authorize the City Manager to enter into a two-year lease between the City of
Miami and Scott and Betty McNary, as owners, for office space for use by USAR — Urban Search and
Rescue.
USAR (Urban Search and Rescue) is a Federal Task Force ("Task Force") comprised of firefighters
from across the South Florida region. The Task Force is one of 28 identical task force teams in the
United States. These teams provide search and rescue to national disasters. Each team is comprised of
210 personnel. The City of Miami Fire Department (CMFD) is the Sponsoring Agency for the Task
Force. As the Sponsoring Agency, the CMFD is responsible for the operational readiness, command
and control, and administrative support required for the daily operation and emergency deployment of
this team.
The Task Force selected for its office a one-story building in close proximity to its warehouse containing
supporting equipment, located at 7`h Street and I lth Avenue Northwest. The office, located at 1150 SW
22"aStreet offers all of the necessary elements required to support the unique operational needs of the
Task Force, including various security requirements imposed by the U.S. Department of Homeland
Security. The office space is approximately 3,900 square feet, contains a kitchen, 6 assigned parking
spaces, and will be provided to USAR fully furnished. In addition to the two-year term, the lease
provides for five (5) one-year renewal options. The first year's rent will be $24.00 per square foot
($7,800 per month) and will be gross (landlord pays for taxes, insurance, electric, water, and janitorial).
Rent increases will occur annually, beginning in the second year, and be capped at the lower of CP1 or
3 %.
Funding: Funding for this space is completely allocated by the U.S. Department of Homeland Security
through the Urban Search and Rescue operational grants. These grants are annually recurring and
designed to support the administrative and operational needs of the program. There are no general funds
committed from the City of Miami or its Fire Department. This years allocation of $810,000 will safely
cover the first two-year cornmitment of this current lease.
Comparables: The Department of Public Facilities undertook a survey of comparable office spaces in
the vicinity of the selected office and found that the subject property's price of $24.00 was very
competitive given the office space's quality, convenience, and location. The six (6) parking spaces
further made this office relatively valuable. Furthermore, the industry standard is to require a five (5)
year minimum term. The subject property is allowing a two year term, with five (5) one year options to
renew.
In sum, of the other available properties surveyed in the area, this was selected based in its relative
affordability, its appropriate size, and its proximity to USAR's equipment warehouse located at 1151
NW 7`h Street, Miami, Florida. To summarize, comparative rental rates for office in the area were found
to be between $23 and $29 per square foot. The price of $24,00 per square for the selected property is
very reasonable, especially with increases being locked in at CPI or 3°%o annually.
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