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Date: 8/8/2011
AGENDA ITEM SUMMARY FORM
FILE ID: I 1—DOr1 3( 9
Requesting Department: Public Facilities/ Asset Management
Lf
Commission Meeting Date: 9X 2011 District Impacted: N/A
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
Law Department
Matter ID No.
11-1045
Subject: Second Amendment to Lease Agreement with AVS International Group, Inc. to rent warehouse space
for use by the City of Miami's ("City") Police Department
Purpose of Item:
A Resolution of the City of Miami Commission, with attachments, authorizing the City Manager to execute a
Second Amendment to Lease agreement (the "Amendment"), in substantially the attached form, between the
City of Miami ("City") and AVS International Group, Inc. ("Lessor"), for the City's use of approximately 2,000
square feet of space located in Miami, Florida (the "Premises"), for the purpose of providing warehouse space
for the Special Investigations Section of the Miami Police Department with a monthly fee of $1,666.66 ($10.00
per square foot); allocating funds from the Miami Police Department's budget, with terms and conditions as
more specifically set forth in said lease.
Background Information:
See Supplemental Sheet.
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: 00001.190001.544000.0000.00000
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact: $20,000
CIP N/A
If using or receiving capital funds
N/A
Final Approvals
(SIGN AND DATE)
Budget
Risk Management
Dept. Direct
07 City Manager
Purchasing N A
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Subject: Second Amendment to Lease Agreement with AVS International Group, Inc. to rent warehouse space
for use by the City of Miami's ("City") Police Department
Background Information:
On December 14, 2006, the City Commission adopted Resolution R-06-0700, which authorized the City
Manager to execute a lease agreement (the "Lease") with AVS International, Inc. (the "Lessor") for
approximately 2,000 square feet of space (the "Premises"), to be used as warehouse space for the Special
Investigations Section of the Miami Police Department, located in Miami, Florida. The Lease included an
initial term of one year, with an option to renew for five (5) successive terms of one (1) year each, with the
first two options (2008, 2009) locked in at the same rental rate ($11.00 per square foot) and the last three
options (2010, 2011, 2012) to be mutually agreed upon and subject to City Commission approval. The Lease
between the City and the Lessor was effective January 1, 2007.
On February 11, 2010, the City Commission adopted Resolution R-10-0052 authorizing the City Manager to
execute Amendment No. 1 to the Lease in which Lessor and Lessee exercised the third one year renewal
option. The mutually agreed upon rate was $11.00 per square foot.
The Miami Police Department would like to continue occupancy of the Premises and would like to exercise
their fourth, one.year renewal option. The City has negotiated the rental rate with the Lessor. The Lessor has
agreed to reduce the rental rate from $11.00 to $10.00 per square foot for the 2011 term. The rent was
negotiated based upon comparable properties in the area of similar size and condition.
Fiscal Year 2011 funding for this space was allocated from the Miami Police Department's account designated
for rental payments. The subject property's price of $10.00 per square foot is reasonable given the Miami
Police Department's needs and the warehouse space location.
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