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HomeMy WebLinkAboutSummary FormGrants 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 Page 1 of 2 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. Page 2 of 2