Title
Authorizing the City Manager to execute a five-year lease with Travis County ESD#2 for the first floor of the Conference and Education Center located at 201B East Pecan Street.
Summary
The proposed term of the lease of the space is five years, with five one-year options. A copy of the proposed configuration to accommodate the Building Inspection, Engineering and Planning departments is attached. Together, the departments at this location will be referred to as the Development Services Center.
Status
The City Manager provided a letter of intent to Travis County ESD#2 on September 1. The City Attorney has reviewed the proposed lease and recommends to remove Article 12 and add the following provisions:
Section 15.06 Texas Family Code Child Support Certification. LANDLORD certifies that no member of the Landlord’s Board is delinquent in child support obligations and therefore LANDLORD is not ineligible to receive the award of or payments under the Agreement and acknowledges that the Agreement may be terminated and payment may be withheld if this certification is inaccurate.
Section 15.07 Funding. If funding for the entire Agreement is not appropriated at the time this Agreement is entered into, City retains the right to terminate this Agreement at the expiration of each of City’s budget periods, and any subsequent contract period is subject to and contingent upon such appropriation.
Section 15.08 Sovereign Immunity. Notwithstanding, anything to the contrary in this agreement the Tenant does not waive any rights in regards to its sovereign immunity under the laws of the State of Texas.
Section 15.09 Termination Without Cause. Notwithstanding anything to the contrary in this agreement the Tenant may terminate this agreement at anytime without cause or penalty if the Tenant provides written notice to the Landlord at least 90 days prior to the termination date.
Prior City Council Action
On August 23, 2011 the City Council authorized the City Manager to provide a letter of intent regarding this matter.
Deadline for City Council Action
Staff requests action on September 13 to secure the lease starting October 1.
Projected Future City Council Action
No additional action is anticipated.
Fiscal Impact
Funds to cover the renovation and furnishing of the space are from FY 2011, not to exceed $187,000. Additional costs will be incurred to establish a fiber optic line or comparable connection from City Hall to the facility. The estimated annual fiscal impact directly tied to the lease is approximately $141,000 per year for rent and utilities, or $47,000 each for Building, Planning, and Engineering per year.
Staff Recommendation
Staff recommends approval.
Drafter
Trey Fletcher, AICP, Managing Director of Operations