COUNCIL COMMUNICATION

DATE:

 

3-3-03

 

 

 

SUBJECT:   FINAL READING OF ORDINANCE NO. 2003-O-058

Authorizing the City Manager to execute a lease with Texas Migrant Council (CCMS) for approximately 5,732 square feet of office space constituting Suites 1, 3, 4, and 5 of Building No. 134 located at 4603 Maher Avenue.  Lease term is for two (2) years commencing on December 1, 2002, and ending on November 30, 2004.  Monthly rent shall be $5,732.00 and will be adjusted annually according to changes in the Consumer Price Index; providing for an effective date.

 

 

INITIATED BY:  Cynthia Collazo

                           Assistant City Manager

 

 

STAFF SOURCE:  Jose L. Flores

                               Airport Director

 

PREVIOUS COUNCIL ACTION:   On February 18, 2003, Ordinance was introduced by City Council, and Staff was instructed to proceed.

 

 

BACKGROUND:            

 

Texas Migrant Council has been a tenant in good standing since 1977.  Lease premises are used to house its Child Care Management Services. At present, CCMS is paying a monthly rental rate of $.96 per square foot of leased area and occupies approximately 30% of Building  # 134.

 

Due to budgetary constraints imposed on the agency this year, CCMS has expressed a concern with the proposed rental increases on the property and proposes to continue leasing the existing space at a revised monthly rental rate of $1.00 per square foot as opposed to the Airport’s proposed rate of $1.30.

 

At present, approximately 1,600 square feet of office space is available within the building, should CCMS vacate the premises due to their inability to meet their rental obligations and locate off- Airport, this in essence would increase the available rental area within this building to approximately  70% of the total area.

   

Lessee is responsible for providing public liability insurance in minimum amounts of $500,000 per incident and $100,000 for property damage per accident, naming Lessor as co-insured.

 

 

FINANCIAL IMPACT:            Building Rent Revenues

                                                Account No. 242-0000-361-1060 

                                                Previous Monthly Rent:  $5,495.09

                                                Proposed  Monthly Rent:  $5,732.00  

                                                Percentage Increase:  4.311%

 

                                                                              

COMMITTEE RECOMMENDATION: The Airport Advisory Committee recommends approval.

 

STAFF RECOMMENDATION:  That the City Manager be authorized to execute a lease with Texas Migrant Council.

 

 

 

 

 

ORDINANCE NO. 2003-O-058

 

AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE WITH TEXAS MIGRANT COUNCIL (CCMS) FOR APPROXIMATELY 5,732 SQUARE FEET OF OFFICE SPACE CONSTITUTING SUITES 1, 3, 4, AND 5 OF BUILDING NO. 134 LOCATED AT 4603 MAHER AVENUE AT THE LAREDO INTERNATIONAL AIRPORT;

1.  LEASE TERM IS FOR TWO (2) YEARS COMMENCING ON DECEMBER 1, 2002, AND ENDING ON NOVEMBER 30, 2004;

2.  MONTHLY RENT SHALL BE $5,732.00 AND WILL BE ADJUSTED ANNUALLY ACCORDING TO CHANGES IN THE CONSUMER PRICE INDEX; PROVIDING FOR AN EFFECTIVE DATE.

 

            WHEREAS, the Airport Director  recommends that the City Council approve the proposed lease between the City of Laredo, as LESSOR, and Texas Migrant Council (CCMS), as LESSEE, for approximately 5,732 square feet constituting Suites No. 1, 3, 4 and 5 of Building No. 134 located at 4603 Maher Avenue at the Laredo International Airport, as a contract and in furtherance of the development of the Laredo International Airport and as a support to the maintenance and operation of the Laredo International Airport.

 

            WHEREAS, the Airport Advisory Committee finds that said lease and contract are in the best interest of the Airport and recommends that the City Council approve the proposed lease; and

 

            WHEREAS, the City Council of the City of Laredo having heard the recommendations of the Airport Director and of the Airport Advisory Committee agrees with same.

 

            NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

 

Section 1:         The City Manager be hereby authorized to execute a lease with Texas Migrant Council (CCMS) for approximately 5,732  square feet constituting Suites No. 1, 3, 4, and 5 of Building No. 134 located at 4603 Maher Avenue at the Laredo International Airport, a copy of which lease is attached hereto as Exhibit A, and incorporated herein as if set out at length for all intents and purposes.

 

Section 2:         This Ordinance shall become effective upon passage hereof.

 

 

AN ORDINANCE AUTHORIZING A LEASE BETWEEN THE CITY OF LAREDO AND TEXAS MIGRANT COUNCIL-CCMS (SUITES NO. 1, 3,4, AND 5 OF BUILDING NO. 134)

 

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE ____ DAY OF ________________, 2003.

 

 

 

 

_______________________

ELIZABETH G. FLORES

MAYOR

 

 

ATTEST:

 

_______________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

 

APPROVED AS TO FORM:

JAIME L. FLORES

CITY ATTORNEY

 

 

BY:__________________________

VALERIA M. ACEVEDO

ASSISTANT CITY ATTORNEY