Explanation
BACKGROUND: This ordinance authorizes the expenditure of $1,134,000.00, or so much thereof that may be necessary, by the Department of Finance and Management, Real Estate Management Office, for payment of rent for five (5) existing lease agreements for office and warehouse space used by the Department of Public Safety, the lease of the Municipal Court, and an internal Memorandum of Understanding (MOU) with the Department of Public Utilities for office space occupied at Fairwood Avenue by the Departments of Public Safety and Recreation and Parks.
The expenditure authorized by this ordinance is for payment of rent for five (5) leases containing automatic renewal provisions that are subject to the appropriation of rental funds by City Council and certification of funds availability by the City Auditor defined as follows:
the lease of the Municipal Court ($25,000); the eleventh year of a fifteen (15) year lease with Gideon Development Partners LLC authorized by City Council Ordinance 2212-2004 and assigned to King Lincoln Gateway LLC for the term 4/1/2016 to 3/31/2017 ($465,000.00);
the eleventh year of a fifteen (15) year lease with King Lincoln Gateway LLC authorized by City Council Ordinance 0690-2006 for the term 4/1/2016 to 3/31/2017 ($130,000.00);
the sixth year of six (6) one-year renewal terms with Lessor, LLC authorized by City Council Ordinance 0372-2010 for the term 8/1/2016 to 7/31/2017 ($344,000.00);
the third of four (4) one year lease renewals with The Center For Child and Family Advocacy at Nationwide Children's Hospital, dba The Center for Family Safety and Healing, authorized by City Council Ordinance 2674-2013 for the term 3/1/2016 to 2/28/2017 ($40,000.00);
This ordinance further authorizes the payment of rent for an internal MOU Agreement with the Department of Public Utilities for the space occupied by the Departments of Public Safety and Recreation and Parks at Fairwood Avenue ($130,000.00).
Fiscal Impact: Sufficient funding for this ordinance is budgeted in the Director's Office division, Real Estate Management Office, within the Finance and Management 2016 general fund budget, as approved by Columbus City Council, for the payment of rent for the five (5) leases and the MOU Agreement.
Emergency Action: Emergency action is requested to allow for the timely payment of rents that are due coinciding with the renewal date for each of the four leases.
Title
To authorize the Director of the Department of Finance and Management to expend $1,134,000.00, or so much thereof that may be necessary from the General Fund, for the payment of rent for five (5) lease agreements for office and warehouse space used by the Department of Public Safety and one MOU with the Department of Public Utilities; and to declare an emergency. ($1,134,000.00)
Body
WHEREAS, the Finance and Management Department, Real Estate Management Office, is responsible for leasing commercial properties for use in city operations; and
WHEREAS, City Council previously authorized five lease agreements with automatic renewal terms each renewal term being subject to the appropriation of rental funds and certification of funds availability by the City Auditor; and
WHEREAS, the City, by an internal MOU Agreement, pays the Department of Public Utilities for use of space located at Fairwood Avenue occupied by the Departments of Public Safety and Recreation and Parks; and
WHEREAS, funding for the payment of rents for these leases and the MOU are provided for within the approved 2016 general fund budget for the Real Estate Management Office; and
WHEREAS, it is necessary to expend funds for the eleventh year of a fifteen (15) year lease with Gideon Development Partners LLC authorized by City Council Ordinance 2212-2004 and assigned to King Lincoln Gateway LLC; the eleventh year of a fifteen (15) year lease with King Lincoln Gateway LLC authorized by City Council Ordinance 0690-2006; the sixth of six (6) one-year renewal terms with Lessor, LLC authorized by City Council Ordinance 0372-2010; and the third of four (4) one-year renewal terms with The Center For Child and Family Advocacy at Nationwide Children's Hospital authorized by City Council Ordinance 2674-2013; and
WHEREAS, an emergency exists in the usual daily operations of the Finance and Management Department, Real Estate Management Office, in that it is immediately necessary to authorize the Director of Finance and Management to expend funds for the payment of rent for the 2016-2017 renewal term for five (5) leases and an MOU Agreement in order to allow for the timely payment of rents to ensure that city operations continue uninterrupted, thereby preserving the public health, peace, property, safety, and welfare; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Finance and Management be and is hereby authorized to expend funds for the payment of rent for the 2016-2017 renewal term of five (5) leases for office and warehouse space used by the Department of Public Safety and for an internal MOU Agreement for use of space by the Departments of Public Safety and Recreation and Parks at the Department of Public Utilities Fairwood Avenue location.
SECTION 2. That the expenditures in SECTION 1 shall be paid upon order of the Director of Finance and Management and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 3. That the expenditure of $1,134,000.00, or so much thereof that may be necessary in regard to the action authorized in SECTION 1 be and is hereby authorized and approved from the General Fund 1000 as follows:
See Attached File: Ord 0514-2016 Legislation Template.xls
SECTION 4. That the City Auditor is authorized to make any accounting changes necessary to ensure that payment of these contracts is properly accounted for and recorded accurately on the city's financial record. The City Auditor is authorized to make any changes to revise the funding source for any contract or contract modification associated with this ordinance.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.