Consideration and Adoption of Resolution No. 2016-29:  A resolution ratifying the submittal of a Request for Lease Proposal (RLP 5AZ0152) from the United States General Services Administration (GSA) for building 6 of the United States Geological Campus  located at 2400 North Gemini Drive.

This resolution is to ratify the action taken by the City Manager.  On June 30, 2016, the City received a Request for Lease Proposal (RLP 5AZ0152) from United States General Services Administration (GSA) regarding building 6.  The lease on building 6 is scheduled to expire on December 31, 2016. GSA requested a new lease related to building 6, which would extend the term to 20 years, 10 years firm. The proposal  was required to be submitted on August 5th, 2016.  During this time Council was on summer recess and staff was not able to obtain approval from Council prior to submittal of the RLP. 

The City of Flagstaff has been setting aside reserve funds ($1.4 million) for the required up keep and maintenance of Building 6. The facility will receive new carpet and painting as well as repairs to the HVAC system under the current lease (approximately $300,000).  No additional improvements for Building 6 were proposed under RLP 5AZ0152, besides general maintenance and upkeep.  The debt service for Building 6 has been paid in full.  Building 6 is currently leased to USGS and the City receives rental income from the lease. The City is proposing to reduce the lease rate as a result of elimination of the debt service, which lease income is put in reserve funds..

COUNCIL GOALS:
8) Improve effectiveness of notification, communication, and engagement with residents, neighborhoods and businesses and about City services, programs, policies, projects and developments

No.  The City Council on May 16, 2016 authorized a separate bid response for renovation and expansion of other portions of the USGS Campus.

Option 1:  Ratify submittal.
Option 2:  Do not ratify submittal. Lease will terminate December 31, 2016.

Inform