AGENDA DATE: 8/7/2019
TITLE:
Title
Proposed Lease for Office Space for the Finance Department at 400 Preston Avenue, Suite 200, Charlottesville, VA 22902
BODY
SUBJECT/PROPOSAL/REQUEST: Approval of Proposed Lease and Supplemental Appropriation
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Richardson, Henry, Kamptner, Herrick, Stewart, Breeden, Freitas
PRESENTER (S): Michael Freitas, Lisa Breeden
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: The County Office Building - McIntire Road (COB-McIntire) is a 127,336 square foot facility housing 11 local government departments and offices, along with Albemarle County Schools administration. Purchased and renovated in the early 1980’s, it was able to accommodate the growing space needs of the County until 2003 when the County purchased the 5th Street facility and relocated four local government departments there. Since 2003, the growing demand to provide services to County residents has placed ever increasing demand on the limited space available in the two office buildings. This is especially true regarding the County Executive’s Office and Finance Department. Though a space needs study has been initiated to analyze and document long term needs of the County, there is a short to mid-term need for additional space.
STRATEGIC PLAN: Quality Government Operations: Ensure County government’s capacity to provide high quality service that achieves community priorities.
DISCUSSION: Between FY2014 and FY2019 the Finance Department has gained an additional eight positions, with no corresponding increase in work space. Some relief was realized with more efficient office furnishing, but conditions remain cramped. This situation will be exacerbated in FY2020 with the addition of three more new staff positions. Finance and Facilities and Environmental Services had extensive discussions throughout FY2019 regarding renovations within Finance’s current footprint and determined that there was no practicable way to accommodate the department’s needs. The approximate 2,426 square feet of this potential lease opportunity would alleviate the pressure on Finance by housing up to 10 staff positions.
The Finance management team is working to determine which work units would be relocated to the rented space; the determination will seek to limit negative service delivery impacts. The office space located at 400 Preston Avenue is a short walk from COB-McIntire. The close proximity would minimize the additional staff time needed for Finance staff to interact with other County departments, as well as County support functions provided by Information Technology and Facilities and Environmental Services. The lease provides for seven parking spaces. The initial term of the proposed lease would commence on September 1, 2019 and end on June 30, 2021, with options to renew for additional one-year terms.
BUDGET IMPACT: The total FY 20 cost for this lease and related operating and one-time costs is $110,512 as detailed in Attachment A.
This amount is recommended to be funded by General Fund fund balance in FY 20. This proposed use of the General Fund fund balance will not reduce the County’s 10% unassigned fund balance or 1% Budget Stabilization Reserve; however, it does reduce the amount of FY 19 undesignated funds that would be available for other uses.
If this agenda item is approved, this funding will be requested as an appropriation at the Board’s August 21, 2019 meeting. In addition, IT staff would be required to support this site, and although staff believes this could be accomplished with existing IT staff, it would likely effect how quickly IT staff would be able to respond to issues at the new location, as well as the existing locations.
RECOMMENDATION:
Recommendation
Staff recommends that the Board adopt the attached Resolution (Attachment B) to approve a lease of 400 Preston Avenue, Suite 200, contingent on the Board’s approval of the August 21 Appropriation.
ATTACHMENTS:
Attachment A: Detailed Cost Estimate
Attachment B: Resolution