AGENDA DATE: 8/7/2019
TITLE:
Title
Proposed Lease for Office Space for the Office of Economic Development at 110 Old Preston Avenue, 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, Johnson, Freitas
PRESENTER (S): Michael Freitas, Roger Johnson
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: Within the last two years, the space needs for the County Executive Office has increased with the creation of the Project Management Office (PMO) and the Office of Equity and Inclusion (OEI). Additionally, the office of Communications and Public Engagement (CAPE) has recently filled two vacant positions that will be filled within the next few weeks.
Though some relief was realized by converting a break room and conference room to accommodate the PMO, the needs of OEI and CAPE have not been met. The Office of Economic Development (OED) currently occupies 722 square feet of office space at the COB - McIntire, which is too small for effective operations of 3.5 FTE’s. The approximate 1,700 square feet of this potential lease opportunity would meet the needs of OED. The vacated 722 square foot space would meet the needs of OEI, without the need for renovation. Once OEI relocates, CAPE would have the space they require for additional staff. The office space located at 110 Old Preston Avenue is a short walk from the COB-McIntire. The close proximity would minimize the additional staff time needed for OED staff to interact with other County departments, as well as County support functions provided by Information Technology and Facilities and Environmental Services. Due to the sensitive nature of work, some modifications to the space will be required to provide private offices to the existing open floor plan, and to address some ADA issues. The lease does not provide for parking, requiring the County to rent spaces. The cost for six rented spaces is included in Attachment A. 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 $124,148 as detailed in Attachment A. Of that total, $30,000 will be funded by the existing capital budget. The remaining $94,148 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 a Resolution (Attachment B) to approve a lease of 110 Old Preston Avenue, contingent on the Board’s approval of the August 21 Appropriation.
ATTACHMENTS:
Attachment A: Detailed Cost Estimate
Attachment B: Resolution