R2014-34 AUTHORIZING CITY MANAGER TO EXECUTE AND ENTER INTO LEASE AGREEMENT WITH LIBRARY

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FINANCIAL MANAGEMENT DEPARTMENT #2014-09 DATE: May 1,2014 TO: Honorable Mayor McElroy and City Council Members FROM: Ryan P. McCrady, City Manager Gregg Zientara, City Treasurer& Director of Finance SUBJECT: Resolution Authorizing City Manager to enter into Lease Agreement with the Decatur Public Library SUMMARY RECOMMENDATION: City Administration recommends City Council approval of the attached Resolution authorizing the City Manager to enter into a Lease Agreement with the Decatur Public Library for the purpose of securing space to house and store various records and documents of the City of Decatur. BACKGROUND: For a number of years the City has utilized space in the Decatur Public Library Annex Building for the purpose of records retention storage of various records and documents of the City of Decatur. The Library Annex Building is no longer a viable site to be used for the storage of City records. The City investigated a number of alternative storage sites and concluded that the space available in the Decatur Public Library Building offered the best storage location for City records. The decision was based collectively on space, access, security and cost. The lease will be for a twenty (20) year period of time, with three (3) renewals of five (5) year periods, for a total duration of thirty-five(35)years, retroactive to February 1, 2014. The annual lease payment will commence at $1,475 per month or $17,700 on an annual basis. The annual lease payment will increase or decrease according to the Consumer Price Index ("CPI") appropriate for a city the size and location of Decatur, Illinois, effective on January 1 of each subsequent year. The lease arrangement has been accomplished with discussions with the Decatur Public Library Board, with consideration to any future occupancy plans for vacant space within the Library Building. The lease arrangement with the Library will provide a new revenue stream for the Library that will further assist overall funding needs of the Decatur Public Library. Use of the leased space by the City is not expected to add additional operating expense to the current Library facility. The approved 2014 General Fund Budget includes funding for the lease payment in calendar year 2014. Page 1 of 2