SUBJECT/RECOMMENDATION:
Title
Approve the contract between the City of Clearwater and Eastbourne Investments Ltd. to renew the lease at the Powell Professional Center at 401 Corbett Street, Clearwater for a cost not to exceed $275,00.00 for the three-year period beginning June 1, 2024 through May 31, 2027, pursuant to Clearwater Code of Ordinances Section 2.563(1)(d), Non-Competitive Purchases, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
On July 1, 2010, the City entered into a lease agreement with Powell Professional Center for a space to be used by the City as an onsite medical clinic for city employees, retirees, and their dependents covered under the City’s medical insurance.
The original lease provided for the rental of suite 240 containing 2,677 rentable square feet. The term of the initial lease was three years, commencing on July 1, 2010, and ending on June 30, 2013, with two subsequent renewals through June 30, 2019.
In June of 2019, the Employee Health Center relocated to suite 400. The lease agreement provided for a five-year lease for suite 400 containing 3,719 rentable square feet which commenced on June 1, 2019, and will end on May 31, 2024. The Landlord paid for the costs associated with the buildout and is responsible for major repairs and maintenance.
The new lease agreement provides for a rental rate of $6,818.17 per month with an escalation of 3% per year for base rent. In the second and third year, monthly rates may be increased to cover “Increased Costs” associated with taxes, insurance, operating, and maintenance expenses that exceed the base year.
Suite 400 is customized to meet the needs of the EHC. Seeking a new space from another vendor is impractical to bid at this time due to the costs associated with a potential build out, moving expenses, and the service disruption to employees.
APPROPRIATION CODE AND AMOUNT:
Funds are available in the Employee Health Center budget (5909835) to fund the fiscal year portion of this contract. Funding for future years will be included in the proposed budget request.
STRATEGIC PRIORITY: Superior Public Service: Promote a Diverse and Talented Workforce Through Competitive Opportunity, Employee Wellness, and Rewarding Career Growth.
5.4 Enhance employee health and productivity through a holistic approach to workplace wellness and benefit resources.
The Employee Health Center is an integral part of enhancing employee health and productivity and is a benefit resource to attract and retain employees.
