To: Honorable Mayor and Members of Town Council
From: Fritz Sprague, Deputy Town Manager
Title
Resolution Approving an Office Building Lease Agreement between 1161ADBP, LLC and the Town of Castle Rock for Property Located at 1161 South Perry Street, Castle Rock. CO
Body
________________________________________________________________________________
Executive Summary
The Division of Innovation and Technology (DoIT) currently leases office space due to a lack of Town-owned facilities to house and accommodate the technology team. This situation was identified in the Town’s adopted Facility and Space Study, and measures to address this long-term issue are being evaluated. Until such time as a permanent solution is implemented, interim steps are needed to provide work space for staff in this division.
The Town has leased space at 1161 S. Perry Street and has occupied this space since Nov. of 2007. This is the only business group currently leasing privately owned office space. This office consists of 925 square feet and has been reconfigured multiple times in the last nine years as staff and technology-oriented programs have been added to maintain levels of service in our growing organization and community.
Understanding that options for acquisition of additional Town-owned space are under-way and completion of this project is realistically one year (if not more) away from completion, an interim step is needed to accommodate current staff and two additional FTE’s. Moreover, at least one FTE has been identified for potential addition to the DoIT staff over the next three year to maintain existing levels of service.
The leased Perry Street property does not meet the square footage needed to accommodate all DoIT employees. To resolve this issue, Town Staff evaluated three options to deal with the space shortage; this included leasing additional space at the same location, reconfiguring the existing space, and evaluation of options for telecommuting. These options are further illustrated below.
Option #1 - Additional leased space directly across the hall from current leased space. This option was brought to our attention from our landlord, as an adjacent office space opened on 1/4/2016. The space could accommodate 5 employees at a price per square foot less than our current lease, with option to renew year over year.
Option #2 - Reconfigure and remodel current space. Facilities staff and a space expert (Office Interiors of Denver) visited our current office to recommend a reconfiguration and remodel using the existing square footage. The conclusion of this assessment was that they could only fit one additional 6x6 workstation into our current square footage, with no future expansion capabilities.
Option #3 - Telecommuting. At this time, it is our thinking that workload and the importance of a team environment does not support telecommuting for DoIT. However, understanding that some employees with minimal customer interaction could work from home without an additional cost to the Town justifies this option to be considered. Logistical issues to contemplate include careful consideration of staff schedules, ability to share office workstations, proper connectivity and working environments from home, and managing workload remotely.
Preferred Alternative
After evaluation of the three options, staff recommends approval of Option #1 for a 13 month lease, with option to renew to meet the current and future needs for office space for DoIT. This expenditure ($27,546.92) is not budgeted, but will be paid for with recognized unused available budgeted funds within the DoIT General Fund account code: 110-1340-413.40-41.
Budget Considerations
Option #1 One-Time-Fee consists of pre-owned furniture needed for the new space, and then a Monthly Fee for the lease. Option #2 is not being considered because there is no feasible way to accommodate current and future employees. There are no costs involved in Option #3, although many logistical issues.
|
|
One Time Fee: |
Monthly Fee: |
Total: |
|
Option #1 |
$5000 |
$1878.91 |
$27,546.92 |
|
Option #2 |
N/A |
N/A |
N/A |
|
Option #3 |
$0.00 |
$0.00 |
$0.00 |
Recommendation
Staff recommends that Council approve the attached lease agreement for additional temporary office space for DoIT. While this amount is within the Town Manager’s signature authority, this item is being brought to Council as it relates to the long-term space needs under consideration within the Town.
Motion
“I move to approve the Resolution authorizing a lease agreement with 1161ADBP, LLC, and the Town of Castle Rock”
Attachments
Attachment A: Resolution
Attachment B: 1161 S. Perry Street Lease