HomeMy WebLinkAboutLease of Law & Justice Center Space for Second Municipal Court Commission Memorandum
REPORT TO: Honorable Mayor and Commission Members
FROM: Chuck Winn, Assistant City Manager
Anna Rosenberry, City Finance Director
Greg Sullivan, City Attorney
SUBJECT: Lease of Law & Justice Center Space for Second Municipal Court
MEETING DATE: September 14, 2009
AGENDA ITEM: Action
RECOMMENDATION: Authorize City Manager to sign agreement with Gallatin County to
lease 1710 square feet within the Law & Justice Center for second municipal court, subject to
minimal changes for legal review.
BACKGROUND: As previously discussed, space constraints at the Law and Justice Center,
and increased workload in the City’s municipal court, necessitate the relocation of the current
courtroom, court clerk’s office, and the addition of a second municipal courtroom. This is
anticipated to be 4-5 year temporary solution until a new municipal police and court facility is
built. The FY09 budget contained $200,000 for this purpose. Included in this budget were the
costs of lease payments, any necessary leaseholder improvements, and the operational costs of
the second court, including the salary of a part-time judge.
We entered into negotiations with a local property owner to lease approximately 6000 square
feet on Valley Commons Drive. Leasing that space would have required significant remodel
expenses to relocate both courts, staff work area, jury deliberation rooms, and court support
areas, as well as require an annual lease payment of approximately $100,000. Additionally, the
County indicated that they would not let us out of our current lease for the space presently used
by the Municipal Court.
In October of 2009, the 9-1-1 Center anticipates moving to their new location and will vacate
their current space after the move. The County has offered to lease the City the 1710 square feet
currently used by the 9-1-1 Center for $25,855 annually. Keeping the two municipal courts
together in the same building with other courts is a better option than relocating one or both
courts off-site and has the support of Judge Seel.
FISCAL EFFECTS: The lease of space under this agreement represents a substantial savings
from our previous plan at the Valley Commons property. The FY09 court budget included
$200,000 for the relocation of the current court, addition of a second court and the salary for a
407
part-time municipal court judge. Because we used the City Commission Room as a temporary
location for the second court, we did not expend the money allocated for relocation of the courts.
Approximately $8,300 was spent on the part-time judge's salary and $5,500 on additional
computer hardware, leaving a balance of $186,200 unspent at the end of FY09.
The FY10 City Manager's recommended budget contains $100,000 for court leased space. At
the time that budget was developed, this figure represented the anticipated annual lease costs for
the Valley Commons property. Locating the second court in the space vacated by 9-1-1 for
$25,855/year (including utilities and janitorial services) frees up $74,145 in the FY10 budget.
Some interior remodeling needs to be done to make the space suitable for the courts. These
costs are unknown at this time, but will be available prior to final budget adoption in mid-
September.
The lease price increases each July by the most recent December to December increase in the
Consumer Price Index - Unadjusted, All Urban Consumers, and expires in September 30, 2010.
It can be extended annually at our option.
ALTERNATIVES: As suggested by the City Commission.
408
409
410
411
412
413
414
415