HomeMy WebLinkAboutRevised! Commission Memo 2012-2014 Prof Bldg Lease Agreement for MSU Sept 2012.pdf1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: James Goehrung, Superintendent of Facility Services
Chuck Winn, Assistant City Manager
SUBJECT: Ordinance No. 1842 authorizing the City Manager to enter into a 2-year
space lease with MSU-Extended University for the lease of an office and training classroom
located in the Alfred M. Stiff Professional Building at 20 East Olive.
MEETING DATE: September 17, 2012
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Authorize the City Manager to enter into a 2-year lease with
MSU-Extended University for the lease of office and training classroom space in the basement of
the Alfred M. Stiff Professional Building at 20 East Olive.
BACKGROUND: The City of Bozeman has leased space in the Alfred M. Stiff Professional
Building since the city purchased and remodeled the property after the sale of the old Carnegie
Library. MSU College of Great Falls, now MSU-Extended University has leased classroom and
office space in the basement of the building since August 2000.
In exchange for the lease of the classroom and office space the University holds two spaces open
for City of Bozeman employees for any non-credit class, with a class fee less than $150.00
$200.00. Enrollment in the classes is coordinated with the Personnel Department. The last time
the lease came due I checked with Personnel to see if enough employees were taking classes that
it seemed like we were getting a fair value towards the lease. It was affirmed that there was good
attendance.
ADDENDUM: Because some of the non-credit class fees have increased I contacted MSU and
they agreed to increase the acceptable class fee for city employees from $150.00 to $200.00.
The University is charged a pro-rated share of the custodial costs associated with the
Professional Building. The University is charged for the space they have in the building based
on the price per square foot cost for cleaning.
The lease agreement is for two (2) years but there is a provision in the lease that allows for and
additional two year extensions for a total of up to four (4) years overall. The extensions are also
in two year increments and must be upon mutual agreement of both parties.
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Section 2.11 of the Bozeman City Charter requires the Commission to adopt an ordinance any
time the Commission "convey(s), lease(es)or authorize(s) the conveyance or lease of any lands
of the city."
Section 7-8-4201, Montana Codes Annotated (MCA) authorizes the City to lease property upon a
vote of two-thirds (2/3) of the Commission which requires an affirmative vote of four members
of the five member Bozeman City Commission.
This Ordinance will not be codified but will be kept by the City Clerk and entered into a
disposition list in numerical order with all other ordinances of the City and shall be organized in
a category entitled “Conveyances and Leases of City Land.”
FISCAL EFFECTS: In exchange for the use of the space in the building, the terms of the
lease require 2 spaces to be made available in each class taught by the University. In addition to
this benefit the University pays $1,622.13 per year toward the custodial cleaning expenses for the
building.
ALTERNATIVES: As suggested by the City Commission.
Attachments: Ordinance 1842
Lease Agreement
Report compiled on: September 5, 2012