Minutes 08/12/2014 - Laserfiche WebLink

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August 12, 2014 Next Steps Following Council Action: • The City will continue to accept guidelines established by the City Manager. applications from PFPRS retirees under Motion by Mr. Moody, and seconded by Mr. Meeks, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE TO AMEND CHAPTER 30 OF THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA (2006) BY AMENDING SECTION 30-202 PERTAINING TO THE RE-EMPLOYMENT OF RETIRED PUBLIC SAFETY EMPLOYEES." Ayes: Cherry, Edmonds, Meeks, Moody, Psimas, Randall, Wright Nays: None 14 - 297 -Adoption of an ordinance to appropriate $2,850,000 from the FY 2014-15 Unassigned Fund Balance to the FY 2014-15 General Fund, to transfer $2,850,000 from the FY 2014-15 General Fund to the FY 2014-15 Capital Improvement Fund, and to appropriate $2,850,000 in the FY 2014-15 Capital Improvement Fund for the purchase of 801 Water Street and improvements thereon and to authorize the City Manager to execute the necessary legal documents to complete the purchase. Vision Principle: A Robust Economy for Working Men and Women. Background: • Water Street Associates, LLC, a Suffolk, Virginia corporate entity and which is represented by principal owner, Michael Haas, is the current owner of the five-story 53,454 square foot office building that is immediately east of our City Hall Building on the "City Hall Plaza." The owner desires to sell the building, and he originally had a minimum asking price of $2,950,000. Discussion: • The City currently does not have a Police Headquarters building per se. Instead, the Police Department is fragmented into eight separate buildings. This dispersed fragmentation leads to operational inefficiencies for both the department and for the public. The City leases some of these eight buildings at a total annual cost of $270,949. The leases have various terms with the longest expiring on June 30, 2016. • In addition, the City currently leases space at 801 Water Street for the Sheriff's Classification and Registrar storage, at a combined annual cost of $23,504. • The City has long considered options for consolidating Police Department functions into one "headquarters" building. The 801 Water Street property would provide an efficient and cost-effective alternative the space needs of the Police Department. • The owner of 801 Water Street has agreed to sell the building to the City for $2,850,000 with a closing date of September 15, 2014. • In addition to providing significant operational efficiencies and better service to the public, the City's purchase of this building would result in a combined lease savings of $294,253 per year. • The City Manager recommends that the City purchase this building; and an ordinance to appropriate the funds necessary to purchase this building accompanies this memorandum. Financial Impact: • Funds are available in Unassigned General Fund Balance for the acquisition of this property. Recommended Action: • Adoption of the ordinance. Vision Principle: A Robust Economy for Working Men and Women. Next Steps Following Council Action: • The City Manager will execute the necessary documents to implement the City's purchase of this building.