TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Rental charges for the Family Service Center
Recommended Action
Discuss the rental charges for the Family Service Center (FSC).
Background Information
On July 17, 2019, at the City Commission Budget Workshop the FSC tenant rental amount was discussed. Commissioners expressed concern regarding the rent per square foot at the FSC. Staff conducted an internal study of actual expenses and calculated a three-year average related to operating the FSC. In addition, direction was given to review other centers comparable to the FSC.
The Family Service Center opened in 2008 to provide community services to local North Port families. The FSC houses eight different agencies, including the City of North Port Social Services Division. Current tenants pay $14 per square foot of office space in rent. Additionally, tenants, should they choose, are charged a monthly communication fee which includes internet and phone.
Along with the current study, Commissioners directed staff to provide information on usage/upkeep, cost recovery/depreciation, and how much the agencies should be paying per square foot without the City making a profit.
Staff is seeking direction on;
1. Keeping the current lease amount or changing the lease amount.
2. Timing of submitting current leases to reflect any changes in cost per square foot.
Strategic Plan
Enhanced Public Trust through Responsible City Government
Financial Impact
Revising the rental charges will have a financial impact on the FSC revenue projections for the next fiscal year. At the current rate of $14 per square foot the revenue projection is $91,965.96. At a rate of $3.12 the revenue projection will be $21,844.44 and at a rate of $8.13 the revenue projection will be $54,134.28.
Procurement
N/A
Attachments:
1. Current Tenant Charges
2. Proposed (Based on Actuals without Depreciation)
3. Proposed (Based on Actuals with Depreciation)
4. Facility Comparisons
Prepared by: Janet Carrillo, Social Services Manager
Department Director: Cari Branco, Assistant City Manager