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Report Number <br />r9BPiJTM Agenda Section <br />the city that works for you Council Meeting Date <br />• REQUEST FOR COUNCIL CONSIDERATION <br />10-072 <br />VI -3 <br />March 23, 2010 <br />ITEM DESCRIPTION: ADOPTING LEASE WITH RAMSEY COUNTY WIC PROGRAM AT <br />THE FAMILY SERVICE CENTER AND RAK CONSTRUCTION INC. FOR EXPANSION. <br />DEPARTMENT HEAD'S APPROVAL: <br />CITY MANAGER'S APPROVAL: <br />No comments to sunnlement this <br />of Parks and Recreation <br />Comments attached <br />Hecommenaation: <br />Waive the reading and adopt the resolution approving the lease agreement with the Ramsey County WIC <br />program in the Family Service Center. In addition, staff recommends that Council accepts the quote from <br />RAK for the expansion of the WIC lease space. <br />Legislative History: <br />The City of New Brighton entered into a lease agreement effective January 1, 1995 through December 31, <br />1999 to lease approximately 378 square feet (Room 202) of the Family Service Center with the option to <br />renew for another three year term (total of 6 years). WIC has operated out of the building in the same <br />space since that date. <br />• Financial Impact: <br />The Ramsey County WIC program has paid for phone/fax usage since January 2006. Prior to that <br />through the original lease agreement WIC was not required to pay rent. Through the new lease <br />agreement, WIC will be leasing the space for $13.50 per square foot at 635.5 square feet totaling <br />$8,579.25 for the first year with a 2% escalating fee every year after. The lease agreement is a 15 year <br />term, May 1, 2010 through April 30, 2025. <br />Quarterly, WIC will pay for data line(s) at a monthly access rate of $15 per line and will also pay 0.95% <br />of all associated with common area maintenance (utility costs, cleaning costs, garbage/refuse pick-up and <br />inspection fees). <br />New Brighton will pay the cost of the expansion for WIC. The Lease Agreement states that Ramsey <br />County will pay back the expansion cost within the first 6 months of the lease including 2.5% interest. <br />Quotes for the construction and expansion of the WIC lease space were received from two contractors <br />RAK Construction Inc. and Kraus -Anderson Construction. The two quotes came in as follows: RAK <br />Construction Inc. not to exceed $20,079 and Kraus -Anderson Construction not to exceed $17,557. In <br />order to choose the lowest responsible bid, staff compared the quotes and found that the Kraus -Anderson <br />quote did not include items needed in the quote including two closets, additional dumpsters, supervision, <br />building permits and clean-up. When factoring in these costs the quotes are nearly identical. <br />Staff recommends awarding the contract to RAK Construction Inc. for the following reasons: <br />1. The RAK quote contained all necessary aspects of the quote requested. <br />2. RAK's staff was extremely knowledgeable and easy to work with. <br />3. RAK has extremely good references and has worked with Ramsey County on many projects. <br />4. Quotes, when compared with all necessary items, are nearly identical. <br />Both quotes are attached to this Council report. <br />I:\C0UNClL\REP0RTS\2010\Parks and Recreation\WIC Lease Agreement Council Report.doc <br />