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A - Memorandum CA to Commission CITY OF SOUTH MIAMI INTER-OFFICE MEMORANDUM TO: Hon. Mayor, Vice Mayor Date: August 17, 2012 and Commissioners FROM: Thomas F. Pepe City Attorney SUBJECT: Head Start Lease RE: Sub-Lease of City Property ORDINANCE: AN ORDINANCE OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO ENTER INTO SUB-LEASE AGREEMENT WITH MIAMI-DADE COUNTY AND, LLIRAFF O., INC. DBA O'FARRILL LEARNING CENTER FOR THE USE OF CITY OF SOUTH MIAMI BUILDING LOCATED AT 6121 SW 68111 STREET BACKGROUND & ANALYSIS: On March 15 1983, the City entered into an agreement with Miami-Dade County for the use of the City building located at 6121 SW 68th Street. The 4,555 square feet space has since been used by the County for the purpose of conducting the Head Start Program under the supervision of Miami-Dade County Community Action Agency. Since 1983, the agreement has been amended once (March 15, 1985). In 2003, the annual cost of providing services to the building, our cost was estimated at approximately $40,000. This included the cost for utilities (electricity, water and sewer), janitorial supplies and services and cost of contractual extermination services. After much discussion/negotiation with the county in 2003, the county agreed to pay for all utility bills (electricity, water and sewer), cleaning supplies to be used at the building and contractual exterminating service fee, effective October 1, 2003. In addition, the county was required to continue to pay the $22,000 annual rental and the county was given full occupy the entire building space of 5,460 square feet. The negotiated amendment to the agreement was intended to reduce the City’s expenses by approximately $18,000 a year. Miami-Dade County has now outsourced the Head Start Programs and desires to sub-lease the property to Lliraff O., Inc. dba O'Farrill Learning Center RECOMMENDATION: It is recommended that the City Commission approve the ordinance. ATTACHMENTS: Proposed Ordinance. Proposed Sub-Lease. Copy of Amended Lease Agreement with Miami-Dade County.