HCPS FL Logo Operations
Action Item
DATE: Tuesday, November 17, 2015
TO: School Board Members
FROM: Jeff Eakins, Superintendent
SUBJECT / RECOMMENDATIONS

Approve Lease Between the School Board of Hillsborough County and Liberty Property Trust for Proposed Space at 9014 Brittany Way, Tampa, Florida, Silo Bend Industrial Park, for the Student Nutrition Services Department

EXECUTIVE SUMMARY

Student Nutrition Services (SNS) operates a financially solvent, 145 Million Dollar business that provides over 250,000 meals each day to the students of Hillsborough County.  Breakfast, lunch, dinner, summer meals, and snacks are served by over 1,800 employees to children throughout the year.  SNS operates self-contained kitchens in 232 school sites and satellite meals to 32 other sites.  SNS also contracts to provide food service to groups such as YMCA, Boys and Girls Club, charter schools, and Board of County Commissioners.  SNS  is responsible for Hillsborough County's shelter feeding during a declared emergency, and through contracts with Red Cross, we will provide meals for mobile delivery to other Florida areas during declared emergencies.  Currently, SNS uses office space at the Instructional Services Center (ISC), stores equipment/hardware at the district's central warehouse, operates two production kitchens (Plant City and Brandon High Schools) for satellite and summer feeding, and runs catering services from the Carver Center.  There is no training center or test kitchen.  The customer free and reduced lunch program intake process is also located at ISC, where our staff works with individual parents/guardians to complete the administrative paperwork necessary to submit for program approval.  Relocation to Silo Bend would enable SNS to consolidate administrative functions, production sites, training services, and equipment storage into one centralized location, and most importantly, will allow SNS to improve the quality of its service to students and staff.

The proposed lease term at Silo Bend is 15 years, plus nine (9) months free rent, 44,197 square feet and 250 parking spaces.  The landlord provides $20.11 per square foot for tenant improvement contribution, or a total of $889,243, and an outside generator with the capacity to keep the kitchen operational during emergencies and power outages.

The rationale for relocation to Silo Bend and Student Nutrition Services' current budget are attached as Attachments A and B.

STRATEGIC OBJECTIVES
• Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  Yes)
Funds in the amount of $541,908.00 will be available in the Student Nutrition Services Department Annual Operating Budget. For tracking purposes, the project number specific to this agenda item is 9111. As of Wednesday, November 18, 2015, the remaining balance less encumbrances for this line item equaled $541,908.00.

The total monthly lease payment will begin at $45,159 and will increase 2.5% each year over the term of the lease.  The total dollars spent in lease payments over the 15 years 9 month term, will be $12,690,000.  SNS, which operates under a special revenue fund, will budget the lease payments in its annual operating budget under the following accounting string:  410.9630.9111.620.7600.360.

EVALUATION
SUBMITTED BY:  Denise A. Taraschi, Property Specialist, Operations Division
MaryKate Harrison, General Manager, Student Nutrition Services
Christopher Farkas   Alberto Vázquez, Ed.D.
Chief Operating Officer, Operations Division
(813) 272-4004
  Chief of Staff
(813) 272-4895
    C 7.09
Hillsborough County Public Schools (Florida) * Mtg.#20151117_705 (Reorganization/Board Meeting) * Section C Item# 7.09