DEPARTMENT: Center City Development & Operations
DEPARTMENT HEAD: Lori Houston
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Renewal and Amendment of Lease Agreement for SAFD Wellness Program
SUMMARY:
This ordinance authorizes the execution of a five-year Renewal and Amendment of Lease Agreement between Washington Place Joint Venture, a Texas general partnership and the City of San Antonio, for the continued use of 8,009 square feet of office space located at 215 South San Saba, Suites 107 and 111, located in Council District 1, for use by the San Antonio Fire Department (SAFD) as a location for its Health and Wellness Program, commencing October 1, 2015 for the initial monthly rental amount of $10,900.61, with the option to renew for one additional five-year term. The City will have the option to terminate this lease after the third year of occupancy with 120 days notice.
BACKGROUND INFORMATION:
Pursuant to Ordinance No. 2010-09-09-0782, dated September 9, 2010, the SAFD - Wellness Program has been a tenant at 215 South San Saba since December 1, 2010. As a result of the FY 2010 budget process, the SAFD was given direction to implement a Health and Wellness Program for uniformed employees. Through coordination with the San Antonio Professional Firefighters Association (SAPFFA), the Human Resources Department, Health Department and Office of Management and Budget, the SAFD determined that an in-house program was the most cost effective and efficient method to provide annual physicals for each firefighter. This location has provided the SAFD the ability to establish a fitness center, and provide fitness evaluations on all uniformed personnel. This action will serve to renew the lease for a period of five years and add the leased space previously used by the SAFD - Applicant Processing Division to the Wellness Program leased space, for a total of 8,009 square feet. The addition of the space will allow SAFD to more efficiently provide various health and wellness services to include fitness classes and strength training to its uniformed employees.
ISSUE:
The existing lease will expire November 30, 2015 and will need to be renewed or an alternative location identified in which to implement the functions of the SAFD’s Health and Wellness Program. The recommended course of action, to renew this lease, will allow the SAFD to provide uninterrupted health and wellness services and continue to meet program objectives. This action is consistent with the City’s policy to support the mission and space needs of the San Antonio Fire Department.
ALTERNATIVES:
The alternative to renewing this lease would be to search for another centrally located property that offers more fiscally favorable lease terms and provides ample parking, to include parking for Fire Trucks. However, due to the increase in office rental rates in the desired area, and the costs associated with moving, it is unlikely that a more fiscally favorable location can be identified.
FISCAL IMPACT:
Under the terms of the Renewal and Amendment of Lease Agreement, the monthly rent is as follows:
|
Rent Period |
Monthly Rent |
Total Rent |
|
Oct. 1, 2015 thru Sept. 30, 2016 |
$10,900.61 |
$130,807.32 |
|
Oct. 1, 2016 thru Sept. 30, 2018 |
$11,379.65 |
$273,111.60 |
|
Oct. 1, 2018 thru Sept. 30, 2020 |
$11,880.78 |
$285,138.72 |
|
Total Rent During 5-Year Term |
$689,057.64 |
In addition to rent, the SAFD will be responsible for the payment of its pro-rata share of increases in property taxes. The SAFD has sufficient funds in the FY 2016 General Fund Budget for these expenses.
RECOMMENDATION:
Staff recommends approval of this ordinance authorizing the execution of a five-year Renewal and Amendment of Lease Agreement for the continued use of space by the SAFD, with Washington Place Joint Venture.