DEPARTMENT: Center City Development & Operations
DEPARTMENT HEAD: Lori Houston
COUNCIL DISTRICTS IMPACTED: 2
SUBJECT:
Five year lease renewal agreement for a WIC clinic.
SUMMARY:
This ordinance authorizes the execution of a five-year lease renewal agreement with Warfield, a general partnership, for the continued use of 4,500 square feet of clinic space for the San Antonio Metropolitan Health District (SAMHD) Women, Infants & Children (WIC) Clinic located at 4343 Rittiman Road, in Council District 2, for a monthly rental rate of $4,290.00 during the term.
BACKGROUND INFORMATION:
The City has occupied this space as an SAMHD operated WIC Clinic as part of the Special Supplemental Nutrition Program at the present location since September 2010. In accordance with the current lease agreement, the SAMHD would like to exercise the five-year option to extend the lease agreement at the rate of $4,290.00 per month during the entire five year term.
ISSUE:
The existing lease for this WIC Clinic space will expire on September 28, 2015 and will need to be renewed or an alternative location identified to provide these services in order for SAMHD to remain compliant with its obligation to maintain the Special Supplemental Nutrition Program. The recommended course of action will preserve the City’s rights under the lease and maintain these services in accordance with the program’s objectives.
ALTERNATIVES:
The City must renew this lease or vacate the property. Whereas the owner has offered favorable terms to allow the City to continue its use for another five years and as there is a continuing need for these services in the community, coupled with the fact that identifying an alternative site and investing the funds necessary to outfit the alternative site for clinic purposes is not likely to produce any cost savings, renewing the lease is the most appropriate course of action
FISCAL IMPACT:
Under the terms of the lease renewal, the City will pay $4,290.00 monthly throughout the term of this lease plus the cost of separately metered utilities and janitorial services. The chart below identifies the terms presently in effect compared to the terms outlined in the lease renewal agreement.
|
|
Present Terms |
New Terms |
Net Change |
|
Term Length |
5 years ending 9/28/15 |
5 years ending 9/30/20 |
5 year extension |
|
Size |
4,500 square feet |
4,500 square feet |
No change |
|
Monthly Rent |
$4,090.00 |
$4,290.00 |
$200.00 increase |
|
Other Expenses |
utilities and janitorial paid by City |
utilities and janitorial paid by City |
No change |
The WIC Clinic rent will be financed with grant funds from the Texas Department of State Health Services, sufficient funding has been provided in the existing grant to fund the monthly rent. The lease can be canceled if the WIC Program is not re-funded during the five year term period.
RECOMMENDATION:
Staff recommends approval of this ordinance authorizing the execution of a five-year lease renewal agreement with Warfield.