DEPARTMENT: Center City Development Office
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 3
SUBJECT:
Amendment to Lease Agreement: Metro Health Healthy Start Initiative
SUMMARY:
Consideration of an ordinance authorizing the Amendment to the Lease Agreement of the existing five year lease, authorized by Ordinance 2015-02-12-0092, for 2,400 square feet of office space located at 102 W White Street, in Council District 3, with Harlandale United Methodist Church.
The Amendment to the Lease Agreement will clarify language and adjust the monthly payment of the utility rent.
BACKGROUND INFORMATION:
On February 12, 2015, through Ordinance 2015-02-12-0092 City Council approved a Lease Agreement for 2,400 square feet of office space located at 102 W White Street, in Council District 3, with Harlandale United Methodist Church. The Lease Agreement provides office space for the City of San Antonio’s Healthy Start Program. On June 1, 2014, the City of San Antonio received the Healthy Start Initiative Eliminating Disparities in Prenatal Health grant which requires staff be embedded in the communities being served. The lease provides sufficient space for the staff assigned to this program and provides an environment conducive to members of the public seeking out these services which augment the success of a program objective to reduce obesity within the City of San Antonio.
ISSUE:
The original Lease Agreement called for an audit of the monthly Utility Rent payment after the first year with adjustments being made to the payment based on the audit. However, there was conflicting language in the lease that impaired the accuracy of how the utility figures would be calculated. The Amendment to the Lease Agreement clearly establishes how the monthly Utility Rent rate will be paid and adjusted yearly based on the Building Owners and Managers Association (BOMA) Report issued on an annual basis.
ALTERNATIVES:
City Council could elect to leave the original Lease Agreement in effect without clarifying Utility Rent language on how the monthly Utility Rent rate will be established.
FISCAL IMPACT:
Under the terms of the original Lease Agreement, the monthly Utility Rent payment was $800. After the first year audit and with Landlord’s agreement to use the BOMA annual report to determine the monthly Utility Rent payment, the first year monthly Utility Rent payment was re-established at $580 with year two of the lease to have a monthly Utility Rent payment of $536. Subsequent year monthly Utility Rent payments will be determined on an annual basis when the BOMA annual report is issued. These utility rent expenses are funded by the Eliminating Disparities in Prenatal Health Grant.
|
Term |
Original Lease Monthly Utility Rent |
Amendment to Lease Monthly Utility Rent |
Savings |
|
April 1, 2015 - March 31, 2016 |
$800 |
$580 |
$2,640 |
|
April 1, 2016 - March 31, 2017 |
$800 |
$536 |
$3,168 |
|
Years 3-5 |
$800 |
TBD |
TBD |
RECOMMENDATION:
Staff recommends approval of this Amendment to the Lease Agreement to clarify language and adjust the monthly payment of utility rent.