City of San Antonio - File #: 13-1127

• File #: 13-1127
• Type: Real Property Lease
• In control: City Council A Session
• On agenda: 12/19/2013
• Posting Language: An Ordinance authorizing a five-year lease between the City of San Antonio and Reyes Properties, Ltd. for 60,000 square feet of office and warehouse space on approximately six acres of land located at 1550 – 1554 Cantrell in Council District 4 for use by the Solid Waste Management Department at the annual rental amount of $201,426.72. [Ben Gorzell, Chief Financial Officer; Jorge A. Perez, Director, Building and Equipment Services]
• Related files: 13-984, 13-987, 13-990

DEPARTMENT: BES


DEPARTMENT HEAD: Jorge Perez


COUNCIL DISTRICTS IMPACTED: 4


SUBJECT:

A five-year lease agreement for warehouse purposes for the Solid Waste Management Department.


SUMMARY:

An ordinance authorizing a five-year lease agreement between the City of San Antonio and Reyes Properties, Ltd. for 60,000 square feet of office and warehouse space on approximately six acres of land located at 1550 - 1554 Cantrell in Council District 4 for use by the Solid Waste Management Department (SWMD) to house personnel, provide warehouse space for equipment, surface area for vehicles and store containers used in the automated garbage and recycling programs for the annual rental amount of $201,426.72 with the option to renew for a an additional five-year term and an option to terminate after the second year.



BACKGROUND INFORMATION:

In 2007 SWMD implemented a plan to automate garbage and recycling services to City of San Antonio residents. To accommodate this plan a lease agreement was authorized by Ordinance 2007-09-20-1006 for the property located at 5015 Airpark Drive, as increased capacity was added, SWMD used a City-owned property on Zarzamora Street to store equipment associated with the collections program. The sale of the Zarzamora Service Center property has been approved for sale by previous Council action and is expected to transfer to a new owner in the near future. That situation combined with an increase in the scope of services provided by the recycling programs, require space beyond the capacity of the presently leased Airpark facility to efficiently execute these programs, as such, the current location is no longer adequate, and therefore this lease agreement for the property located at 1550 - 1554 Cantrell is being proposed to better accommodate the space needs of the SWMD recycling programs.





ISSUE:
Presently SWMD is using nearly two acres of land area for equipment storage at the soon to be sold Zar...