DEPARTMENT: Center City Development & Operations
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Lease Renewal - SAPD (ReACT)
SUMMARY:
This ordinance approves the 6th Renewal and Extension of Lease Agreement with Burkhart, Shannon and Holmes, dba Washington Place, for approximately 6,050 square feet of office space located at 215 South San Saba, in Council District 1, for the continued use by the San Antonio Police Department’s (SAPD) Regional Auto Crime Team (ReACT) program.
BACKGROUND INFORMATION:
The SAPD ReACT program is a multi-jurisdictional task force comprised of City, County, and State personnel trained in the detection of altered vehicles, vehicle identification number recognition, and obliterated vehicle identification number restorations. The mission is to reduce the automobile theft rate. This program has been located at 215 South San Saba Street since November 1997 with the most recent lease renewal authorized by City Council on November 3, 2011.
This ordinance will renew and extend the lease agreement for a five-year term commencing May 1, 2016, for the initial monthly rental amount of $8,416.00 during the first year escalating to $9,472.00 during the fifth year, with the option to terminate anytime after the first year with 30-days notice to Landlord and the option to renew the lease for one, additional five-year term.
ISSUE:
The current lease term expired on March 31, 2016. The current location of the SAPD ReACT program is conveniently located in the central business district which is essential for the continued, efficient implementation of the program’s mission. This action is consistent with the City’s policy to support the space needs of the San Antonio Police Department.
ALTERNATIVES:
The City may elect not to amend and extend the lease and continue on a month to month basis. The City would need to procure a new lease space and incur relocation expenses, therefore, the action may not result in a cost savings.
FISCAL IMPACT:
Under the proposed terms of the 6th Renewal and Extension of Lease Agreement, the City will pay rent as follows:
|
Year |
Monthly Rent |
Annual Rent |
|
1 |
$8,416.00 |
$100,992.00 |
|
2 |
$8,668.00 |
$104,016.00 |
|
3 |
$8,928.00 |
$107,136.00 |
|
4 |
$9,196.00 |
$110,352.00 |
|
5 |
$9,472.00 |
$113,664.00 |
Additionally, the City will be responsible for its pro-rata share of property tax increases over and above the actual property taxes assessed during 2016, which would be included in monthly rental expenses. All rental expenses are fully grant-funded by the Texas Automobile Theft Prevention Authority.
RECOMMENDATION:
Staff recommends approval of the 6th Renewal and Extension of Lease Agreement with Washington Place to extend the term for an additional five years.