DEPARTMENT: Center City Development & Operations
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 7
SUBJECT:
SAMHD WIC Clinic Lease Agreement
SUMMARY:
An ordinance authorizing a lease agreement with Omninet Three GP, LLCfor approximately 5,611 square feet of office space, located at 4606 Centerview Drive, for use by the San Antonio Metropolitan Health District (SAMHD) as a Women, Infants & Children (WIC) Clinic.
BACKGROUND INFORMATION:
The City's eleven WIC Clinics have successfully serviced the community since 1978 providing non-emergency Special Supplemental Nutrition Programs for women, infants, and children. Services provided at WIC include food benefits, nutrition education and counseling, and health care referrals at no cost to individuals that qualify.
Currently, the Northwest WIC Clinic, in District 7, is located in 9,912 square feet of space at 5055 Popping Drive. The last five years have shown a decline in WIC participation in San Antonio as well as across the state, and as a result the need for larger facilities is no longer necessary. The proposed location at 4606 Centerview Drive will better accommodate WIC services going forward, as WIC will implement a new processing system in 2017 that will change how the program operates and utilizes its’ WIC clinics. Additionally, the close proximity of the proposed new location to the SAMHD’s Baby Café will allow for improved comprehensive breastfeeding care for new mothers who will have access to WIC peer counselors and to Baby Café lactation consultants.
This action will relocate the Popping Drive WIC Clinic to 4606 Centerview Drive, which meets the program requirements, is located in the same general area as the current clinic and has a bus stop nearby.
ISSUE:
As a result of the decline in WIC participation and upcoming process modifications, the current location of the Northwest WIC clinic is no longer cost effective. The proposed new location will operate more efficiently and better serve the community that has come to rely on the WIC program’s essential services.
This action is consistent with the City's policy to support the mission of the SAMHD WIC Clinic program.
ALTERNATIVES:
City Council could choose not to approve this lease agreement. However, staff performed an extensive search of available properties in the area of interest and could not identify a site that was more competitively priced or represented a superior location than the proposed site at 4606 Centerview Drive.
FISCAL IMPACT:
Under the terms of the lease, the SAMHD will pay rent as follows:
|
Year |
Monthly Rent |
Annual Rent |
|
1 |
$8,182.70 |
$98,192.40 |
|
2 |
$8,299.60 |
$99,595.20 |
|
3 |
$8,767.19 |
$105,206.28 |
|
4 |
$8,884.08 |
$106,608.96 |
|
5 |
$9,000.98 |
$108,011.76 |
The economic terms of the proposed lease agreement for 4606 Centerview Drive will save the City of San Antonio an estimated $265,000.00 over the five-year term as a result of lower negotiated rental rates and the landlord’s obligation to pay janitorial and utility expenses. The City will have the option to renew the lease for one, five-year term.
The SAMHD has sufficient funds in the FY 2017 WIC Grant Budget for the lease expenses.
RECOMMENDATION:
Staff recommends approval of this ordinance authorizing the execution of a five-year lease agreement with Omninet Three GP, LLC.