AGENDA CAPTION:
Title
Consider approval of Resolution 2025-07R, approving a second addendum to the Interlocal Agreement for Commercial Office Lease with Hays County to extend the lease term for municipal court operations for three additional months; authorizing the City Manager, or her designee, to execute said addendum; and declaring an effective date.
Body
Meeting date: January 21, 2025
Department: Municipal Court
Amount & Source of Funding
Funds Required: $23,034.69
Account Number: 10001114-52360
Funds Available: Contingent on FY 25/26 Budget approval
Account Name: Building Rental
Fiscal Note:
Prior Council Action: Resolution 2013-144R on September 17, 2013 and Resolution 2017-11R on January 17, 2017
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Background Information:
The attached lease addendum will add a three-month extension to the current lease between the City of San Marcos and Hays County, located at 712 South Stagecoach.
On September 17, 2013, City Council approved an Interlocal Agreement for Commercial Office Lease with Hays County for Municipal Court as a result of the City’s Municipal Court relocating to the Hays County Government Center. The initial contract was for 5 years through October 2018.
In 2017, City Council approved an Addendum to Interlocal Agreement for Commercial Lease which would extend the lease an additional seven (7) years. In April 2022, Hays County sent notice to the City of San Marcos that they would not entertain another extension and provided us with a termination date as September 30, 2025.
On November 6, 2024, City Council approved a lease agreement for the lease of an office suite for the Municipal Court use at 350 Barnes Drive. Our Public Works Facilities Team anticipates having improvements completed at the new lease space in sufficient time for the Municipal Court staff to move into the new lease space by September 30, 2025.
The three-month extension will extend the lease with Hays County to December 31, 2025. The three-month extension was pursued because the construction timeline is compressed for making improvements to the new lease space. The three-month extension is needed in the event there are unforeseen delays that are encountered. The 350 Barnes Drive facility was identified as a potential site in April 2024. At that time, the Public Works Facilities team initiated a space feasibility study which concluded in August 2024. From that point, the Public Works Facilities team then began preparing the architectural design, identifying timeframes to make the needed improvements and laying out the associated timeframes for completion. The construction timeline was completed in November 2024 and does not have any room for unforeseen delays.
The rent associated with the three-month extension will be included in the FY 25/26 Proposed Budget. Staff will have until September 30, 2025 to make a determination whether the three-month extension is needed. If by that time a determination is made that the three-month extension is not needed, the lease agreement will be terminated and the rent for the three-month extension will not be owed.
The Hays County Commissioners Court approved the three-month extension at their December 17, 2024 meeting.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends approval of this item.