SUBJECT
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Authorizing the City Manager to execute a lease agreement renewal with Securitas Security Services USA, Inc., as a sole source as per a Customs and Border Protection approved security contract, for approximately 120 square feet of office space and an exclusive office entry for approximately 1,020 square feet at Juarez-Lincoln International Bridge (Bridge II). Lease term will be for one (1) year commencing April 1, 2024, and ending on March 31, 2025. The monthly rent will be $5,400.00. The lease may be terminated by either party with a thirty (30) day notice. Lease payments will be deposited in the Bridge System Fund.
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PREVIOUS COUNCIL ACTION
On March 20, 2023, City Council approved the ordinance authorizing the City Manager to execute a lease agreement renewal with Securitas Security Services USA, Inc., as a sole source as per Customs and Border Protection approved security contract, for approximately 1,020 square feet of office space at Juarez-Lincoln International Bridge (Bridge II) for a lease term of one (1) year commencing April 1, 2023 and ending March 31, 2024 and a monthly rent of $5,400.00.
BACKGROUND
The City of Laredo has leased this property to Securitas Services USA, Inc. since 1988 and has never had any problems with this customer. An appraisal on the property was done on January 3, 2024, and the market rental value is $5,400.00 per month. Securitas Security Services USA, Inc. has advised of their interest to continue leasing the property located at Juarez-Lincoln International Bridge (Bridge II) at the agreed rental of $5,400.00 per month.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Authorize the City Manager to execute the lease agreement renewal to continue to comply with Customs and Border Protection requirements for duty free merchandise.
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Fiscal Impact
Fiscal Year: FY 2024
Budgeted Y/N?: Yes
Source of Funds: Rental Income
Account #: 553-4012-361-1052
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Rental income of $5,400.00 monthly will be generated from this lease agreement renewal.