To: Board of Supervisors
From: Public Works
Agenda Section: Consent
SUBJECT:
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Exercise the Option to Extend the Term of Lease at 3156 Redwood Drive, Redway
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Exercise the first option to extend the term of the lease at 3156 Redwood Drive, Redway to March 15, 2023; and
2. Authorize the Public Works Director to execute the option letter.
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SOURCE OF FUNDING:
Public Health Fund (1175)
DISCUSSION:
On April 2, 2019, your Board approved a lease with the David G. Katz and Anne Braak-Katz Trust (Lessor) for Public Works Planning and Building to use their premises at 3156 Redwood Drive, Redway (Attachment No. 1 - Lease).
On Dec. 14, 2021, your Board approved a First Amendment to lease to add the use of the Department of Health and Human Services (DHHS) Public Health services at the premises (Attachment No. 2 - First Amendment).
The county desires to exercise the first of two (2) options to extend the term of the lease, beginning March 16, 2022, and ending on March 15, 2023, by written notice to the Lessor (Attachment No. 3 - Option Letter). The Lessor has waived the required ninety (90) days’ notice prior to the end of the lease term in lieu of a thirty (30) days’ notice (Attachment No. 4 - Correspondence with Lessor).
Staff is requesting that your Board approve exercising the first of two (2) options to extend the lease term, beginning March 16, 2022, and ending on March 15, 2023.
FINANCIAL IMPACT:
The monthly rental cost for the first option shall be $1,700 a month with a total cost of $20,400. DHHS Public Health has sufficient funding in the fiscal year 2021-2022, 1175416, to accommodate this expense. There will be no impact to the General Fund.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by providing for and maintaining infrastructure .
OTHER AGENCY INVOLVEMENT:
Public Works
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board could choose not to exercise the first option to extend the lease from March 16, 2022, to March 15, 2023, for continued use of 3156 Redwood Drive, Redway. This is not recommended as the lease would end on March 15, 2022, forcing DHHS Public Health to vacate the premises and move back to the county owned building of 727 Cedar Street, Garberville, during the current renovation of the building. Renovation will therefore have to be stopped until such time as a new location can accommodate DHHS Public Health. There are no other premises available in Southern Humboldt to accommodate DHHS Public Health at this time.
ATTACHMENTS:
Attachment No. 1 - Lease
Attachment No. 2 - First Amendment
Attachment No. 3 - Option Letter
Attachment No. 4 - Correspondence with Lessor
PREVIOUS ACTION/REFERRAL:
Board Order No.: C17,C20
Meeting of: 4/02/19, 12/14/21
File No.: 19-384, 21-1773